Chapter 7 - Management

When determining goals to increase profitability, the assumption that a company can gain a larger share of its market is an example of a(an) ________. A) premise B) objective C) contingency D) affirmation E) standing plan

A: Premise

Planning is the process of determining how the organization can get where it wants to go and what it will do to accomplish its objectives. True or False

True

Steps in the Planning Process are ALWAYS or SHOULD BE tied to the budget? Why or Why not?

Always tied to the budget (6 steps). Budget dictates what the organization is able to accomplish their objectives.

What's M.B.O?

Management By Objective.

Marjorie is confused with the differences between policies and procedures. How would you explain these terms and their use in the planning process to Marjorie?

Policies are standing plans that furnish broad guidelines for managers to use as they take actions towards helping the firm reach its organizational objectives. Procedures are standing plans that outline a series of related actions that need to be taken to accomplish a specific, particular task. Procedures contain far more details than policies do. Many firms define policies and then procedures in an attempt to coordinate the activities of the individuals within the firm.

Which one of the following steps in the planning process should precede the others? A) develop premises upon which each alternative is based B) develop plans to pursue the chosen alternative C) list alternative ways of reaching objectives D) choose the best alternative for reaching objectives E) put plans into action

C: List alternative ways of reaching objectives

The process of determining how an organization can get where it wants to go and what it will do to accomplish its objectives is known as ________. A) organizing B) influencing C) planning D) controlling E) analyzing

C: Planning

When Apple integrated "green principles" into its manufacturing operations, the company was modifying its ________. A) plans B) rules C) procedures D) tactics E) strategies

C: Procedures

A purpose of planning intended to minimize risk by reducing uncertainties in the managerial environment is known as ________ planning. A) assumption B) tactical C) protective D) elimination E) premise

C: Protective

Targets to be achieved in one year or less are called ________. A) time-bound actions B) departmentalized goals C) short-term objectives D) long-term objectives E) intermediate-term plans

C: Short-term objectives

Which one of the following is an example of a statement of organizational purpose? A) to increase the company's market share by 20 percent by 2011 B) to execute all projects in a timely and professional manner C) to be the leading provider of professional health care services D) to provide our employees with a challenging and rewarding work environment E) to build long-lasting customer relationships based on trust

C: To be the leading provider of professional health care services.

What is planning? What are the advantages and potential disadvantages of planning?

Planning is the process of determining how the organization can get where it wants to go, and what it will do to accomplish its objectives. A vigorous planning program produces many benefits. First, it helps managers to be future-oriented. They are forced to look beyond their everyday problems to project what situations may confront them in the future. Second, a sound-planning program enhances decision coordination. Third, planning emphasizes organizational objectives. Because organizational objectives are the starting points for planning, managers are continually reminded of exactly what their organization is trying to accomplish. Planning does not eliminate risk, but it does help managers identify and deal with organizational problems before they cause havoc in a business. If the planning function is not well executed, planning can have several disadvantages for the organization. For example, an overemphasis on planning can take up too much managerial time. Managers must strike an appropriate balance between time spent on planning and time spent on organizing, influencing, and controlling. If they don't, some activities that are extremely important to the success of the organization may be neglected. Overall, the advantages of planning definitely outweigh the disadvantages. Usually, the disadvantages of planning result from using the planning function incorrectly

List and discuss two purposes for planning.

Sound planning is essential for today's organizations that are attempting to compete while also effectively and efficiently using the firm's limited resources. A significant reason for planning is to minimize risk and uncertainties surrounding the firm. Each manager encounters environmental forces that may either assist or deter them from reaching goals - the protective purpose of planning assists managers by helping identify those forces in the environment that may have negative consequences related to their actions. Secondly, planning helps increase the degree of organizational successes as individuals within the firm come together in a coordinated effort with the monitoring of planning actions.

What's forecasting? Give an example.

Try to predict the future of your organization based on prior + present events Example: Enrollment at North Shore

Who's Peter Drucker? why did he suggest mgrs. use m.b.o?

Very strict steps to follow. Keeps the plan on track.

Describe the steps in the planning process.

The planning process consists of the following six steps: 1. State organizational objectives - Because planning focuses on how the management system will reach organizational objectives, a clear statement of those objectives is necessary before planning can begin. Objectives stipulate those areas in which organizational planning must occur. 2. List alternative ways of reaching objectives - A manager should list as many available alternatives as possible for reaching objectives. 3. Develop premises on which to base each alternative - The feasibility of using any one alternative to reach organizational objectives is determined by the premises, or assumptions, on which the alternative is based. A manager should list all of the premises for each alternative. 4. Choose the best alternative for reaching objectives - An evaluation of alternatives must include an evaluation of the premises on which the alternatives are based. A manager usually finds that some premises are unreasonable and can therefore be excluded from further consideration. This elimination process helps the manager determine which alternative would best accomplish organizational objectives. 5. Develop plans to pursue the chosen alternative - After an alternative has been chosen, a manager begins to develop strategic (long-range) and tactical (short-range) plans. 6. Put the plans into action - Once plans that furnish the organization with both long-range and short-range direction have been developed, they must be implemented.

A potential disadvantage of planning is that it can take up too much managerial time. True or False

True

Plans fail when management fails to grasp the overall planning process. True or False

True

Premises are the assumptions upon which alternatives to reaching organizational objectives are based. True or False

True

Scheduling

1.) Gantt method

3 types of organization Objectives.

1.) Short-Term 2.) Intermediate 3.)Long-Term

Discuss the differences between plans, goals, objectives, premises, and assumptions.

A firm's goals identify where the firm is going — A firm's plans include the action steps needed to reach the goals. Through the use of the formal planning process and following the steps involved in the process, a firm's management is better able to coordinate the activities of individuals within the firm towards accomplishing the firm's goals. The first step in this planning process is to identify the firm's goals — also known as objectives. Premises are the assumptions the firm's managers have as they develop their action plans. In other words, if a manager has set an objective/goal to increase their firm's market share, they have a premise/assumption that the firm offers products customers are interested in purchasing and there are additional customers to be found who will buy the firm's products and therefore enable the firm to increase its market share.

Walt is a sales manager charged with allocating funds, resources, and labor costs for the coming year. In doing so he is preparing a ________. A) budget B) standing plan C) procedure D) tactic E) rule

A: Budget

The affirmative purpose of planning is to ________. A) increase the degree of organizational success B) increase the level of workplace diversity C) optimize the use of organizational resources D) refine work methods and reduce production costs E) improve organizational compliance with industry standards

A: Increase the degree of Organization Success

Walt Biggs is general manager at a plumbing contractor. He is currently working on designing the procedures and policies the company will use as it schedules its employees on customer projects. Which one of the following managerial functions is Walt undertaking? A) planning B) organizing C) influencing D) controlling E) evaluating

A: Planning

Does it have advantage + disadvantage?

Advantage: Gains employee commitment or "buy in". Disadvantage: Time consuming + increased paperwork.

________ is a standing plan that designates specific required action. A) A resource B) A rule C) A budget D) A strategy E) A responsibility

B: A Rule

Which one of the following is the fundamental purpose of planning? A) eliminating risk B) helping the organization reach its objectives C) optimizing the use of resources D) identifying organizational objectives E) organizing work processes

B: Helping the Organization reach its Objectives

Which one of the following is an advantage of planning? A) It eliminates all risks. B) It enhances decision coordination. C) It emphasizes immediate goals. D) It suboptimizes the use of resources. E) It promotes individual performance.

B: It Enhances Decision Coordination

A manager reviewing how to keep employees safe typically develops a workplace violence ________. A) rule B) policy C) tactic D) procedure E) strategy

B: Policy

When management at H&M buys and stocks only merchandise that has been produced using environmentally and socially sustainable methods, they are following a company ________ implemented at their corporate office. A) procedure B) policy C) premise D) assumption E) plan

B: Policy

Which set of the following two questions best summarizes the steps involved in the planning function? A) Where are we going? What prevents us from getting there? B) Where are we going? How do we get there? C) Who is doing the work? How will they do it? D) How can this firm reach its goals? When will they reach the goals? E) Where are we going? When will we get there?

B: Where are we going? How do we get there

________ refers to what a firm exists to do, given a particular group of customers and customer needs. A) An operational plan B) A unique selling proposition C) An organizational purpose D) A long-term goal E) A vision statement

C: An Organizational purpose.

The Planning function is directly connected to which of these other managerial functions? A) leading B) organizing C) controlling D) directing E) moderating

C: Controlling

________ is the key to a successful planning process. A) Classification B) Repetition C) Implementation D) Evaluation E) Standardization

C: Implementation

A disadvantage of planning is that it ________. A) causes managers to focus on the future B) reduces organizational flexibility once plans are set C) requires organizational resources D) can take up too much managerial time E) involves planning for situations that may not occur

D: Can Take up too much managerial time

After identifying the alternative ways in which the organization can reach its objectives, a manager should ________. A) develop plans for each alternative B) choose the best alternative for reaching objectives C) rank each alternative according to complexity D) develop premises on which to base each alternative E) choose the alternative which is most cost effective

D: Develop premises on which to base each alternative

Alisa is trying to determine how to get her employees more involved in the company's plans and goals. Which one of the following actions could she take as she begins identifying the goals for her department for the upcoming year? A) Tell employees which goals they will be working on. B) Have employees vote on the goals for the organization. C) Assign goals randomly to employees. D) Let the people responsible for attaining the objectives have a voice in setting them. E) Let upper management set all departmental goals.

D: Let the people responsible for attaining the objectives have a voice in setting them.

The protective purpose of planning is to ________. A) ensure integration among the organization's various business units B) increase the degree of organizational success C) optimize the use of organizational resources D) minimize risk by reducing the uncertainties surrounding business conditions E) maximize the organization's ability to leverage environmental opportunities

D: Minimize risk by reducing the uncertainties surrounding business conditions

A single-use financial plan that covers a specified length of time is known as a(n) ________. A) offshoot B) microsystem C) spinoff D) subsystem E) budget

E: Budget

An organization's vision is what the organization exists to do, given a particular group of customers and customer needs. True or False

False