MGT 3370 Ch. 5
Objective
A goal is also known as a(n) ____.
Policy
A standing plan that outlines the general response to a designated problem or situation is a(n) _____.
Stretch Goal
According to Richard Branson, founder of Virgin Atlantic airlines, you can set a really hard goal, such as increasing your class study time 50%, which is "stretching yourself beyond what your mind might think is safe," also known as a(n) ____.
Provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage
An organization should adopt planning and strategic management to ____.
To jointly set objectives and have managers develop action plans
Andre, the plant manager, is interested in increasing the facility's productivity by utilizing MBO so that his managers and their employees are more focused on objectives. This month Andre asked his managers to concentrate on the two first steps of MBO, which are ____.
Deal with uncertain and competitive conditions
At the strategic level of planning, managers must pay attention to the environment outside the organization, be future oriented, and ____.
Closer to every 1 or 2 years than every 5 years
Because of frequently changing competition and technology, a company's strategic planning may have to be done _____.
Operational Planning
Decisions that retail managers make on which products to pull from the floor and which products to order more inventory are considered as _________.
Program Single Use
Encompasses a range of project or activities
Objectives must cascade
For MBO to be successful, top management must be committed, it must be applied organizationwide, and _____.
Project Single Use
Has less scope and complexity than a program
Marketing Plan
In a late October marketing meeting, Theresa, the branch manager, told her marketing manager, Sal, that she needed two things by the end of the year from him: "First I want your goals for next year, and then I need your action plan to reach your goals, your ____."
Control
John, the owner of a lawn care service, likes to meet with his employees six months after their yearly evaluation to discuss how they are progressing on suggestions on and plans to improve their yearly job evaluation. At this point, by comparing the six-month results with the past evaluation, John is in the ______ steps of the planning/control cycle.
Carrying out the plan
Making periodic deliveries of products to each Zara store is an example of ________.
Policy Standing Plan
Outlines general response to a designated problem or situation
Procedure Standing Plan
Outlines response to particular problems or circumstances
1. Establish Mission and Vision 2. Assess the current reality 3. Formulate the grand strategy and strategic, tactical, and operational plans 4. Implement the strategy 5. Maintain Strategic control
Planning and Strategic management Process
Specific Measurable Attainable Results Oriented Target Dates
SMART Goals
Planning
Setting goals and deciding how to achieve them is the definition of ____.
Operational goal
Susan is a front-line supervisor in a grocery retailer. She desires to decrease the time she spends working on doing her daily closing work. This objective set by Susan and for her is an example of a(n) ____.
What is our reason for being?; What do we want to become?
The planning process begins with two attributes: a mission statement, which answers the question _____, and a vision statement, which answers the question ______
Tactical Goals
The top management of Tasty Foods, a food distribution company, has set strategic goals of increasing organizational market share and also decreasing corporate costs over the next three years. Greg, a division manager for Tasty Foods, has looked at his resources, and decided how his division can contribute to the two strategic goals set by upper management. These types of objectives set by Greg are _____.
False Research suggests that writing about two paragraphs outlining your goals will help you feel more confident and energetic when entering a new group.
There is little proof that writing out goals helps an individual feel more confident and energetic when entering a new group. T/F
SMART goals
Thomas, the fire chief, told his employees to "Think big and endeavor to be more detailed and caring while at work and in setting goals. Therefore, when you give me your goals, I want them to be specific, measurable, attainable, results-oriented, and have target dates." Thomas was asking for his workers' _____.
Big picture; the necessary details
When utilizing SMART goals or MBO, deadlines can help you keep your eye on the ______ while simultaneously paying attention to _____.
Support the organization's vision
With SMART goals only a few goals should be chosen, and they should be results-oriented, that ____.
False A business plan is a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success.
A business plan is a tool used by the federal government to determine how to strengthen the business sector through macroeconomics and microeconomics. T/F
a specific commitment to achieve a measurable result within a stated period of time
A goal is _____.
SMART goal
Billy told his boss, Gwen, that he is going to start training for the upcoming marathon to be healthier and to have more energy for work. When Gwen asked him about his running history, Billy said, "I really have never run before and don't exercise much. I just know I need to do something." Gwen told Billy, "You should start slowly, maybe setting smaller, realistic exercise goals that are achievable." Gwen is helping Billy with an achievable goal, a type of _____.
Rule Standing Plan
Designates specific required action
True Vision statements answer the question, "What do we want to become?" or "Where do we want to go?"
In the office of every general manager of Relaxing Hotel there is a small poster that reads, "We want to become the only place our customers want to stay for the night while traveling." This is the vision statement for Relaxing Hotels. T/F
Business Model
Prior to opening her new restaurant, Nia is determining what items to offer on the menu, the anticipated profits and expenses, the tasks of various employees, and how those jobs will be handled. Nia is writing her ____.
True An organization's reason for being is expressed in a mission statement.
Prior to opening his business, Sal, the owner of The Italian Kitchen, is writing a document that explains the reason for his business. This statement would be a part of his mission statement. T/F
True Strategic management is a process that involves managers from all parts of the organization—top managers, middle managers, and first-line managers—in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization.
Strategic management is a process in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization. T/F
Vision Statement
A declaration that expresses what the organization should become and where it wants to go strategically is its ____.
True A goal, also known as an objective, is a specific commitment to achieve a measurable result within a stated period of time.
A goal is a specific commitment to achieve a measurable result within a stated period of time. T/F
Stretch Goal
A music teacher asked her students to set a really hard goal, such as increasing your practice time by 10 hours per week, which would cause her students to stretch beyond what they think is possible, this is known as a(n) ____.
True A SMART goal is one that is Specific, Measurable, Attainable, Results-oriented, and has Target dates.
Alex, a district manager for a retail hardware store, asked his store managers for their store goals next year. Denise, one of the store managers, said, "I am going to increase my market share significantly next year by visiting businesses." Alex then responded to Denise with "Precisely how much are you going to increase your market share and by what date?" Alex is asking Denise to formulate a SMART goal. T/F
Rule
Because several computers and keyboards in the computer labs have been damaged recently by drinks and food being spilled, the department chair of the IT department issued a directive that "Absolutely no food or drink is allowed in any computer lab." This statement by the department chair is a(n) ______.
True Strategic goals are set by and for top management and focus on objectives for the organization as a whole.
Don, a middle manager for a large restaurant chain, received an e-mail from the CEO outlining the new goal of decreasing company costs over the next three years. This is an example of a strategic goal. T/F
Operational Goal
Donna is the service desk coordinator in a department store, and she has set a goal this month of finishing her daily office work quicker so she can assist at the Service Desk earlier in the morning. She knows this will also help decrease theft, which will assist the company in achieving its goal of decreasing costs. Donna's goal of finishing her office work quicker is a(n) _____.
Single-use Plan
For activities not likely to be repeated in the future
Standing Plan
For activities that occur repeatedly over a period of time
Operational Goals
Goals that are set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals are called _______.
Action Plan
Mr. Jones, the department manager, told his employees that he wanted them to write down their work goals for the year. To help his workers achieve their stated goals, the next thing that he should ask for are each worker's ____.
Project
Paula, the store manager, asked Tom to organize the prize giveaways for the store's grand reopening open house. This plan is an example of a(n) ___.
1. Make Plan 2. Carry out the plan 3. Control direction by comparing results with original plan 4. Control direction by either correcting deviations or by improving future plans
Planning-Control Cycle
Mission Statement
Quality Vacuum has been manufacturing excellent vacuum cleaners for over 50 years. In the employee break room is a banner that reads, "We will always provide the highest-quality vacuums at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders." This statement is Quality Vacuum's ____.
Make a concrete plan and break goals into manageable bites
Research suggests that when writing out and achieving a person's biggest goals, it is important to ____.
Rewards his employees with compliments, raises, and other benefits as they meet their goals
Steve, a hotel general manager, has had great success using MBO. Hannah, his district manager, has found that his employees are highly motivated, and she believes that this is the case because in using MBO, Steve ____.
Operating
The management of Quality Carpet Cleaning finalized the company's action plan for increasing its market share over the next few years. The management then set up a 12-month plan that defines how the organization will conduct its business based on the action plan, including clear sales targets for each week. The second plan is an example of a(n) _____ plan.
Correcting deviations in the plan being carried out or improving future plans
The planning/control cycle has two control steps: (1) control the direction by comparing results with the plan and (2) control the direction by taking corrective action in two ways—namely by _____.
False In the planning/control cycle, managers take corrective action by correcting deviations in the plan being carried out or by improving future plans (see Figure 5.5).
The planning/control cycle is an order planning system in which employees work with customers to plan orders and discuss delivery times. T/F
MBO
The process for motivating employee performance in which the manager and employee jointly set objectives for the employee, the manager develops action plans, the manager and employee periodically review the employee's performance, and the manager makes a performance appraisal and rewards the employee according to results is known as ____.
A poor plan
The profits of ABC Grocery have dropped significantly over the last several months. After investigating, the owner realizes that the store is moving in the wrong direction in many departments, so there needs to be greater focus by management. This is an example of how an organization can progress in the wrong direction with ____.
Motivate subordinates
The purpose of MBO is to ____.
True Planning is defined as setting goals and deciding how to achieve them. Another definition is that planning is coping with uncertainty by formulating future courses of action to achieve specified results.
To start work every day, David sits down and sets his goals for the day and then he decides how to achieve them, formulating future courses of action to achieve the specified results. This is the definition of planning. T/F
Being Differentiated
Zara's goals should have all of the following characteristics except __________.
Assess the current reality
Zara's identification of customer needs can be categorized as which planning and strategic management step?