Chapter 3

Question 1

• Provides methodical way of achieving desired results
• Serves as a useful guide in the implementation of activities

Answer 1

Plan

Question 2

“the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives”

Answer 2

Planning, according to Nickels and others

Question 3

“the selection and sequential ordering of tasks required to achieve an organizational goal”

Answer 3

Planning, according to Aldag and Stearns

Question 4

“deciding what will be done, who will do it, where, when and how it will be done and the standards to which it will be done”

Answer 4

Planning, according to Cole and Hamilton

Question 5

Planning at Various Management Levels

Answer 5

1. Top Management Level
2. Middle Management Level
3. Lower Management Level

Question 6

Strategic planning

Answer 6

Top Management Level

Question 7

Intermediate planning

Answer 7

Middle Management Level

Question 8

Operational planning

Answer 8

Lower Management Level

Question 9

Refers to the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve these goals.

Answer 9

Strategic Planning

Question 10

Refers to “the process of determining the contributions that sub units can make with allocated resources”

Answer 10

Intermediate Planning

Question 11

Refers to “the process of determining how specific tasks can be best accomplished on time with available resources.”

Answer 11

Operational Planning

Question 12

The Planning Process

Answer 12

1. Setting organizational, divisional, or unit goals
2. Developing strategies or tactics to reach those goals
3. Determining resources needed and
4. Setting standards

Question 13

May be defined as the “precise statement of results sought, quantified in time and magnitude, where possible. “

Answer 13

Goals

Question 14

First task of the engineer manager:

Answer 14

• Provide a sense of direction to his:
   Firm (CEO)
   Division (heads a division)
   Unit (supervisor)

Question 15

May be defined as “a course of action aimed at ensuring that the organization will achieve its objectives”

Answer 15

Strategy

Question 16

• Short-term action taken by management to adjust to negative internal or external influences
• Formulated and implemented in support of the firm’s strategies

Answer 16

Tactic

Question 17

Indicate the decision about short-term goals and the courses of action

Answer 17

Tactical Plan

Question 18

May be defined as “a quantitative or qualitative measuring device designed to help monitor the performances of people, capital goods, or processes”

Answer 18

Standard

Question 19

Types of Plan

Answer 19

1. Functional Area Plans
2. Plans with Time Horizon
3. Plans According to Frequency of Use

Question 21

this is a written document that states the quantity of output a company must produce in broad terms and by product family

Answer 21

Production Plan

Question 21

this is the written document or blueprint for implementing and controlling an organization’s marketing activities related to a particular marketing strategy

Answer 21

Marketing Plan

Question 21

Functional Area Plans

Answer 21

1. Marketing Plan
2. Production Plan
3. Financial Plan
4. Human Resource Management Plan

Question 22

it is a document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities

Answer 22

Financial Plan

Question 23

it is a document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company's strategic plan

Answer 23

Human Resource Management Plan

Question 24

Plans with Time Horizon consists of the following

Answer 24

1. Short-range Plan 2. Long-range Plan

Question 25

these are plans intended to cover a period of less than one year.

Answer 25

Short-range Plan

Question 26

these are plans covering a time span of more than one year. These are mostly undertaken by middle and top management

Answer 26

Long-range Plan

Question 27

Plans According to Frequency of Use classifications:

Answer 27

1. Standing Plans 2. Single-use Plans

Question 28

these are plans that are used again and again, and they focus on managerial situations that recur repeatedly

Answer 28

Standing Plans

Question 29

Standing Plans may be further classified into the following

Answer 29

1. Policies 2. Procedures 3. Rules

Question 30

they are broad guidelines to aid managers at every level in making decisions about recurring situations or functions

Answer 30

Policies

Question 31

they are plans that describe the exact series of actions to be taken in a given situation

Answer 31

Procedures

Question 32

they are statements that either require or forbid a certain action

Answer 32

Rules

Question 33

These plans are specifically developed to implement courses of action that are relatively unique and unlikely to be repeated

Answer 33

Single-Use Plans

Question 34

Single-use plans may be further classified as follows:

Answer 34

1. Budgets 2. Programs 3. Projects

Question 35

according to Weston and Brigham is "a plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from"

Answer 35

Budget

Question 36

is a single-use plan designed to coordinate a large set of activities

Answer 36

Program

Question 37

is a single-use plan that is usually more limited in scope that a program and is sometimes prepared to support a program

Answer 37

Project

Question 38

The Contents of a Marketing Plan

Answer 38

1. The Executive Summary 2. Table of Contents 3. Situational Analysis and Target Market 4. Marketing Objectives and Goals 5. Marketing Strategies 6. Marketing Tactics 7. Schedules and Budgets 8. Financial Data and Control

Question 39

Which presents overall view of the marketing project and its potential

Answer 39

The Executive Summary

Question 40

The Contents of Production Plan

Answer 40

1. The amount of capacity the company must have 2. How many employees are required 3. How much material must be purchased

Question 41

The Contents of the Financial Plan

Answer 41

1. Analysis of the firm’s current financial condition (as indicated by an analysis of the most recent statements) 2. Sales Forecast 3. Capital Budget 4. Cash Budget 5. Set of Pro Forma (or Projected) Financial Statements 6. External Financing Plan

Question 42

The Contents of the Human Resources Plan

Answer 42

1. Personnel requirements of the company 2. Plans for recruitment and selection 3. Training Plan 4. Retirement Plan.

Question 43

Parts of the Strategic Plan

Answer 43

1. Company or Corporate Mission 2. Objectives or Goals 3. Strategies

Question 44

refers to the "strategic statement that identifies why an organization exists, its philosophy of management, and its purpose as distinguished from other similar organizations in terms of products, services, and markets.

Answer 44

Company of corporate mission

Question 45

is done so that some desired results may be achieved

Answer 45

Planning

Question 46

Planning may be made successful if the following are observed:

Answer 46

1. Recognize the planning barriers 2. Use of aids to planning

Question 47

Planning Barriers according to Plunkett and Attner

Answer 47

1. Manager's inability to plan 2. Improper planning process 3. Lack of commitment to the planning process 4. Improper Information 5. Focusing on the present at the expense of the future 6. Too much reliance on the planning department 7. Concentrating on only the controllable variables

Question 48

Aids to planning:

Answer 48

1. Gather as much information as possible 2. Develop multiple sources of information 3. Involve others in the planning process