Chapter 4 - Planning

Question 1

Benefits of Planning

Answer 1

• Intensified effort
• Persistence
• Direction
• Creation of task strategies

Question 2

Planning Pitfalls

Answer 2

• Can impede change and prevent or slow needed adaptation
• Can create a false sense of certainty
• Detachment of planners

Question 3

How to make a plan that works

Answer 3

• Set goals
• Develop commitment to goals
• Develop effective action plans
• Track progress towards goal achievement
• Maintain flexibility in planning

Question 4

S.M.A.R.T Goals

Answer 4

Goals that are specific, measurable, attainable, result-oriented, and time-bounded.

Question 5

Goal Commitment

Answer 5

The determination to achieve a goal.

Question 6

Developing commitment to goals

Answer 6

• Set goals participatively
• Make the goal public
• Obtain top management’s support

Question 7

Action Plan

Answer 7

The specific steps, people, and resources needed to accomplish a goal.

Question 8

Tracking goal progress

Answer 8

• Through proximal goals and distal goals

- Gather and provide performance feedback

Question 9

Proximal Goals

Answer 9

Short-term goals or sub goals.

Question 10

Distal Goals

Answer 10

Long-term or primary goals.

Question 11

Maintaining flexibility in planning

Answer 11

• If plans fail, it is best to scrap the plan and start over.
• Options-based planning
• Learning-based planning

Question 12

Option-Based Planning

Answer 12

Maintaining planning flexibility by making small, simultaneous investments in many alternative plans.

Question 13

Learning Based Planning

Answer 13

Learning better ways of achieving goals by continually testing, changing, and improving plans and strategies.

Question 14

Plans top managers are responsible for developing

Answer 14

Strategic plans which consist of the:

- Vision
- Mission

Question 15

Strategic Plans

Answer 15

Overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years.

Question 16

Vision

Answer 16

Inspirational statement of an organization’s enduring purpose.

Question 17

Mission

Answer 17

Statement of a company’s overall goal that unifies company-wide efforts toward its vision, stretches and challenges the organization, and possesses a finish line and time frame.

Question 18

Companies can set missions in four ways:

Answer 18

• Targeting
• Common-enemy mission
• Role-model mission
• Internal-transformation mission

Question 19

Targeting

Answer 19

Mission stated as a clear, specific company goal.

Question 20

Common-Enemy Mission

Answer 20

Company goal of defeating a corporate rival.

Question 21

Role-Model Mission

Answer 21

Company goal of imitating the characteristics and practices of a successful company.

Question 22

Internal-Transformation Mission

Answer 22

Company goal of remaining competitive by making dramatic changes in the company.

Question 23

Plans middle managers are responsible for developing

Answer 23

Tactical plans which consist of:

- Management by objectives

Question 24

Tactical plans

Answer 24

Plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months or two years to accomplish specific goals within its mission.

Question 25

Management By Objectives (MBO)

Answer 25

A four step process in which: - managers and employees discuss and select goals - develop tactical plans - meet regularly to review progress toward goal achievement.

Question 26

Plans first-line managers are responsible for developing

Answer 26

Operational plans which consist of: - Single-use plans - Standing plans - Policies - Procedures - Rules and regulations - Budgeting

Question 27

Operational Plans

Answer 27

Day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and services over a 30 day to 6 month period.

Question 28

Single-Use Plans

Answer 28

Plans that cover unique, one time only events.

Question 29

Standing plans

Answer 29

Plans used repetitively to handle frequently recurring events.

Question 30

Policy

Answer 30

Standing plans that indicates the general course of action that should be taken in response to a particular event or situation.

Question 31

Procedure

Answer 31

Standing plan that indicates the specific steps that should be taken in response to a particular event.

Question 32

Rules and Regulations

Answer 32

Standing plan that describe how a particular action should be performed, or what must happen or not happen in response to a particular event.

Question 33

Budgeting

Answer 33

Quantitative planning through which managers decide how to allocate available money to best accomplish company goals.

Question 34

Special purpose plans

Answer 34

- Plans for change - Plans for contingencies - Plans for product development

Question 35

Plans for change

Answer 35

- Stretch goals | - Benchmarking

Question 36

Stretch Goals

Answer 36

Extremely ambitious goals that, initially, employees don't know how to accomplish.

Question 37

Benchmarking

Answer 37

The process of identifying outstanding practises, processes and standards in other companies and adapting them to your company.

Question 38

Plan for contingencies

Answer 38

- Scenario planning

Question 39

Scenario Planning

Answer 39

The process of developing plans to deal with several possible future events and trends that might affect the business.

Question 40

Breaking down scenario planning

Answer 40

1. Define the scope of the scenario 2. Identify the major stakeholders and the roles you expect them to play in the scenario 3. Identify basic political, economic, societal, technological, competitive, and legal trends that you expect to occur in the scenario 4. Identify key uncertainties and the likely outcomes associated with them 5. Using steps 1 through 4, put together your initial scenarios 6. Check for consistency and plausibility of facts and assumptions in each scenario 7. Write the final scenarios and conduct a series of planning sessions for management teams to develop contingency plans for each scenario 8. Develop measures or signposts for each scenario that allow managers to know when the events predicted in this scenario are occurring

Question 41

Plans for product development

Answer 41

- Aggregate product plans | - Product prototype

Question 42

Aggregate Product Plans

Answer 42

Plans developed to manage and monitor all products in development at any given time.

Question 43

Product Prototype

Answer 43

A full-scale, working model of a final product that is being tested for design, function and reliability.