MNG 2601 QUESTIONS AND ANSWERS
1. Three components of planning: 1 - Determine the organizational vision, mission and goals.
2 - Determine ways of reaching goals.
3 - Find resources.
2. Vision Statement: A statement of what the organization wants to become and where it wants to be in the
future.
3. Mission Statement: aligns the organization with its vision in terms of its products and services, market and
technology. Set out the philosophy of the organization in terms of its values, ethics and beliefs.
4. Goal setting: are targets an organization drives toward and are a commitment to achieve a measurable result
within a given timeframe.
5. Good objective (p215): Expressed in quantitative, measurable, concrete or specific terms, in the form of a
written statement if desired results.
- should be attainable (realistic), acceptable, congruent with one another.
6. Congruency: The attainment of one goal should not preclude the attainment of another goal.
7. A-B-C priority system: Objectives are grouped into 3 categories:
1) A-group objectives: must-do and are critical for successful performance.
2) B-group objectives: should-do and is necessary for improved performance.
3) C-group objectives: nice-to-do and is for improved performance but not critical.
8. 80/20 principle or Pareto principle: A minority of causes, inputs or ettort tend to produce the
majority of results, outputs or rewards.
9. Determine ways of reaching goals (the ends-means chain of objectives): Bot-
tom-up approach - working from bottom to top, lower management objectives provide the means for achieve in top-
level objectives.
We need: time, talent, financial, information and physical resources to attain goals.
,10. Benefits of Planning: - provides direction and helps managers focus on forward thinking.
- leads to participatory work environment.
- reduces the impact of change.
- sets standards by which to facilitate control.
11. Costs associated with planning: - May create rigidity.
- substantial amount of managerial time, energy and financial costs.
- Planning process can be reduced to a programmed routine, replacing intuition and creativity.
- Delay in decision making.
, 12. Types of plans: 1. Strategic plans
2. Tactical plans
3. Operational plans
13. Strategic plans: - Top-level managers.
- establishes overall long-term objectives, seek to position organization in terms of environment and drive the
organization towards attaining overall goals.
- Specificity: broad.
Includes:
- create vision.
- translate vision into realistic mission statement.
- translate mission statement into measurable long-term goals.
- choosing strategy.
14. Characteristics of strategic plans: - extended timeframe (more than 5 years).
- focus on entire organization.
- reconciling organizations strengths and weaknesses.
- creating and maintaining competitive advantage.
- take synergy into consideration.
15. Tactical plans: - Middle and first-like managers.
- focus on functional areas: marketing finance etc.
- Specify details of how medium-term objectives are to be achieved. More specific than strategic plans.
16. Operational plans: - Lower-level managers.
- Focus on carting our tactical plans to achieve operational goals.
- Short-term (less than one year).
1. Three components of planning: 1 - Determine the organizational vision, mission and goals.
2 - Determine ways of reaching goals.
3 - Find resources.
2. Vision Statement: A statement of what the organization wants to become and where it wants to be in the
future.
3. Mission Statement: aligns the organization with its vision in terms of its products and services, market and
technology. Set out the philosophy of the organization in terms of its values, ethics and beliefs.
4. Goal setting: are targets an organization drives toward and are a commitment to achieve a measurable result
within a given timeframe.
5. Good objective (p215): Expressed in quantitative, measurable, concrete or specific terms, in the form of a
written statement if desired results.
- should be attainable (realistic), acceptable, congruent with one another.
6. Congruency: The attainment of one goal should not preclude the attainment of another goal.
7. A-B-C priority system: Objectives are grouped into 3 categories:
1) A-group objectives: must-do and are critical for successful performance.
2) B-group objectives: should-do and is necessary for improved performance.
3) C-group objectives: nice-to-do and is for improved performance but not critical.
8. 80/20 principle or Pareto principle: A minority of causes, inputs or ettort tend to produce the
majority of results, outputs or rewards.
9. Determine ways of reaching goals (the ends-means chain of objectives): Bot-
tom-up approach - working from bottom to top, lower management objectives provide the means for achieve in top-
level objectives.
We need: time, talent, financial, information and physical resources to attain goals.
,10. Benefits of Planning: - provides direction and helps managers focus on forward thinking.
- leads to participatory work environment.
- reduces the impact of change.
- sets standards by which to facilitate control.
11. Costs associated with planning: - May create rigidity.
- substantial amount of managerial time, energy and financial costs.
- Planning process can be reduced to a programmed routine, replacing intuition and creativity.
- Delay in decision making.
, 12. Types of plans: 1. Strategic plans
2. Tactical plans
3. Operational plans
13. Strategic plans: - Top-level managers.
- establishes overall long-term objectives, seek to position organization in terms of environment and drive the
organization towards attaining overall goals.
- Specificity: broad.
Includes:
- create vision.
- translate vision into realistic mission statement.
- translate mission statement into measurable long-term goals.
- choosing strategy.
14. Characteristics of strategic plans: - extended timeframe (more than 5 years).
- focus on entire organization.
- reconciling organizations strengths and weaknesses.
- creating and maintaining competitive advantage.
- take synergy into consideration.
15. Tactical plans: - Middle and first-like managers.
- focus on functional areas: marketing finance etc.
- Specify details of how medium-term objectives are to be achieved. More specific than strategic plans.
16. Operational plans: - Lower-level managers.
- Focus on carting our tactical plans to achieve operational goals.
- Short-term (less than one year).
