NCM 119: Components in the
Management Process (Planning) Exam
Questions and Answers
What is planning? - answer-deciding in advance what to do; who is to do it; and how,
when, and where it is to be done
Reasons for Planning - answer-1. achievement of goals
2. effective control
3. helps in coping with crisis; prevents panic
4. reduces element of change
Modes of Planning - answer-1. reactive planning
2. inactivism
3. preactivism
4. Interactive or proactive planning
- uses technology to have change
- future oriented - answer-Preactivism
- occurs after the problem has existed
- because it is done in response to a crisis, it is not thought of properly and done
quickly
- band aid solution; not very ideal - answer-Reactive Planning
- Occurs in anticipation of changing needs
- Key word: Anticipation and adaptability
- Plans before problem occurs
- Most ideal mode to plan - answer-Interactive or Proactive Planning
- seek the status quo, and they spend their energy preventing change and
maintaining conformity
- When changes do occur, they occur slowly and incrementally. - answer-Inactivism
Elements in Planning - answer-1. Forecasting
2. Time Management
Types of planning under forecasting - answer-1. strategic planning
2. operational planning
- An element in planning that looks into the future and plans ahead of time
- it gives sequence in activity
- Protects an organization against undesirable changes: prevents disastrous and
unacceptable outcomes - Includes socioeconomic aspects - answer-Forecasting
- type of planning that is short-term with a period of 1-3 years
, - less complex
- may be done annually, monthly, weekly - answer-Operational planning
2 common tools in strategic planning - answer-1. SWOT analysis
2. Balanced Scorecard
- type of planning that is long-range with a period of 5-10 years
- involves top level managers
- examines the readiness for change - answer-Strategic planning
Who developed the SWOT analysis (including year) - answer-Albert Humphrey
(1960s, revised 1970s)
Who developed the Balanced Scorecard (including year) - answer-Robert Kaplan
and David Norton (1990s)
4 organizational perspectives of the Balanced Scorecard - answer-1. Financial
2. Customers
3. Internal business processes
4. Learning and Growth
A pyramid where the visions are in the top and rules will be in the bottom - answer-
The Planning Hierarchy
- 3 sentences
- Identify what is unique to an organization
- Drives actions
- Statement of purpose or reason of the existence of the organization
- Has to be short but longer than vision - answer-Mission
- Desired result to which effort is directed
- it is the aim of the philosophy
- Change with time and require periodic re-evaluation and prioritization global in
nature, should be measurable and ambitious but realistic.
- Have multiple objectives that are each accompanied by a targeted completion date.
- General - answer-Goal
- Are plans reduced to statements or instructions
- Guide individual actions
- Derived from the organization's philosophy, goals, and objectives explain how goals
will be met and guide the general course and scope of organizational activities
- Direct individual behavior toward the organization's mission - answer-Policies
2 types of policies - answer-1. Implied
2. Expressed
- Used to describe future goals or aims of an organization
- A description in words that conjures up a picture for all group members of what they
want to accomplish together
- Future goal or aim of the organization - answer-Vision
Management Process (Planning) Exam
Questions and Answers
What is planning? - answer-deciding in advance what to do; who is to do it; and how,
when, and where it is to be done
Reasons for Planning - answer-1. achievement of goals
2. effective control
3. helps in coping with crisis; prevents panic
4. reduces element of change
Modes of Planning - answer-1. reactive planning
2. inactivism
3. preactivism
4. Interactive or proactive planning
- uses technology to have change
- future oriented - answer-Preactivism
- occurs after the problem has existed
- because it is done in response to a crisis, it is not thought of properly and done
quickly
- band aid solution; not very ideal - answer-Reactive Planning
- Occurs in anticipation of changing needs
- Key word: Anticipation and adaptability
- Plans before problem occurs
- Most ideal mode to plan - answer-Interactive or Proactive Planning
- seek the status quo, and they spend their energy preventing change and
maintaining conformity
- When changes do occur, they occur slowly and incrementally. - answer-Inactivism
Elements in Planning - answer-1. Forecasting
2. Time Management
Types of planning under forecasting - answer-1. strategic planning
2. operational planning
- An element in planning that looks into the future and plans ahead of time
- it gives sequence in activity
- Protects an organization against undesirable changes: prevents disastrous and
unacceptable outcomes - Includes socioeconomic aspects - answer-Forecasting
- type of planning that is short-term with a period of 1-3 years
, - less complex
- may be done annually, monthly, weekly - answer-Operational planning
2 common tools in strategic planning - answer-1. SWOT analysis
2. Balanced Scorecard
- type of planning that is long-range with a period of 5-10 years
- involves top level managers
- examines the readiness for change - answer-Strategic planning
Who developed the SWOT analysis (including year) - answer-Albert Humphrey
(1960s, revised 1970s)
Who developed the Balanced Scorecard (including year) - answer-Robert Kaplan
and David Norton (1990s)
4 organizational perspectives of the Balanced Scorecard - answer-1. Financial
2. Customers
3. Internal business processes
4. Learning and Growth
A pyramid where the visions are in the top and rules will be in the bottom - answer-
The Planning Hierarchy
- 3 sentences
- Identify what is unique to an organization
- Drives actions
- Statement of purpose or reason of the existence of the organization
- Has to be short but longer than vision - answer-Mission
- Desired result to which effort is directed
- it is the aim of the philosophy
- Change with time and require periodic re-evaluation and prioritization global in
nature, should be measurable and ambitious but realistic.
- Have multiple objectives that are each accompanied by a targeted completion date.
- General - answer-Goal
- Are plans reduced to statements or instructions
- Guide individual actions
- Derived from the organization's philosophy, goals, and objectives explain how goals
will be met and guide the general course and scope of organizational activities
- Direct individual behavior toward the organization's mission - answer-Policies
2 types of policies - answer-1. Implied
2. Expressed
- Used to describe future goals or aims of an organization
- A description in words that conjures up a picture for all group members of what they
want to accomplish together
- Future goal or aim of the organization - answer-Vision
