Important Short Questions and Answers: Principles of Management - Planning

1. What is planning?

Planning is a process of selecting the objectives & determining the course of action required to achieve these objectives. Planning involves selecting missions and the objectives and the actions to achieve them. It ends with decision making, which is choosing the best alternative from the avail-able future courses of action.

EG: The goal set for limited period like five year plans

2. Important observations subjected about planning?

ü Planning is obtaining a future course of action in order to achieve an objective.

ü Planning is looking ahead.

ü Planning is getting ready to do something tomorrow.

ü Plan is a trap laid down to capture the future.

3. Define mission and vision?

Mission may be defines as a statement which defines the role that an organization plays in the society. EG: Canara Bank “Good People to Grow With”. A vision statement

indicates how the organization should be, after a particular time period.

4. Define policies?

Policies are general statement or understanding which provides guidance in decisions making to various managers.

5. Defining planning premises?

Planning premises are defined as the anticipated environment in which plans are expected to operate. They include assumptions or forecasts of the future & known conditions that will effects the operation of plans.

6. Explain in brief about the two approaches in which the hierarchy of objectives can be explained?

There are two approaches in which the hierarchy can be explained.

1. top-down approach

2. bottom-up approach

In the top-down approach, the total organization is directed through corporate objective provided by the top-level management. In the bottom up approach, the top level management needs to have information from lower level in the form of objectives.

7. Definitions of MBO:

KOONTZ &WEIHRICH: Management by objectives (MBO) is defined as a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational and individual objective.

“MBO is a process whereby the superiors and the subordinate managers of an enterprise jointly identify its common goals, define each individual major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.” - GEORGE

ODIORNE

8. Define strategy?

A strategy may be defined as special type of plan prepared for meeting the challenges posted by the activities of competitors and other environment forces.

9. Steps involved in strategic planning:

1. Mission and objectives.

2. Environmental analysis

3. Corporate analysis

4. Identification of alternatives.

5. Strategic decision making

6. Implementations review & control.

10.            Name the classification of planning premises?

1. Internal and external

2. Tangible and intangible premises.

3. Controllable and uncontrollable premises

11.            Define Decision Making

Decision Making is defined as selection of a course of action from among alternatives. It is a core of planning. A plan cannot be said to exist unless a decision – a commitment of resources, direction or reputation has been made. Until that point, there is only planning studies and analysis.

12.            What are the three approaches in selecting an alternative?

1. Experience

2. Experimentation

3. Research and Analysis

Experience:

Relying on post experience, the choice among alternatives is selected to avoid mistakes.

Experimentation:

A firm may test a new product in a certain market before expanding its sale nationwide.

Research and Analysis:

The trend in research and analysis is simulation i.e. to develop mathematical tools.

13. What is tows metrics?

The tows metrics i  a conceptual       frame    work    for a systematic  analysis,  which facilitates matching the external threats and opportunities with the internal weakness & strength of the organization. In the tows metrics ‘T’ stands for threat’s’ stands for opportunities ‘W’ for weakness and ‘S’ for strength.

14. Forecasting:

Forecasting is the process of predicting future conditions that will influence and guide the activities, behaviour and performance of the organization. EG: forecasting the output by sales department.