MGT503 Final Term Subjective

MGT503-Principle of Management Lecture Wise Questions and Answers For Final Term Exam Preparation by Virtualians Social Network

Contingency planning

A contingency plan is a process in business continuity and risk management that prepares an organization to respond logically to an unplanned event. The contingency plan can be also used as an alternative for action if expected results fail to materialize. A contingency plan is sometimes referred to as " Plan B."

What is a Plan?

A plan is the means devised for attempting to reach a goal.

What is a goal?

A goal is a future target or end result that an organization wishes to achieve.

What is a mission statement?

A mission statement is a broad declaration of the basic, unique purpose and Scope of operations that distinguishes the organization from others of this type

Some Important points:

•  Strategic plans are those that are organization wide, establish overall objectives, and position an organization in terms of its environment.
•  Operational plans are plans that specify details on how overall objectives are to be achieved.
•  Short-term plans are plans that cover one year or less.
•  Long-term plans are those that extend beyond three years.
•  Specific plans are those that are clearly defined and leave no room for interpretation.
•  Directional plans are flexible plans that set out general guidelines.

Hierarchy of goals

Strategic goals are broadly defined targets or future end results set by top management. Tactical goals are the targets or future end results usually set by middle management for specific departments or units. Operational goals are those targets or future end results set by lower management that address specific, measurable outcomes required from the lower levels.

What is obstacles to planning and also define its steps in easy words.

Following can be obstacles to planning

•  Lack of information/resources
•  Uncertain environment
•  Lack of commitment
•  Time

Time Span of Goals and Plans:

1. Strategic goals and plans generally involve time periods of 3-5 years.
2. Tactical goals and plans typically involve time periods of 1 to 3 years.
3. Operational goals and plans can be for as short a period as 1 week or as long as 1 year.

Characteristics of Well-Designed Goals:

a. Written in terms of outcomes b. Measurable and quantifiable c. Clear as to a time frame d. Challenging but attainable e. Written down f. Communicated to all organizational members…

Developing Plans:

The process of developing plans is influenced by three contingency factors and by the planning approach followed.

Contingency Factors in Planning

a. Manager’s level in the organization. Operational planning usually dominates the planning activities of lower-level managers. As managers move up through the levels of the organization, their planning becomes more strategic. b. Degree of environmental uncertainty. The greater the environmental uncertainty, the more plans should be directional and emphasis placed on the short term c. Length of Future Commitments

The strengths of MBO are that it:

1. Aids coordination of goals and plans.
2. Helps clarify priorities and expectations.
3. Facilitates vertical and horizontal communications.
4. Fosters employee motivation.

The weaknesses of MBO are that it:

1. tends to falter without strong, continual commitment from top management.
2. Necessitates considerable training of managers.
3. Can be misused as a punitive device.
4. May cause overemphasis of quantitative goals.

The “spirit” of MBO is tremendous. In practice however, MBO has been successful only about

to 25 percent of the time, primarily because of lack of support from top management and poor goal-setting and communication skills…..

Advantages of MBO

1. Improved Planning
2. Coordination
3. Motivation and Commitment
4. Accurate Appraisals
5. Executive Development
6. Organizational change and Development