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A dynamic environment is one which is continuously changing and it is uncertain for the organization. A top-level manager needs to understand external environment in order to make effective plans. For example, if the new technology is used in today’s business, then he should plan about it i.e., how effective use of this new technology can bring improvements in the working performance of the organization, what targets can be achieved by utilizing such technology, etc. There are important steps which a senior manager can follow in today’s dynamic environment. (i) Make Clear-Cut Goals And Flexible Plans The manager should realize that under such environment, goals should be clear-cut. He must know how to carry on the roadmap to achieve these targets. He can change or abandon the plans, but he must be clear about achieving targets. For example, in case of depression in economy, he should focus on the main plan to achieve results i.e., if the company’ goal is to become the market leader, th...

This statement is “True” and this concept is called "Commitment Concept" . Explanation of True And False Question Three Contingency Factors, which affect the developing plans, are shown below: (a) Commitment Concept This concept shows that plans should be extended far enough to fulfil the commitments made for these plans. The time frame for plans should be neither too short nor too long, so that required commitment is met and organization goals are achieved efficiently and effectively. Commitment concept is one of the contingency factors which affects the process of developing plans. For example, an organization show its commitment for a long period of time such as 15 years in order to become market leader when the managers planned at the starting stage of its developing. (b) Organizational Levels There are three organization levels called Upper-level, middle-level and lower-level. At lower-level, the managers make operational planning. At middle-level, the middle managers gi...

The statement is “False” , as this is called tradition goal setting approach and not management by objective approach. Answer And Explanation of True or False Question Approaches To Setting Goals In Management There are two approaches to goals setting which are explained below: 1. Traditional Goal Setting Approach (TGSA) Under such approach, top management set the goals which flow down to the next level of hierarchy of management and then finally flow to the bottom level of management where these goals set at top-level become subgoals or small goals, which must become the means in achieving the main goals set at upper-level, at each organizational level. Advantages of This Approach (i) Better Results The top managers can set better targets as they can see big picture of the organization i.e., they are more responsible and look for long-term targets of the organization and as a result better and desired outcomes are possible. (ii) Provide Direction And Guidance Each middle-level and low...

The correct option of this multiple choice question (mcq) is (D), as plans are prepared to achieve set goals by allocating resources, scheduling the work tasks and other necessary course of actions. They provide a roadmap and establish ways to get the desired outcomes. A manager needs plans to achieve organizational objectives and goals. When a manager plans, he needs to define and develop both goals (ends) and plans (means) called components of Planning, which are explained in the below section of this question answer. So, if we say that "planning is concerned with how objectives are to be accomplished, not what is to be accomplished", then this statement is false. What Are Goals? Goals are set targets which a manager wants to accomplish. The manager needs to meet these desired targets or outcomes to perform well in the organization. These goals show his performance by comparing actual results with set targets. Goals are foundation of planning because they set targets which ...

Formal Planning (FP) is related with specific goals to be achieved within specified time period. There are strict rules & procedures, clear-cut guidelines to be followed by managers and employees working in organization. Performance means how well the job tasks are performed by managers or employees to achieve set goals of the organization. There is a strong positive relationship existed between formal planning and performance (i.e., existence of formal planning increases organizational performance and vice-versa) unless other factors do not affect this relationship negatively. The factors are explained below: (i) Financial Incentives If the financial incentives such as increase in profits, returns on investments, etc., are not obtained by the organization, then the working activities of the organization negatively affected i.e., due to low or no funds, the organization can’t run various projects, etc., which lowers working performance eventhough the organization has proper formal ...