Make a matrix of the different management theories including its proponent, main

premise (what the theory is about), its salient features, criticisms (advantages and
disadvantage). Provide/discuss the usability and applicability of the theory in nursing
and give at least 1 example for each.
MATRIX OF DIFFERENT MANAGEMENT THEORIES
**CONTINGENCY THEORY**
Proponent Fred fiedler, hersey and blanchard, vroom and yetton
Main premise This theory asserts that managers make decisions based on the situation
at hand rather than a "one size fits all" method. A manager takes
appropriate action based on aspects most important to the current
situation. Managers in a university may want to utilize a leadership
approach that includes participation from workers, while a leader in the
army may want to use an autocratic approach.
Salient features 1. There is no universal or one best way to manage.
2. The design of an organizations and its subsystems must fit with the
environment.
3. Effective organizations not only have a proper fit with the environment
but also between sub-systems and;
4. The needs of an organization are better satisfied when it is properly
designed and the management style is appropriate both to the tasks
undertaken and the nature of the work group.
Contingency theory has survived over the decades as a valid and reliable
approach how to achieve effective leadership because it is grounded in
empirical research. Researchers who have followed fiedler have validated
contingency theory with their own research.
Contingency theory has broadened the scope of leadership understanding
from a focus on a single, best type of leadership (e.g., trait approach) to
emphasizing the importance of a leader's style and the demands of
different situations.
Advantages Contingency theory has also been proved to have 'predictive powers' in
determining the type of leadership that is most likely to be effective in
particular contexts.
Contingency theory suggests not to expect leaders to be equally effective
in all situations and therefore organizations should consider leaders in
optimal situations according to their leadership style.
Contingency theory supplies data on leadership styles that could be
useful to organizations in developing leadership profiles for human
resource planning.
Disadvantages 1. Inadequate literature:
Contingency approach suffers from inadequately of literature. Therefore,
it has not adequately spelled out various types of actions which can be
taken under different situations. It is not sufficient to say that ‘a
managerial action depends on the situation.’
The approach should provide ‘if this is the situation, this action can be
taken.’ unless, this is done, the approach cannot offer much assistance to
the practice of management. No doubt, researches have been conducted
in this direction but, by and large, they have not satisfied the needs of
managers.

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

 2. Complex:
The suggestion of the approach is very simple, that is, managers should
do according to the needs of the situation. However, when put into
practice, this becomes very complex. Determination of situation in which
managerial action is to be taken involves analysis of a large number of
variables with multifarious dimensions. Therefore, there is a possibility
that managers, who are always short of time, may ignore the thorough
analysis of all these variables and may resort to short-cut and easier way.
3. Difficult empirical testing:
Contingency approach being complex, presents problems in testing the
percepts of the theory. For empirical testing of the theory, it is necessary
that some methodology is available. No doubt, methodology is available
but because of the involvement of too many factors, testing becomes
difficult.
4. Reactive not proactive:
Contingency approach is basically reactive in nature. If nearly suggests
what managers can do in a given situation. For a given organisation,
super system constitutes environment and management can be applied
to supra-system also. Therefore, managers are responsible to manage
the environment in such a way that they avoid the undesirable aspects of
environment.
USABILITY AND APPLICABILITY OF THE THEORY IN NURSING
Contingency theory can be used to assess the effectiveness of an individual in a particular role
and look at the reasons for one’s effectiveness or ineffectiveness. It can be used to predict
whether a person who has worked well in one position in an organization will be equally
effective in another position having different situational variables when compared to the
existing position based on the contingencies that make one’s style effective and it can help in
implementing changes in the roles and responsibilities that management might need to make to
bring effectiveness to the role of the person leading the same.

**SYSTEMS THEORY**
Precursors
herbert spencer (1820–1903), vilfredo pareto (1848–1923), émile
durkheim (1858–1917), alexander bogdanov (1873–1928), nicolai
hartmann (1882–1950), robert maynard hutchins (1929–1951), among
others
Pioneers
1946-1953 macy conferences
Proponent 1948 norbert wiener publishes cybernetics or control and communication in
the animal and the machine
1954 ludwig von bertalanffy, anatol rapoport, ralph w. Gerard, kenneth
boulding establish society for the advancement of general systems theory, in
1956 renamed to society for general systems research.
1955 w. Ross ashby publishes introduction to cybernetics
1968 ludwig von bertalanffy publishes general system theory: foundations,
development, applications
Main premise Systems theory is an interdisciplinary theory about the nature of complex
systems in nature, society, and science, and is a framework by which one

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

 can investigate and/or describe any group of objects that work together to
produce some result. This could be a single organism, any organization or
society, or any electro-mechanical or informational artifact. Managers who
understand systems theory recognize how different systems affect a worker
and how a worker affects the systems around them. A system is made up of
a variety of parts that work together to achieve a goal. Systems theory is a
broad perspective that allows managers to examine patterns and events in
the workplace. This helps managers to coordinate programs to work as a
collective whole for the overall goal or mission of the organization rather
than for isolated departments.
Salient 1. An organization is a system; which is partly economic, partly technical,
features partly political and partly social.
2. It consists of parts, each of which is a sub-system.
3. The organization is itself part of a larger system the environment, society,
and government and so on.
4. There are interrelationships among the parts of each system so that a
change in one part leads to a change in another.
5. It is the function of management to bring about the 'integration of
(a) different parts of each sub-system,
(b) the different sub-systems with the organization,
(c) among the different sub-systems themselves and
(d) Between the system and its environment.
Recognizes
Interdependence of personnel
Impact of environment on organizational structure and function
Advantages Effect of outside stakeholders on the organization
Focuses on environment and how changes can impact the organization
Seeks to explain “synergy” & “interdependence”
Broadens the theoretical lens for viewing organizational behavior.
Disadvantages It is not prescriptive – does not tell us what to do (some might say that’s a
strength)
It is a generalized theory - hard to apply to specific situations
It points to many connections but does not provide any specific theory that
might link them in an explanatory manner
Maybe it includes too much – maybe we need theory that places some
emphasis on what is most important
In many guises it can be quite conservative – creating stable self-reliant
systems
Similarly it may overstate the importance of social cohesion and solidarity
It can have a complex and over technical language – like many other
theories.
USABILITY AND APPLICABILITY OF THE THEORY
One example is cited below
Most everyone has a grasp of how a thermostat in their home works. We set the desired
temperature for heat. The thermostat monitors the temperature in the room. When the
temperature falls below the desired level, the thermostat sends a signal to our heater, and tells
it to turn on. Heat is generated by our furnace or heater. When the temperature reaches the
desired level, the thermostat sends a signal to the heater to turn off. Now let's go through this

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

example & connect it to the basic concepts. Input - the gas or electricity which comes from our
power company output - heat throughput - thermostat monitors the temperature, thermostat
sends a signal to our heater to turn on, thermostat sends a signal to the heater to turn off, the
gas is burned, and the fan turns on & blows warm air into the room. Feedback - when the
temperature falls below the desired level, the thermostat sends a signal to our heater; when the
temperature reaches the desired level, the thermostat sends a signal to the heater to turn off.

**THEORY X AND Y**

Proponent Douglas mcgregor
Main premise Theory x and theory y are theories of human
motivation and management. They were
created and developed by douglas
mcgregor at the mit sloan school of
management in the 1960s. These theories
describe two contrasting models of workforce
motivation applied by managers in human
resource management, organizational
behavior, organizational
communication and organizational
development. According to the models, the
two opposing sets of general assumptions of
how workers are motivated form the basis for
two different managerial styles. Theory x
stresses the importance of strict supervision,
external rewards, and penalties: in contrast,
theory y highlights the motivating role of job
satisfaction and encourages workers to
approach tasks without direct supervision.
Salient features Theory x basically holds the belief that people
do not like work and that some kind of direct
pressure and control must be exerted to get
them to work effectively. These people
require a rigidly managed environment,
usually requiring threats of disciplinary action
as a primary source of motivation. It is also
held that employees will only respond to
monetary rewards as an incentive to perform
above the level of that which is
expected (bittel).
From a management point of view, autocratic
(theory x) managers like to retain most of
their authority. They make decisions on their
own and inform the workers, assuming that
they will carry out the instructions. Autocratic
managers are often called "authoritative" for
this reason; they act as "authorities". This
type of manager is highly task oriented,
placing a great deal of concern towards

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

 getting the job done, with little concern for
the worker's attitudes towards the manager's
decision. This shows that autocratic
managers lose ground in the work place,
making way for leaders who share more
authority and decision making with other
members of the group (dubrin).

theory y:
a more popular view of the relationship found
in the work place between managers and
workers, is explained in the concepts of
theory y. This theory assumes that people
are creative and eager to work. Workers tend
to desire more responsibility than theory x
workers, and have strong desires to
participate in the decision making process.
Theory y workers are comfortable in a
working environment which allows creativity
and the opportunity to become personally
involved in organisational planning (bittel).
Some assumptions about theory y workers
are emphasised in one of the texts, namely
that this type of worker is far more prevalent
in the work place than are theory x workers.
For instance, it is pointed out that ingenuity,
creativity, and imagination are increasingly
present throughout the ranks of the working
population. These people not only accept
responsibility, but actively seek increased
authority (lee).
According to another of the authors studied
for this project, in which the "participative"
(theory y) leadership style is discussed, a
participative leader shares decisions with the
group. Also mentioned, are subtypes to this
type of leader, namely the "democratic"
leader who allows the members of the
working group to vote on decisions, and the
"consensual" leader who encourages group
discussions and decisions which reflect the
"consensus" of the group (dubrin).
Theory x
pros
the work will get done faster because the
Advantages
managers will be micro-managing them and
keeping them on task. Work will be done like
clockwork with little room for error, because

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

 of the time and quality limits being placed on
the worker.
Theory y
pros
new ideas can flow easier because of the
relaxed environment. Workers are
encouraged to think outside of the box,
creating new opportunities for the company
to increase revenue. Google encourages their
workers to come up with new ideas so that
the company can take those ideas and create
new applications. This makes all the
employees feel more important and essential
to the company’s future.
Disadvantages Theory x
Cons
with this theory there is a higher rate of poor
job satisfaction, because the manager does
not trust the employee to do the appropriate
work on his or her own. This theory requires
that the employees are robotic in performing
their duties, they need input in order to
produce output. Also the employees are more
likely to avoid work or become more
distracted once the manger is out of sight.
Theory y
Cons
certain employees are not self-motivated or
do not have the time management skills that
will allow them to handle the freedom of
being able to do what they want as long as
the job gets done. An example of this is a
mother letting a child eat whatever they want
and hoping that he eats right, and the child
ends up eating nothing but junk food.
USABILITY AND APPLICABILITY OF THE THEORY
Theory X and the Theory Y represent two extremes. No person can belong to these two extreme
situations. Each person possesses the traits of Theory X and theory Y, though the degrees may
be different under different situations. Though, no generalizations can be made, still it appears
that theory X is more applicable to unskilled and uneducated lower class workers who work for
the satisfaction of their physiological needs only. Theory Y appears to be applicable to the
educated, skilled and professional employees who understand their responsibilities and do not
need any direction and control. However, there can be exceptions.
A lower level employee may be more responsible and mature than a well-qualified high level
employee. Still these theories are very important tools in understanding the behavior of human
being and in designing the motivational schemes. The management should use a combination of
both the theories to motivate different employees.

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

Utilizing current and available literature, identify the different qualities of an
effective nurse manager. Cite at least 3 studies, reference or source used.
10 QUALITIES OF THE BEST NURSE MANAGERS TODAY

1. They do not choose sides.

When disagreements and challenges arise, they remain impartial and see both sides of
the story. Their decisions are made based on the principle, not the staff member who
has the issue.
2. Zero tolerance for bullying.
The manager understands that this is critical to keeping morale and retention up, and
contributes to patient safety. They make it clear to everyone not just in word, but
action, that bullying-whether outright or passive-is not tolerated and that those who
participate will have consequences.
3. Pays attention to what is going on in their unit.
Difficult to do at times, but the BM keeps an ear and an eye out for what is happening
on their unit. Between staff, physicians, and other staff.
4. Advocates for their staff on a higher level.
When hospital or administrative meetings occur, employees know that their manager is
speaking up for them and taking their concerns seriously.
5. Follows through.
When a manager states that they are going to do something, they do it. They
understand that this is critical to gaining the trust of their staff. Along with #1, they hold
all staff accountable for actions.
6. Participates with the staff.
From helping a patient to picking up trash, there is nothing that this manager won’t do.
They won’t ask their staff to do something that they would not do themselves. When
time is of the essence, and tasks need to be done, they are in the trenches, with sleeves
rolled up and ready to go.
7. Listens.
Their door is open, both literally and figuratively. While a manager has many things to
oversee and coordinate in the big picture, they understand that their primary concern is
making sure that their staff are heard and understood. The last thing they want is for
someone to say, whatever you do, don’t bring this up to management.
8. Is professional.
Working with back-biting or bullying staff is hard enough. When a manager participates
in these activities, staff experience stress, tension, discord, and mistrust as well as
feelings of helplessness. A manager must refrain from these interactions.
9. Properly delegates.
They recognize that they can’t do it all. They provide staff with opportunities to grow
and learn, assuming that they could all potentially be in their position someday. They
delegate responsibilities to not only share the work, but to allow others the chance to
become better.
10. Fact-finder.
A good manager does not buy-in to hearsay. If there are rumors going around, or
mumblings about an employee, they are not swayed. They will go to the source and
identify for themselves if there is a problem or not.

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN
Give one example for each of the 10 Managerial Roles by Henry Minztberg. Examples
should be in the context of nursing management.

THE TEN MANAGERIAL ROLES OF HENRY MINTZBERG ARE:

1. Figurehead
2. Leader
3. Liaison
4. Monitor
5. Disseminator
6. Spokesperson
7. Entrepreneur
8. Disturbance Handler
9. Resource Allocator
10. Negotiator

Examples

Figurehead - As a nurse manager, a nurse should have social skills, ceremonial and legal
responsibilities. A nurse manager is expected to be a source of inspiration not only to her
subordinates but also to the patient. People may look up to you as a person with authority, and
as a figurehead.

Leader – As a Leader, he/she builds relationships with employees and communicates with,
motivates, and coaches them. Duties are at the heart of the manager-subordinate relationship
and include structuring and motivating subordinates, overseeing their progress, promoting and
encouraging their development, and balancing effectiveness. This is where a nurse manager
provides leadership to the team, department or perhaps the entire organization. As a leader,
nurses should check on the performance and responsibilities of the team or station to see to it
that they perform well to their abilities.

Liaison – Managers must communicate with internal and external contacts. A Nurse Manager
needs to be able to network effectively on behalf of your organization. Know how to communicate
to other departments for referrals and collaboration.

Monitor – In this role, a nurse regularly seek out information related to the organization and
industry, looking for relevant changes in the environment. Monitor the team, in terms of both
their productivity, and their well-being. The monitor seeks internal and external information about
issues that can affect the organization. Obligations include assessing internal actions, a
department’s success and the problems and opportunities which may rise. All the information
gained in this capacity must be stored, maintained and documented.

Disseminator – A good disseminator knows how to effectively relay information to his/her

colleagues. May it be urgent or a memo. The disseminator transmits information internally that
is obtained from either internal or external sources. Highlights accurate or worth based outside
views into the organization and to subordinates. This requires both filtering and delegation skills.

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

 Spokesperson – The spokesperson transmits information about the organization to outsiders.
Managers represent and speak for their organization. In this role, the nurse is responsible for
transmitting information about the organization and its goals to the people outside it.

Entrepreneur – As a manager, he/she creates and controls change within the organization. This
means solving problems, generating new ideas, and implementing them. The entrepreneur acts
as an initiator, designer, and encourage of change and innovation. Roles encourage managers to
create improvement projects and work to delegate, empower and supervise teams in the
development process.

Disturbance Handler – When an organization or team hits an unexpected obstruction or issues,

it's the manager who must take charge. He/she also need to help intervene arguments within it.
The disturbance handler takes corrective action when the organization faces important,
unexpected difficulties. A generalist role that takes charge when an organization is unexpectedly
upset or transformed and requires calming and support.

Resource Allocator – He/she also need to determine where organizational resources are best
applied. This involves allocating funding, as well as assigning staff and other organizational
resources. The resource allocator distributes resources of all types, including time, funding,
equipment, and human resources. Describes the responsibility of assigning and overseeing
financial, material and personnel resources.

Negotiator – Nurse Negotiator may be needed to take part in, and direct, important negotiations
within the team, department, or organization. The negotiator represents the organization in major
negotiations affecting the manager’s areas of responsibility is a specific task which is important
for the spokesman, figurehead and resource allocator roles.

Planning is generally considered the most basic management function and one
managers should spend a significant part of their time. Explain further why.

Planning is very central to every organization, team or group. Planning is also crucial for meeting
the needs during each action step with time, money, or other resources. With careful planning you
often can see if at some point you are likely to face a problem. It is much easier to adjust your plan
to avoid or smoothen a coming crisis, rather than to deal with the crisis when it comes unexpected.
We spend our time in certain ways because we choose to. There is nothing we do without choosing,
although our choices are not always careful or visible. We have the choice to work or not to work,
to write that report or not, to take the phone call or to wait. Each choice is based upon a reward
received or expected. Rewards are what you expect to gain from undertaking or postponing a
certain task. If you didn’t receive rewards, you would not continue that behavior. What rewards do
we get for managing time the way we do now? Learning to manage our time better will free up
time to do the really important things. Rewards come from good time management habits. Planning
is the most important part of the formula we call time management. Some of us say, “I don’t have
time to do any planning,” or “Things change too much to plan!” But this is a fact: research shows
that for every 1 minute you spend in planning, you will gain 10 in completing. 1 minute = 10
minutes. 10 minutes = 1 hour and 40 minutes! This may seem amazing because you may feel like
you are already doing all you can each day! If you could just gain an extra half-hour a day through
effective time management, you would have 22 more days available to you per year. Planning will
keep us on course in achieving our goals and objectives. Abraham Lincoln reportedly once said, “If

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

I had 60 minutes to cut down a tree, I would spend 40 minutes sharpening the ax and 20 minutes
cutting it down.” So you must plan your day before you arrive at the office, school, or hospital each
day! Just like what I do most often. Why?
1. My stress level diminishes.
2. I don’t endanger other drivers.
3. I don’t get insomnia
4. I wake to a purpose
5. I can enjoy family time more
6. If I find out my schedule is too full to accomplish the things that must be done tomorrow,
I can delegate, delete, reschedule meetings, move tasks ahead a day, etc. I will know if I
have made realistic plans for the day.
7. I eliminate the “Decision Dilemma”—“What do I do next?”

The solution is to learn to focus on the priorities of tasks and plan to accomplish them in order of
importance. If I don’t, there is a severe danger that the trivial, time-consuming activities of the day
will push the critical few entirely off the calendar.
So the dilemma is not a shortage of time—it is a problem of priorities. It’s more complex than not
having enough time or not managing your time effectively. Instead, it becomes a lesson in
managing priorities and being disciplined. There will always be more things to do than time to do
them. Sometimes you must forego something you would like to do in favor of something that has
to be done to accomplish your aims. Don’t fail to plan. If you do, plan to fail. ☺

Identify the following characteristics/factors (internal and external) affecting the

organization below using the SWOT analysis tool.

STRENGTHS WEAKNESSES
Investments in healthcare informatics Legal cases filed, court complaints
Focus on community healthcare improvement Poor communication
projects Political or economic instability
Collaboration among healthcare organizations Understaffing
State-of-the art medical equipment
Duplication of Efforts
OPPORTUNITIES THREATS
Referrals Aging facilities
Introduction of clinical protocols to improve Increased demand for expensive medical
quality technology
Location Lack of continuity in clinical processes
Increased funding for healthcare informatics Growing uninsured population
New Health Programs supported by the
government
Community partnering to develop new
programs

Distinguish the different kinds of planning according to:

a. Structure of the organization
i. Centralized
ii. Decentralized
b. Scope/Coverage and Level

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

 i. Strategic
ii. Tactical
iii. Operational
c. Stability
i. Master or Strategic
ii. Contingency

A. Structure of the organization

Centralization and Decentralization are the two types of structures that can be found in
the organization, government, management and even in purchasing. To determine whether an
organization is centralized or decentralized, greatly depends on the location of decision-making
authority and the degree of decision-making power at lower levels.
Centralization of authority means the power of planning and decision making are exclusively in
the hands of top management while in the case of Decentralization, the powers for the same
has been disseminated by the top management to the middle or low-level management. There
is a never ending debate between these two terms to prove which one is better. In this article,
significant differences between Centralization and Decentralization, in an organization is
explained.

BASIS FOR COMPARISON CENTRALIZATION DECENTRALIZATION

Meaning The retention of powers and
authority with respect to
planning and decisions, with
the top management, is
known as centralization.
Involves Systematic and consistent
reservation of authority.
Communication Flow Vertical
Decision Making Slow
Advantage Proper coordination and
Leadership
Power of Decision Making Lies with the top
management
Reasons Inadequate control over the
organization
Best Suited for Small sized organization
The dissemination of
authority, responsibility and
accountability to the various
management levels, is known
as decentralization.
Systematic dispersal of
authority
Open and Free
Comparatively faster
Sharing of burden and
responsibility
Multiple persons have the
power of decision making.
Considerable control over the
organization
Large size organization

B. Scope/coverage and level

I. Strategic Plan
A strategic plan is a high-level overview of the entire business, its vision, objectives, and value.
This plan is the foundational basis of the organization and will dictate decisions in the long-term.
The scope of the plan can be two, three, five, or even ten years.
Managers at every level will turn to the strategic plan to guide their decisions. It will also influence
the culture within an organization and how it interacts with customers and the media. Thus, the
strategic plan must be forward looking, robust but flexible, with a keen focus on accommodating
future growth.
The crucial components of a strategic plan are:
1. Vision

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

2. Mission
The mission statement is a more realistic overview of the company’s aim and ambitions.
3. Values
II. Tactical Plan
The tactical plan describes the tactics the organization plans to use to achieve the ambitions
outlined in the strategic plan. It is a short range (i.e. with a scope of less than one year), low-
level document that breaks down the broader mission statements into smaller, actionable chunks.
If the strategic plan is a response to “What?”, the tactical plan responds to “How?”.
Creating tactical plans is usually handled by mid-level managers.
The tactical plan is a very flexible document; it can hold anything and everything required to
achieve the organization’s goals. That said, there are some components shared by most tactical
plans:
1. Specific Goals with Fixed Deadlines
2. Budgets
3. Resources
4. Marketing, Funding, etc.
III. Operational Plan
The operational plan describes the day to day running of the company. The operational plan
charts out a roadmap to achieve the tactical goals within a realistic timeframe. This plan is highly
specific with an emphasis on short-term objectives. “Increase sales to 150 units/day”, or “hire 50
new employees” are both examples of operational plan objectives.
Creating the operational plan is the responsibility of low-level managers and supervisors.
Operational plans can be either single use, or ongoing, as described below:
1. Single Use Plans
2. Ongoing Plans
Ongoing plans are created on an ad-hoc basis but can be repeated and changed as required.
Operational plans align the company’s strategic plan with the actual day to day running of the
company. This is where the macro meets the micro. Running a successful company requires
paying an equal attention to now just the broad objectives, but also how the objectives are being
met on an everyday basis, hence the need for such intricate planning.

Strategic Tactical Operational

1. Focus of Attention Strategic Goals Tactical Goals Operational Goals
2. Levels of Managers They are framed by They are framed by They are framed by
top level managers middle level lower level managers
managers
3. Time Frame They are prepared for They are prepared for They are prepared for
a long period of time, intermediate period, a period of less than
normally more than 5 ranging between 1 to one year
years 5 years
4. Scope They relate to overall They relate toThey relate to goals
organizational goals departmental goals for sub-units of each
department
5. Environment They relate They focus on both They focus on
organization with the external and internal effectiveness of
external environment environment resources, thus,
focusing the internal
environment

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN

 6. Target Usage Warehouse location Network-wide, SKU- Managing
Plant/manufacturing level decision making warehouses
capacity planning with regards to: Managing
Static route design *production plans transportation
Inventory level *seasonal inventory operations
planning *workforce planning Order management
Supply chain *warehouse Company operations
simulation inventory positioning
7. Advantages *Helps a manager *”What if” analysis *Ensures consistency
make decisions that with results that are across operations
require much directly *Worldwide data
complexity and implementable availability and access
information *relatively easy to *Sophisticated, real-
*Flexible and easy to change under time decision making
alter to represent a different business in complex
specific situation or conditions environments
company
Excellent for “what if”
analysis
8. Drawbacks *Due to complexity *Computationally *expensive and time-
and number of difficult consuming to
variables, requires *requires implement
data aggregation and considerable *not designed for
simplified expertise to use managers to ask
assumptions correctly “what if” questions
*Often difficult to *difficult to make
actually implement changes to
the recommendations
*Requires
considerable
expertise to use
correctly.

Strategic planning is an ongoing process, not an end in itself. Elaborate on this.

MIDTERM EXAM | SHAR MAINE JOYCE BARCEBAL, RN