Synergy means that the whole is greater than the sum of its parts.

The systematic management approach attempted to build specific procedures and processes to systematize organizational activities and ensure coordination. The systematic management approach focused on operational economy, adequate staffing, inventory management that meets customer requirements, and organizational control. According to the systematic management approach, these goals can be achieved through:

• Careful definition of tasks and responsibilities, 

• Standardized methods for performing these tasks,
• Effective means of gathering, sharing, and analyzing information, 

• Systems such as cost accounting, wage management, and production control to enhance organizational coordination and communication.

The decision-making process discussed above is also known as the rational model of decision making, but this classical model is not the only model put forward to explain managerial decision making. There is the bounded rationality model which challenges the rational model for not being realistic enough and a third model, namely, intuitive decision making, which will be discussed under the title of decision models. The rational model or approach to decision making27 takes its name from its major premise that the decision makers, typically managers, are fully rational. Also known as the classical model of decision making, this model is built on a number of assumptions that constitute rationality. The bounded rationality model is built on the fact that managers, as human beings, are limited by their ability to process information, therefore, they tend to satisfice rather than optimize. Satisficing means, the decision maker settles for the first satisfactory alternative that comes to his or her attention. Bounded rationality is the idea that in decision making, rationality is limited by (a) the information at hand, (b) the cognitive limitations of the human mind, and (c) the finite amount of time to make a decision. When compared with the rational model, another realistic model or approach would be intuitive decision making. Intuition is knowing or understanding something instinctively or subconsciously without reasoning or proof. In this model, decisions are taken through five different aspects of intuition. Starting with experience-based decisions, managers use their past experiences. The second aspect of intuition in decisions are feelings and emotions (affect-initiated decisions). In the third, managers make decisions based on skills, knowledge, and training (cognitive-based decisions). The fourth facet of intuitive decision-making utilizes values or ethics as guides. Lastly, the subconscious mental processing comes into play in executive decision-making. The main reason for managers’ using intuition is to make decisions fast and this is very important for the business organizations that function in more and more innovative and competitive environments. The correct answer is Choice E.

Tactical plans translate strategic plans into specific goals for specific parts of the organization. They specify how the organization’s resources can be used to put strategies into action. Tactical plans in business often take the form of functional plans that indicate how different operations within the organization will contribute to the overall strategy.

Organizational goals should be;
• guided by the mission and vision statements, and organizational strategy,
• written in measurable and quantifiable terms,
• stated in terms of anticipated outcomes rather
than actions,
• clear as to a time frame, and
• challenging yet attainable. 

The correct answer is B. 

A code of ethics declares the values, ethics, objectives, and responsibilities of the companies. Codes of ethics commonly address such issues as conflict of interest, privacy of information, gift giving, and giving and receiving political contributions. A well-written code of ethics also provides guidance to employees concerning how to deal with ethical situations. Every code of ethics is unique and reflects company’s philosophy, values, and business style.

Planning function initiates the management process. It guides and leads the following functions towards the final organizational goals. Based on the plans the organizing, leading, and controlling functions can be launched in coordination towards the achievement of organizational goals.

Global factors are outcomes of changes in international relationships, changes in nation’s economic, political, and legal systems, and changes in technology.

Human skills

Organizational culture

• Of type of budgets:
• Master budget is an overall financial and operating plan for a forthcoming calendar or fiscal year
• Operating budget is the budget that shows income and expenses that are likely to be produced through the current operations of the organization
• Cash budget is the Budget that presents expected cash inflow and outflow for a designated time period
• Expense budget is the Budget that includes the money planned to be spent on all the primary activities of a unit together with the amount to be spent on each item during a year
• Program budget is the budget that includes the money planned to be spent on all the primary activities of a unit together with the amount to be spent on each item during a year

Economic factors related to the condition and the direction of the economy are critical ones for businesses to survive and accomplish their goals. Among the most important economic elements are interest rates, inflation, changes in disposable income, stock market fluctuations, and business cycle stages.

Organizational goals should be:

• Guided by the mission and vision statements, and organizational strategy
• Written in measurable and quantifiable terms?
• Stated in terms of anticipated outcomes rather than actions
• Clear as to a time frame
• Challenging yet attainable ?

Low goal attainment, but good
use of resources

The leading function refers to mobilizing and directing people toward organizational goals.

Organizational goals should be

• guided by the mission and vision statements, and organizational strategy,

• written in measurable and quantifiable terms,

• stated in terms of anticipated outcomes rather than actions,

• clear as to a time frame, and

• challenging yet attainable12(not too easy or trivial, nor too difficult).

The correct answer is Choice C.

The task environment is the set of forces and conditions that originate with suppliers, distributors, customers, and competitors; these forces and conditions affect an organization’s ability to obtain inputs and produce outputs.

Managerial planning is the process whereby managers assess an organization’s goals and create a plan of action for meeting those goals. Goals are the desired outcomes or results that people intend to achieve. Organizational goals can also be called as overall objectives. As planning is of great importance to an organization, the whole process of planning should be carried out in a systematic manner.

1. Set the goals and objectives
2. Identify resources that are needed
3. Determine the action plans
4. Implement and evaluate the plans
5. Identify adjustments to be made

The correct answer is Choice C.

Short-term planning shapes the near future of the organization. This planning addresses short-term concerns like the condition of machinery and equipment used in production. With these quick instant fixes, short-term planning is in fact assisting the organization in moving gradually toward its longer term goals.

The steps for decision-making process are:

• Identify the decision situation
• Develop decision criteria
• Generate alternatives
• Evaluate alternatives
• Select the best alternative
• Implement the decision
• Monitor and evaluate results

The correct answer is Choice E.