A - LESSON 2: Management Planning Flashcards
: a method for doing or making something, consisting of a goal and a course of action
Plan
: a specific result to be achieved, the end result of a plan
Goal
: specific results toward which effort is directed
Objectives
: The process of setting goals and courses of action, developing rules and procedures and forecasting future outcomes
Planning
What Planning entails
✓ Choosing (?) and deciding now what to do in the future to achieve those goals
✓ Assessing today the (?) of various future courses of action
goals and courses of action
consequences
✓ A set of plans that includes the company subsidiary unwide plan and the derivative plan of its required to help achieve the enterprise
Hierarchy of Plans
approves a long-term plan and each department creates its own budget
✓ Top management
formulates its plan based on upward feedback from the departments, and the depa of top management’s plan
✓ Top management
Involves analysing competitive opportunities ad threats, as well as the strengths and weaknesses of the organization, and determining how to position the organization to compete effectively in their environment
Strategic plans
Strategic
TIME FRAME
SPECIFICITY
FREQUENCY OF USE
Long Term
Directional
Single Use
Tactical
TIME FRAME
SPECIFICITY
FREQUENCY OF USE
Short Term
Specific
Standing
✓ establishes master plans that fit the destiny of the firm.
Strategic planning
✓ plans that apply to the entire organization, establish the organization’s overall objectives, and seek to position the organization in terms of its environment.
Strategic planning
The process by which high level decisions are made is called strategic planning and can be defined as
(1) deciding on the (?) of the organization and the need to modify existing objectives if appropriate;
(2) allocating (?) to attain these objectives; and
(3) establishing (?) that govern the acquisition, use, and disposition of these resources (Lifshitz, 1996).
objectives
resources
policies
is usually based on long-term projections and a global view that can have an impact on all levels of a laboratory’s operations.
Strategic planning
✓ translates strategic plans into specific goals for organizational units.
Tactical planning
✓ (sometimes referred to as operational plans) specify the details of how the overall objectives are to be achieved
Tactical planning
✓ consists of the detailed, day-to-day operations needed to meet the immediate needs of the laboratory and works toward meeting the long-term strategic goals that have been set
Tactical planning
✓ identifies the specific procedures and actions required at lower levels in the organization
Operational planning
Both tactical planning and organizational planning support the strategic plans.
Strategic and tactical plans differ in three primary ways—
time frame, scope, and whether they include a known set of organizational objectives
are plans that cover less than one year.
Short-term plans
are plans that extend beyond five years.
Long-term plans
Short term and long term plans difference lie in the
length of future commitments and the degree of variability organizations face
have clearly defined objectives and leave no room for misinterpretation.
Specific plans
are flexible plans that set out general guidelines.
Directional plans
are used to meet the needs of particular or unique situation.
Single-use plans
are ongoing, and provide guidance for repeatedly performed actions in an organization.
Standing plans
A General Framework for Planning
➢ Define the present situation (includes examining internal capabilities and external threats and opportunities).
➢ Establish goals and objectives (a starting point for planning).
➢ Analyze the environment to forecast aids and barriers to goals and objectives (helps predict factors that will foster or hinder attaining goals).
➢ Develop action plans for reaching goals and objectives (without action plans, goals may not be attained).
➢ Develop budgets (most action plans require money, so realistic budgets have to be developed).
➢ Implement the plans (plans are often developed then forgotten).
➢ Control the plans (evaluate progress and make any necessary adjustments for lack of progress).
➢ Make contingency plans (develop an alternative in case the original plan cannot be implemented successfully or at all; an exit strategy might be part of the contingency plan).
STEPS IN THE PLANNING PROCESS
stating organizational objectives
listing alternative ways of reaching objectives
developing premises upon which each alternative is based
choosing best alternative for reaching objectives
developing plans to pursue chosen alternative
putting plans into action
Advantages of Planning
➢ It gives direction to managers and non-managers alike.
➢ Planning can reduce the impact of change.
➢ It minimize waste and redundancy.
➢ Planning establishes objectives or standards that facilitate control.
Disadvantages of Planning
➢ Planning may create rigidity.
➢ Plans can’t be developed for a dynamic environment.
➢ Formal plans can’t replace intuition and creativity.
➢ Planning focuses managers’ attention on today’s competition, not on tomorrow’s survival.
➢ Formal planning reinforces success, which may lead to failure
is a system in which specific performance objectives are jointly determined by subordinates and their supervisors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of that progress.
MBO
Management by Objectives: A System of Planning and Review
- Establish organizational goals
- Establish unit objectives.
- Review subordinates’ proposals.
- Negotiate or agree (with subordinate).
- Create action plans to achieve objectives.
- Review performance
The Common Elements in an MBO Program
Goal specificity
Participative decision making
An explicit time period
Performance feedback
The MBO strategy:
- All individuals are assigned a specialized set of objectives
- Performance reviews are conducted periodically
- Rewards are given to individuals
The MBO process:
- Review organizational objectives
- Set worker objectives
- Monitor progress
- Evaluate performance
- Give rewards
Factors Necessary for a Successful MBO Program
Top management must be committed and set appropriate objectives
Managers and subordinates must develop and agree on individual’s goals
Employee performance should be evaluated against established objectives
Management must follow through on employee performance evaluations
MBO Programs: Advantages
1) Continually emphasize how to achieve organizational goals
2) Secures employee commitment to attaining goals
MBO Programs: Disadvantages
1) Development of objectives can be time consuming
2) Increase the volu me of paperwork in an organization
Most managers find MBO programs beneficial
is an important part in management.
Planning
is the process of assessing an organization’s goals and creating a realistic, detailed plan of action for meeting those goals. corporate strategies .
Management planning
is a personnel management technique where managers and employees work together to set, record and monitor goals for a specific p eriod of time.
Management by Objectives (MBO)
flow topdown through the organization and are translated into personal goals for organizational members.
Organizational goals and planning
The technique was first championed by management expert (?) and became commonly used in the 1960s.
Peter Drucker
The core concept of MBO is (?), which means that an organization and its members are not merely reacting to events and problems but are instead being proactive
planning
requires that employees set measurable personal goals based upon the organizational goals. For example, a goal for a civil engineer may be to complete the infrastructure of a housing division within the next twelve months.
MBO
The personal goal aligns with the (?) of completing the subdivision
organizational goal
is a supervised and managed activity so that all of the individual goals can be coordinated to work towards the overall organizational goal. You can think of an individual personal goal as one piece of a puzzle that must fit together with all of the other pieces to form the complete puzzle: the organizational goal.
MBO
are set down in writing annually and are continually monitored by managers to check progress.
Goals
are based upon goal achievement
Rewards
plans that apply to the entire organization, establish the organization’s overall objectives,
and seek to position the organization in terms of its environment
Strategic plans
Creates the blueprint for the larger strategic plan
Tactical plans
These plans are often short term and are carried out by the middle level managers
Tactical plans
Covers the entire organization’s goals and objectives and puts into practice the ways and action steps to achieve the strategic plans
Operational plans
Very short term plans, usually less than a year
Operational plans
Draw or made for unpredicted circumstances
To be followed if a plan fails (PLAN B OR PLAN C)
Contingency plans
