Business Management Chapter 8 Flashcards
Goals
are the desired results or objectives that member in an organization are pursuing.
Plans
describe the steps and actions that are required to achieve goals.
Ongoing goals and plans
guide the organization’s continuing activities that are consistent with the basic purpose of the organization.
Four Steps of Goal Setting and Planning
1) Set mission/vision Top Manager: 5-10yrs 2) Set strategic goals/plans Top/middle: 3-5yrs. 3) Set operations goals/plans Middle/lower: annually/quarterly 4) Monitor everyone: ongoing/monthly/quarterly/annually
Change-oriented goals and plans
describe new initiatives and changes to be made in an organization’s practices. They may be incremental or transformational
Mission Statement
identifies the fundamental purpose of an organization as well as what an organization does, whom it serves, and how it differs from similar organizations.
Vision Statement
describes what an organization is striving to become.
Operational Goals
refer to outcomes to be achieved by the organizational department, work group, or individual member.
SMART goals
Specific, Measurable, Achievable, Results-based, and Time specific.
Stretch Goals
is a goal so difficult that people must think “outside the box” in order to achieve it,
Performance Standards
are goals that subordinates are expected to meet.
Operational Plans
are the steps and actions that will help meet short-term goals (usually within a timeline of a year or less)
To Form a plan what are the two necessary questions?
What activities and resources are necessary? and What constraints and contingencies apply?
Standing Plans
provide guidance for activities that are performed repeatedly.
Standard operating procedures
outlines specific steps that must be taken when performing certain tasks.
Contingency Plans
set out in advance how managers will respond to possible future events that could disrupt the organization’s existing plans.
Crises
are events that have a major effect on the ability of organizational members to carry out their daily tasks. (natural disasters, recession)
Policies
provide guidelines for decision making and taking action in various situations
Rules and Regulations
are prescribed patterns of behaviour that guide everyday work tasks.
Three types of Standing Plans are
Standard operating procedures, policies, rules and regulations.
Standardization
is the process of developing uniform practices for organizational members to follow in doing their jobs.
The Main Stream vs. Multistream approach to goals and planning
Only two significant differences. First, Mainstream emphasizes how managers carry out the four steps, whereas the Multistream approach emphasizes how managers and stake-holders carry out these steps. Second, the Mainstream approach focuses on mission, vision, goals, and plans that serve the ACQUISITIVE ECONOMIC interest of owners, whereas the Multistream approach is concerned with larger issues of SUSTENANCE ECONOMICS and the well-being of a large variety of stake-holders.
Multistream approach to mission/vision statement and its advantages
Include stake holders, customers, employees, and owners. Two advantage are it permits the development of a strong mission and vision statement and it increases support for the work of the org.
Goal Displacement
occurs when people get so focused on specific goals that they lose sight of more important overarching goals.
SMART2
Significant, Meaningful, Agreed-upon, Relevant, Timely