CH 5 Flashcards
What is planning?
Setting goals and deciding how to achieve them
What is a plan?
A document that outlines how goals are going to be met
What is a business plan?
A document that outlines a firms goals, the strategy for achieving them, and the standards for measuring success
What is strategic management?
A process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals
What is the process of planning and strategic management?
- establish mission, vision, and values
- assess current reality
- formulate strategies and plans
- implement strategies and plans
- maintain strategic control
- feedback: revise actions, if necessary, based on feedback
What is a business model?
Outlines the need the firm will fill, the operations of
the business, its components and functions, as well as the expected revenues and expenses.
What are the three types of planning and the timeframe for each?
STRATEGIC (1-5 yrs)
Top Managment (CEOs, president, vp, general managers, division heads)
Make long-term decisions about overall direction of organization. Managers need to pay attention to environment outside the organization, be future oriented, deal with uncertain and highly competitive conditions.
TACTICAL (6-24 mo)
Middle Management (functional managers, product-line managers, department managers)
Implement policies and plans of top management, supervise and coordinate activities of first-line managers below, make decisions often without base of clearly defined information procedures
OPERATIONAL (1-52 wks)
First-line Management (unit managers, team leaders, first-line supervisors)
Direct daily tasks of non-managerial personnel; decisions often predictable, following well-defined set of routine procedures
What is mission, vision, and value statements?
mission: expresses the purpose of the organization
“what is our reason for being?”
vision: a clear sense of the future and the actions needed to get there
“what do we want to become?”
value: what the company stands for: its core priorities, the values its employees embody, and what its products contribute to the world
“what values do we want to emphasize’
What is a goal?
It’s a specific commitment to achieve a measurable result within a stated period of time
What are short term goals?
aka tactical or operational goals
Generally span 12 months and
connected to strategic goals in a
hierarchy known as a means-end
chain
What are long-term goals?
aka strategic goals
Tend to span 1 to 5 years and
focus on achieving the strategies
identified in a company’s
strategic plan.
What is the planning-control cycle?
- formulate strategic plan
- implement strategic plan
- monitor progress
- take action
What is an action plan?
Defines the course of action (the tactics) needed to achieve a stated goal. Contains a projected date for completing the desired activities for
each tactic.
What are SMART goals?
Specific, measurable, attainable, results oriented, and target dates
Specific: Goals should be stated in specific rather than vague terms.
Measurable : Whenever possible, goals should be
measurable, or quantifiable.
Attainable: Goals should be challenging, of course, but above all they should be realistic and attainable.
Results-oriented: Only a few goals should be chosen—say, five for any work unit. And they should be results-oriented— they should support the organization’s vision.
Target dates: Goals should specify the target dates or deadline dates when they are to be to be obtained.
What does MBO mean and what is its purpose?
Management By Objectives
Its purpose is to motivate employees
What are the four steps of MBO?
- Managers and employees jointly set objectives for the employee.
- Managers develop action plans.
- Managers and employees periodically review the employee’s performance.
- Managers make a performance appraisal and reward the employee according to results.
