Ch 5 Planning - Planning and Decision Making Flashcards
choosing a goal and developing a strategy to achieve that goal
Planning
goals that are specific, measurable, attainable, realistic, and timely
S.M.A.R.T. goals
the determination to achieve a goal
Goal commitment
a plan that lists the specific steps, people, resources, and time period needed to attain a goal
Action plan
short-term goals or subgoals
Proximal goals
long-term or primary goals
Distal goals
maintaining planning flexibility by making small, simultaneous investments in many alternative plans
Options-based planning
a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities
Slack resources
overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years
Strategic plans
a statement of a company’s purpose or reason for existing
Purpose statement
a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame
Strategic objective
plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission
Tactical plans
a four-step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment
Management by objectives
day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization’s products and services over a thirty-day to six-month period
Operational plans
plans that cover unique, one-time-only events
Single-use plans
plans used repeatedly to handle frequently recurring events
Standing plans
standing plans that indicate the general course of action that should be taken in response to a particular event or situation
Policies
standing plans that indicate the specific steps that should be taken in response to a particular event
Procedures
standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event
Rules and regulations
quantitative planning through which managers decide how to allocate available money to best accomplish company goals
Budgeting
a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions
Rational decision making
the standards used to guide judgments and decisions
Decision criteria
a process in which each decision criterion is compared to a standard or ranked on its own merits
Absolute comparisons
a process in which each decision criterion is compared directly with every other criterion
Relative comparisons
