CH 5: Understanding Planning Flashcards
the first of 4 functions in the management process
planning
what two things does planning involve
-setting goals and deciding how to achieve them
-ensuring the plans are linked to business strategy
3 definitions of planning
Planning is defined as setting goals and deciding how to achieve them
coping with uncertainty by formulating future courses of action to achieve specified results
A plan is a document that outlines how goals are going to be met.
what is a plan
a document that outlines how goals are going to be met.
2 example models of planning
business plan
business model
Business plan
doc outlines firm’s goals, the strategy for achieving them,
and the standards for measuring
success.
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 is a strategy/strategic plan
-A large-scale action plan that sets the long-term goals and direction
for an org
a strategy represents an
educated guess abt what must be done in the long term for the survival/prosperity of the org or its principle parts
when are strateguc plans reconsidered
every year due to everchanging business conditions
Strategic management
Process that involves managers from all parts of the org in the formulation/implementation of strategies and strategic goals
From top management to middle to first line
what is strategic management dervien from
orgs mission and vision
Why are planning and strategic management important
Provide direction & momentum
Encourage new ideas
Develop a sustainable competitive advantage
Mission statement
Express the purpose of the org
What is our reason for being
Why are we here
vision statemetnt
A clear sense of the future and the actions needed to get there
What do we want to become
Where do we want to go
value statement
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?
strategic planning managers
done by top managers for the next 1-5 years
tactical planning
done by middle managers for the next 6-24 months
operational planning managers
done by first line managers for the next 1-52 weeks
PLANNING and STRATEGIC MANAGEMENT steps
1-establish the mission and vision and values
2- assess the current reality
3- formulate the grand strategy & strategic, tactical, and operational plans
4- implement the strategy
5- maintain strategic control
top management positions
CEO, president, VP, GM, Division heads
middle management
functional managers, product line managers, department managers
first line managers
unit managers, team leaders, first line supervisors
top management planning
make LT decisions abt direction of the org.
need to pay attention to the env outside the org, be future oriented, deal with uncertain and competitive conditions
middle management planning role
implement policies/plans of top management and supervise and coordinate activities of first line managers
make decisions without base of clearly defined info procedures
first line managers planning roles
direct daily tasks of non managerial personel
decisions often predictable following well defined set of routine procedures
operating plan
Breaks long term output input short term targets or goals
Turns strategic plans into actionable short term goals and action plans
action plan
Defines the course of action( the tactics) needed to achieve stated goal
Contains a projected date for completing the desired activities for each tactic
Standing plan
For activities that occur repeatedly over a period of time
policy
Outlines general response to a designated problem or situation
Procedure
Outlines response to particular problems or circumstances
Rule
-Designates specific required action
Single-use Plan-
For activities not likely to be repeated in the future
Program
Encompasses a range of projects or activities
Project
Has less scope and complexity than a program
goals definition
specific commitment to achieve a measurable result within a stated period of time
short term goals
Sometimes referred to as tactical, operational, or plan goals
Generally span 12 months and connected to strategic goals in a hierarchy known as means end chain
long term goals
Referred to strategic goals
Tend to span 1-5 years and focus on achieving the strategies identified in the companies strategic pl
smart goals list
specific
measureable
attainable
results oriented
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 but realistic and attainable
Results-oriented
Only a few goals should be chosen and should be results-oriented
target dates
Goals should specify the target dates or deadline dates when they are to be obtained
4 step to motivating employees
1- managers and employee jointly set objectives for the employees
2- managers develop action plans
3-managers and employees periodically review the employees performance
4- managers make a performance appraisal and reward the employee according to results
3 types of objectives used in MBO
performance, behavioral, learning
Performance objective
Express the objective as an outcome or end-result
Ex: reduce food wastage by 15%
behavioral objective
Express the objective as the behaviors needed to achieve an outcome
Ex: greet all potential automobile customers with a smile and offer to help
Learning objectives
Express the objective in terms of acquiring
knowledge or competencies
Ex: learn the ingredients in the dishes
For MBO goals setting 3 things need to happen
Top management must be committed to it.
Goals must be applied organization wide
Goals must “cascade”—be linked consistently down through the organization.
the planning cycle
1-make the plan
2- carry out the plan
control cycle steps
3-control the direction by comparing w results
4-control direction in 2 ways
-correction deviations in the plan
-by improving future plans
Strategic planning is done by ______ managers.
top
It is the function of the ______ to take the strategic plan and develop actionable short-term goals that a business can achieve.
operating plan
The process of ensuring that the strategic goals set at the top align with more specific short-term goals at lower organizational levels is known as ______ goals.
cascading
