Chapter 3 Flashcards
Defining the organization’s objectives or goals
Planning
Establishing an overall strategy for achieving those goals
Planning
Developing a comprehensive hierarchy of plans to integrate and coordinate activities
Planning
is concerned with ends (what is to be done) as well as with means (how it is to be done)
Planning
Planning may create rigidity
Criticisms Of Formal Planning
Plans can’t be developed for a dynamic environment.
Criticisms Of Formal Planning
Formal plans can’t replace intuition and creativity.
Criticisms Of Formal Planning
Planning focuses managers’ attention on today’s competition, not on tomorrow’s survival.
Criticisms Of Formal Planning
Formal planning reinforces success, which may lead to failure.
Criticisms Of Formal Planning
generally means higher profits, higher return on assets, and other positive financial results.
Formal planning
probably contribute more to high performance than does the extent of planning.
Planning process quality and implementation
Plans that are organization-wide, establish overall objectives, and position an organization in terms of its environment
Strategic plans
Plans that specify the details of how an organization’s overall objectives are to be achieved
Tactical plans
Plans that cover less than one year
Short-term plans
Plans that extend beyond five years
Long-term plans
Plans that have clearly defined objectives and leave no room for misinterpretation
Specific plans
“What, when, where, how much, and by whom” (process-focus)
Specific plans
Flexible plans that set out general guidelines
Directional plans
“Go from here to there” (outcome-focus)
Directional plans
A plan that is used to meet the needs of a particular or unique situation
Single-use plans
Single-day sales advertisement
Single-use plans
A plan that is ongoing and provides guidance for repeatedly performed actions in an organization
Standing plan
Customer satisfaction policy
Standing plan
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.
Management by Objectives (MBO)
Links individual and unit performance objectives at all levels with overall organizational objectives
Management by Objectives (MBO)
Focuses operational efforts on organizationally important results.
Management by Objectives (MBO)
Motivates rather than controls
Management by Objectives (MBO)
Cascading of Objectives
- Overall organizational objectives
- Divisional objectives
- Departmental objectives
- Individual objectives
Elements of MBO
•Goal specificity
•Participative decision making
•Explicit time period for performance
•Performance feedback
Defines the purpose of the organization
Mission statement
A document that explains the business founders vision and describes the strategy and operations of that business.
strategic plan
Screening large amounts of information to detect emerging trends and create a set of scenarios
environmental scanning
Accurate information about competitors that allows managers to anticipate competitors’ actions rather than merely react to them
Competitive intelligence
