Chapter 3: Fundametals of Planning Flashcards
What is a plan?
A means devised
For attempting to reach goal
What is a goal
A future target
End result
Individual/ organisation wishes to achieve
What is asked when formulating a plan?
What
When
How
Who
OLC achieve the goals set. Hence, planning is the managements most
Fundamental function
What is a mission of an organisation?
Outlines its purpose
Basic reason for existence
What is a mission statement?
Broad declaration of the basic unique purpose Scope of operations That distinguishes the organsations form others
The question a mission statement answers is
Who are we
What business are we in
What do we want to become
A clear mission statement serves to
Guide individuals groups managements throughout the organisation
Does not change from year to year
What are the level of goals?
Strategic
Tactical
Operational
What are the characteristics of strategic goals?
Set by top management
Broadly defined targets, issues regarding whole organisation
Long-term endeavors, future end results
What characteristics can you classify goals based on?
Set by whom
Scope
Time frame
Tactical goals are
Set by middle management
More specific than strategic goals, spell out what must be done by divisions or department units to achieve strategic goals
Operational goals are
Set by lower management
Narrower in scope, precise and measurable outcomes
Lower levels of management include
Work groups
Individuals
Departments
examples of strategic goals are about
Growth
Profitability
The 3 level of goals form a
Hierarchy
The hierarchy formed by the 3 level of goals is known as the
Means end chain
The ends of the lower level is the
Means of the higher level
Strategic goals are the ends
Toward the organisation goals
The ends of the tactical goals are the
Means of achieving strategic goals
Viewed from the level itself,
The means become the ends itself
What are the benefits of goals?
Legitimacy
Source of motivation and commitment
Guide to action
Standard of performance
When a company is legitimate,
Means that the organisation stands for something, has a reason for existence
(Missions statement)
Legitimacy is seen through
Corporate values
Product quality
Attitude to employees
When a company is legitimate, the employees will
Be committed
Can identify with the reason for existence
Employees are motivated because
There is reduced uncertainty by clarifying what should accomplished
Why are goals a guide to action?
Goals provide a sense of direction
By focussing on specific target
Direct effort toward important outcomes
Why do goals maintain standard of performance?
Defined desired outcomes
Serve as a performance criteria
Providing standard of assessment
What are the adjectives that describe a good goal?
SMART Specific Measurable Attainable Relevant Time limited
How is a goal specific?
Clear in what is expected
Precisely defined
How is a goal measurable?
It is expressed in quantitative terms
How is a goal attainable?
Not unreasonably difficult (but still challenging)
Not unrealistic
How are goals relevant?
Cover key result areas
Activities that contribute to org. Performance and competitiveness
How are goals time-limited?
Should specify time period
Deadline
What are the benefits of planning?
Future-oriented
Coordinate decisions
Coordinated sense of direction
How does planning help managers become future-oriented?
Anticipate by:
Identify opportunities
Avoid problems
How does planning help to coordinate decision?
Managers have to think organisation as a whole
See interrelationships of different parts of the organisation
How does planning create a coordinated sense of direction?
Managers and staff come together,
They develop sense of having the same objectives
What is the basic planning process made up of?
Stating goals
Listing alternative ways of reaching goals
Developing premises upon which each alternative is based
Choosing best alternative for reaching goals
Developing plans to pursue chosen alternatives
Putting plans into action
When stating organisational goals, what do managers have to do?
Analyze current status
Forecast the future environment
Analyze strengths and weaknesses
Opportunities and threats
Goals need to be SMART
What is a premise that is developed?
Assumption upon which alternative is based
What is determined by the premises?
The feasibility of using the alternative
How do you choose the best alternative?
By evaluating the premises
Some premises may be unreasonable
What are the 3 types of planning?
Strategic
Tactical
Operational
What is strategic planning?
It is a process through managers determine the organisations mission or basic purpose and a set of means to achieve it.
What to do. How to do it.
It is done by top level
The time frame for planning is long term (5>)
What is tactical planning?
Process of translating strategies into shorter term tactical plans
More specific and concrete than strategic plans
Relate to limited functional areas (marketing , personnel, production, finance)
Done by middle management
Time frame is intermediate (1-3 years)
What is operational planning?
Spell out specifically what must be accomplished over short time periods in order to achieve operational
E.g. Budgets, quotas, schedules
Done by lower level/supervisors
Short time frames <1yr
Goals have little meaning unless there is a
Plan
Organisations use all 3 types of plans, managers ensure that there is what sort of interaction among them?
Smooth
More time is spent on
Strategic planning by top level managers
There are different types of plans. They are
Single use plans
Standing plan
Single use plans are used in what situations?
Unique situations to
Achieve a goal that will not be repeated in the future
Examples of single use plans are
Programme
Project
Budget
What is a programme?
A plan which outlines a
Variety of interdependent activities
That must be coordinated to achieve a goal
What is a project ?
Project is smaller in scale than programme
Or part of a programme
What is a budget?
A financial plan for allocating resources to a programme or project
What does a standing plan provide?
Clear guidelines for performing recurring activities
Examples of standing plans are
Policy
Procedure
Rule
What is a policy?
General guide for managers to follow in making decisions
Specifies organisation’s General response to a certain problem or situation
What is a procedure?
Sequence of actions to be followed in order to achieve an objective
What is a rule?
A statement which spells out specific actions to be taken or not taken in a given situation
