chapter 5 Flashcards
planning
Setting goals and deciding how to achieve them
business plan
outlines firm’s
- goals
- strategy for achieving them,
- standards for measuring success
firms strategic plans
firms operating plans
plan
document that outlines how goals are going to be met
strategic planning
done by top managers
make long term decisions about overall direction of org
- know outside env and be future oriented while dealing with uncertainty and competition
tactical planning
done by middle managers
- implement policies and plans of top management
- supervise and coordinate activities of first-line managers.
- make decisions w/o defined info procedures
HOW WE WILL DO THE WHAT
operational planning
done by first-line managers
- direct daily tasks of nonmanagerial personnel. Follow a day to day routine
HOW WE WILL DO THE HOW TO THE WHAT
strategic management
managers from all parts of org form and implement strategies and strategic goals
1. est mission, vision, and values
2. assess the current reality
3. formulate the grand stategy and strategic, tactical, and operational plans
4. implement the strategy
5. maintain strategic control
WHAT WE WILL DO
purpose of planning
- provide direction and momentum
- encourage new ideas
- develop a sustainable comp advantage
fundamentals of planning
mission (reason for being) –> vision(what want to become) –> values(values to emphasize)
goals
commitment to achieve a measureable result within a stated period of time
short term goals
aka tactical or operational goals or plain goals
connected to strategic goals in a hierarchy known as means-end-chain
long-term goals
aka strategic goals
focus on achieving the strategies identified in a companys strategic plan
strategic goal
set by top managerment and focus on objectives for the org as a whole
tactical goal
set by middle managers
focus on the action needed to achive strategic goals
operational goals
set by ad for first line managers and are concerned with short term matters associated with completing tactical goals
operating plan
breaks long term output into short term targets or goals
turns strategic plans into actionable short term goals and action plans
action plan
course of action (tactics) needed to achieve a stated goal
contains a project date for completing the desired activities for each tactic
latter for the operating plan
SMART goals
- specific – clear
- measurable – quantified output
- attainable – accomplishable
- results oriented – sup org vision
- target dates
MBO
Management by Objectives
measures employees’ performance against a series of set targets or goals agreed by management and employees to improve perf of org
- unity of management action = pursuit of a common objective and increased communication
- greater focus on results on a time scale = greater likelihood of achieving them
- greater participation in setting meaningful work w/ accountable results = greater motivation in completing it
- employees taking pride in work and thus boosting output and loyalty to org
disadvantage :
1. goal and target focused, ignores culture
2. time constraints and pressure to meet goals
3.meet target goals by any mean necessar –> shortcuts
planning/control cycle
- make the plan
- carry out the plan
- control the direction by comparing results with the plan
- control direction by a. correcting divergences in the plan being carried out b. improve future plans
MBO process
1) managers and employees jointly set objectives for the employee,
(2) managers develop action plans,
(3) managers and employees periodically review performance
- adjustment/feedback
(4) the manager makes a performance appraisal and rewards the employee according to results
- reward attainment of objectives/ correct action for non attained
