Chapter 5: Managerial Planning and Goal Setting Flashcards
Goal
A desired future state that the organization attempts to realize
Planning is fundamental
All of the other management functions stem from planning
Plan
A blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.
The organizational planning process
- Develop the plan
- Translate the plan
- Plan operations
- Execute the plan
- Monitor and learn
- Develop the plan
- define mission/vision
* set goals
- Translate the plan
- define tactical plans and objectives
- develop strategy map
- define contingency plans and scenarios
- identify intelligence teams
- Plan operations
- define operational goals and plans
- select measures and goals
- set stretch goals
- crisis planning
- Execute the plan
Use: • management by objective • performance dashboards • single use plans • decentralized responsibility
- Monitor and learn
- hold planning revues
* hold operational reviews
Organizational mission
The organizations reason for existence
Strategic goals
Official goals, broad statements describing the organizations future
Strategic plans
Define the action steps the company will take
Operational planning
Direct employees and resources. Guide toward efficient and effective performance.
Includes planning approaches:
Management by objectives (MBO)
Single-use plans
Standing plans
Characteristics of effective goal setting
- are specific and measurable
- have a defined time period
- cover key result areas
- are challenging but realistic
- are linked to rewards
Management by objectives (MBO)
Defined in 1954 by Peter drucker.
Method for defining goals and monitoring performance
MBO process
1. Set goals • corporate strategic goals • department goals • individual goals 2. Develop action plans 3. Review progress • take corrective action 4. Appraise overall performance
MBO benefits
- focuses manager and employee efforts on activities that will lead to goal attainment
- can improve performance at all company levels
- improves employee motivation
- aligns individual and departmental goals with company goals
Single-use plans
Achieve one-time goals, programs, and projects
Standing plans
Ongoing plans
Policies, rules, procedures
Contingency planning
Planning for emergencies, setbacks, or unexpected conditions
Building scenarios
A forecasting technique to look at current trends and discontinuities and visualize future possibilities
Crisis planning
Planning for unexpected events that may be sudden and devastating
Stretch goals
Highly ambitious, clear, compelling, and imaginative goals.
Require innovation but are achievable.
Strategic management
Decisions and actions used to formulate and execute strategies that will provide competitively superior fit between the organization and its environment to achieve organizational goals
Explicit strategy
The plan of action
Competitive advantage
The organizations distinct edge for meeting customer needs
Strategies should:
Exploit core competencies
Build synergy
Deliver value
Target customer
SWOT analysis
Internal Strengths and Weaknesses
External Opportunities and Threats
The BCG matrix
Organizes business along two dimensions: business growth rate and market share
Benefits of planning
- provide a source of motivation and commitment
- guide resource allocation
- guide to action
- set a standard of performance
Limitations of planning
- creates a false sense of certainty
- may cause rigidity in a turbulent environment
- can get in the way of intuition and creativity
Essential stages of crisis planning
Prevention
Preparation
Prevention
- build relationships
* detect signals from the environment
Preparation
- designate crisis management team and spokesperson
- create detailed crisis management plan
- set up effective communications system
