Chapter 7 - Planning Flashcards
What are the 5 benefits of planning?
1) provides direction
2) reduces the impact of changes
3) promotes coordination
4) ensures cohesion
5) facilitates control
What is the cost or negatives of planning?
1) create rigidity (no deviations)
2) consumes management time
3) may replace intuition and creativity
4) cause delays in decision-making
What is an organizational goal or objective?
A desirable state of affairs that an organisation aims to achieve at some point in future.
What is an organisational plan?
The means by which the goal is to be realised.
What goals are formulated by top management?
Long term Stategic goals of the entire organisation.
What goals are used and set by middle level managers?
Use strategic goals and plans
Set medium term tactical goals and plans
What goals are used and set by lower level managers?
Use tactical goals and plans
Develop short term operational goals and plans
Goals may be publicly stated or not. Which goal is publicly shared and which one not?
Official goals - publicly in annual reports and media
Operatives goals - private goals not shared
What are the importance of goals?
- direction
- resource deployment
- motivate employees
- control
The SMART framework helps set criteria for effective goals. What are they?
S - specific M - measurable A - attainable R - relevant T - time bound
What does MBO stand for?
Management By Objectives
What is MBO about?
It is a system whereby managers and employees for everyday department, project and person - and use them to monitor subsequent performances.
Name the 4 steps in the MBO goal setting technique.
1) set clear job description
2) set potential key performance targets
3) establish checkpoints
4) degree of goal attainment @ end of period
What are the 4 advantages of the MBO technique?
1) focus on attaining goals
2) performance can be improved
3) employees motivated
4) individual goals align with org
What are the 5 disadvantages of MBO?
1) constant change
2) poor relations reduce MBO
3) ops goals may displace strategic goals
4) org culture may discourage effective MBO
5) too much paperwork
What are the 6 steps in the planning process?
1) establish goals
2) alternative plans
3) evaluate alternative plans
4) select plan
5) implement
6) reactive planning - when change occur
What does planning do?
It gives direction to the organisation
Force managers to be future orientated
To deal with changes in environment
Strategic goals include 3 things?
Vision
Mission statement
Long term goals
In a mission statement the org answers 3 ? What are they?
1) what is our buss? (Products and services)
2) who are our customers? (Markets)
3) how do we provide? (Tech)
What sets the stage for planning in the organisation?
The mission statement
What is another word for corporate strategies?
Grand strategies
What 3 Things does the corporate strategies identify?
What buss the org should be in
Possible expansion
How managers deploy resources
Give 11 examples of corporate strategies.
1) market development (develop existing markets)
2) product development (develop new products)
3) concentration growth strategy (dedicating all to grow a single product)
4) innovation (constantly improving products)
5) horizontal-integration (taking over similar org)
6) vertical integration (taking over diff buss eg raw materials)
7) joint venture strategy (joining forces for very large project)
8) diversification ( take over firms for new activities or set up new org with new activities)
9) turnaround strategy (to turn profitable again)
10) divestiture strategy (selling buss / part thereof)
11) liquidation strategy (admits failure and want to min losses for investors)
In Operational Plans there are 3 sets of goals in SINGLE USE PLANS. Name them.
Programme (building new shopping mall)
Project (installing aircons in new mall)
Budget (numerical plan for allocating resources like human, financial ect)
In Operational Plans there are STANDING PLANS. There are 3 directions for tasks that these plan provide. What are they?
1) policies (eg customer is always right)
2) rule (rules about lateness in employees)
3) standard procedures (precise steps of doing) eg grievance procedures
Implementing the chosen plan involves 3 requirements. What are they?
- developing a framework for its execution
- leadership to set the plan in motion
- controls
If after implementing a plan, the controls reveal deviation from the plan. What needs to be done?
Reactive planning.
Reconsider goal and resources required to fit new info.
