chapter 8 Flashcards
Goals? and maybe be what two things?
are desired outcomes or targets.
- strategic or financial and might be stated or real
plans
are documents that outline how goals are going to be met.
stated goals
official statements of what van organization says, and what it wants its stakeholders to believe, it’s goals are
real goals
those goals an organization actually pursues- observe what organizational members are doing.
strategic plans
are plans that apply to the entire organization’s overall goals.
operational plan
plans that encompass a particular operational area of the organization.
long term plans
those with a time frame beyond three years.
short-term plans
cover one year or less.
specific plans
are clearly defined and leave no room for interpretation.
directional plans
are flexible plans that set out general guidelines.
single use plan
is a one-time plan specifically designed to meet the needs of a unique situation.
standing plans
are ongoing plans that provide guidance for activities performed repeatedly.
traditional goal setting
goals set by top managers flow down through the organization and become sub-goals for each organizational area.
mean-ends chain
higher level goals are linked to lower level goals, which serve as the accomplishment.
management by objectives
a process of setting mutually agreed upon goals and using those goals to evaluate employee performance.
mission
a broad statement of an organizations purpose that provides an overall guide to what organizational members think is important.
stretch goals
seemingly impossible goals, play in an organization planning approach
commitment concept
that plans should extend far enough to meet those commitments made when the plans were developed
formal planning department
a group of planning specialists whose sole responsibility is to help write he various organizational plans.
environmental scanning
screening information to detect emerging trends
competitor intelligence
gathering information about competitors that allows managers to anticipate competitors actions rather then merely to react to them.
planning invokes what 3 things?
- defining the organizations goals
- establishing an overall strategy
- developing plans for organizational work activities
what do the 4 purposes of planning include?
- providing direction
- reducing uncertainty
- minimizing waste and redundancy
- establishing the goals or standards used in controlling
formal planning?
associated with positive financial performance bc its better to do a good job of planning and implementing the plans than just doing more planning without seeing how it would work and then make the necessary adjustments
external environment is usually the reason why companies that plan…..?
don’t achieve high levels of performance
planning-performance relationship seems to be influenced by?
the planning time frame
in traditional goal setting?
goals are set at the top of the organization and then become subgoals for each organizational area
Management by objectives? (MBO)
process of setting mutually agreed-upon goals and using those goals to evaluate employee performance
well written goals have 6 characteristics…?
- clearly defined outcomes
- measurable and quantifiable results
- clear as to time frame they should be accomplished by
- challenging but attainable
- written down
- communicated clearly to all organizational members who should know them
goal setting invokes these 5 steps?
- review the organizations mission
- evaluate available resources
- determine the goals individually of with the help from others input
- write down the goals and communicate them to all parties that should know them
- review results and change goals as needed
contingency factors that affect planning include the managers…? 3 things
- level in organization
- degree of environmental uncertainty
- the length of future commitments
two main approaches to planning include …?
- traditional approach
2. other approach
what is the traditional approach to planning?
when plans are developed by top managers and flow down through other organizational levels and which may use a formal planning department
one contemporary issue in planning is what? and what does that mean?
planning in dynamic environments
def: developing plans that are specific but flexible
lower organizational levels should be allowed to set goals and develop plans because?
there is little time in a dynamic environment for goals and plans to flow down
another contemporary planning issue involving environmental scanning is that?
environmental scanning is need to help do a better analysis of the external environment
one form of environmental scanning and what is it?
competitive intelligence: can be especially helpful in finding out what competitors are doing
what is other approach of planning besides traditional approach?
involving more organizational members in the planning process
what is OKR?
objective an key results
what is the o in OKR
objective: what is to be achieved
what is the KR in OKR
benchmark and monitor how we get the objective
what composes the financial statements?
- balance sheet
- income statement
- statement of cash flows
what is the balance sheet?
snapshot of the firm
- what does a firm own: assets
- what do a firm owe: liabilities
assets-liabilties = ?
equity (or net worth)
income statement? P&L
aka profit and loss statement
statement of cash flows?
cash received and cash spent by the firm over a period of time
burn rate?
rate at which a company uses up its cash to finance operations
