Lesson 4 Flashcards
Plan:
A statement of action steps to be taken in order to accomplish the objectives
Objectives and goals:
Identify the specific results or desired outcomes that one
intends to achieve
Planning:
The process of setting objectives and goals and determining how best to accomplish them
5 steps in the planning process:
- Define your objectives and goals in specific ways
- Determine where you stand vis-à-vis objectives
- Develop premises regarding future conditions
- Analyze alternatives and make a plan
- Implement the plan and evaluate results
Long-term plans ________
look three or more years into the future
Short-term plans ________
typically cover one year or less
Strategic plans:
Set broad, comprehensive, and longer-term action directions for the entire organization or a major
division (Based on organization’s “vision”)
Tactical plans:
Specify how the organization’s resources are used in specific areas in order to implement strategy (often take the form of functional plans)
Functional plans:
Indicate how different components within the organization will help accomplish the overall strategy
Plans under Functional plans:
- Production plans (e.g., work methods, technologies)
- Financial plans (e.g., money & capital investment)
- Facilities plans (e.g., facilities, work layout)
- Logistics plans (suppliers, resources input)
- Marketing plans (e.g., distribution, branding, selling)
- Human resource plans (e.g., managing workforce)
Operational plans:
Describe short-term activities to
implement strategic plans (policies, procedures, budgets)
Planning Tools and Techniques: Forecasting
- Attempts to predict the future
- Qualitative forecasting uses expert opinions
- Quantitative forecasting uses mathematical models and
statistical analysis of historical data and surveys
Planning Tools and Techniques: Contingency planning
- Identifying alternative courses of action to take when
things go wrong - Contingency plans anticipate changing conditions
- Contingency plans contain trigger points to indicate when
to activate alternatives
Planning Tools and Techniques: Scenario planning
- A long-term version of contingency planning
- Identifying alternative future scenarios
- Plans made for each future scenario
- Increases organization’s flexibility and preparation for
future shocks
Planning Tools and Techniques:
Benchmarking
- Use of external and internal comparisons to better
evaluate current performance - Adopting best practices: things people and organizations
do that lead to superior performance
The 4 Planning Tools and Techniques:
- Forecasting
- Contingency planning
- Scenario planning
- Benchmarking
The five characteristics of great goals (SMART):
- Specific (clear desired outcomes)
- Measurable (no doubt when accomplished/missed)
- Attainable (challenging, but realistic)
- Relevant (focused on important results)
- Timely (linked to due dates and timetables)
Jointly plan:
Set objectives, set standards, choose actions
Individually act:
Perform tasks (member), provide support (leader)
Jointly control:
Review results, discuss implications, renew cycle
The power of participation:
Unlocking the motivational
potential of goal setting
Planning may increase the planning _____________ but may reduce the ______________
effectiveness / efficiency
Mission and Purpose:
Serve the world as the number one supplier of recyclable food containers
Top Management Objective:
Firm - Deliver error-free products meeting customer requirements 100% of the time
Senior Management Objective:
Manufacturing division - 100% on-time production of error-free products
Middle Management Objective:
Plant - Increase error-free product acceptance rate by 16%
Lower Management Objective:
Shift supervisor - Asses machine operator skills and train for error-free production
