LESSON 8 & 9 Flashcards
It is a primary management function that involves setting the direction and goals of an organization, establishing a system that will define the activities of the organization, and formulating a plan to ensure that the system works toward achieving the goals of the organization
Planning
Possible actions that a manager can choose from in making a decision
Alternatives
Recorded data that can be presented as print material, online, content and other media
Documentation
It describes what the company wants to achieve and where it wants to go im the future
Vision statement
Types of vision statements
Graphic, Directional, Focused, Flexible, Feasible, Desirable, Easy to communicate (GDFFFDE)
It describes a company’s reason for its existence
Mission statement
Specific accomplishments or action plans that are usually attained after a long period
Goals
Refer to action plans that involve shorter periods and more measurable outputs
Objectives
Type of plan that is designed by top management such as the CEO or president
Strategic plans
Type of plans that creates specific plans for specific areas of the company
Tactical plans
Type of plans that are also specific procedures and processes made by frontline or low-level managers
Operational plans
Set of principles that guide managers in addressing a particular issue
Policy
A regulation which describes and regulates the functions of an organization
Rule
A step-by-step process in accomplishing a task or achieving an objective
Procedure
It is a special plan created for unexpected scenarios or changes
Contingency plan
It is a plan made in preparation for any kind of crisis such as industrial disasters like fire, or natural disasters like earthquakes and typhoons
Crisis management plan
What are the five steps in the planning process?
- Formulates goals and objectives
- Identify the courses of action
- Assign responsibilities
- Document the plan and distribute to people concerned
- Review the plan and adjust accordingly
Strategy that is comprehensive and detailed for it is the backbone of subsequent plans and are usually conducted by the CEO and other members of the top management
Corporate strategy
This strategy is concerned with building a competitive advantage for a single business unit of a diversified company
General business strategy
Is a strategy that determines a particular function or process and is formulated by middle-level management officers
Functional strategy
Is a strategy that is narrower and more focused formulated by low-level managers of frontline supervisors
Operational strategy
A type of resource that includes the capital or investment that a company needs to start and sustain the business
Financial resources
A type of resource that is considered as the company’s primary assets and are composed of employees who possess the skills and competencies needed for specific tasks and operations
Human resources
A type of resource that include the production facilities, distribution channels, and information technology systems that enable the execution of strategies
Physical resources
It isa common techniques used by groups of planners in selecting a common solution for a problem
Brainstorming
This is a highly structured method that allows members to give their own inputs based on an agenda
Nominal group technique
This is a planning technique where planning is not done bu meeting group member s but by distributing written questionnaires
Delphi technique
Excellent tool for weighing different alternatives
Decision tree
Managers use this method in evaluating alternatives in purchasing equipment,furniture, and fixtures
Payback method
Decision model that involves a logical step by step analysis of several possible contributing factors in making the decision
Rational/Logical decision model
A phenomenon wherein a manager may not be able to solve complex problems in a logical manner due to the fact that the human mind has its limits
Bounded rationality
Also known as “rules of thumb”
Decision heuristics
Decision model wherein managers usually rely on their “gut feeling”
Intuitive decision model
Decision model where once a manger decides on a solution, they will no longer look for other alternatives
Predisposed decision model
Refers to the tendency to look at situations based on subjective standards or perspectives
Cognitive bias
This type of error happens when a manager, despite their knowledge of s project’s failure, continues to acquire more resources to pursue the project instead of abandoning it
Escalating commitment
This happens when a manager holds on to their prior belief that a project will succeed even when evidence to the contratry has been provided
Prior hypothesis bias
It is the tendency to make generalizations based on a small sample or simple experience
Representativeness