M1 Chapter 2.5 Planning

Question 1

Planning

Answer 1

Determining the organization’s goals and the means for achieving them

Question 2

Levels of goals/plans

Answer 2

1. Mission Statement
2. Strategic goals/plans (whole organization)
3. Tactical Goals/Plans (major divisions)
4. Operational Goals/Plans (departments, individuals)

Goes from the bottom up to achieve goals!

Question 3

Mission Statement

Answer 3

Tells the outside world “why we exist”, who we’re selling to, what we’re selling

Question 4

Rational for Decisions

Answer 4

Learn what organization is trying to accomplish

Question 5

Standard of Performance (MBO)

Answer 5

• Serve as performance criteria

* Provide a standard of assessment

Question 6

Strategic Goals

Answer 6

• Where the organization wants to be in the future

- Pertains to the organization as a whole

Question 7

Strategic Plans

Answer 7

• Action Steps used to attain strategic goals
• Blueprint that defines the organizational activities and resource allocations
• Tends to be long term 1-5 years

Question 8

Tactical/Functional Goals

Answer 8

• Apply to middle management

- Goals that define the outcomes that major divisions and departments must achieve

Question 9

Tactical/Functional Plans

Answer 9

• Plans designed to help execute major strategic plans

- Shorter time frame than strategic plans 3months-1 year

Question 10

Operational Goals

Answer 10

• Specific, measurable results

- Expected from departments, work groups, and individuals

Question 11

Operational Plans

Answer 11

• Organization’s lower levels that specify action steps toward achieving operational goals
• Tool for daily and weekly operations
• Schedules are an important component

Question 12

Means-End Chain

Answer 12

• Achievement of goals at lower levels permits the attainment of high-level goals
• Traditional organizational responsibility
–Strategic = top management
–Tactical/Functional = middle management
–Operational = 1st line management & workers

Question 13

Characteristics of Effective Goals

Answer 13

• Specific
• Measurable
• Attainable (STRETCH!!)
• Rewards
• Time-oriented

Question 14

Management by Objective (MBO) Steps:

Answer 14

Step 1: Set Goals
Step 2: Develop Action Plans
Step 3: Review Progress (Take Corrective Action)
Step 4: Appraise Overall Performance

Question 15

Pros of MBO

Answer 15

• Manager and employee efforts are focused on activities that will lead to goal attainment
• Performance can be improved at all company levels
• Employees are motivated
• All goals are aligned with company goals

Question 16

Cons of MBO

Answer 16

• Constant change prevents MBO from taking hold
• An environment of poor employer-employee relations reduces MBO effectiveness
• Strategic goals may be displaced by operational goals
• Mechanistic organizations and values that discourage participation can harm the MBO process
• Too much paperwork saps MBO energy

Question 17

Program

Answer 17

a complex set of objectives and plans to achieve an important, one-time organizational goal

Question 18

Project

Answer 18

similar to a program, but generally smaller in scope and complexity

Question 19

Single-use plans

Answer 19

Programs & projects

Question 20

Standing plans

Answer 20

Policies, Rules, Procedures

Question 21

Policy

Answer 21

general guide to action and provides direction for people within the organization

Question 22

Rules

Answer 22

describe how a specific action is to be performed

Question 23

Procedures

Answer 23

a precise series of steps to be used in achieving a specific job

Question 24

Contingency Plans

Answer 24

Identify likelihood, and Minimize impact, of uncontrollable factors
(ie: Economic downturns, 
Declining markets,
Increases in costs of supplies,
Technological developments, 
Safety accidents,
Weather complications)

Question 25

Crisis Management Planning

Answer 25

Building Preparation, Prevention, and Containment systems

Question 26

Central Planning

Answer 26

Traditional Department or Group of planning specialists who develop plans for the organization as a whole and its major divisions and departments and typically report directly to the president or CEO

Question 27

Decentralized Planning

Answer 27

High-Performance Managers work with their people to develop their own goals and plans

Question 28

Planning comes alive when

Answer 28

employees are involved insetting goals and determining the means to reach them

Question 29

Organizational Change

Answer 29

The adoption of a new idea of behavior by an organization

Question 30

Product Change

Answer 30

change in the organization’s product or service outputs.

Question 31

Technology Change

Answer 31

change in the organization’s production process

Question 32

Idea Champion

Answer 32

A person who sees the need for and champions productive change within the organization

Question 33

Four roles in organizational change

Answer 33

1. Inventor
2. Champion
3. Sponsor
4. Critic

Question 34

New venture team

Answer 34

Unit separate from the mainstream of the organization that is responsible for developing and initiating innovations

Question 35

Skunkworks

Answer 35

separate small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business

Question 36

Model for Change

Answer 36

External/Internal forces ->
Need for change ->
Design Change ->
Implement change

Question 37

What is a major internal force for change?

Answer 37

Performance Gap

Question 38

Performance Gap

Answer 38

disparity between existing and desired performance levels.

Question 39

How to design change

Answer 39

• Clearly Define problem
• Create options – Brainstorm, Focus groups, etc.
• Select Best Option(s)
• Create New Goals and Plans

Question 40

Why change doesn’t happen sometimes:

Answer 40

• Self interest
• Lack of understanding or trust
• Uncertainty
• Different Assessments and Goals

Question 41

Tactics to overcome resistance to change

Answer 41

• Communication
• Education
• Participation
• top-management support
  (less effective methods:
  negotiation, coercion)