M1 Chapter 2.5 Planning Flashcards
Planning
Determining the organization’s goals and the means for achieving them
Levels of goals/plans
- Mission Statement
- Strategic goals/plans (whole organization)
- Tactical Goals/Plans (major divisions)
- Operational Goals/Plans (departments, individuals)
Goes from the bottom up to achieve goals!
Mission Statement
Tells the outside world “why we exist”, who we’re selling to, what we’re selling
Rational for Decisions
Learn what organization is trying to accomplish
Standard of Performance (MBO)
- Serve as performance criteria
* Provide a standard of assessment
Strategic Goals
- Where the organization wants to be in the future
- Pertains to the organization as a whole
Strategic Plans
- Action Steps used to attain strategic goals
- Blueprint that defines the organizational activities and resource allocations
- Tends to be long term 1-5 years
Tactical/Functional Goals
- Apply to middle management
- Goals that define the outcomes that major divisions and departments must achieve
Tactical/Functional Plans
- Plans designed to help execute major strategic plans
- Shorter time frame than strategic plans 3months-1 year
Operational Goals
- Specific, measurable results
- Expected from departments, work groups, and individuals
Operational Plans
- Organization’s lower levels that specify action steps toward achieving operational goals
- Tool for daily and weekly operations
- Schedules are an important component
Means-End Chain
• 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
Characteristics of Effective Goals
- Specific
- Measurable
- Attainable (STRETCH!!)
- Rewards
- Time-oriented
Management by Objective (MBO) Steps:
Step 1: Set Goals
Step 2: Develop Action Plans
Step 3: Review Progress (Take Corrective Action)
Step 4: Appraise Overall Performance
Pros of MBO
- 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
Cons of MBO
- 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
Program
a complex set of objectives and plans to achieve an important, one-time organizational goal
Project
similar to a program, but generally smaller in scope and complexity
Single-use plans
Programs & projects
Standing plans
Policies, Rules, Procedures
Policy
general guide to action and provides direction for people within the organization
Rules
describe how a specific action is to be performed
Procedures
a precise series of steps to be used in achieving a specific job
Contingency Plans
Identify likelihood, and Minimize impact, of uncontrollable factors (ie: Economic downturns, Declining markets, Increases in costs of supplies, Technological developments, Safety accidents, Weather complications)
Crisis Management Planning
Building Preparation, Prevention, and Containment systems
Central Planning
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
Decentralized Planning
High-Performance Managers work with their people to develop their own goals and plans
Planning comes alive when
employees are involved insetting goals and determining the means to reach them
Organizational Change
The adoption of a new idea of behavior by an organization
Product Change
change in the organization’s product or service outputs.
Technology Change
change in the organization’s production process
Idea Champion
A person who sees the need for and champions productive change within the organization
Four roles in organizational change
- Inventor
- Champion
- Sponsor
- Critic
New venture team
Unit separate from the mainstream of the organization that is responsible for developing and initiating innovations
Skunkworks
separate small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business
Model for Change
External/Internal forces ->
Need for change ->
Design Change ->
Implement change
What is a major internal force for change?
Performance Gap
Performance Gap
disparity between existing and desired performance levels.
How to design change
- Clearly Define problem
- Create options – Brainstorm, Focus groups, etc.
- Select Best Option(s)
- Create New Goals and Plans
Why change doesn’t happen sometimes:
- Self interest
- Lack of understanding or trust
- Uncertainty
- Different Assessments and Goals
Tactics to overcome resistance to change
- Communication
- Education
- Participation
- top-management support
(less effective methods:
negotiation, coercion)
