MGMT 3000 Chapter 7 Flashcards
what did Drucker say about goals/objectives?
- Any business enterprise must build a true team and weld individual efforts into a common effort
- Each member of the enterprise contributes something different
- All must pull in the same direction
- Contributions must fit together to produce a whole
- No gaps, friction and without unnecessary duplication of effort
what is a goal?
a desired future circumstance or condition that the organization attempts to realize
what is a plan?
a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks and other actions
what is planning?
incorporates both goals and plans; determine the organizations goals and defining the means for achieving them
what are the levels of goals to plans? (from top to bottom)
- mission statement
- strategic goals/plans
- tactical goals/plans
-operational goals/plans
who uses strategic goals/plans?
senior management (organization as a whole)
who uses tactical goals/plans?
middle management (major divisions, functions)
who uses operational goals?
lower management (departments, individuals)
what are strategic goals? (official goals)
broad statements describing where the organization wants to be in the future, long term
what are strategic plans?
the action steps by which the company intends to attain the strategic goals
what is the blueprint that defines the organizational activities and resource allocations – in the form of cash, personnel, space and facilities – required for meeting these targets?
strategic plans
what are tactical goals?
the results that major division and departments within the organization intend to achieve
what are tactical plans?
define what major departments and organizational subunits will do to implement the organization’s strategic plan
what are operational goals?
results expected from departments, work groups and individuals
what are operational plans?
developed at the lower levels of the organization to specify action plans toward achieving operational goals and to support tactical plans
what is an important component to operational plans?
schedules
what are the steps to the organizational planning process?
- develop the plan
- translate the plan
- plan operations
- performance management
- monitor and learn
how do you develop the plan?
- define the mission and vision
- set goals
- manage goal conflict
how do you translate the plan?
- define tactical plans and objectives
- develop strategy map
- define contingency plans and scenarios
how do you plan operations ?
- define operational goals and plans
- select measures and targets
- set stretch goals
- crisis planning
how do you do performance management?
- management by objectives
- single use plans
- standing plans
what is the organizational mission?
reason for organizations existence
what is included in the mission statement?
○ Reason the organization exists
○ How they differ from their competitors
○ May include statement of their values
what provides basis for development of all subsequent goals and plans?
the organizational mission
what are the approaches to managing a goal conflict?
- build a coalition
- Modify goals by time or location
- Address conflicts with debate and dialogue
- Break down barriers and promote cross-silo cooperation
what is a coalition management?
building an alliance of people who support managers and influence efforts toward achieving goals
what is a strategy map?
a visual representation of the key drivers of an organization’s success
what planning approaches do managers use for performance management?
- management by objectives
- single use plans
- standing plans
- key performance indicators
what are characteristics of effective goals?
- specific and measurable
- defined time period
- cover key result areas
- challenging but realistic
- linked to rewards
who developed management by objectives (MBO)?
Peter Drucker
what is management by objectives (MBO)?
a system where managers and employees define goals for every department, project and person and use them to monitor subsequent performance
what 4 major activities make MBO successful?
- set goals
- develop action plans
- review progress
- appraise overall performance
what are the benefits of MBO?
- focuses manager and employee efforts on things that will lead to goal attainment
- improves performance at all company levels
- improves employee motivation
- aligns individual and departmental goals with company goals
what are the cons to MBO?
- over emphasis on “meeting the goals” can obscure the means that people use to get there
- people can cut corners
- MBO cannot stand alone
what is management by means (MBM)?
focuses attention on the methods and processes to achieve goals
who coined management by means (MBM)?
H. Thomas Johnson
what focuses people on considering the means rather than just reaching the goals?
MBM
what are single use plans?
developed to achieve a set of goals that are not likely to be repeated in the future
what are standing plans?
ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization
what are major types of single use plans?
- program
- project
what are major types of standing plans?
- policy
- rule
- procedure
what are the benefits of planning (goals and plans)?
- provide a source of motivation and commitment
- guide resource allocation
- guide to action
- set a standard of performance
what are the limitation of planning (goals and plans)?
- can create too much pressure
- create a false sense of certainty
- cause rigidity in a turbulent environment
- get in the way of intuition and creativity
what do you use to plan for a turbulent environment?
- contingency planning
- scenario building
- stretch goals
- crisis planning
what defines company resources to be taken in the case of emergencies, setbacks or unexpected conditions ?
contingency plans
what involves looking at current trends and discontinuities and visualizing future possibilities and managers think about what could be?
scenario building
what are reasonable yet highly ambitious goals that are so clear, compelling and imaginative that they fire up employees and engender excellence?
stretch goals
what helps prepare the organization, its managers, and its employees to cope with sudden catastrophic events that could destroy the firm if a crisis response plan is not in place?
crisis planning
what is an example of a crisis?
covid 19
what are the two essential stages of crisis planning?
- crisis prevention
- crisis preparation
