TEST 1 CHAPTER 5 PART 5 Flashcards
What PLANNING step is: A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration
Step 1: Situational analysis
What PLANNING step is: Should stress creativity and encourage managers and employees to think broadly
Goals
• Targets or ends that a manager wants to reach
Step 2: Generate alternatives and plans
What PLANNING step is: Managers will evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan.
They must prioritize those goals and even
eliminate some of them.
Managers must consider carefully the
implications of alternative plans for meeting
high-priority goals
Step 3: Evaluate Goals and Plans
What PLANNING step is: Managers will select the most appropriate and feasible alternative.
The evaluation process identifies the priorities and trade-offs among the goals and plans.
Step 4: Select Goals and Plans
What PLANNING step is: Managers and employees must understand the plan, have the resources to implement it, and be motivated to do so.
Successful implementation requires a plan to be linked to other systems in the organization, particularly the budget and reward systems.
Step 5: Implement the Goals and Plans
What PLANNING step is: Managers must continually monitor the actual performance of their work units against the units’ goals and plans.
Managers also need to develop control systems to measure that performance and allow them to take corrective action when the plans are implemented improperly or when the situation changes.
Step 6: Monitor and Control Performance
Who develops this plan? Top-level managers
How detailed is it? Low
How long is this plan? Long (3 to 7 years)
What level of planning is this?
Strategic
Who develops this plan? Middle managers
How detailed is it? Medium
How long is this plan? Medium (1 to 2 years)
What level of planning is this?
Tactical
Who develops this plan? Frontline managers
How detailed is it? High
How long is this plan? Short (less than 1 year)
What level of planning is this?
Operational
An organization’s basic purpose and scope of operations
Mission
The long-term direction and strategic intent of a company. Provide a perspective on where the organization is headed and what it can become.
Vision
A company strategy of selling its products at a price lower than its competitors
Low-cost leader
An approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace.
Differentiation
Decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution. Instead of putting maximum exertion toward attaining the ideal outcome, _________ focuses on pragmatic effort when confronted with tasks.
Satisficing
