week 6 - planning Flashcards
define planning
the primary management function
planning onvolves
o Defining the organisations objectives or goals
o Establishing an overall strategy for achieving those goals
o Developing a comprehensive hierarchy of plans to integrate and coordinate activities
- decide where you want to go
decide the best way to go about it
does it pay to plan - benefits
Does it pay to plan? • Higher profits • Higher return on assets • Improved quality of planning • Appropriate implementation
define strategic management
Strategic Management = Is what managers do to develop an organisation’s stratergies
o Has a positive impact on organisational performance
o It prepares managers to cope with changing situations
o Guide managers to examine relevant factors in planning future action
steps in the strategic management process
- identity the organisations current mission, goals and strategies
- External analysis:
opportunities
threats
Internal analysis:
strengths
weaknesses
- Formulate strategies
- implement strategies
- evaluate strategies
reasons for planning
set the standards to facilitate control
provide direction
reduce the impact of change
minimise waste and redundancy
what are the 3 typeof stratergies
coperate
competitive
functional
see text book and slides
explain strategic overview
coperate stratergy options:
growth: expand markets or products
Stability: no change
Renewal: retrenchment or turnaround
Competitive stratify options (Porter’s model of competitive advantage:
Cost leadership: low cost product/service (highly efficient)
Differentiation: more unique product/service (high quality)
Focus: Narrow segment of the market
Stick in the middle - ambiguous = a bad place to be
Functional strategy options:
functional strategy: functional departments support competitive strategy e.g. r&d, marketing, HR, finance etc
6 strategic big weapons
- customer service
- employee skills and loyalty
- innovation
- quality
- social media
- big data
define a resource based view (VRIO)
Where the organisation has something that is rare, valuable, inimitable and they are organised to exploit it!
explain the traditional goal setting pyrmaid
top management’s objectives
division manager’s objective
Department manager’s objective
Individual employee’s objective
Management by Objectives
- Goal specificity
- Participative decision making
- Explicit time period
- Performance feedback
SMART model for establishing goals
specific - objective need to be clearly defined so that it is easy to understand that is to be achieved and what will be considered successful
Measurable - the exact measure must be stated and the objectives must be able to be measured through some means
Actionable - An organisation needs to ensure that it’s business unit managers have the authority and resources to take the actions necessary to attempt to achieve the objectives that are set.
Reasonable - there is no point setting unrealistic objectives. unrealistic objectives are a disincentive for both managers and their employees
Time tabled - objectives should have milestone dates or deadlines at which progress towards achieving them will be measured.
steps in goal setting for indivudals
- Review the organisation’s mission and employees’ key job tasks.
- Evaluate available resources.
- Determine the goals individually or with input from others.
- Make sure goals are well-written and communicate to all who need to know.
- Build in feedback mechanisms to assess goal progress.
- Link rewards to goal attainment
type of plans
see pic 4.3
either strategic planning or operational planning
and then broken into top executives middle level and first level managers
