Chapter 7 Flashcards Preview

MGMG 309 > Chapter 7 > Flashcards

Flashcards in Chapter 7 Deck (37):
1

Decision Making

Is the cornerstone of planning.
Is the catalyst that drives the planning process.
Underlines every aspect of setting goals and formulating plans.

2

Planning

All organizations plan, but not in the same fashion.
All planning occurs within an environment context.
All goals require plans to guide in their achievement.
All goals are tied higher goals and plans.

3

Purposes of Goals

Provide guidance and a unified direction for people in the organization.
Have a strong affect on the quality of other aspects of planning.
Serve as a source of motivation for employees of the organization.

4

Kinds of Goals:

By Level
By Area
By Time Frame

5

Kinds of Goals by Level

Mission statement
Strategic Goals
Tactical Goals
Operational Goals

6

Mission Statement

A statement of an organization's fundamental purpose.

7

Strategic Goals

Set by top managers of organization that address broad general issues.

8

Tactical Goals

Set by and fro middle managers; their focus is on how to operationalize actions to strategic goals.

9

Operational Goals

Set by and for lower-level managers to address issues associated with tactical goals

10

Kinds of Goals by Area

Goals set for the different functional areas of the organization

11

Kinds of Goals by Time Frame

Goals may be set for long-term, intermediate-term, or short-term time frames and for explicit time frames or open-ended.

12

Who sets goals?

All managers should be involved in the goal-setting process.
Managerial responsibility for goal setting should correspond to the managers's level in the organization.

13

Managing Multiple Goals

Optimizing allows managers to balance and reconcile inconsistent or conflicting goals.
Managers can pursue one goal and exclude all others or to pursuer mid-range goal.

14

Kinds of Operational Plans

Strategic Plans.
Tactical Plans.
Operational Plans.

15

Strategic Plans

A general plan outlining resource allocation, priorities, and action steps to achieve strategic goals.
The plans are set by and for top management.

16

Tactical Plans

Plan aimed at achieving tactical goals set by and for middle management.

17

Operational Plans

Plans that have a short-term focus.
These plans are set by and for lower-level managers.

18

The Time Dimension of Planning

Based on the principle of commitment. Planning must provide sufficient time to fulfill the managerial commitments involved.

19

Time Frames for Planning

Long-range Plans.
Intermediate Plans.
Short-range Plans.

20

Long-range Plans

More than 5 years, strategic

21

Intermediate Plans

Usually cover from 1 to 5 years and parallel tactical plans.
Are the principle focus of organizational planning efforts.

22

Short-range Plans

Have a time frame of one year or less.
Include action plans and reaction (contingency) plans.

23

Who is responsible for planning?

Planning Staff
Planning Task Force
Board of Directors
Chief Executive Officer
Executive Committee
Line Management

24

Planning Staff

Gather information, coordinate planning activities, and take a broader view than individual managers.

25

Planning Task Force

Created when the organization wants a special circumstance addressed.

26

Board of Directors

Establishes corporate mission and strategy
Engage in strategic planning.

27

Chief Executive Officer

Usually serves as a president or chair of the board of directors.
Has a major role in the planning process and implement the strategy.

28

Executive Committee

Composed of top executive within the organization.
Meet regularly for input to the CEO and review strategic plans.

29

Line Management

Persons with formal authority and responsibility for management of the organization.
Help to formulate strategy by providing information.
Responsive for executing the plans of the top management

30

Contingency Planning

The determination of alternative courses of action to be taken in an intended plan is unexpectedly disrupted or rendered inappropriate.
These plans help manager to cope with uncertainty and change.

31

Crisis Management

The set of procedures the organization uses in the event of a disaster or other unexpected calamity.

32

Major Barriers to Goal Setting and Planning

Inappropriate goals
Improper reward system
Dynamic and complex environment
Reluctance to establish goals
Resistance to change
Constraints

33

Overcoming the barriers

Understanding the purposes of goals and planning.
Communication and participation.
Consistency, revision, and updating.
Effective reward systems.

34

MBO

Management by Objectives.
Effective technique for integrating goal setting and planning by giving subordinates a voice and clarifying what they are expected to accomplish.

35

Using Goals to Implement Plans Strengths:

Improved employee motivation
Enhance communication
Objective performance appraisals
Focuses attention on appropriate goals
Provides a systematic management philosophy.

36

Using Goals to Implement Plans Weaknesses:

Poor implementation of the goal setting process
Lack of top-management support for goal setting
Delegation of the goal-setting process to lower levels
Overemphasis on quantitative goals
Too much paperwork and record keeping

37

Criteria for effective goals

Specific and measurable
Cover key areas
Challenging but realistic
Defined time period
Liked to rewards