Chapter 9 Flashcards
(18 cards)
Managerial Function
Defining the organization’s goal
Establishing an overall strategy for achieving those goals
Developing a comprehensive set of plans to integrate and coordinate work
Types of planning
Informal. Not written down, short term focus; specific to a unit
Formal. Written down, long term; specific to the whole organization.
Planning and Performance
Provide direction
Reduces uncertainty
Minimizes waste and redundancy
Sets the standard for controlling
The Relationship Between Planning and Performance
Formal Planning is associated with
Higher profits and returns on assets
Other positive financial results
-The quality of planning and implementation affects performance more than the extent of planning
- The external environment can reduce the impact of planning on performance
- Formal planning must be used for several years before planning begins to affect performance
Elements of planning
Goals
- Desired Outcomes or Targets
- Provide direction and performance evaluation criteria
Plans
- Documents that outline how goals will be met
- Describe how resources are to e allocated and establish activity schedules
Types of goals
Stated Goals: Official statements of what an organization says, and what it wants its stakeholders to believe its goals are.
Real Goals: goals that an organization actually purpose, as defined by the actions of its members.
Types of BREADTH
Strategic Plans
Apply to the entire organization
Establish the organization’s overall goals
Seek to position the organization in terms of its environment
Cover extended periods of time
Operational Plans
Specify the details of ho the overall goals are o be achieved
Cover shorter period of time
Time frame
Long-term Plans
Time frames extending beyond 1 to 3 years
Short-term Plans
Time frames of one year or less
Specificity
Specific Plans
Clearly defined and leave no room for interpretation
Directional Plans
Plans that are flexible and set out general guidelines
Frequency of Use
Single use Plans
One time plan specifically designed to meet the needs of a unique situation
Standing plan
Ongoing plans that provide guidance for activities performed repeatedly
Traditional Goal Setting
Broad goals are set at the top of the organization
Goals are then broken down into subgoals for each level of the organization
Goals are intended to direct,guide and constrain from above
Goals lose clarity and focus as lower-level managers attempt to interpret and define the goals for their areas of responsibility
Maintaining Hierarchy Goals
Means-Ends Chain
An integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals or end at the next level.
Management By Objectives
A process of setting mutually agreed-upon goals and using those glaos to evaluate employee performance.
Rewards are allocated on the basis of progress toward the goal
Goal specificity, participative decision making and explicit performance/evaluation period,feedback.
It works because top managements is involved
Problem include
Not as effective in dynamic environments that require constant resetting goals
Overemphasis on individual accomplishment may create problems with teamwork
Allowing the MBO program to become an annual paperwork shuffle
Steps to Setting Goal
Review the organization’s mission statement
Evaluate available resources
Determine goals individually or iht input from others
Write down goals and communicate them
Review results and whether goals are being met
How do managers plan
Organizational level Strategic plans at higher levels Operational plans at lower levels Degree of environment uncertainty Stable environment; Specific plans Dynamic environment; Specific but flexible plans Length of future commitments Current plans affecting future commitments must be sufficiently long-term to meet the commitments
Establish a formal planning departmentEstablish a formal planning department
A group of planning specialists who help managers write organizational plans
Planning is a function of management; it should never become the sole responsibility
Approaches to Planning
Involving organizational members
Plans are developed by members of organizational units at various levels and then coordinated with other units across the organization
Effective Planning in Dynamic Environments
Develop plans that are specific but flexible
Understand that planning is an ongoing process
Change plans when conditions warrant
Persistence in planning eventually pays off
Flatten the organization; hierarchy tp foster the development of planning skills at all organizational levels.
