Principles of managment Flashcards
(19 cards)
The P.O.L.C. approach
- Planning
- Organizing
- Leading
- Controlling
Planning
steps: • Analyze opportunities and threats • Define goals • Identify alternatives • Formulate steps
Purposes of planning
- Clarify direction
- Motivate
- Use resources effectively
- To control and measure progress
- A ritual
Business plans
• When: start a new business or expanding existing one
• Why: convince investors to lend money, or senior managers to allocate more
resources
• What: description of the market, how the company/unit intends to serve it,
the financial resources required.
Strategic plans
• When: corporate crisis, change in ownership, new opportunities
• Why: set a new direction
• What: overall direction for the business, scope, and long term goals for major
activities
Operational plans
They make the strategic plan
more operational (how to
achieve the strategy)
Swot
Internal [Strengths/ Weaknesses]
External [Opportunities / Threats]
Internal
Strengths • What do you do better than others? • What are your unique competences/skills? • What do others think you are good at?
Internal
Weaknesses • What are your areas for improvement? • What do others see as your weakness?
External
Opportunities • What good opportunities can you spot? • What are the favourable trends?
External
Threats • What obstacles are you facing? • What can prevent you from succeeding? • What are the unfavourable trends?
Scenario planning
• Develop scenario ‘stories’ - that is, coherent and plausible descriptions of
the future
• Considers how external factors might affect a company’s business over
the next 5-10 years
• Identify the impact of each scenario on the organisation and evaluate
future strategies in the light of the anticipated scenarios
Setting goals
Goals are statements of specific outcome that are to be achieved.
Key performance indicators (KPI) & Targets
It is useful to relate goals in a hierarchy
SMART
- Specific,
- Measurable,
- Attainable,
- Rewarded,
- Timed
Organizing
Organizing at the level of the organization
involves deciding how best to
departmentalize, or cluster, jobs into
departments to coordinate effort effectively.
Leading
Leading involves the social and informal
sources of influence that you use to inspire
action taken by others.
Controlling
1) establishing
performance standards,
2) comparing actual performance against standards,
3) taking corrective action when necessary.
Innovation
Novety + Value
Key task
- Creating an innovation strategy
- Designing an innovation system
- Building an innovation culture
