Management Ch. 5 & 6

Steps to Decision Making

1. define the problem 2. identify decision criteria 3. weigh the criteria 4. generate alternative courses of action 5. evaluate each alternative 6. compute the optimal decision

Management by Objectives

1. discuss possible goals 2. collectively select goals that are challenging, attainable, and consistent with the company's overall goals 3. jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives 4. meet regularly to review progress toward accomplishment of those goals

Steps to Make the Plan Work

1. set goals 2. develop commitment 3. develop effective action plans 4. track progress toward goal achievement 5. maintain flexibility

Tracking Progress

2 methods: 1. set proximal and distal goals 2. gather and provide feedback

Operational Plans

3 types: 1. single-use plans 2. standing plans 3. budgeting

Strategic Objective

a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame

Action Plan

a plan that lists the specific steps (*how*), people (*who*), resources (*what*), and time period (*when*) needed to attain a goal

Policies

a standing plan that indicates the general course of action that should be taken in response to a particular event or situation

Purpose Statement

a statement of a company's purpose or reason for existing should be: - brief (no more than 2 sentences) - enduring, inspirational, clear, and consistent with widely shared company beliefs and values

Rational Decision Making

a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions

Devil's Advocacy

can be used to create c-type conflict by assigning an individual or a subgroup the role of critic.

Satisfice

choosing a "good enough" alternative

Planning

choosing a goal and developing a strategy to achieve that goal

Maximize

choosing the best alternative

Managers

consequently, most _____________ don't maximize - they *satisfice*

Operational Plans

day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and services over a *30 day to 6 month* period

A-Type Conflict (Affective Conflict)

disagreement that focuses on individuals or personal issues undermines team effectiveness by preventing teams from engaging in the activities characteristics of c-type conflict that are critical to team effectiveness

C-type Conflict (Cognitive Conflict)

disagreement that focuses on problem and issue related differences of opinion is also characterized by a willingness to examine, compare, and reconcile those differences to produce the best possible solution

Rational-Decision Making

in general, managers who diligently complete all the steps of the __________-___________ ___________ model will make better decisions than those who don't

Benefits of Planning

intensified effort, persistence, direction, and creation of task strategies

Strategic Plans

overall company plans that clarify how the company will serve customers and position itself against competitors over the next *two to five years*

Tactical Plans

plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next *six months to two years* to accomplish specific goals within its mission

Single-Use Plans

plans that cover unique, one-time-only events

Standing Plans

plans used repeatedly to handle frequently recurring events - policies - procedures - rules & regulations

Budgeting

quantitative planning through which managers decide how to allocate available money to best accomplish company goals

Proximal Goals

short-term goals or subgoals

Rules and Regulations

standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event

Procedures

standing plans that indicate the specific steps that should be taken in response to a particular event

Goal Commitment

the determination to achieve a goal

Options-Based Approach

maintaining planning flexibility by making small, simultaneous investments in many plan alternatives. Then when one or a few of these plans emerge as likely winners, you invest even more in these plans while discounting or reducing investment in in the others - *purpose is to leave those commitments open by maintaining slack resources*

Maintain Flexilibilty

- adapt an options-based approach

5 Steps to Establish a Devil's Advocacy Program

- generate a potential solution - assign a devil's advocate to criticize and question the solution - present the critique of the potential solution to key decision makers - gather additional relevant information - decide whether to use, change, or not to use the originally proposed solution

5 Steps of the Dialectical Inquiry Process

- generate a potential solution - identify the assumptions underlying the potential solution - generate a conflicting counterproposal based on the opposite assumptions - have advocates of each position present their arguments and engage in a debate in front of key decision makers - decide whether to use, change, or not use the originally proposed solution

Benefits of Planning

- managers and employees put forth a greater effort when following a plan - planning leads to persistence, that is, working harder for long periods - planning gives a sense of direction - planning encourages the development of task strategies - planning has been proven to work for both companies and individuals

Pitfalls of Planning

- planning can impede changes and prevent or slow needed adaptation - planning can create a false sense of certainty - the development of planners help to determine if a pitfall

Committing to a Goal

- set goals participatively - make goals public - obtain top mgmt support

SMART goals

- specific - measurable - attainable - realistic - timely

Dialectical Inquiry

Creates c-type conflict by forcing decision makers to state the assumptions of a proposed solution (a thesis) and to then generate a solution that is the opposite (antithesis) of the proposed solution

Low-Level Managers

___-______ _______ are responsible for developing and carrying out operational plans

Top Management

____ ____________ is responsible for developing long-term strategic plans - strategic planning begins with creation of organizational purpose - clear mission can also help employees better prioritize and work more efficiently - strategic objectives

Middle Managers

_________ ____________ are responsible for developing and carrying out tactical lans to accomplish the organization's strategic objective - management by objectives is a technique to developing and carry out tactical plans

Management by Objectives

a 4 step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment

Slack Resources

a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities

Nominal Group Technique

a decision-making process that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group

Distal Goals

long-term or primary goals

Decision Making

the process of choosing a solution from available alternatives

Structured Conflict

the right kind of conflict can lead to better group decision making - c-type conflict - a-type conflict - devil's advocacy - dialectical inquiry

Setting Goals

to direct behavior and increase effort, goals need to be specific and challenging - smart goals

Planning

works best when everybody pulls in the same direction