MGMT Chapter 6

Goal Area

-Separating by operations, marketing, finance, hr, etc. -Production goals for quality, productivity, innovation, etc.

Operational Goals

-Set by and for lower-level managers to address issues associated with tactical goals -Ex. boost profitability of certain stores in a year -Middle management can also be involved in setting these

Tactical Goals

-Set by and for middle managers and focus on the actions needed to achieve strategic goals -Top managers also get involved in setting these

Operational Plans | Single-use

-Single-use plans are developed to carry out a course of action not likely to be repeated in the future -Program: used for a large set of activities -Project: narrower scope, less complex than program

Strategic goals and plans are primary inputs for developing...

tactical goals. -Tactical goals and strategic plans help shape tactical plans —> tactical goals and plans shape operational goals —> operational goals and tactical plans shape operational plans

Decision Making is

the catalyst that drives the planning process.

SOP Examples:

-A list of steps an employee should follow when receiving a compliant.

Short-Range Plans

-A plan that governs a firm's operations for one year or less -Day-to-day activities -Action plans: operationalizes any other kind of plan -Reaction plans: plan designed to allow the company to react to unforeseen change in circumstances

Rule/Regulation Examples:

-A requirement that unhappy customers never be given cash refunds. -All employees must be at work on time. Narrow focus on how specific activities are to be carried out.

Policy Examples:

-A statement defining how the company handles customer complaints

Mission

-An organization's purpose, premises, values, and directions. -Statement of fundamental, unique purpose that sets a business apart from other firms and identifies the scope of the business operations

Executive Committee

-Composed of top executives -Meets regularly with the CEO to review strategic plans that may affect their unit -Can be separated into subcommittees, staff committees, task forces

Operational Plans

-Derived from tactical plans and aimed at achieving operational goals -Narrow focus, short-term, low-level managers or mid -Several diff types (see other cards)

Board of Directors

-Establishes corporate mission and strategy -May engage in strategic planning OR they select a chief executive to handle planning -Chief Executive Officer is president or chair of B.O.D.

Tactical Goals | Executing

-Evaluate every possible coarse of action in light of the goal it is intended to reach?

Planning Staff

-Gather information, coordinate planning activities, and take a broader view than individual managers -Go beyond departments -Would work at larger firms

Strategic Goals

-Goals set by and for top management of the organization that address broad, general issues -Ex. increase profitability of each customer by 20% over 5 years

Line Management

-Have formal authority and responsibility for management of the organization -Help to formulate strategy by providing inside information -Are responsible for executing the plans of top management -They can identify, analyze, and recommend program alternatives; develop budgets; set plans in motion

Barrier to Goal Setting and Planning

-Inappropriate goals: unattainable or unethical/illogical, quantifying something that can't be -Improper rewards system: too much focus on short term, un-specific goals -Dynamic and complex environment: hard to assess future ops and threats -Reluctance to establish goals: lack of confidence / fear of failure -Resistance to change: people resist changing policies -Constraints: resources, regulation, competition

Planning Task Force

-Includes line managers with special interest and members of planning staff (if present) -Represents each major unit within the company that is relevant to project

Optimizing

-Involves balancing and reconciling possible conflicts among goals -Ex. fly more passengers at lower prices or few passengers at higher prices

Management by Objective (MBO)

-Managers at all levels formulate goals and plans -Employee motivation, better communication, more objective performance evals, more systematic goal setting -Concurrent goal setting and planning process -Could fail if lacking in top management support, emphasizes quantifiable goals, record keeping requirements, subordinates not involved

Tactical Plans

-Mid-range plans designed to implement the activities and objectives specified in the strategic plan -About people and action -They specify how the strategic goal is actually going to be achieved -Understand strategic plans and tactical goals —> specify resources and time issues —> evaluate various courses of action —> obtain and distribute info and resources —> monitor communication and activities toward goal

Goal Levels

-Mission -Strategic -Tactical -Operational

Program Examples:

-Plan describing he many activities involved in the acquisition of another company.

Project Examples:

-Plan to update the employee handbook as one of the many activities involved in the acquisition of another company.

Are goals static?

No. Companies can revise typically short-term goals depending on the environment.

Operational Plans | Standing Plans

-Standing plans are developed for activities that recur regularly over time -Policy: specifies firms general response to a designated problem or situation -Standing operation procedure (SOP): outlining steps to be followed in particular circumstances -Rules and regulations: standing plans describing exactly how specific activities are to be carried out

Goa Time Frame

-Strategic goals are long-term (10 years) -Tactical goals are mid-term (5 years) -Operational goals are short-term (1 year) Not all goals specify a time horizon.

Organizational Plans

-Strategic: outlines decisions of resource allocation, priorities, and action steps to achieve strategic goals; set by upper management; typically long-term -Tactical: implement specific parts of strategic plans; upper and middle management; shorter time horizon; about getting things done -Operational: how to carry out the tactical plans to achieve operational goals; middle and lower management; narrow in scope

The Planning Process

-Takes place within environmental context -Then look at the firms mission (purpose, premises, values, directions) -They move on to strategic goals and plans -Then tactical goals and plans -Lastly operational goals and plans

Contingency Planning

-The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate -Develop general plans —> implement plan and identify realistic contingencies —> develop contingency plans —> use the contingency plan -Important for firms in complex and dynamic environments

Crisis Management

-The set of procedures the organization uses in the event of a disaster or other unexpected calamity -Some procedures are systematic while others are ad hoc

Four Purposes of Goals:

-They provide guidance and a unified direction. -Goal-setting affects other aspects of planning. -Specific and moderately difficult goals can motivate employees. -Goals provide an effective mechanism for evaluation and control.

Overcoming Barriers to Goal Setting and Planning

-Understanding the basic purposes of goals and planning: adjust -Communication and participation: all level awareness and collaboration -Consistency, revision, and updating: horizontal (between dept.) and vertical (levels) goals all align -Effective reward system: positive reinforcement over negative

A plan that extend beyond X years is considered long-range?

5. Companies can make 5 and 10 year plans - but this is hard in a dynamic industry and environment.

Tactical Goals | Developing

Add

What is the essence of formal goal setting?

Collaborative goal setting and planning

What is the first step that a manager should take in executing a tactical plan?

Evaluate every possible course of action in light of the goal it is intended to reach.

Operational Goals/Plans Examples

Goals -Secure agreements with 5 Latin American Telenovela stars by Feb 1 -Write copy for Cheat Sheet: How to Target Tailor Audiences in Twitter Ads by Nov 1 -Complete coding and testing of a look-a-like targeting functionality by the end of the third quarter Plans -

Strategic Goals/Plans Examples

Goals -Strengthen the core user base usage by time spent on timeline, content generation, and mobile engagement -Aquire new users globally with a focus on stimulating primary demand in Latin America -Increase number of user timeline views by 15% year-over-year -Grow annual revenue by 18% or more to a range of $Xmil -Increase the costs per 1000 timeline views by 10% Plans

Tactical Goals/Plans Examples

Goals -Update the profile experiance on the iPhone with an increased focus on bios, tweets, and photos -Increase data licensing revenue by 50% -Launch #Twitternovela engagement campaign in Latin American markers: users can see Tweets from telenovela celebrities and create and tweet their own -Expand premium ad products for advertisers to create, manage, and activate tailored audiences Plans -Increase internal capacity to meet client request for engineered predictive models and algorithms on massive scale data by 20% by the start of the second quarter

Why is it important that organizations do not place too much emphasis on short-term performance?

To avoid long-term goals from being ignored