Chapter 5
planning/control cycle
2 planing steps 1.) make a plan 2.) carry out plan 2 control steps 1.) control direction by comparing results with the plan 2.)control direction by taking corrective action in 2 ways (a) by correcting deviations in the plan being carried out or (b) by improving future plans
management by objectives (MBO)
4 step process in which 1. managers & employees jointly set objectives for the employee 2. managers develop action plans 3. managers & employees periodically review he employees performance 4. managers makes performance appraisal & rewards the employee according to the results
describe the basic operations of the business
Corey is creating a business to sell neckties. As part of his planning, he wants to set up a business model. The business model should do what?
1-52 weeks
Operational planning usually last how long?
1-5 years
Strategic planning usually last how long?
6-24 months
Tactical Planning usually last how long?
middle management
Tactical planning is performed by ________ management who determine what contributions their departments or work units can make toward the organization's strategic priorities during the next 6-24 months.
operating plan
The _______ defines how the organization will conduct business by breaking strategic plans into action plans.
cash flow, market share, & revenues
The operating plan would typically identify 1 year targets for which of the following? (more than one) a. good will b. cash flow c. market share d. revenues
strategic plan
What document guides long-term goals?
1. description of the industry the firm is entering 2. the firm's expected revenues and expenses
What would be included in a firm's business model?
top management
Which position would typically determine the mission statement?
1st line managers
Which position would typically determine the operational planning?
tactical
Which type of planning refers to determining what contribution departments or similar units can make with their given resources during the next 6-24 months?
operating plan
a plan typically designed for a 1 year period; defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow, & market share
project
a single-use plan of less scope & complexity than a program
program
a single-use plan that encompassing a range of projects or activities
goals
a specific commitment to achieve a measurable result within a stated period of time
policy
a standing plan that outlines the general responses to a designated problem or situation
procedure
a standing plan that outlines the response to particular problems or circumstances
action plan
course of action needed to achieve the stated goal
operational planning
determines how to accomplish specific tasks with available resources within the next 1-52 weeks
tactical planning
determines what contributions their departments or similar work units can make with their given resources
strategic planning
determines what the organization's long term goals should be for the next 1-5 years with the resources they expect to have available
business plan
document that outlines a proposed firm's goals & strategy for achieving them & the standards for measuring success
mission statement
expresses purpose of the organization
vision statement
expresses what the organization should become, where it wants to go strategically
operational goals
goals set up by & for the 1st line managers & are concerned with short term matters associated with realizing tactical goals
tactical goals
goals set up by & for the middle managers & focuses on the actions needed to achieve strategic goals
strategic goals
goals set up by & for top managers & focuses on objectives for the organization as a whole
means-end chain
in the chain of management the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends
strategy
large scale action plan that sets the directions for an organization
vision
long-term goals describing "what" an organization wants to become; clear sense of the future & the actions needed to get there
cascading
objectives down thru the organization; that is objectives are structured in a unified hierarchy becoming more specific at lower levels of the organizations
SMART goals
one that is Specific, Measurable, Attainable, Results-oriented, & has Target dates
business model
outlines the need the firm will fill, the operations of the business, its components, & functions as well as the expected revenues & expenses
single-use plans
plans developed for activities that are not likely to be repeated in the future
standing plans
plans developed for activities that occur repeatedly over a period of time
strategic management
process that includes managers from all parts of an organization in the formulation & the implementation of strategies & strategic goals
mission
purpose or reason for being
planning
setting goals & deciding how to achieve them; coping with uncertainty by formulating future course of action to achieve specified results
rule
standing plan that designates the specific required action
