Chapter 5: Managerial Planning and Goal Setting

Standing Plans

-Ongoing plans -Policies, rules, procedures -Structured

What plans help for planning for a Turbulent Environment

Contingency Planning Building Scenarios Crisis Planning

CFT

Crisis Functional Team

SWOT Analysis

Formulating strategy often begins with an audit of internal and external factors -Internal: Strengths and Weakness -External: Opportunities and Threats Information is acquired from reports, surveys, discussions, and meetings

Model of the MBO Process

Is a method for defining goals and monitoring performance

Ill-structured problems have______

Non-programmed Decisions

Contingency Planning

Planning for emergencies, setbacks , or unexpected conditions

Structured problems have ___________

Programmed Decisions

Operational Planning

-Direct employees and resources -Guide toward efficient and effective performance -Includes planning approaches: -Management-by-Objectives (MBO) -Single-Use Plans -Standing Plans

Single-Use Plans

-Achieve one-time goals -Programs and Projects -illstructured

Stretch Goals for Excellence

-are highly ambitious -clear, compelling, and imaginative -Require innovation -Goals must be seen as achievable -As times move faster and become more turbulent, these are important

Strategies should

1. Exploit Core Competencies 2.Build Synergy 3.Deliver Value 4. Target Customers

When companies go through planning process and they are less successful then they hope to be its because of______

something from the external enivorment

Procedures

step by step

Organizational Mission

the organization's reason for existence

Peter Drucker

Defined the Model of the MBO Process in 1954

Crisis Planning

Unexpected events that are sudden and devastating

MBO Benefits

1. Focuses manager and employee efforts on activities that will lead to goal attainment 2.Can improve performance at all company levels 3.Improves employee motivation 4.Aligns individual and departmental goals with company goals

Strategy

-Every company is concerned with_______ -It determines which organizations succeed and which ones struggle -Strategic blunders can hurt a company

Characteristics of Effective Goal Setting

1.Are specific and Measurable 2.Have a defined time period 3.Cover key result areas 4.Are challenging but realistic 5.Are linked to rewards

The Organizational Planning Process

1.Develop the plan 2.Translate the Plan 3.Plan Operations 4.Execute the plan

Building Scenarios

A forecasting technique to look at current trends and discontinuities and visualize future possibilities

Types of Standing Plans

Policy: Sexual harassment policies, Internet and social media policies Rule: No eating rule in areas of company where employees are visible to public Procedure: Procedures for issuing refunds,Procedures for handling employee grievances

Types of Single-Use Plans

Program: building new headquarters, converting paper files to digital Project: renovating the office, setting up a new company intranet

Policy and Parameter

are not specific, there is wiggle room

Strategic Plans

define the action steps the company will take

Planning does NOT_____

ensure success

A Rule is____

explicit

plan

is a blueprint for a goal achievement and specifies the necessary resource allocations, schedules, tasks and other actions

Goal

is a desired future state that the organization attempts to realize

Strategic Management

is a specific type of planning 1. Its a process 2. It involves manager from all parts of the organization at all levels. 3.Its holistic

Competitive Advantage

is the organization's distinctive edge for meeting customer needs

Explicit Strategy

is the plan of action and part of a purpose of strategy

Goals and plans provide a source of_______ and _______.

motivation and commitment

Strategic Goals

official goals, broad statements describing the organization's future