chapter 6 mgmt

tactical plans

intermediate term focus

Optimizing

involves balancing and reconciling possible conflicts among goals.

Which is the most general form of standing plan?

policies

operational plans

short term focus

Responsibilities for setting goals:

who sets goals? All managers should.

Operational goals

are set by and for lower- level managers. Their concern is w shorter term issues associated w tactifcal goals.

optimizing means

balancing and reconciling possible conflicts among goals

Management by objectives (MBO)

is a formal goal-setting process involving collaboration between managers and subordinates

Crisis management

is the set of procedures the organization uses in the event of a disaster or other unexpected calamity.

How do businesses increase their chances of success

leaders do work to make good decisions and develop plans and strategies

strategic plans time frame

long term focus

How do leaders make matters far worse.

make bad decisions or execute plans poorly

Levels of goals

mission, strategic, tactical, and operational

larger an organization becomes, the

more the primary planning activities become associated with groups of managers rather than with individual managers.

Managing multiple goals:

sometimes orgs can experience conflict with many differnet goals at once. To adress this problem: managers use the concept of optimizing: involves balancing and reconciling possible conflicts among goals.

A policy

specifies the organization's general response to a designated problem or situation

Manager checklist

-Needs to remember that decision making and planning are critical parts of their jobs -Keep in mind that even if their decisions and plans are not perfect, trying to make effective decisions and plans increases their chances for success.

planning process itself can be best thought of as

a generic activity

All planning occurs within an

environmental context

Purposes of goals: (4 main purposes)

-Provides guidance and a unified direction for people in the organization -effective goal setting promotes good planning -motivation for employees of the organization, can motivate ppl to work harder, especially if obtaining the award results in rewards -Goals provide an effective mechanism for evaluation and control, this means performance can be assessed in future in the terms of how successfully toodays goals are accomplished

Managers checklist for goals:

-Remember that goals and goal setting are a major part of a managers job. -Important to remember that goals are targets, not necessarily absolute objectives that must be attained. -Need to keep in mind they will often need to optimize among and across multiple goals.

two types of short range plans

-action plan -reaction plan

Tactical plans

-aimed at achieving tactical goals, is developed to implement specific parts of a strategic plan. -They involve upper and middle managment and have a shorter time frame and have more specific concrete focus. -Concerned w getting things done rather than deciding what to do.

long range plan

-covers many years, perhaps even decades. -Environmental change can make it unfeasible to plan too far ahead. -We reguard that any plan that extends beyond five years as a long range.

purposes of goals: (4)

-direction -planning -motivation -evaluation and control

Operational plans

-focuses on carrying out tactical plans to achieve operational goals. -Developed by middle and lower level managers, operational plans have a short term focus and each one deals w a fairly small set of activities.

levels of goals:

-mission -strategic goals -tactical goals -operational goals

The mission:

-outlines the organizaions purpose, premises, values, and directions. -parralell streams of goals and plans

Strategic plans:

-plans developed to achieve strategic goals. -A general plan outlining decisions of resource allocation, priorities, and action steps necessary to reach strategic goals. -These plans are set by the board directors and top management, have extended time, and address question of scope, resource deployment, competitive advantage, and synergy

planning staff can

-reduce the workload of individual managers, help coordinate the planning activities of individual managers, bring to a particular problem many different tools and techniques, take a broader view than individual managers, and go beyond pet projects and particular departments.

intermediate plans

-somewhat less tentative and subject to change than is a long range plan. -Intermediate plans usually cover periods from one to five years and are -important for middle and first line managers.

The chief executive officer (CEO) is usually

-the president or the chair of the board of directors. -The CEO is probably the single most important person in any organization's planning process. -The CEO plays a major role in the complete planning process and is responsible for implementing the strategy.

short range plans

-time frame of one year or less. - These affect a managers day to day activities. -There are two basic kinds of short range plans: action plans and reaction plans.

What must be specified in tactical planning? Check all that apply.

-timelines -resources

how to overcome barriers:

-understand the purposes of goals and planning -comm and participation -consistency, revsison, and updating -effective reward system

elements of crisis management

some are may be orderly and systematic, whereas others may be more ad hoc and develop as events unfold.

who does a reasonably good job of contingency planning

Disney -Its theme park operations in central Florida, for example, have occasionally been forced to shut down temporarily in anticipation of hurricanes. When the COVID-19 pandemic hit in 2020, Disney was able to utilize many components of its existing weather-based contingency plans to systematically first close its theme parks and then its adjacent resorts.

example of decision making

Disney plus & GM estimating and planning how many consumers they will have in 2025

What are the chief executive officer (CEO)'s responsibilities for planning?

In charge of putting the strategy into action and plays a significant part in the whole planning process

Organizations set a wide variety of goals, and occasionally these goals conflict with one another or contradict one another. What should managers do in such situations?

Managers should optimize, which means balancing and reconciling possible conflicts among goals

Operations managers plan

Operations managers plan

What are the two forms of single-use plans that are used the most?

Programs and projects

standard operating procedure, or SOP.

SOP is more specific than a policy, in that it outlines the steps to be followed in particular circumstances.

Which type of plans are developed for activities that recur regularly over a period of time?

Standing plans

What is the first step of planning?

Understanding the organizational environment

Decision making is the catalyst that

drives the planning process

Tactical plans

combine w tatical goals to shape operational goals

The executive committee is

composed of the top executives in the organization working together as a group. Committee members usually meet regularly to provide input to the CEO on the proposals that affect their own units and to review the strategic plans that develop from this input.

two more important types of planning:

contigency planning & crisis managment

contingency planning

contingency planning—the determination of alternative courses of action to be taken if an intended plan of action is unexpectedly disrupted or rendered inappropriate

Operational plans are

derived from tactical plans and are aimed at achieving operational goals. Thus, operational plans tend to be narrowly focused, have relatively short time horizons, and involve lower-level managers.

A single-use plan

developed to carry out a course of action that is not likely to be repeated in the future.

sStrategic goal level

goals set by and for top management of the organization. They focus on broad and general issues

Kinds of goals

goals vary by level, area, and time frame

Barriers to Goal Setting and Planning

innapropriate goals, improper reward system, dynamic and complex invironment,reluctance to establish goals, resistance to change, constraints

action plan

operationalizes any other kind of plan.

Time frame:

organizations set goals across different time frames. (long term, intermediate term, and short term) ("the next 10 years")

Mission goal level

outlines the organizaions purpose, premises, values, and directions

Area of goals:

places have goals for operations, marketing, and finance. By keeping activities focused on these important areas, organizations can be competitive w one another.

Reaction plans

plan designed to allow the company to react to an unforeseen circumstance.

Decision making is the corner stone of

planning

Two types of single-use plans

programs and projects

Tactical goals

set by and for middle managers. Their focus is how to operationalize actions necessary to achieve the strategic goals.

A project is

similar to a program but is generally of less scope and complexity.

A program is a

single-use plan for a large set of activities.

Strategic plans

strategic goals and plans are primary input for developing tactical goals.

Kinds or organizational plans:

strategic, tactical, and operational

kinds of organizational plans

strategic, tactical, operational

Marketing sales managers develop plans for

target markets, market penetration, and sales increases.

board of directors establishes

the corporate mission and strategy

A planning task force is most often created when

the organization wants to address a special circumstance

consequences of poor crisis management examples

the terrorist attacks of September 11, 2001, and the 2005 hurricanes

Line managers are

those persons with formal authority and responsibility for the management of the organization.

Most managers agree that a formal goal-setting program must begin from the top of the organization if it is to be effective. t/f?

true

standing plan is

used for activities that recur regularly over a period of time.