MAN3025 - Chapter 7

What are Single-use plans?

plans developed for activities that are not likely to be repeated in the future

Internal Business Process Goals

- Build good relationships with suppliers and partners -Improve cost, quality, and flexibility of operations - Excel at innovative product development and next generation market opportunities

Learning and growth goals

- Promote employee development via ongoing training - Enable continuous learning and knowledge-sharing - Cultivate a culture of innovation and high performance

Customer Service Goals

-Build and maintain good customer relationships -be the leader in quality and reliability -provide innovative solutions to customer needs

Financial Performance Goals

-Increase revenues in existing markets -Increase productivity and efficiency -Increase revenues in new markets and products

The Organizational Planning process

1. Develop the Plan 2. Translate the Plan 3. Plan Operations 4. Execute the Plan 5. Monitor and Learn

MBO Benefits

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

What two critical purposes does a well-defined mission serve?

1. It clearly articulates the strategic direction and sets a clear framework for the development of subsequent goals and plans 2. It motivates and inspires employees

What are the four key areas to a strategy map?

1. Learning and growth 2. Internal Processes 3. Customer Service 4. Financial Performance

MBO process

1. Set goals 2. Develop action plans 3. Review progress 4. Appraise overall performance

The 3 steps in Crisis Preparation

1. designate crisis management team and spokesperson 2. create detailed crisis management plan 3. set up effective communications system

Why should a manager Review progress?

A periodic progress review is important to ensure action plans are working. This review allows managers and employees to see if they are on target and if corrective action is needed.

What is Scenario building?

An extension of contingency, when managers look at trends and discontinuities and imagine possible alternative futures to build a framework within which unexpected future events can be managed.

What are 3 planning approach for unexpected events

Contingency Planning Scenario Building Crisis Planning

Why do conflicts arise among goals?

Because achieving one goal means another may not be accomplished. Managers sometimes disagree about which goals to pursue

What are some ways to resolve goal conflict?

Building a coalition Addressing conflict with debate and dialogue Modifying goals Manager departures

Planning approaches

Management By Objective (MBO) Single-use Plans Standing Plans

What are strategic goals?

Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services

How does addressing conflicts with debate and dialogue help?

Good managers don't let conflicts over goals simmer and detract from goal accomplishment or hurt the organization

Why should a manager Set goals?

Involves employees at all levels and looks beyond day to day activities to answer the question "what are we trying to accomplish"

Why should a manager Develop action plans

Managers at each level should prepare an action plan for attaining objectives.

How are Contingency plans developed?

Managers identify important factors in the environment to then forecast a range of alternative responses to the most likely high-impact contingencies, focusing on the worst case

How to modify goals?

Managers must find ways to balance goals that are both highly important to the organization rather than fighting for one over the other An effective approach is by adapting the goals across space or time

What is at the top of the goal hierarchy?

Mission

5th step in Organizational planning process

Monitor and Learn Managers review plans to learn from the results achieved and revise plans as needed as they begin a new planning cycle

What is in the content of a mission statement?

Often describes the company's basic business activities and purpose, the values that guide the company, company characteristics, such as desired markets and customers, product quality, location of facilities, and attitude toward employees

Why are goals important?

Organizations exist for a purpose and goals define and state that purpose.

4th step in Organizational planning process

Performance Management Tools for executing the plan include : - management by objectives - single-use plans - standing plans

3rd step in Organizational planning process

Plan Operations - Managers lay out the operational factors needed to achieve goals. This includes: - devising operational goals and plans - selecting the measures and targets that will be used to determine if things are on track - identifying stretch goals and crisis plans that might need to be put into action

Which of the 4 management functions is the most fundamental? Planning Organizing Leading Controlling

Planning

What are types of Single-use plans

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

How do Manager departures help?

Sometimes conflicts are lessened or resolved when managers who support a particular goal leave the organization. They may feel so strongly about an issue, perhaps based on personal conviction that they are not able to compromise

Why should a manager Appraise overall performance

The final step is to evaluate whether annual goals have been achieved for both individuals and departments. Success or failure to achieve goals can be part of the performance appraisal system and the designation of salary increases and other rewards.

Why should goals be Linked to Rewards?

The impact of goals depend on the extent to which salary increases, promotions, and awards are based. Employees pay attention to what gets noticed and rewarded in the organization

Planning process layout?

The mission is the basis for the strategic (company) level of goals and plans Which in turn shapes the tactical (divisional) level and the operational (departmental) level

What is the purpose of strategic plans?

To turn organizational goals into realities within that time period, define what major departments and organizational subunits will do to implement the organization's strategic plan

2nd step in Organizational planning process

Translate the plan into action - this includes: - defining tactical objectives and plans - resolving conflicts among participants - developing a strategy map to align goals - formulating contingency and scenario plans

True or false? Do people like to work for an organization that gives them a clear sense of purpose that goes beyond making money for the company and its shareholders?

True; 63% percent of employees say they are motivated compared to the 31% at other companies

What's one of the biggest mistakes a manager can make when setting goals?

Trying to accomplish too many goals too quickly

What is the concept of planning?

Usually incorporates both ideas (Goal and Plan), it means determining the organization's goals and defining the means for achieving them

How does organizational planning process begin?

When managers develop the overall plan for the organization by clearly defining mission and strategic (company-level) goals and create frameworks and mechanisms for managing goal conflict

How does the planning process start?

With a formal mission that defines the basic purpose of the organization for employees as well as for external audiences

How do goals begin?

With broad strategic goals, followed by more specific tactical goals, and then operational goals

What is a plan?

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

What is a formal mission statement?

a broadly stated definition of purpose that distinguishes the organization from others of a similar type

What is a goal?

a desired future circumstance or condition that the organization attempts to realize

What is Management by means (MBM)

a recent approach that focuses attention on the methods and processes used to achieve goals. It focuses more on considering the means rather than just on reaching the goals

What is Management by Objectives (MBO)

a system in which people at each level of the organization set goals in a process that flows from top to bottom, so employees at all levels are contributing to the organization's overall goals; these goals become the standards for evaluating each employee's performance

What is a Big Hairy Audacious Goal (BHAG)?

any goal that is so big, inspiring, and outside the prevailing paradigm that it hits people in the gut and shifts their thinking

Characteristics of Effective Goals

are specific and measurable have a defined time period cover key result areas are challenging but realistic are linked to rewards

What are Contingency Plans?

define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions

What are tactical plans?

designed to help execute major strategic plans and to accomplish a specific part of the company's strategy

What do goals and plans specify?

goals - future ends ; plans - specify today's means

What should a manager set goals that are Challenging but realistic?

goals should be ambitious but within reach. They should challenge employees to meet high standards

What happens in the Crisis Prevention stage

involves activities that managers undertake to try to prevent crises from occurring and to detect warning signs of potential crises, and building open trusting relationships with key stakeholders

What is Coalitional management?

involves building an alliance of people who support a manager's goals and can influence other people to accept and work toward them

What are Standing plans

ongoing plans that provide guidance for activities performed repeatedly within the organization

What is the Crisis Management Plan

plan that defines operational procedures to deal with a crisis, including communication tasks and responsibilities. This should be a living and changing document that is regularly reviewed, practiced, and updated as needed

What are types of Standing plans

policies, procedures, rules and regulations

What are operational goals?

precise and measurable results expected from departments, work groups, and individuals

What is Crisis planning?

preparing organization, managers, and employees to cope with catastrophic events that could destroy the firm if a crisis-response plan were not in place

The two stages of crisis planning include:

prevention and preparation

What are Stretch goals?

reasonable yet highly ambitious and compelling goals that energize people and inspire excellence

What are some benefits of planning and goal setting

serving as a source of motivation determining resource allocation providing a guide to action and setting a standard for performance measurement

What are tactical goals?

set by and for middle managers and focus on the actions needed to achieve strategic goals

What are operational plans?

specify the action steps toward achieving operational goals and support tactical activities by frontline managers and supervisors

What are Strategic Plans?

the action steps by which an organization intends to attain strategic goals

What are Key Performance Indicators?

the few critical metrics that are most relevant to a company's specific business strategy, and a company should track these measures rigorously rather than using many different measurements. They are measures of the aspects of the company's performance that are essential to its competitive advantage and therefore its success.

What is an organizational mission?

the organization's reason for existence. It describes the organization's values, aspirations, and reason for being

What are some limitations of planning and goal setting

the potential to create a false sense of certainty create rigidity that hinders response to a turbulent environment and get in the way of creativity and intuition.

What is a Strategy Map?

visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization