Management Ch. 5 & 6
Steps to Decision Making
1. define the problem 2. identify decision criteria 3. weigh the criteria 4. generate alternative courses of action 5. evaluate each alternative 6. compute the optimal decision
Management by Objectives
1. discuss possible goals 2. collectively select goals that are challenging, attainable, and consistent with the company's overall goals 3. jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives 4. meet regularly to review progress toward accomplishment of those goals
Steps to Make the Plan Work
1. set goals 2. develop commitment 3. develop effective action plans 4. track progress toward goal achievement 5. maintain flexibility
Tracking Progress
2 methods: 1. set proximal and distal goals 2. gather and provide feedback
Operational Plans
3 types: 1. single-use plans 2. standing plans 3. budgeting
Strategic Objective
a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame
Action Plan
a plan that lists the specific steps (*how*), people (*who*), resources (*what*), and time period (*when*) needed to attain a goal
Policies
a standing plan that indicates the general course of action that should be taken in response to a particular event or situation
Purpose Statement
a statement of a company's purpose or reason for existing should be: - brief (no more than 2 sentences) - enduring, inspirational, clear, and consistent with widely shared company beliefs and values
Rational Decision Making
a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions
Devil's Advocacy
can be used to create c-type conflict by assigning an individual or a subgroup the role of critic.
Satisfice
choosing a "good enough" alternative
Planning
choosing a goal and developing a strategy to achieve that goal
Maximize
choosing the best alternative
Managers
consequently, most _____________ don't maximize - they *satisfice*
Operational Plans
day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and services over a *30 day to 6 month* period
A-Type Conflict (Affective Conflict)
disagreement that focuses on individuals or personal issues undermines team effectiveness by preventing teams from engaging in the activities characteristics of c-type conflict that are critical to team effectiveness
C-type Conflict (Cognitive Conflict)
disagreement that focuses on problem and issue related differences of opinion is also characterized by a willingness to examine, compare, and reconcile those differences to produce the best possible solution
Rational-Decision Making
in general, managers who diligently complete all the steps of the __________-___________ ___________ model will make better decisions than those who don't
Benefits of Planning
intensified effort, persistence, direction, and creation of task strategies
Strategic Plans
overall company plans that clarify how the company will serve customers and position itself against competitors over the next *two to five years*
Tactical Plans
plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next *six months to two years* to accomplish specific goals within its mission
Single-Use Plans
plans that cover unique, one-time-only events
Standing Plans
plans used repeatedly to handle frequently recurring events - policies - procedures - rules & regulations
Budgeting
quantitative planning through which managers decide how to allocate available money to best accomplish company goals
Proximal Goals
short-term goals or subgoals
Rules and Regulations
standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event
Procedures
standing plans that indicate the specific steps that should be taken in response to a particular event
Goal Commitment
the determination to achieve a goal
Options-Based Approach
maintaining planning flexibility by making small, simultaneous investments in many plan alternatives. Then when one or a few of these plans emerge as likely winners, you invest even more in these plans while discounting or reducing investment in in the others - *purpose is to leave those commitments open by maintaining slack resources*
Maintain Flexilibilty
- adapt an options-based approach
5 Steps to Establish a Devil's Advocacy Program
- generate a potential solution - assign a devil's advocate to criticize and question the solution - present the critique of the potential solution to key decision makers - gather additional relevant information - decide whether to use, change, or not to use the originally proposed solution
5 Steps of the Dialectical Inquiry Process
- generate a potential solution - identify the assumptions underlying the potential solution - generate a conflicting counterproposal based on the opposite assumptions - have advocates of each position present their arguments and engage in a debate in front of key decision makers - decide whether to use, change, or not use the originally proposed solution
Benefits of Planning
- managers and employees put forth a greater effort when following a plan - planning leads to persistence, that is, working harder for long periods - planning gives a sense of direction - planning encourages the development of task strategies - planning has been proven to work for both companies and individuals
Pitfalls of Planning
- planning can impede changes and prevent or slow needed adaptation - planning can create a false sense of certainty - the development of planners help to determine if a pitfall
Committing to a Goal
- set goals participatively - make goals public - obtain top mgmt support
SMART goals
- specific - measurable - attainable - realistic - timely
Dialectical Inquiry
Creates c-type conflict by forcing decision makers to state the assumptions of a proposed solution (a thesis) and to then generate a solution that is the opposite (antithesis) of the proposed solution
Low-Level Managers
___-______ _______ are responsible for developing and carrying out operational plans
Top Management
____ ____________ is responsible for developing long-term strategic plans - strategic planning begins with creation of organizational purpose - clear mission can also help employees better prioritize and work more efficiently - strategic objectives
Middle Managers
_________ ____________ are responsible for developing and carrying out tactical lans to accomplish the organization's strategic objective - management by objectives is a technique to developing and carry out tactical plans
Management by Objectives
a 4 step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment
Slack Resources
a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities
Nominal Group Technique
a decision-making process that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group
Distal Goals
long-term or primary goals
Decision Making
the process of choosing a solution from available alternatives
Structured Conflict
the right kind of conflict can lead to better group decision making - c-type conflict - a-type conflict - devil's advocacy - dialectical inquiry
Setting Goals
to direct behavior and increase effort, goals need to be specific and challenging - smart goals
Planning
works best when everybody pulls in the same direction