CH. 6 MGMT 309
What are the three various types of goals?
- Strategic - Tactical - Operational
Operational Planning
focus on executing tactical plans in order to meet operational goals. "In order to accomplish operational goals, operational plans are formed from tactical plans. As a result, operational plans typically involve lower-level managers, have a limited scope and have short time horizons". They typically have a short-term focus.
Strategic Goals
goals made by and for the organization's top management, which focus on broad and general matters (President/CEO)
Type of Goal? Implement employee incentive system within one year
Operational
Type of Goal? Implement this year's promotional strategy
Operational
Type of Goal? Negotiate 5% lower advertising rates next year
Operational
Type of Goal? Pay all invoices within thirty days
Operational
Type of Goal? Split accounts receivable/payable functions from other areas within two years
Operational
Type of Plan? Middle, lower-level managers Short-range timeframe Focus on departmental activities Scope is specific and concrete
Operational Plan
Type of Plan? We seek to improve efficiency by implementing a new computerized payment system
Operational Plan
Strategic Planning
Planning at the highest level of management. The board of directors and top management create general plans that outline decisions regarding resource allocation, priorities, and action steps necessary to reach strategic goals. They typically have a long-term focus.
Why dos resistance to change take place?
Planning usually involves changing something about an organization, and most people tend to resist change.
Developing Tactical Plans
Recognize and understand overarching strategic plans and tactical goals Specify relevant resource and time issues Recognize and identify human resource commitments Managers must understand that tactical planning must take into account tactical goals that are derived from a broader strategic goal Timelines and resources must be specified in tactics The use of human resources is required for tactical planning
Type of Goal? Negotiate new labor contract this year
Strategic
Type of Goal? Provide 14% return to investors for at least 10 years
Strategic
Type of Goal? Strengthen the core user base usage by time spent on timeline, content generation, and mobile engagement
Strategic Goal
Type of Plan? We seek to provide a 14% or greater annualized return of investment for our shareholders
Strategic Plan
Type of Plan? Board of directors, top management Long-range time frame Focus on sources of competitive advantage Scope is general
Strategic Plan
Type of Goal? Decrease average customer wait by 30 seconds this year
Tactical
Type of Goal? Decrease food-container costs by 15% during next 5 years
Tactical
Type of Goal? Develop new promotional strategy for next year
Tactical
Type of Goal? Earn 9% on excess cash this year
Tactical
Type of Goal? Increase per store sales 5% per year for ten years
Tactical
Type of Goal? Keep corporate debt to no more than 20% of liquid assets for next 10 years
Tactical
Type of Goal? Open 150 new restaurants during next 10 years
Tactical
Type of Goal? Revise computerized accounting system within 5 years
Tactical
Type of Goal? Target and attract 2 new market segments during next 5 years
Tactical
Type of Goal? Launch #Twitternovela engagement campaign in Latin American markets: users can see Tweets from telennovela celebrities and create and tweet their own #twitternovela story with vines
Tactical Goal
Type of Plan? Upper, middle management Intermediate time frame Focus on strategic business units Scope is somewhat specific
Tactical Plan
Type of Plan? We seek to expand by opening 150 new restaurant locations in the next 10 years
Tactical Plan
Rules and Regulations > Standing Plans (Operational Planning)
The narrowest of the standing plans, describe exactly how specific activities are to be carried out. Rather than guiding decision making, rules and regulations actually take the place of decision making in various situations (concentrate on a single activity)
Reaction Plan
A type of short-range plan created to enable the business to respond to an unexpected situation.
Contingency Plan: Ongoing Planning Process
Action point 1: Develop plan, considering contingency events Action point 2: Implement plan and formally identify contingency events Action point 3: Specify indicators for the contingency events and develop contingency plans for each possible event Action point 4: Successfully complete plan or contingency plan
Standing Plans (Operational Planning)
Designed for activities that repeat over time to help improve decision-making.
What is a contingency Plan?
Determines alternate courses of action to be performed if an anticipated course of action is suddenly disrupted or deemed inappropriate.
Single-Use Plans (Operational Planning)
Developed to carry out a course of action not likely to be repeated in the future.
Tactical Plan Developing/Executing Example: Determine human resource needs
Developing
Tactical Plan Developing/Executing Example: Identify the time constraints
Developing
Tactical Plan Developing/Executing Example: Understand strategic plans
Developing
Executing Tactical Plans
Evaluate each course of action in light of its goal Obtain and distribute information and resources Monitor horizontal and vertical communication and integration of activities Monitor ongoing activities for goal achievement No matter how well a tactical plan is put together, how well it is executed ultimately determines its success Successful implementation depends on astute use of resources, effective decision-making, and insightful steps
Tactical Plan Developing/Executing Example: Communicate throughout process
Executing
Tactical Plan Developing/Executing Example: Obtain information
Executing
Operational Goals
Lower level outlines these goals for themselves and their teams. Their main focus is on immediate problems connected to the tactical goals.
Tactical Goals
Middle managers set these goals. Their main focus is on how to operationalize the actions required to accomplish the goals.
Short-range plans
One year or fewer. Short Range plans have a significant impact on the manager's daily operations. Short Range Plans are divided into two categories: action plans and reaction plans.
Type of Goal? Computerize payroll system for each restaurant this year
Operational
Type of Goal? Decrease waste by 5% this year
Operational
Type of Goal? Develop regional advertising campaigns within one year
Operational
Type of Goal? Hire and train new assistant manager
Operational
What is resistance to change?
Resistance to change is a major barrier to goal setting and planning.
Operational Plan Single-use plan/Standing plan: A schedule for completing the redesign of an organization's gardens and landscape
Single Use
Operational Plan Single-use plan/Standing plan: An annual budget
Single Use
Long-range plans
Spans several years or even decades. It is challenging due to the complexity of their environment. Managers create long-term goals while simultaneously continuously monitoring their environment for potential changes.
Operational Plan Single-use plan/Standing plan: Company guidelines that require employees to wear suits and ties/professional business attire when interacting with customers
Standing
Operational Plan Single-use plan/Standing plan: Instructions for completing time sheets
Standing
Operational Plan Single-use plan/Standing plan: Developing a plan for your department to use when replenishing supplies needed to accomplish ongoing activities
Standing (standard operating procedure)
Programs > Single-Use Plans (Operational Planning)
a single-use plan for a large set of activities. It might consist of identifying procedures for introducing a new product line, opening a new facility, or changing the organization's mission.
Tactical Planning
created to carry out some aspects of a strategic plan and are aimed at accomplishing tactical goals. They typically have an intermediate-term focus.
Professional Planning Staff
kept on staff by some large organizations. However, several companies have recently come to the realization that establishing planning task forces or dispersing planning responsibility across their organization can help them plan more efficiently. Planning task force: An organization may appoint a task force for planning to assist in the creation of plans. A task force of this nature frequently consists of line managers with a special interest in the pertinent planning topic
Standard Operating Procedures > Standing Plans (Operational Planning)
more specific than a policy, in that it outlines the steps to be followed in particular circumstances (specifies a sequence of activities).
Projects > Single-Use Plans (Operational Planning)
similar to a program but is generally of less scope and complexity and may be a part of a broader program or it may be a self-contained single-use plan.
Policies > Standing Plans (Operational Planning)
specifies the organization's general response to a designated problem or situation, which is the most general form of standing plan.
