Chapter 5

planning/control cycle

2 planing steps 1.) make a plan 2.) carry out plan 2 control steps 1.) control direction by comparing results with the plan 2.)control direction by taking corrective action in 2 ways (a) by correcting deviations in the plan being carried out or (b) by improving future plans

management by objectives (MBO)

4 step process in which 1. managers & employees jointly set objectives for the employee 2. managers develop action plans 3. managers & employees periodically review he employees performance 4. managers makes performance appraisal & rewards the employee according to the results

describe the basic operations of the business

Corey is creating a business to sell neckties. As part of his planning, he wants to set up a business model. The business model should do what?

1-52 weeks

Operational planning usually last how long?

1-5 years

Strategic planning usually last how long?

6-24 months

Tactical Planning usually last how long?

middle management

Tactical planning is performed by ________ management who determine what contributions their departments or work units can make toward the organization's strategic priorities during the next 6-24 months.

operating plan

The _______ defines how the organization will conduct business by breaking strategic plans into action plans.

cash flow, market share, & revenues

The operating plan would typically identify 1 year targets for which of the following? (more than one) a. good will b. cash flow c. market share d. revenues

strategic plan

What document guides long-term goals?

1. description of the industry the firm is entering 2. the firm's expected revenues and expenses

What would be included in a firm's business model?

top management

Which position would typically determine the mission statement?

1st line managers

Which position would typically determine the operational planning?

tactical

Which type of planning refers to determining what contribution departments or similar units can make with their given resources during the next 6-24 months?

operating plan

a plan typically designed for a 1 year period; defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow, & market share

project

a single-use plan of less scope & complexity than a program

program

a single-use plan that encompassing a range of projects or activities

goals

a specific commitment to achieve a measurable result within a stated period of time

policy

a standing plan that outlines the general responses to a designated problem or situation

procedure

a standing plan that outlines the response to particular problems or circumstances

action plan

course of action needed to achieve the stated goal

operational planning

determines how to accomplish specific tasks with available resources within the next 1-52 weeks

tactical planning

determines what contributions their departments or similar work units can make with their given resources

strategic planning

determines what the organization's long term goals should be for the next 1-5 years with the resources they expect to have available

business plan

document that outlines a proposed firm's goals & strategy for achieving them & the standards for measuring success

mission statement

expresses purpose of the organization

vision statement

expresses what the organization should become, where it wants to go strategically

operational goals

goals set up by & for the 1st line managers & are concerned with short term matters associated with realizing tactical goals

tactical goals

goals set up by & for the middle managers & focuses on the actions needed to achieve strategic goals

strategic goals

goals set up by & for top managers & focuses on objectives for the organization as a whole

means-end chain

in the chain of management the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends

strategy

large scale action plan that sets the directions for an organization

vision

long-term goals describing "what" an organization wants to become; clear sense of the future & the actions needed to get there

cascading

objectives down thru the organization; that is objectives are structured in a unified hierarchy becoming more specific at lower levels of the organizations

SMART goals

one that is Specific, Measurable, Attainable, Results-oriented, & has Target dates

business model

outlines the need the firm will fill, the operations of the business, its components, & functions as well as the expected revenues & expenses

single-use plans

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

standing plans

plans developed for activities that occur repeatedly over a period of time

strategic management

process that includes managers from all parts of an organization in the formulation & the implementation of strategies & strategic goals

mission

purpose or reason for being

planning

setting goals & deciding how to achieve them; coping with uncertainty by formulating future course of action to achieve specified results

rule

standing plan that designates the specific required action