Chapter 5: Managerial Planning and Goal Setting
Standing Plans
-Ongoing plans -Policies, rules, procedures -Structured
What plans help for planning for a Turbulent Environment
Contingency Planning Building Scenarios Crisis Planning
CFT
Crisis Functional Team
SWOT Analysis
Formulating strategy often begins with an audit of internal and external factors -Internal: Strengths and Weakness -External: Opportunities and Threats Information is acquired from reports, surveys, discussions, and meetings
Model of the MBO Process
Is a method for defining goals and monitoring performance
Ill-structured problems have______
Non-programmed Decisions
Contingency Planning
Planning for emergencies, setbacks , or unexpected conditions
Structured problems have ___________
Programmed Decisions
Operational Planning
-Direct employees and resources -Guide toward efficient and effective performance -Includes planning approaches: -Management-by-Objectives (MBO) -Single-Use Plans -Standing Plans
Single-Use Plans
-Achieve one-time goals -Programs and Projects -illstructured
Stretch Goals for Excellence
-are highly ambitious -clear, compelling, and imaginative -Require innovation -Goals must be seen as achievable -As times move faster and become more turbulent, these are important
Strategies should
1. Exploit Core Competencies 2.Build Synergy 3.Deliver Value 4. Target Customers
When companies go through planning process and they are less successful then they hope to be its because of______
something from the external enivorment
Procedures
step by step
Organizational Mission
the organization's reason for existence
Peter Drucker
Defined the Model of the MBO Process in 1954
Crisis Planning
Unexpected events that are sudden and devastating
MBO Benefits
1. Focuses manager and employee efforts on activities that will lead to goal attainment 2.Can improve performance at all company levels 3.Improves employee motivation 4.Aligns individual and departmental goals with company goals
Strategy
-Every company is concerned with_______ -It determines which organizations succeed and which ones struggle -Strategic blunders can hurt a company
Characteristics of Effective Goal Setting
1.Are specific and Measurable 2.Have a defined time period 3.Cover key result areas 4.Are challenging but realistic 5.Are linked to rewards
The Organizational Planning Process
1.Develop the plan 2.Translate the Plan 3.Plan Operations 4.Execute the plan
Building Scenarios
A forecasting technique to look at current trends and discontinuities and visualize future possibilities
Types of Standing Plans
Policy: Sexual harassment policies, Internet and social media policies Rule: No eating rule in areas of company where employees are visible to public Procedure: Procedures for issuing refunds,Procedures for handling employee grievances
Types of Single-Use Plans
Program: building new headquarters, converting paper files to digital Project: renovating the office, setting up a new company intranet
Policy and Parameter
are not specific, there is wiggle room
Strategic Plans
define the action steps the company will take
Planning does NOT_____
ensure success
A Rule is____
explicit
plan
is a blueprint for a goal achievement and specifies the necessary resource allocations, schedules, tasks and other actions
Goal
is a desired future state that the organization attempts to realize
Strategic Management
is a specific type of planning 1. Its a process 2. It involves manager from all parts of the organization at all levels. 3.Its holistic
Competitive Advantage
is the organization's distinctive edge for meeting customer needs
Explicit Strategy
is the plan of action and part of a purpose of strategy
Goals and plans provide a source of_______ and _______.
motivation and commitment
Strategic Goals
official goals, broad statements describing the organization's future
