Chapter 5 Admin Management

Wounded Warrior Project: Upon taking over the company, the CEO made did the following:

1. Made an assessment 2. Established a clear vision - this is what we're about 3. Spoke about being efficient and effective 4. Spoke about developing strategic plans

4 Steps of the Planning Control Cycle

1. Make the plan 2. Carry out the plan 3. Control the direction by comparing the results with the plan 4. Control the direction by taking corrective action in 2 ways • Correcting deviations in the plan being carried out • Improving future plans

An Organization should adopt planning and strategic management for 3 reasons:

1. Provide Momentum and direction 2. Encouraging New Ideas 3. Developing a Sustainable Competitive Advantage

What are the three types of planning?

1. Strategic Planning 2. Tactical Planning 3. Operational Planning

what are operational goals?

Set by and for first line managers and are concerned with short term matters associated with realizing tactical goals

What are Tactical goals?

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

What are the two types of plans?

1. standing 2. single use

Don't set too many goals; ___ to ___ is optimal.

3-5 at each level; ie individual 3-5; department 3-5

What is a Business Plan?

A document that outlines the firm's proposed goals, the strategy for achieving them and the standards for measuring success

What is a strategy?

A long scale action plan that sets the direction for the organization

What is Strategic Management?

A process that involves managers from all parts of the organization in the formation, implementation, and execution of the strategies and strategic goals to advance the purposes of the organization.

Some people make goals smart-er by?

Adding evaluation and revision

What does A in smart mean?

Aggressive o Needs to be challenging; you need to push yourself o Relative to your circumstance o Dependent on the organization and environment and industry

Who is Operational planning done by?

First line management

___ and ___ are essential to the three types of planning.

Goals and Action Plans

Strategic, Tactical and Operational Planning includes ___ and ___.

Goals and action Plan

____ works by cascading objectives down through the organization; that is objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization.

MBO

Three types of goals build on one another; the successful achievements of an operational goal are the means to achieve a tactical goal, which is the means to achieve a strategic goal. This is called a____.

Means-end-chain

Tactical Planning is done by?

Middle management

This type of planning is short term usually around a year; 1-52 weeks?

Operational Planning

This type of planning seeks to plan how to handle day to day operations

Operational planning

What is a business Model?

Outlines the need the firm will fill, the operations of the business, its components and functions as well as the expected revenue and expenses

Organizing and leading steps in POLC are implied here

Planning Control Cycle

What are single use plans?

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

what is a standing plan?

Plans that are put in place to resolve reoccurring issues.

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

Policy

A standing plan that outlines the response to a particular problem or circumstance

Procedure

A ____ includes a number of projects such as the US space program.

Program

What are types of single use plans?

Projects and programs

A standing plan that designates specific required action

Rule

What are strategic Goals?

Set by and for top management and focus on the objectives for the organization as a whole

5 Steps of Strategic Planning

Step 1 : Mission Statement → Step 2: Vision Statement → Step 3: Strategic Planning → Step 4: Tactical Planning → Step 5: Operational Planning

What type of planning is long term: 1-5 years?

Strategic Planning

This type of plan contributes to the overall strategic Plan

Tactical Management

What type of planning, focuses on a midrange time frame usually around 2 years ; 6-24 months

Tactical Management

Research in the ___ Industry suggest that even in dynamic environments planning leads to higher levels of success for business.

Tech

Who is Strategic Planning done by?

Top Management

Who develops a vision statement?

Top managers

What is an operating plan?

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

A sales plan and marketing plan are examples of a ___ plan.

action plan

___ and ___ are the control steps in the planning/control cycle.

control the direction by comparing results with the plan and control the direction by taking corrective action in 2 ways. etc

what is an action plan?

defines the course of action needed to achieve the stated goal

Top managers set organizational objectives, which are translated into ___ objectives which are translated into ___ objectives. The hierarchy ends in ___ objectives set by each employee.

divisional; departmental; individual

___ and ___ are the planning steps in the planning/control cycle.

make the plan and carry out the plan

What does M in Smart mean?

measurable; You have to be able to measure the goal

The purpose of MBO is to ___ rather than control subordinates.

motivate

What are the three types of goals?

o Strategic o Tactical o Operational

For MBO to be successful 3 things need to happen: 1. 2. 3.

o Top management must be committed o It be must be applied organization-wide o Objectives must cascade

What do standing plans consist of?

policies, procedures and rules

A single use plan encompassing a range of projects or activities

program

A single use plan; a specific initiative made up of any number of tasks usually with a defined start and end dates

project

What does R in SMART mean?

realistic; make sure you can reach it

What is a goal?

specific commitments to achieve a measurable result within a stated time frame

What does S in Smart Mean?

specific; not vague

What does T in SMART mean?

timeframe; Set a deadline; framed within a time

Determining the mission statement is the responsibility of ___ and ___. It is up to them to formulate a mission statement

top management and the board of directors

What is a mission statement?

- Answers the question " what is out reason for being? Why does this organization exist?" - expresses the purpose of the organization

What is a vision statement?

- Expresses what the organization should become, where it wants to go strategically - Projection of the future - What do we want to become sometime in the future?

Pros of Planning?

- Helps us check our progress - Helps our coordinate activities - Helps us think ahead - Helps us cope with uncertainty (contingency planning)

Cons of Planning?

- It takes time - Sometimes things happen that we can't account for

What is a SMART goal?

- S - specific - M - measurable - A - aggressive - R - realistic - T - time-based

What is Planning?

- Setting goals and deciding how to achieve them - Coping with uncertainty by formulating future courses of action to achieve specified results

What is MBO?

- management by objectives o Managers and employee jointly set objectives for the employee o Managers develop the action plan o Managers and employee periodically review the employee's performance o Manager makes a performance appraisal and rewards the employee according to the results