Management Test #2

What are SMART goals and MBO and how can they be implemented?

A SMART goal is one that is Specific, Measurable, Attainable, Results-oriented, and has Target dates. Management by objectives (MBO) is a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager makes a performance appraisal and rewards the employee according to results

How does the planning/control cycle help keep a manager's plans headed in the right direction?

Control; The planning/control cycle loop exists for each level of planning—strategic, tactical, and operational. The corrective action in step 4 of the cycle (a) can get a project back on track before it's too late or (b) if it's too late, can provide data for improving future plans.

How does effective execution help managers during the strategic-management process?

Execution, they say, is not simply tactics, it is a central part of any company's strategy. It consists of using questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve results promised

What are mission and vision statements, and what are three types of planning?

Mission Statement: What are mission and vision statements, and what are three types of planning? Vision Statement: A vision is a long-term goal describing "what" an organization wants to become. It is a clear sense of the future and the actions needed to get there.

What's the five-step recipe for the strategic-management process?

Step 1: Establish the Mission & the Vision Step 2: Assess the Current Reality (current reality assessment, or organizational assessment—to look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the ) Step 3: Formulate the Grand Strategy ( grand strategy, which, after the assessment of the current reality, explains how the organization's mission is to be accomplished. Three common grand strategies are growth, stability, and defensive) Step 4: Implement the Strategy ( strategy implementation: the implementation of strategic plans) Step 5: Maintain Strategic Control: The Feedback Loop (Strategic control consists of monitoring the execution of strategy and making adjustments, if necessary)

What are the three types of goals, and what are different kinds of plans?

Strategic goals are set by and for top management and focus on objectives for the organization as a whole. Tactical goals are set by and for middle managers and focus on the actions needed to achieve strategic goals. Operational goals are set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.

What are mission and vision statements, and what are three types of planning?

Strategic planning by top management- they determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available. Tactical: by middle management. that is, they determine what contributions their departments or similar work units can make with their given resources during the next 6-24 months. Operational planning: by first-line management. that is, they determine how to accomplish specific tasks with available resources within the next 1-52 weeks.

What are the three types of goals, and what are different kinds of plans?

action plan, which defines the course of action needed to achieve the stated goal, such as a marketing plan or sales plan. The operating plan, which is typically designed for a one-year period, defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow, and market share. Standing plans are plans developed for activities that occur repeatedly over a period of time. (policy/procedure/rule) Single-use plans are plans developed for activities that are not likely to be repeated in the future (program/project)

What tools can help me describe where the organization stands from a competitive point of view?

competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately SWOT analysis—also known as a situational analysis—which is a search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization. Benchmarking is a process by which a company compares its performance with that of high-performing organizations Contingency planning—also known as scenario planning and scenario analysis—is the creation of alternative hypothetical but equally likely future condition

How can three techniques—Porter's four competitive strategies, diversification and synergy, and the BCG matrix—help me formulate strategy?

determine what the organization's long-term goals should be for the next 1-5 years. These should communicate not only the organization's general goals about growth and profits but also information about how these goals will be achieved

What are the characteristics of good mission and vision statements

mission statement: organization's purpose or reason for being; vision statement: describes its long-term direction and strategic intent

What are planning, strategy, and strategic management, and why are they important to me as a manager

planning: What are planning, strategy, and strategic management, and why are they important to me as a manager strategy: a large-scale action plan that sets the direction for an organization. strategic management: As we will see, strategic management is a process that involves managers from all parts of the organization—top managers, middle managers, and first-line managers—in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization. Thus, planning covers not only strategic planning (done by top managers) but also tactical planning (done by middle managers) and operational planning (done by first-line managers).

What is strategic positioning, and what are the three principles that underlie it?

strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. Principle 1: Strategy Is the Creation of a Unique & Valuable Position (Few needs, many customers, Broad needs, few customers, Broad needs, many customers) Principle 2: Strategy Requires Trade-offs in Competing ( company has to choose not only what strategy to follow but what strategy not to follow) Principle 3: Strategy Involves Creating a "Fit" among Activities ( "Fit" has to do with the ways a company's activities interact and reinforce one another.)