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- is the conrnerstone of planning - is the catalyst that drives the planning process. - underlies every aspect of setting goals and formulating plans |
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- generic activity - all organizations plan, but not in the same fashion - occurs within an environmental context - all goals require this to guide their achievement - all goals are tied to higher goals and ??? |
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| critical to organizational effectiveness |
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- provide guidance and a unified direction for people in the organization. - have strong affect on the quality of other aspects of planning. - serve as a source of motivation for employees of the organization - provide an effective mechanism for evaluation and control |
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| performance can be assessed in the future in tems of how successfully todays goals are accomplished. |
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- by level - by area - by time frame |
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- mission statement - strategic goals - tactical goals - operational goals |
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| - a statement of an organization's fundamental purpose. |
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| goals set by and for top management of the organization |
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| set by and fo middle managers; their focus is on how to operationalize actions to strategic goals. |
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| set by and for lower-level managers to address issues associated with tactical goals. |
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| set for different fuctional areas of the organization. |
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| goals may be set for long-term, intermediate-term, or shor-term time frames and for explisit time frames or open-ended. |
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- all managers should be involved in the goals-setting process - managerial responsibility for goal setting should correspond to the managers level in the organization. |
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optimizing allows managers to balance and reconcile inconsistent or conflicting goals. managers pursue one goal and exclude all others or to seek a mid range goal |
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| kinds of organizational plans |
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strategic tactical operational |
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| a general plan outlining resource allocation, priorities, and action steps to achieve strategic goals. the plans are set by and for top management. |
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| a plan aimed at achieving tactical goals and developed to implement parts of a strategic plan |
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| plansthat have a short-term focus. thes plans are set by and for lower-level managers. |
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the time dimension of planning long-range plans intermediate plans short-range plans |
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| the time dimension of planning |
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| is based on the principle of commitment. Planning must provide suffiient time to fulfill the managerial commitments involved. |
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- a plan that covers many years, perhaps even decades; common long-range plans are for five years or more - time span differs from organization to organization |
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- usually cover from 1 to 5 years and parallel tactical plans. - are the principle focus of organizational planning efforts. |
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have a time frame of one year or less include action plans and reaction (contingency) plans. |
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| responsibilities for planning |
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-planning staff - planning task force - board of directors - chief executive officer - executive committee - line management |
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| - personnel gather information, coordinate planning activities, and take a broader view than individual managers. |
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created when the organization wants a special circumstance addressed. short term come together for task, complete, break up |
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establishes corporate mission and strategy
may engage in strategic planning
some companies they take an active role in the planning process others they select competent chief executive and delegate planning to that individual. |
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usually serves as president or chair of the board of directors. has a major role in the planning process and implements the strrategy. ceo and pres. can be different, set culture/ tone of company |
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| composed of tope executives within the organization. meet regularly for input to the CEO and review strategic plans. |
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persons with formal authority and responsibility for management of the organization. help to formulate strategy by providing information. responsible for for exevuting top mgmt plans immediate results feedback day to day operations |
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prioritize reinquish goal compromize |
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the determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate these plans help managers to cope with uncertainty and change |
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| criteria for effective goals |
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1. specific and measurable (increases profit by 2%) 2. cover key result areas ( financial performance, customer satisfaction) 3. challenging but realistic (30% sales from past 4 yrs) 4. define time period ( strategic sales goal over 3 yrs.) 5. linked to rewards ( pay increase, recongition). |
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when contingeny planning does not work - the set of proocedures the organization uses in the event of a disaster or other unexpected calamity. |
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Single-use plan - program - project standing plaing - policy - standard operating procedure - rules and regulations |
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| developed to carry out a course of action not likely to be repeated in the future |
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| single-use plan for a large set of activities |
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| single-use plan of less scope and complexity than a program |
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| developed for activites that recur regularly over a period of time |
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| standing plan specifying the organization's general respnse to a designated problem or situation |
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| standard operating procedure |
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| standing plan outlining steps to be followed in particular circumstances |
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| standing plans describing exactly how specific activites are to be carried out |
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| barriers to gaol setting and planning |
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| as part of managing the goal-setting and planning process, managers must understand the barriers that can disrupt them. managers must also know how to overcome them. |
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- inappropiate goals - improper reward system - dynamic and complex environment - reluctance to establish goals - resistance to change - constraints |
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- understanding the purposes of goals and planning - communication and participation - consistency, revision, and updating - effective reward systems |
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| using goals to implement plans |
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| - a formal goal-setting process such as management by objective (MBO) is an effective technique for integrating goal setting and planning by giving subordinates a voice and clarifying what they are expected to accomplish. |
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| streanths of formal goal setting (success) |
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- improved employee motivation - enhances communication - objective performance appraisals - focuses attention on appropriate goals - provides a systematic management philosophy. - help identify management talent - have to support top management for goal to work - facilitate control of the organization |
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| weaknesses (failure) of formal goal setting |
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- poor implementation of the goal setting process - lack of top-managemnet support for gaols setting - delegation of the goal-setting process to lower leverls - overemphasis on quantitative gaols - too much paperwork and record keeping |
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low oxygen high Co2 contingency plan fix problem with what you have |
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| the organization's mission |
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purpose premises value decisions |
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