Term
| Why Do Managers Plan? Purpose |
|
Definition
| -Provides direction Reduces uncertainty Minimizes waste and redundancy Sets the standards for controlling |
|
|
Term
| How Do Managers Plan? Elements of Planning |
|
Definition
-GOALZ (also Objectives) -Desired outcomes for individuals, groups, or entire organizations Provide direction and evaluation performance criteria -PLANS Documents that outline how goals are to be accomplished -Describe how resources are to be allocated and establish activity schedules |
|
|
Term
|
Definition
| Related to expected internal financial performance of organization |
|
|
Term
|
Definition
| Related to performance of firm relative to factors in its external environment |
|
|
Term
| Stated Goals versus Real Goals |
|
Definition
| Broadly-worded official statements of the organization (intended for public consumption) that may be irrelevant to its real goals (what actually goes on in organization) |
|
|
Term
| By Breadth-- Strategic Plans |
|
Definition
-Apply to entire org’n Establish overall goals -Seek to position org’n in terms of its environment -Cover extended periods of time |
|
|
Term
| By Breadth--Operational Plans |
|
Definition
-Specify details for how overall goals are to be achieved -Cover short periods of time |
|
|
Term
| Types of Plans – By Time Frame |
|
Definition
Long-term v Short-term LT is 3 years or more ST is less than 1 year Different Horizons Length of ONE CYCLE Commonly, 1 cycle = 1 year, but… ? ? ? |
|
|
Term
|
Definition
-Setting ANY goal improves performance -Setting moderately challenging goals produce the best results. -Too low or too high result in emotional problems Good goals make interim feedback possible |
|
|
Term
| Characteristics of Well-Designed Goals |
|
Definition
-Written in terms of outcomes, not actions Focuses on ends, not means. -Measurable and quantifiable Specifically defines how outcome measured and how much is expected. -Clear time frame How long before measuring accomplishment. -Challenging yet attainable Low goals do not motivate. High goals motivate if they can be achieved. -Written down Focuses, defines, and makes goals visible. -Communicated to all necessary Puts everybody “on the same page.” |
|
|
Term
|
Definition
| 1).Review organization’s mission Do goals reflect the mission? 2).Evaluate available resources Are resources sufficient to accomplish mission? 3).Determine goals Are goals specific, measurable, and timely? 4).Write down goals and communicate Is everybody on same page? 5).Review results What changes are needed in mission, resources, or goals? |
|
|
Term
|
Definition
| Specific performance goals are jointly determined by employees and managers Progress toward accomplishing goals is periodically reviewed Rewards are allocated on the basis of progress towards goals |
|
|
Term
| Management by Objectives Key elements |
|
Definition
-Goal specificity -Participative decision making -Explicit performance/evaluation period Feedback |
|
|
Term
|
Definition
| -Top management commitment and involvement -People support what they help to create |
|
|
Term
| Potential Problems with MBO |
|
Definition
-Not as effective in dynamic environments that require constant resetting of goals -Overemphasis on individual accomplishment may create problems with teamwork -Allowing MBO program to become an annual paperwork shuffle |
|
|
Term
| Corporate Level Strategies |
|
Definition
| Growth Strategies Integration Concentration Diversification Stability Defensive Retrenchment Divestiture Liquidation |
|
|
Term
| Integration Growth Strategy Examples |
|
Definition
| Forward Integration Doll maker & mail order firm, Pleasant Co., opened a retail store in Manhattan Backward Integration McDonalds acquired a paper cup producer Horizontal Integration Callaway Golf acquired Top-Flite Golf Company |
|
|
Term
| Business (Competitive) Level Strategies |
|
Definition
| Competitive advantage Sustainable Michael Porter’s Generic Types Cost Leadership Differentiation Focus |
|
|
Term
| Strategies for Applying e-Business Techniques |
|
Definition
| Cost Leadership On-line activities: bidding, order processing, inventory control, recruitment and hiring Differentiation Internet-based knowledge systems, on-line ordering and customer support Focus Chat rooms and discussion boards, targeted web sites |
|
|
Term
| Forecasting Techniques Quantitative |
|
Definition
| Time series analysis Regression models Econometric models Economic indicators Substitution effect |
|
|
Term
| Forecasting Techniques Qualitative |
|
Definition
| Jury of opinion Sales force composition Customer evaluation |
|
|
Term
|
Definition
-Proactive broad assessment -Appears to be assoc w/better firm performance. -Competitor Intelligence Gathering info about competitors NOT need to involve spying Thinking about Ethics, p. 240 |
|
|
Term
| Making Forecasting More Effective |
|
Definition
1).Use simple forecasting methods. 2).Compare each forecast with its corresponding “no change” forecast. 3).Don’t rely on a single forecasting method. 4).Don’t assume that the turning points in a trend can be accurately identified. 5).Shorten the time period covered by a forecast. 6).Remember that forecasting is a developed managerial skill that supports decision making. 7 |
|
|
Term
|
Definition
Limitations (bounds) by ability to process information Assumptions are that decision makers: -Will not seek out or have knowledge of all alternatives. -Will satisfice—choose first alternative encountered that satisfactorily solves problem—rather than maximize outcome of decision by considering all alternatives and choosing best Influence on decision making Escalation of commitment: an increased commitment to a previous decision despite evidence that it may have been wrong. |
|
|
Term
| Decision Making Conditions |
|
Definition
| Certainty Risk Estimation of probabilities Uncertainty Estimation of risk difficult |
|
|
Term
|
Definition
A failure to act while tied up with gathering data and pondering. These days it is often better to make any decision quickly and then revisit it to correct it later |
|
|
Term
| Characteristics of an Effective Decision-Making Process |
|
Definition
It focuses on what is important.
It is logical and consistent.
It acknowledges both subjective and objective thinking and blends analytical with intuitive thinking.
It requires only as much information and analysis as is necessary to resolve a particular dilemma.
It encourages and guides the gathering of relevant information and informed opinion.
It is straightforward, reliable, easy to use, and flexible. |
|
|
