1. Goal
    A desired future state that an organization attempts to relize
  2. Plan
    A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals
  3. Planning
    The act of determing the organization's goals and the means for achieving them
  4. Levels of goals and plans and their importance:
    • -Mission statement
    • -Strategic goals/plans
    • -Tactical goals/plans
    • -Operational goals/plans
  5. Purposes of goals and plans:
    • 1. Legitimacy
    • 2. Source of motivation and commitment
    • 3. Resource allocation
    • 4. Guides to action
    • 5. Rationale for decisions
    • 6. Standard of performance
  6. The Organizational Planning Process
    • 1. Develop the Plan
    • 2. Translate the Plan
    • 3. Plan Operations
    • 4. Execute the Plan
    • 5. Monitor and Learn
  7. Mission
    The organization's reason for existance
  8. Mission Statement
    A broadly stated definition of the organization's basic business scope and operations that distinguish it from similar types of organizations
  9. Strategic goals (Offical goals)
    Broad statements of where the organization wants to be in the future; they pertain to the organization as a whole rather than to specific divisions or departments
  10. Strategic plans
    The action steps by which an organization intends to attain strategic goals
  11. Tactical goals
    Goals that define the outcomes that major divisions and departments must achieve for the organization to reach its overall goals
  12. Tactical plans
    Plans designed to help execute major strategic plans and to accomplish a specific part of the company's strategy
  13. Operational goals
    Specific, measureable results expected from departments, work groups, and individuals within the organization
  14. Operational plans
    Plans developed at the orgainization's lower levels that specify action steps toward achieving operational goals and that support tactical planning activites
  15. Key steps to align goals (long term)
    • Accompilsh mission:
    • 1. Learning and Growth Goals
    • 2. Internal Business Process Goals
    • 3. Customer Service Goals
    • 4. Financial Performance Goals
  16. Strategy map
    A visual representation of the key drivers of an organization's success that shows the cause-and-effect relationships among goals and plans
  17. Goal Characteristics
    • -Specific and measureable
    • -Defined time period
    • -Cover key reult areas
    • -Challenging but realistic
    • -Linked to rewards
  18. MBO (Management by Objectives)
    • 1. Set goals
    • 2. Develop action plans
    • 3. Review progress
    • 4. Appraise overall performance
  19. Management by objective (MBO)
    A method of managment whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance
  20. Single-use plans
    Plans that are developed to achieve a set of goals that are unlikely to be repeated in the future
  21. Standing plans
    Ongoing plans that are used to provide guidance for tasks performed repeatedly within the organization
  22. Single-use plans
    • 1. Program
    • 2. Project
  23. Standing plans
    • 1. Policy
    • 2. Rule
    • 3. Procedure
  24. Critical planning methods (Three)
    • 1. Contingency planning
    • 2. Building senarios
    • 3. Crisis plannig
  25. Contingency plans
    Plans that define company responces to specific situations such as emergencies, setbacks, and unexpected conditions
  26. Scenario Building
    Looking at trends and discontinuities and imagining possible alternative futures to build a framework within which unexpected future events can be managed
  27. Crisis Planning
    • Two key steps:
    • 1. Prevention: Build relationships
    • -Detect signals from environment
    • 2. Preparation: Designate crisis-managment team and spokesperson
    • -Create detailed crisis-managment plan
    • -Set up effective communications system
  28. Central planning department
    A group of planning specialists who develop plans for the organization as a whole and its major divisions and departments and typically report directly to the president or CEO
  29. Decentralized planning
    Managers of divisions or departments work with planning experts to develop their own goals and plans  (divisions/departments work on their personal goals)
  30. Stretch goal
    A resonable yet highly ambitious and compelling goal that energizes people and inspires excellence
  31. Intelligence team
    A cross-functional group of managers and employees who work together to gain a deep  understanding of a specific competitive issue and offer insight and recommendations for planning
  32. Strategic management
    The set of decisions and actions used to formulate and implement stratiges that will provide a competitively superior fit between the organization and its environment so as to achieve organizaional goals
  33. Strategy
    The plan of action that prescribes resource allocation and other activites for dealing with the environment, achieving a competitive advantage, and attaining organizational goals
  34. Competitive Advantage
    What sets the organization apart from others and provides it with a distincive edge in the marketplace
  35. Core competence
    A business activity that an organization does particularly well in comparison to competitors
  36. Synergy
    The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone
  37. Strategy formulation
    The stage of strategic managment that involves the planning and decision making that lead to the establishment of the oganization's goals and of a specific strategic plan
  38. Strategy execution
    The stage of strategic managment that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes
  39. SWOT Analysis
    Analysis of the strengths, weaknesses, opportunites, and threats (SWOT) that affect organizational performance
  40. Porter's FIVE competitive forces:
    • 1. Potential new entrants
    • 2. Bargaining power of buyers
    • 3. Bargaining power of suppliers
    • 4. Threat of substitute products
    • 5. Rivarly among competitors
  41. Porter's Competitive Strategies Three:
    • 1. Differentiation
    • 2. Cost Leadership
    • 3. Focus
  42. Differentiation
    A type of competitve strategy with which the organization seeks to distinguish its products or services from those of competitors
  43. Cost leadership
    A type of competitive strategy with which the organization aggressively seeks efficient facilities, cuts costs, and employs tight cost controls to be more efficient than competitors
  44. Focus
    A type of competitive strategy that emphasizes concentration on a specific regional market or buyer group
  45. Dynamic capabilities
    Leveraging and developing more from the firm's existing assets, capabilites, and core competencies in a way that will provide a sustained competitive advantage
  46. Export strategy
    Plans made to sell products in foreign markets
  47. Tools for putting strategy into action (4)
    • 1. Leadership
    • 2. Structural Design
    • 3. Information and Control Systems
    • 4. Human Rights
Card Set
Managerial Planning and Goal Setting