Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

48 Cards in this Set

  • Front
  • Back
Setting goals and deciding how to achieve them; coping with uncertainty by formulating future courses of action to achieve specified results.
*part of strategic management
*evolves from company's mission and vision
Types of planning at different levels:
Top= Strategic

Mid= Tactical

First Line= Operational

Planning is a_______
PROCESS- strategic management chain
Why NOT plan?
1) Planning requires managers to set aside their regular responsibilities to develop plans. TAKES TIME!

2)Managers need to be flexible enough to react to new events b/c there may not always be enough time to plan
How does planning help?

1) Organizations can use plans to check their progress toward their goals.

2)Plans define the responsibilities of a firms departments and coordinates their activities.

3)Planning requires managers to consider what may happen in the future.

4)Planning for unpleasant contingencies helps managers deal with uncertainty.
Three types of uncertainty:

a)State Uncertainty

b)Effect Uncertainty

c)Response Uncertainty
a) when the environment is considered unpredictable. Think of possible harmful effects.

b) when the effects of environmental changes are unpredictable. What type of harmful effects an environment might have?

c) when the consequences of a decision are uncertain.Imaging consequences
Strategies to deal with uncertainty:


a)Experts at producing and selling narrowly defined products or services. Focus on core business
*Focus on refining existing practices.

b)Managers who develop NEW products or services and seek out new markets, rather than waiting for things to happen.
*Create own opportunities
*Focus on change
c) Analyzers

d) Reactors
c)Organizations that allow other organizations to take the risks of product development and marketing and then imitate (or perhaps slightly improve on) what seems to work best.
*Me-too approach

d)Managers who make adjustments only when finally forced to by environmental pressures.
*usually just respond to CRISIS=bad!
Firms make decisions about three types of problems:

1)Entrepreneurial Problems

2)Engineering problems

3)Administrative Problems
1) Selecting and making adjustments to products and markets

2) Producing and delivering the products

3) Establishing roles, relationships and organizational processes.
How do managers plan?

5 Elements of the Planning process
translation of mission into organizational processes
1) Mission statement- reason for being
2) Vision Statement-what do we want to become
3) Strategic Planning
4) Tactical Planning
5) Operational Planning

b)Mission Statement
a)An organization’s purpose or reason for being.

b)Statement that expresses the purpose of the organization.

b)Vision Statement
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.

b)Statement that expresses what the organization should become and where it wants to go strategically.
Three Levels of planning:

1) Strategic Planning

2) Tactical Planning

3) Operational Planning

4)**Contingency (see next card)
1)Determining what an organization’s long-term goals should be for the next 1–10 years with the resources it expects to have available; done by top management.

2)Determining what contributions departments or similar work units can make with their given resources during the next six months to two years; done by middle management.

3)Determining how to accomplish specific tasks with available resources within the next 1-week to 1-year period; done by first line managers.
Goal / Objective
a specific commitment to achieve a measurable result within a stated period of time.
Means-End Chain
A hierarchy of goals; in the chain of management (operational, tactical, strategic), the accomplishment of low-level goals are the means leading to the accomplishment of high-level goals or ends.
GOALS at different levels:

a)Strategic Goals

b)Tactical Goals

c)Operational Goals
a)Goals that are set by and for top management and focus on objectives for the organization as a whole.

b)Goals that are set by and for middle managers and focus on the actions needed to achieve strategic goals.

c)Goals that are set by and for first-line managers and are concerned with short term matters associated with realizing tactical goals.
a) Action Plan

b) Operating Plan
a)Course of action needed to achieve a stated goal.

b)Typically designed for a one year period, this plan defines how a manager will conduct his or her business based on the action plan; the operating plan identifies clear targets such as revenues, cash flow, and market share.
Plans are either:

a) Standing Plans

b) Single-Use Plans
a)Plan developed for activities that occur repeatedly over a period of time; such a plan consists of policies, procedures, or rules.

b)Plan developed for activities that are not likely to be repeated in the future; such a plan can be either a program or a project.
Standing Plans:

i. Policy


i.Standing plan that outlines the general response to a designated problem or situation. EX. Policy against swearing

ii.a standing plan that outlines the response to particular problems or circumstances.EX. How to make a sandwich

iii.Standing plan that designates specific required action.EX. no smoking
Single use Plans:

i. Programs

ii. Projects
i.A single-use plan encompassing a range of projects or activities.

ii.A single-use plan of less scope and complexity than a program.
SMART goals
Goals that are:
-Attainable (but Challenging)
-have Target Dates
The Planning/Control Cycle
A cycle that has two planning steps (1 and 2) and two control steps (3 and 4), as follows:
Planning Steps:
(1) Make the plan.

(2) Carry out the plan.
Control Steps:
(3) Control the direction by comparing results with the plan.

(4) Control the direction by taking corrective action in two ways—namely,
(a) by correcting deviations in the plan being carried out, or
(b) by improving future plans.
How do you motivate employees to set goals?

Management by Objectives(MBO)
(Peter Drucker)
Four step process in which:
(1) managers and employees jointly set objectives for the employee, (SMART)
(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.
Three types of Objectives:

a) Improvement Objectives

b) Personal Development Objectives

c) Maintenance Objectives
a)express performance to be accomplished in a specific way for a specific area

b) Express personal goals to b realized

c) Express the intention to maintain performance at previously established levels.
2)Action Plans:

3)Review Performance:

4)Appraisal of Performance
Should be set for each level, describing how goals should be attained

Formal and informal meetings used to review performance/provide feedback

4) Rewards can be bonuses, complements etc.
Three things required for MBO to be successful:
1) Top management must be committed

2) MBO must be applied organization wide

3) Objectives must cascade
Cascading objectives
Objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization.
Organizational objectives-> Divisional-> Individual
Project Planning
Preparation of single-use plans, or projects.
Project Management
Achieving a set of goals by planning, scheduling, and maintaining progress of the activities that constitute a project.
Goal of project planning:
Reduce risk of uncertainty and speed up the process of getting things done.
A project team whose members are separated from the normal operation of an organization and asked to produce a new, innovative product.
Project Life cycle
Cycle of a project with four stages from start to finish: definition, planning, execution, and closing.
Problem is stated, assumptions and risks are identified, goals and objectives are determined, and the **budget and schedule are set.
facilities and equipment are identified, people and their duties are selected, and the schedule is considered

3)the management style and control tools are established
*Focus on completing project on time and under budget while trying to meet the client's expectations

4)when the client accepts the project. Can be abrupt or gradual
Why is Project Planning Important?
Deadlines are very important.

They help keep managers on track and provide .
Connecting People to Purpose
employees understand how their efforts are worthwhile and connected to the organization as and creating a sense that they have a role in that relationship
EX. Motorola, Travelocity
*Southwest Airlines
Southwest Airlines:

A)How does management connect people to purpose?

b)Why Important?
a)Through special events, Creating fun videos, and having the CEO present(not just ABOVE employees)

b)The employees are there for the company. Happy employees reflect in their work: less turnover. The vision helps guide employees by helping them be more involved. Employees work for the jobs of others (Knowing where companies are going helps them work toward the greater good.)
Importance of connecting people to purpose:

Employees can

See four benefits of planning(BOOK)
-Monitor their progress and the progress of the organization

-Coordinate their activities with the broader organization.

-Think ahead in their jobs and plan for themselves and the entire organization

-Cope with uncertainty in their jobs and the broader organization
4) Contingency Planning
done at all levels;
Identify most critical assumptions and develop contingencies for problems that have a reasonable chance of occurring.
*address the What ifs?
New Years resolutions- Goals
We should make Resolutions using SMART goals
SMART example: Exercise more

1)Specific= Who, What, When, Where, Why

2)Measurable= Criteria
1)I am going to join a health club this week and get in shape and improve my health.

2)three times a week, increase flexibility X amount, lose X amount of weight
3)Attainable= Challenging, but achievable-And Important to you

See p. 157
Diagram: p 157
4) Results oriented

5) Target dates:
4)Support your vision for yourself, your needs. If its an organizational goal support the vision of the organization
*Is the goal about me?

5)ie. by the end of 2007- Date to be attained
Theory behind SMART goals:
Locke and Latham (come back later) Goals should be: Specific, Challenging, Achievable
Planning/Control cycle
*Action plan
Step 1; list of specific plans
Includes- Date to be completed, Description of action to be taken, Key Participants, Resources needed.

Step2: Implement

Step 3: Compare Results

Step 4: Correct Deviations