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30 Cards in this Set
- Front
- Back
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3 Types of planning |
Strategic planning -establishes master plans that fitthe destiny of the firm. Tactical planning - translates strategic plans into specific goals for organizational units Operational planning - identifies the specific procedures and actions required at lower levels in the organization |
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General Framework for Planning |
A. Define the Present Situation B. Establish Goals/Objectives C. Forecast Aids and Barriers to Goals and Objectives D. Develop Action Plans for Reaching Goals and Objectives E. Develop Budgets F. Implement the Plans G. Control the Plans H. Make Contingency Plans |
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vision |
idealized picture of organization’s future. |
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mission |
identifies firm’s purpose, and where it fits into the world. |
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SWOT Analysis |
strengths, weaknesses, opportunities, and threats in situation). |
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Operating plans |
enable strategic plans to alter destiny of the firm. |
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POLICIES |
general guidelines to follow for making decisions and taking action.
support strategic plans in every area of the organization. |
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PROCEDURES |
customary method of handling future activities. State specific manner for accomplishing an activity. |
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RULES |
specific courses of action or conduct that must be followed. |
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Non-programmed versus Programmed Decisions |
Unique decisions are non-programmed (or non-routine) decisions.
Well-planned organization has fewer non-programmed decisions.
Programmed decision is repetitive or routine and made by a procedure. |
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Steps in Problem Solving and DecisionMaking |
Identify and diagnose the problem (be aware thatproblem exists). Develop creative alternative solutions (explore evenunrealistic suggestions). Evaluate alternative solutions (examine pros andcons of each alternative). Choose one alternative solution (best one comesclosest to achieving goal decision was intended toachieve). Implement the decision. Evaluate and control (examine how well thedecision achieved its intended results). |
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Intuition |
(based on experience, and can help point executive in right direction) |
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Personality and cognitive intelligence |
Propensity for risk taking
Decisiveness based on degree of caution Perfectionism and rigidity High cognitive intelligence can help but can lead to“analysis paralysis” |
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Emotional intelligence |
(managing your feelings,reading feelings of others) Self-awareness Self-management of emotion Social awareness including empathy and intuition Relationship management |
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Quality and Accessibility of Information |
(quality information is good but decision maker may favor accessibility, or anchor first information received) |
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Political Considerations; |
Favoritism
alliances desire to stay in favor with powerful people
Favor status quo to avoid making waves
Revenge a possible factor |
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Degree of Uncertainty |
(calm and confident when certain, but effective manager can deal with risk indecision making) |
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Crisis and conflict |
Some decision makers panic during crisis, others at their best.
Moderate conflict directed at real issues can help visualize crisis in advance. |
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Values of the Decision Maker |
(all decisions are ultimately based on values) |
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Procrastination |
(leads to indecisiveness) |
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CREATIVITY IN MANAGERIAL WORK |
Creativity is an essential part of problem solving and decision making. the process of developing novel ideas that can be put into action. A recent perspective is that creativity is closely tied to taking your work seriously, such as your work being your purpose in life |
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GROUP PROBLEM SOLVING AND DECISION MAKING |
? |
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FORECASTING METHODS |
Qualitative and Quantitative |
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3 Types of Forecasts |
Economic - predict general level of future business activity
Sales - primary planning document for business. Should be based on several types of data
Technological - predicts what type of technological changes will take place such as digitizing all paper forms.
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GANTT CHARTS AND MILESTONE CHARTS |
GANTT CHARTS - Compares planned and actual progress on project.
Milestone Charts - Extends the Gantt chart by listing sub-activities needed for major activities.
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PERT |
most used network model. used to track the planning activities required to complete a large-scale, non-repetitive project.
most often for engineering and construction projects |
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BREAK-EVEN ANALYSIS |
Determining the relationship between total costs and total revenues at various levels of production or sales activity |
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Break-Even Formula |
Total Fixed Costs --------------------------- Price minus Variable Cost |
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INVENTORY-CONTROL TECHNIQUES |
Economic-Order Quantity- the inventory level that minimizes both ordering and carrying costs. Have to be accurate Just-in-Time System - minimize inventory and move it into the plant exactly when needed. The key principle is to eliminate excess inventory by producing or purchasing parts, subassemblies, and final products only when—and inthe exact amount—needed.
LIFO vs FIFO - Another method of inventory control is more of a method of accounting than a method of managing physical inventory, yet it does relate to stocking inventory. Last in First Out (LIFO) means that when there is more than one item in stock, you sell the last one received first. First in First Out means that when there is more than one item in stock, you sell the one you have had in inventory the longest. |
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LIFO and FIFO |
you have both physical and financial considerations. Old inventory can getdamaged, and if the money is borrowed to pay for it, you may want to sell it as soon as possible. If you value yourinventory at the cost of the time you purchased it, your profits will look better when you sell at today’s prices. Yet,you will pay more tax. |
