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Ch5 Foundations of planning (5-2 Explain what managers do in the strategic…
Ch5 Foundations of planning
5-1 Discuss the nature and purposes of planning
Reasons for planning
Provide direction
Understand what they must contribute to reach the goals
Understand what the organization is going
Establishes coordinated effort
Fostering teamwork and cooperation
Reduce the impact of change
Forcing managers to look ahead
Anticipate change
Develop appropriate responses
Reduces uncertainty
Set the standard to facilitate control
Significant deviations are identified
Establishes the goals or standards
Minimize waste and redundancy
Reduces overlapping and wasteful activities
Inefficiencies become obvious
5-2 Explain what managers do in the strategic management process
Strategic management
strategies
How it will compete successfully
How it will attract and satisfy its customers
How the organization will do what it's in business to do
The reason why it important
Managers in organizations of all types and sizes face continually changing situations
Organizations are complex and diverse and each part needs to work together to achieve the organization's goal
It can make a difference in how well an organization perform
The strategies management process
Doing an internal analysis
Strengths
Weaknesses
Formulating strategies
Doing an external analysis
Opportunities
Threats
Implementing strategies
Identify the organization's current mission, goals, and strategies
Evaluating results
Strategies weapons
Quality
Social media
Innovation
big data
Employee skills and loyalty
Customer service
Benchmarking
Strategies that managers use
Competitive strategy
Porter's competitive strategies framework
Differentiation strategy
Focus strategy
Cost leadership strategy
Stuck in the middle
Functional strategy
Corporate strategy
Stability strategy
Renewal strategy
Growth strategy
5-3 Compare and contrast approaches to goal setting and planning
Goals(Objectives): Desired outcomes or targets
Stated goals
Founded in an organization's charter, annual report, public relations announcements, or in public statements
Often conflicting
Statements of what an organization says, and what it wants its stakeholders to believe
Vague and probably better represent management's public relations skills
Real goals
Observe what organizational members are doing
Action define priorities
An organization actually pursues
Approaches to setting goals
Traditional goal-setting
Subgoals for each organizational
Negative effect
Top manager's objective
Want to improve the company's performance
Division manager's objective
Want to see the significant improvement in this division's profit
Department manager's objective
Increase profits regardless of means
Individual employee's objective
Don't worry about quality;just work fast
Goals set by top managers
They see the "big picture"
Perspective assumes
Means-ends chain
Higher-level goals(or ends) are linked to lower-level goals
The goals achieved at lower levels become the means to reach the goals(ends) at the next level
Management by objectives(MBO)
Setting mutually agreed-upon goals
Using those goals to evaluate employee performance
4 elements
Goal specificity
Participative decision making
An explicit time period
Performance feedback
Characteristics of well-written goals
Clear as to a time frame
Challenging yet attainable
Measurable and quantifiable
Written down
Written in terms of outcomes rather then actions
Communicated to all necessary organizational members
Steps in setting goals
Evaluate available resources
Determine the goals individually or with input from others
Review the organization's mission and employee's key job task
Make sure goals are well-written and then communicate them to all who need to know
Build in feedback mechanisms to assess goal progress
Link reward to goal attainment
Plan: Documents that outline how goals are going to be met
Budgets
Schedules
Resource allocations
Other necessary actions
Types of plans
Time Frame
Long-term plans
Short-term plans
Specificity
Specific plans
Directional plans
Breadth
Strategic plans
Tactical plans
Frequency of Use
Single-use plans
Standing plans
5-4 Discuss contemporary issues in planning
Plan effectively in dynamic environments
Stay alert to environmental changes that may impact implementation and respond as needed
Continue formal planning in order to see any effect on organizational performance
Managers should develop plans that are specific, but flexible
Make the organizational hierarchy flatter to effectively plan in dynamic environment
Environmental scanning
Competitive intelligence