Kinicki Williams Management Chapter 5

Steps of planning
1. Mission Statement
2. Vision Statement
3. Strategic planning
4. Tactical planning
5. Operational planning
Mission
purpose or reason for being
Mission statement
expresses the purpose of the organization
Vision
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
Vision statement
expressed what the organization should become and where it wants to go strategically
Strategic planning
Carried out by top managers- they determine what the organizations long term goals should be for the next 1-5 years with the resources the expect to have available
Tactical planning
Carried out by middle managers- they determine what contributions their departments or similar work units can make with their given resources during the next 6-24 months
Operational planning
Carried out by first-line managers- they determine how to accomplish specific tasks with available resources in the next 1-52 weeks
Goal (objective)
a specific commitment to achieve a measurable result within a stated period of time
Means-end chain
the accomplishment of low-level goals is the means the leading to the accomplishment of the high-level goals
Strategic goals
Set by top managers- focus on objectives for the organization as a whole
Tactical goals
Set by middle managers- focus on the actions needed to achieve strategic goals
Operational goals
Set by fist-line managers- concerned with short-term matters associated with realizing tactical goals
Action plan
defines the course of action needed to achieve the stated goal (ex: marketing plan or sales plan)
Operating plan
typically designed for a 1 year period, defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow, and market share
Standing plans
plans developed for activities that occur repeatedly over a period of time (ex: policy, procedure, rule)
Policy
outlines the general response to a designated problem or situation
Procedure
outlines the response to a particular problems or circumstances
Rule
designates specific required action
Single-use plan
plans developed for activities that are not likely to be repeated in the future
Program
encompasses a wide range of projects or activities
Project
less scope and complexity than a program
SMART goal
a goal that is specific, measurable, attainable, result-oriented, and has target dates
Specific goal
do not be vague
ex: as many planes as possible should arrive on time
vs
90% of planes should arrive within 15 min of scheduled arrival time
Measurable goal
goals should be quantifiable- a way to measure the degree to which a goal has been reached
Attainable goal
goals should achievable within the scope of time, equipment, and financial support available
Results-oriented goal
goals should support the organizations vision
Target dates for goals
allows enough time for managers and employees to revamp their systems and work habits and gives them a clear time frame in which they know what they are expected to do
Father of Management by Objectives
Peter Drucker
Management by objectives (MBO)
1. Managers and employees jointly set objectives for the employees
2. managers develop action plans
3. managers and employees periodically review the employees performance
4. manager makes a performance appraisal and rewards the employee according to the results
Successful MBO
1. Top managers must be committed
2. It must be applied organiztionwide
3. Objectives must be cascading
Cascading
objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization
Planning/control cycle
1. Make the plan
2. Carry out the plan
3. Control the direction by comparing the result with the plan
4. Control the direction in two ways
A) by correcting deviations in the plan being carried out(return to step 2)
B) by improving future plans (start over at step 1)
Defenders
experts at producing and selling narrowly defined products or services
Prospectors
focus on developing new products or services and in seeking out new markets, rather than waiting to make things happen
Reactors
make adjustments only when finally forced to by environmental pressures
Analyzers
let other organizations take the risk of product development and marketing and then imitate or improve what seems to work best