Management (Griffin) – Chapter 7

Planning process
Mission statement > strategic goals, > strategic plans, > tactical goals, > tactical plans, > operational goals, > operational plans
A statement of an organization’s fundamental purpose
strategic goal
A goal set by and for top management of the organization. Broad in scope, and long term (avg of 5 to 10 yrs)
tactical goal
A goal set by and for middle managers of the organization. Medium scope, and mid-range term (avg of 2 to 3 yrs)
operational goal
A goal set by and for first-line managers of the organization. Narrow scope, and short term (avg of 1 yr or less)
Balancing and reconciling possible conflicts among goals
Strategic plan
A general plan (based on strategic goals) outlining decisions of resource allocation, priorities, and action steps necessary to reach strategic goals
tactical plan
A plan aimed at achieving tactical goals (goals which were developed to implement a strategic plan)
operational plan
.A plan aimed at achieving operational goals (goals which were developed to implement a tactical plan)
long-range plan
A plan that covers many years, perhaps decades. Commonly, they’re for 5 years or more
intermediate plan
A plan that covers a period of 1 to 5 years
short-range plan
A plan that generally covers a span of 1 year or less
action plan
A plan used to operationalize any other kind of plan
reaction plan
A plan developed to react to an unforeseen circumstance
contingency planning
The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate
crisis management
The set of procedures the organization uses in the event of a disaster or other unexpected calamity
single-use plan
Developed to carry out a course of action that is NOT likely to be repeated in the future
A single-use plan for a large set of activities
A single-use plan of less scope and complexity than a program
standing plan
Developed for activities that recur regularly over a period of time
A standing plan that specifies the organization’s general response to a designated problem or situation
standard operating procedure (SOP)
A standard plan that outlines the steps to be followed in particular circumstances
rules & regulations
Describe exactly how specific activities are to be carried out
barriers to goal setting
(1) inappropriate goals;
(2) improper reward system
(3) dynamic & complex environment
(4) reluctance to establish goals
(5) resistance to change
(6) constraints
overcoming barriers to goal setting
(1) understanding purposes of goals & planning
(2) communication & participation
(3) consistency, revision & updating (consistent across
organization as well as up & down organization)
(4) effective reward systems
management by objectives (MBO)
A formal goal-setting process involving collaboration between managers & subordinates. The EXTENT to which goals are accomplished is a major factor in evaluating & rewarding subordinates’ performance
formal goal-setting process
(1) establishment of organizational plans & goals
(2) collaborative goal-setting & planning
(3) meet with subordinates to communicate goals, counsel on
individual goals, and determine resources needed to attain them
(4) periodic review of goal attainment
(5) evaluation (FEEDBACK from evaluation becomes input into
next round of formal planning)
implementation problems with goal setting
(1) lack of support by top management
(2) overemphasis on quantitative goals resulting in too much
paperwork & recordkeeping
(3) managers don’t meet with subordinates, but simply assign
them goals, leading to resentment, and lack of motivation