Management 301 Chapter 5 Book Notes
Management 301 Chapter 5 Book Notes Management 301
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This 4 page Study Guide was uploaded by Stephanie Marie on Sunday February 8, 2015. The Study Guide belongs to Management 301 at a university taught by Professor Mangaliso in Fall. Since its upload, it has received 222 views.
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Date Created: 02/08/15
Management 301 Chapter 5 Planning An Overview of Planning 0 Objectives the end states or targets that a company s managers aim to achieve 0 Plans means by which managers hope to achieve the desired target 0 Planning a decision making process that focuses on the future of an organization and how it will achieve its goals 0 Types of Plans 0 Strategic Plans Plans that focus on the broad future of the organization and incorporate both eternal environmental demands and internal resources into managers actions How to achieve goals 3 to 5 years in the future 0 Tactical Plans plans that translate strategic plans into speci c goals for speci c parts of the organization Shorter and narrower in scope 0 Operational Plans plans that translate tactical plans into speci c goals and actions for small units of the organization and focus on the near term 12 months or less least complex 0 The Organizational Levels at Which Plans are Developed 0 Corporate level Most corporations have a corporate headquarters Executives at the corporate level in large rms include both those in the headquarters and those heading up the large corporate groups such as nance human resources legal and so on Focus on questions like 0 What industries should we get into and out of o What markets should the rm be in o In which businesses should the corporation invest money 0 What resources should be allocated to each of the businesses 0 Business Level Strategic business unit Determine how they are going to compete effectively in the market Address these questions 0 Who are our direct competitors 0 What are their strengths and weaknesses What are our strengths and weaknesses What do customers value in the products and services we offer 0 What advantages do we have over our competitors 0 Functional Level Focus on how they can facilitate the achievement of the competitive plan of the business Managers are often heads of departments Address these questions 0 What activities does my unit need to perform well in order to meet customer expectations 0 What information about my competitors does my unit need in order to help the business compete effectively 0 What are our unit s strengths and weaknesses The Planning Process 0 6 key elements 0 Analyzing the Firm s External Environment Forecasts Can be made about virtually all critical elements in the environment that are likely to affect the organization or the manager s area of responsibility Environmental uncertainty Forecasting environmental uncertainty is difficult Must incorporate the uncertainty into the planning process 0 Greater the uncertainty the more exible their plans need to be 0 Make a contingency plan a plan that identi es key factors that could affect the desired results and specifies which actions will be taken if key events change Benchmarking 0 Identifying the best practices by your competitors and noncompetitors and the results that they produced 0 Assessing the Firm s Internal Resources Resources available 0 This affects the objectives you establish and what plans you should formulate o What human capital do we have currently 0 Can people work on new or additional projects or will we need new people 0 Can we develop or acquire additional human capital if needed for new projects 0 What nancial resources do we have available 0 Do we have the cutting edge technology or can we gain access to it at a cost effective price 0 Setting Objectives Priorities and multiple objectives 0 Not all objectives are of equal importance and value 0 Temporal priorities also exist Measuring Objectives 0 Measure their achievement 0 Developing Action Plans Describes that the organization will do to accomplish the objectives it has established Sequencing and timing Gantt Chart Accountability 0 Establishing who is accountable for the speci c acUonsidenU ed 0 Implementing Plans Effectiveness of the plan s implementation effects the results achieved Monitoring the implementation 0 Monitor three critical factors 0 Progress of the plan and its implementation 0 Monitor the level of support the plan receives as it is being implemented Encouraging money coaching 0 Monitor the level of resistance 0 Monitoring Outcomes Planning Tools 0 Budget a tool used to quantify and allocate resources to speci c activities 0 Capital expenditure budget speci es the amount of money to spend on speci c items that have long term use and require signi cant amounts of money Expense budget a budget that includes all primary activities on which a unit or organization plans to spend money and the amount allocated for the upcoming year 0 Proposed budget a budget that outlines how much money an organization needs submitted to a superior or budget review committee 0 Approved budget a budget that speci es what the manager is actually authorized to spend money on and how much Incremental budgeting approach a budgeting approach whereby mangers use the approved budget of the previous year and then present arguments for why the upcoming year s budget should be more or less Zerobased budgeting approach a budgeting approach that assumes that all funding allocations must be justi ed from zero each year Goal Setting Criteria 0 Goals should be speci c 0 Should be measureable 0 Progress can be measured 0 Commitment 0 ReaHsUc Time Bound 0 Speci c time span
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