chapter 8 lecture
chapter 8 lecture MQM 220
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This 6 page Class Notes was uploaded by Lydia on Wednesday September 30, 2015. The Class Notes belongs to MQM 220 at Illinois State University taught by Heather Jia in Fall 2015. Since its upload, it has received 36 views. For similar materials see Business Organization and Management in Business, management at Illinois State University.
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Date Created: 09/30/15
Chapter 8 Foundations of Planning What Is Planning Planning defining the organization s goals establishing strategies for achieving those goals and developing plans to integrate and coordinate work activities Formal planning used by the top manager of an association Specific goals covering a specific time period Written and shared with organizational members Why Do Managers Plan Four reasons for planning Provides direction Reduces uncertainty Minimizes waste and redundancy this a great way to identify inefficiencies in an organization Sets the standards for controlling leader to controlling other functions Planning and Performance Formal planning is associated with Positive financial results higher profits higher return on assets and so forth anytime you can identify and eliminate inefficiencies you have saved money if you have saved money you have improved you company39s financial results The quality of planning and implementation affects performance more than the extent of planning quality of planning will trump out quantity of meetings and inefficiencies The external environment can reduce the impact of planning on performance you can plan but things outside your control can happen to your organization and can impact the original plan you had in place The planningperformance relationship seems to be influenced by the planning time frame plans for this weekend probably won39t evolve vs a 5yr plan will probably evolve a lot more than that weekend plan The more immediate the plan this weekend the more sturdy it is The longer the time frame the more things can change that would effect that plan Types of Goals goals ends outcome What you39re going to do Financial Goals related to the expected internal financial performance of the organization deal with the internal environment increase sales add more stores take X of the market share Strategic Goals related to the performance of the firm relative to factors in its external environment eg competitors deal with the external environment specifically often times a competitor how are you going to outwit outsmart out sell your competitor what are you going to do that s better than them Stated goals official statements of what an organization says and what it wants its various stakeholders to believe its goals are what you say you39re working towards people say things that sound good sound cool and are things that other people want to hear Real goals goals that an organization actually pursues as defined by the actions of its members what you actually pursue what you39re doing maybe behind the scenes or maybe not out in the open Types of Plans plans means inputs How you39re going to meet your goals Strategic plans plans that apply to the entire organization and establish the organization s overall goals overarching big picture type plans top management devises and then can lead directly to operational plans Ex We need to increase our desert sales by 15 over the next quarter That was the strategic goal Operational plans plans that encompass a particular operational area of the organization at the lower level middle managers then takes that goal and says what can I do to do my part to contribute to that increase in sales Ex Went to his waiters and said that whoever sold the most deserts over the next quarter gets a 250 bonus Longterm plans plans with a time frame beyond three years covers the most time and is more susceptible to change Shortterm plans plans covering one year or less covers less time Specific plans plans that are clearly defined and leave no room for interpretation they are specific and have a very articulate way to do things Directional plans plans that are flexible and set out general guidelines this is where we want to go and how we get there is up to you Singleuse plan a onetime plan specifically designed to meet the needs of a unique situation the holidays and you know you39re going to get a rush the week after thanksgiving and you may have a onetime use plan to deal with that issue Standing plans ongoing plans that provide guidance for activities performed repeatedly how you staff your organization the rest of the yea r Approaches to Setting Goals Traditional goalsetting an approach to setting goals in which top managers set goals that then flow down through the organization and become subgoals for each organizational area the top managers have the grand scheme of things the conceptual skills to understand how everything fits together They set goals that then flow down to other levels of management and then they become subgoals for each department Meansends chain an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals or ends at the next level you have a goal at the end and in order to reach that goal you39ve got to accomplish all these little subgoals for it and they all link together to create this chain In order for one to be accomplished you have to accomplished the one before it so every goal builds on the one before it and is reliant upon the one before it Ex So if you don t graduate from high school you39re not able to go to college if you don t graduate from college with your undergraduate degree you can39t move on to get your masters degree Management by objectives MBO a process of setting mutually agreed upon goals and using those goals to evaluate employee perfo rma nce Ste sin MBO 1 The er39genitetie n e evereii etrieetivee end etretegiee ere ter39mulieteri 2 Mejer e trjeetivee ere eileeeteri emeng ivieienei end epertmentei units 3 Lin it menegers teeiieberetiveiy eet epeeifie ebieetitree tear their units with their managers 4 Speeifie ebjieethree are eelleberetirr eieF set with 3 department members Aetien piene defining hew eatrieetivee are the he eehieved ere epeeiiietjl end agreed upen hr managers e rid empieyeee E The aetien plane are imniemente H Preg reee tewa rd ehjeetivee ie perieeieeiiy reviewe errel feebeet39 is premiere 3 Sueeeeefui eehievement ei e trjeetivee ie reiniereeri by perfermeneebeee rewere WellWritten Goals 39 Written in terms eli euteemee tether then eetiene i Meeeurebie enel quantitiehie i Cieer ee te e time treme 39 Ciheilenging 1wetetteirretrile i Written dewn i Eemmunieetee te ell neeeeeery ergenizetienel members Contemporam Issues in Planning How Can Managers Plan Effectiver in Dynamic Environments In an uncertain environment managers should develop plans that are specific but flexible able to adapt so contingency planning Managers need to recognize that planning is an ongoing process your consistently looking at your plans to make sure there working for you How Can Managers Use Environmental Scanning Environmental scanning screening information to detect emerging trends being aware of what39s going on in the world and what that means for you and your organization Competitor intelligence gathering information about competitors that allows managers to anticipate competitors actions rather than merely react to them like filming other teams practices
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