MAN3025 Exam 2 Study Guide Chapter 5 Planning The Foundation of Successful Management Planning Setting goals and deciding how to achieve them OR Coping with uncertainty by formulating future courses of action to achieve specified results Planning requires devotion of time and discipline in order to maintain it throughout Allows you to think ahead coordinate activities monitor progress and cope with uncertainty Responding To Uncertainty Defenders are expert at producing and selling narrowly defined products and services Prospectors focus on change developing and seeking new markets or services rather than waiting for things to happen Analyzers let the prospectors take the risks of product development and marketing and then imitate what seems to work best Second into the market Reactors make adjustments only when finally forced to by outside pressures Don t want to be a reactor Planning Strategic Management Establish the organization s mission and vision Formulate the grand strategy Formulate the strategic plans then tactical plans and then operational plans Implement the strategic plans Control Adjust the strategy Making Plans future stature Vision Statement What do we want to become Includes your goals and predicts your Mission Statement What is our reason for being Discusses how we will accomplish our goals and what our purpose is as an organization Strategic Planning Plans where top managers decide what the organization s long term goals should be for the next 5 7 years with the resources they expect to have available Tactical planning Middle managers decide what contributions their departments or similar work units can make with their given resources during the next 12 24 months Operational planning First line managers determine how to accomplish specific tasks with available resources within the next 1 52 weeks Top Managers Chief executive officer president vice president general managers division heads Middle Managers Functional managers product line managers department managers First line Managers Unit manager team leaders first line supervisors Strategic Planning 5 7 Years Tactical Planning 12 24 Months Operational Planning 1 52 Weeks Types of Goals Strategic Goals are set by and for top management and focus on objectives for the organization as a whole Tactical Goals are set by and for middle managers and focus on the actions needed to achieve strategic goals Operational Goals are set by and for first line managers and are concerned with short term matters associated with realizing tactical goals SMART Goal Defines an organizations goals acting as parameters Specific Measurable Results Oriented Target Dates Goal Difficulty Performance Allows you to compare the relationship between employees and their impact towards As the goal difficulty increases performance increases until a ceiling is reached where achieving your organizations goals performance begins to drop The Planning Control Cycle Allows you to develop the plan and initiate it whilst keeping record of its progress against your mission and vision Final stage includes the evaluation of the cycle allowing you to find any faults and correct them in order to make your plan more efficient Management By Objectives Four Step Process Managers and employees jointly set objectives for the employee Managers develop action plans Managers and employees periodically review the employee s performance The manager makes a performance appraisal and rewards the employee according to the results Reliant on 1 Top management must be committed Commitment translates to productivity gains 2 It must be applied organization wide To be successful MBO must be applied in all divisions and departments MBO works by cascading objectives down through the organization 3 Objectives must cascade Examples The Project Life Cycle Improvement Objective Increase sport utility sales by 10 by 10 1 2008 Personal Development Objective attend five days of leadership training by YE 2008 Sales By Objectives meet the increased sales goals 5 increase over prior quarter Demonstrates an organizations purpose and process of achieving that purpose through planning execution and performance Stage 1 Definition State the problem look at assumptions and risks identify goals and objectives determine budget and schedule Stage 2 Planning Identify the details facilities equipment people duties schedule coordination Stage 3 Execution The work stage establish the management style control tools monitor progress review schedule issue change orders prepare status Stage 4 Closing Acceptance by the client deliverables training final report Critical Path Method A form of quantative management allowing an organization to plan a schedule of achievements according to dates and required information List activities Estimate activity completion time Draw network diagram based on dependencies Highlighting sequential and parallel activities Identify critical path that determines the projects progression along a schedule Ensure critical path steps remain on schedule in order to protect your budget Complex Project Network Diagram Demonstrates the steps along the critical path method as well as the necessary procedures needed to achieve each step Includes operations on and off the CPM in order to achieve your goal Chapter 6 Strategic Management Strategy or Action Plan Your plan to achieve your goals Sets the direction for an organization Strategic Management Strategic Planning How to achieve long term goals The process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals Provides direction and momentum whilst focusing on goals Highlights the importance of new ideas and innovation Helps maintain a sustainable competitive advantage and lead over competing Decisions are based on a target rather than day to day occurrences organizations Strategic Positioning Developed by Michael Porter Preserves distinctions of an organization and their place in a market Position ourselves by what we do well against the competitor in the market The Strategic Management Process Five Step Process 1 Mission Vision Statement 2 Grand Strategy Guides the organization towards accomplishing its mission Exists in 3 forms Growth expansion of sales revenue market share number of employees or number of customers served Stability little or no significant change Defense reduction in the organization s efforts Determine the grand strategy by
View Full Document
Unlocking...