MGT 300 1st Edition Lecture 9 Planning Coping with uncertainty by formulating future courses of action to achieved specific results How planning helps you Helps you check on your progress o Expectations of what you re supposed to do o Score card Helps you coordinate activities o Defines responsibilities and coordinates action Helps you think ahead o Planning involves forecasting ahead Helps you cope with uncertainty o Outlines course of action to deal with uncertainty Planning cons Slows change adaption False sense of certainty Automatic pilot mentality Four basic strategy types optimal strategy in all situations 1 Defenders a Stick with what you do best and avoid other involvements b Expert at producing and selling narrowly define products 2 Prospectors a Focus on developing new products and seeking out new markets rather than waiting for things to happen 3M Scotch Tape Postit Anti stain example 3 Analyzers a Let other organizations take the risks of product development and marketing and imitate or acquire what seems to work best Church and Dwight Orang Glo Oxy clean 4 Reactors a Make adjustments only when finally forced by environmental pressures Schlitz Brewing Mission Statement o Express the purpose of the organization Vison statement o Long term goal describing what and organization wants to become Goals o Specific commitment to achieve a measurable result within a stated period of time o Also known as an objective Strategic goals o Set by and for top management and focus on objectives for the organization as a whole Tactical goals o Set by and for middle managers and focus on the actions needed to achieve strategic goals Operational goals o Set by and for first line managers and are concerned with shortterm matters associated with realizing and tactical goals SMART Goals o Specific Stated in specific rather than vague terms o Measurable Should be some way to measure that the goal has been attained eg 90 of planes should arrive within 15 minutes o Attainable Challenging but realistic o Results oriented Written to support the organization s vision Start with To support acquire increase action verbs o Target dates Should specify specific dates when goals are to be attained Management by Objectives MBO o Emphasizes converting general objectives into specific ones for everyone in the organization o Managers and employees jointly set objectives for employees Top management commitment is critical o Managers develop action plans Applied organization wide o Managers and employees review progress o Manager evaluates and rewards based on results Planning Control Cycle o Make the plan planning step o Carry out the plan planning step o Control direction by comparing results with the plan control step o Correct deviations improve future plans