BNAD 302 10/1/13 Lecture 8 Outline of Last Lecture I. Planning and UncertaintyII. 4 Basic Strategy TypesIII. The Adaptive CycleOutline of Current Lecture I. Goals, Action Plans, Operating PlansII. Plans, Policies, Procedures and RulesIII. What is MBO?Current LectureI. Goals, Action Plans, Operating Plansa. Goalsi. specific commitment to achieve a measurable result within a stated period of timeii. also known as an objectiveiii. strategic, tactical, operationalb. Strategic Goalsi. set by and for top management and focus on objectives for the organization as a whole.c. Tactical Goalsi. set by and for middle managers and focus on the actions needed to achieve strategic goals.d. Operational Goalsi. set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goalse. SMART Goalsi. Specificii. Measurableiii. Attainableiv. Result-Orientedv. Target DatesII. Plans, Policies, Procedures and Rulesa. Action plan i. defines the course of action needed to achieve the stated goalThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.b. Standing plans i. plans developed for activities that occur repeatedly over a period of timeii. consist of policies, procedures, and rules.c. Operating plan i. designed for a 1-year period ii. defines how you conduct your business based on the action plan iii. identifies clear targets such as revenue, cash flow, and market shared. Policy i. outlines the general response to a designated problem or situatione. Procedure i. outlines the response to a particular problem or circumstancesf. Rulei. designates specific required actiong. Single Use Plans: Programs and Projectsi. Single Use Plans: 1. plans developed for activities that are not likely to be repeated in the futureii. Program1. encompasses a range of projects or activitiesiii. Project 1. plan of less scope and complexity than a programIII. What is MBO?1. Jointly set objectives2. Develop action plan3. Periodically review performance4. Give performance appraisal and rewards, if anyb. Three Types of Objectives Used in MBOi. Improvement objectives1. Purpose: Express performance to be accomplished in a specific way for a specific area2. Example: “Increase sport utility sales by 10%”ii. Personal Development Objectives1. Purpose: Express personal goals to be recognized2. Example: “attend 5 days of leadership training”iii. Maintenance Objectives1. Purpose: Express the intent to maintain at previously established levels2. Example: “Continue to meet the increased sales goals specified last quarter.”c. Cascading Objectives: MBO from the Top Down1. Top management must be committed2. It must be applied organization-wide3. Objectives must “cascade”d. The Planning/Control Cycle1. Make the plan2. Carry out the plan3. Control the direction by comparing results with the plan4. Control the direction by taking corrective action in two waysa. Correcting deviationsb. Improving future