ACE 231 exam 2

Goal

a desired future state that the organization attempts to realize

Plan

blueprint for goal achievement and specifies the necessary resource allocation schedules, tasks and other actions.

Levels of Goals and plans

(highest to lowest)

1. Mission statement

2. Strategic goals/plans(senior, whole org.)

3. Tactical goals(middle, major divisions)

4.Operational goals(Lower,departments, individuals)

Purpose of goals and plans

motivations and commitment

guide to resource allocation

Guides actions

rational for decisions

establishes standards of performance.

The organizational Planning

1. Develop the plan

2. Translate the plan

3. plan operations

4. execute the plan

5. monitor and learn

Organizational mission

the organizations reason for existence

Strategic goals

official goals, broad statements describing the organizations future (what and why)

quantitative, qualitative

The organizations goals may be both _________ and __________

seven steps to success

1. write down what you want

2. put date of expected completion

3. identify obstacles to overcome

4. Spell out ppl you have to work with

5. identify what you need to know

6. write down plan of action

7. write down why

Means-end-chain

achievement of goals at lower levels permits the attainment of high level goal

strategic plans(how)

action steps toward strategic goals 5 to 50 years

Tactical goals (how)

designed to help execute strategic plans. 1 year or less

Operational goals and plans

specific and measurable

guide efficient and effective performance.

Management by Objective (MbO)

method for defining and monitoring goals.

MBO benefits

more motivation

better understanding of how role fits into function of the whole org.

MBO limitations

bad relationships

resources are needed

too focused on individual goals

strategic thinking

long term view

see big picture

formal planning process

strategic management

define explicit strategy/plan of action(exploit your strength)

exploit core competencies

build synergy

deliver value

build synergy, deliver value

1. joint effort to gain special advantage

2. combo of benefits and costs

jim collins

____ ______ keys to success disciplined people, thought, action

why do strategic plans fail?

failure to:

understand customer,market, environment

get senior management and employee commitment

communicate internally and externally

develop leadership

how the mighty fall

S1: entitlement

S2: overreaching

S3: denial

S4: grasping for salvage

S5: giving up

strengths, weaknesses, opportunities, threats

1.internal, gives advantage in the marketplace

2. internal, disadvantage

3.external, chances to improve profits

4. external, elements in the environment that could cause harm

single use plans, standing plans

1. one time plans

2.ongoing plans

program

complex set of objectives and plans to achieve an important one time goal

project

similar to program but smaller in scope and complexity

policy

general guide to action

rules

how a specific action is to be performed

procedures

a precise series of steps to be used in achieving a specific job

contingency planning

planning for emergencies

building scenarios

look at trends and anticipate future possibilities

crisis planning

how to address sudden, devastating unexpected events

3 attributes of a black swan

1. outlier

2. carries extreme impact

3.human nature makes us

3 stages of crisis management

1. prevention

2. preparation

3. containment

proper SWOT analysis requires

1. extensive collection of info

2. ongoing collection of info

2 strategies using SWOT

1. matching your strengths to opportunities

2. converting

Porters 5 competitive forces

help determine a companys position in the industry

porters 5 Competitive forces

1. potential new entrants

2./3. bargaining power of buyers and suppliers

4. threats of substitute products

5. rivalry among competitors

managerial decision making

certainty-all the info the manager needs is available

risk-future outcomes resulting from the decision have chance of loss or failure

uncertainty-when info about alternatives is limited

ambiguity-problem is unclear

Decision making

process of identifying opportunities

decision

choice made from available alternatives

1. programmed decisions

2. nonprogrammed

1. recurring problem

2. unique situations

Decision-making model 1:

classical-rational economic assumptions drive decisions

Decision-making model 2:

administrative- descriptive approach more realistic

bounded rationality

people have limits on how rational they can be

satisficing

decision makers choose the first solution that satisfies minimal decision criteria

Decision-making model 3:

Collaborative-involve multiple managers engaging in coalition building

decision making steps

recognition of decision requirement- identify problem

diagnosis-analyze factors

develop alternatives

selection of desired alternatives

implementation of chosen alternative

evaluation and feedback

classical economics

ppl try to maximize expected utility

prospect theory

ppl see choices as losses or gains

anchoring

the first price you hear matters

bounded rationality

rationality is limited due to limits on time, info.

decision fatigue

quality of decision declines over time

decision paralysis

is too much choice bad

Heuristics

techniques for decision making

rules of thumb

trial and error

useful heuristics

list pros and cons

work backwards

use a concrete example

optimism bias

wishful thinking

repetition bias

believing what you have been told most often and by the greatest number of ppl

role fulfillment

we make the decisions that we think are expected of people in our position

reference class forecasting

make decisions based on reference to similar occurrences

innovative group decision making

engage in rigorous debate

avoid groupthink

know when to stop

brainstorming

a way to get out of the box

too much choice

decreases engagement

causes to make worse choices

and choices that leave them less satisfied

4 techniques to reduce choice problems

cut-reduce choices

concretize-make choices more real

categorize-better grouped

condition for complexity-offer small set to choose from

directive style

______ ____ people make quicker decisions

analytic style people

prefer complex solutions

conceptual style

socially oriented

behavioral style

deep concern for others