Ch 3 - Foundations of Planning

Rewards

Rewards

________ are allocated on the basis of progress towards the goals.

Formal

________: written, specific, and long term focus, involved shared goals for the organisation.

Specific performance

________ are determined by employees and managers.

external environment

The ________ can reduce the impact of planning on performance.

Goals /objectives

desired outcomes for individuals, groups, or entire organisations, provide direction and evaluation performance criteria.

Strategic Goals

related to the performance of the firm relative to factors in its external environment.

Financial Goals

are related to the expected internal financial performance of the organisation.

organisational hierarchy

Flatten the ________ to foster the development of planning skills at the organisational levels.

Dynamic environment

specific but flexible plans.

Planning

is a primary managerial activity that involves

Informal

not written down, short-term focus, specific to an organisational unit

Plans

documents that outline how goals are to be accomplished, describe how resources are to be allocated and establish activity schedules

Financial Goals

are related to the expected internal financial performance of the organisation

Strategic Goals

related to the performance of the firm relative to factors in its external environment

Stated goals Vs. Real goals

broadly-worded official statements of the organisation (intended for public consumption) that may be irrelevant to its real goals (what goes on in the organisation)

Key elements of MBO

goal specificity, participative decision making, an explicit performance/evaluation period, feedback

Stable environment

specific plans

Dynamic environment

specific but flexible plans

Commitment concept

current plans affecting future commitments must be sufficiently long-term to meet those commitments