Chapter 8: Planning Processes and Techniques

Vocabulary flashcards covering core definitions, concepts, steps, and visual models from Chapter 8 on managerial planning processes and techniques.

Planning

The process of setting performance objectives and determining how best to accomplish them.

Objectives

Specific results or desired outcomes that an individual or organization intends to achieve.

Plan

A statement of action steps to be taken in order to accomplish objectives and goals.

Organizing

The management function that involves allocating and arranging resources to accomplish tasks.

Leading

The management function that involves guiding and inspiring others to achieve high levels of task accomplishment.

Controlling

The management function that involves monitoring task accomplishments and taking corrective action when needed.

Roles of Planning and Controlling

Planning sets goals and decides how to achieve them, while controlling monitors performance and makes corrections to ensure goals are met.

Steps in the Planning Process

The five-step sequence consisting of:

(1) Define objectives,

(2) Determine where you stand,

(3) Develop premises,

(4) Analyze alternatives,

(5) Implement the plan and evaluate results.

Stretch Goals

Challenging goals that require extra effort to achieve.

Complacency Trap

Letting events happen instead of actively planning for the future.

Long-Term Plans

Plans that look into the future, historically three or more years, providing context for short-term planning.

Short-Term Plans

Plans that typically cover one year or less, including short-duration sprint plans designed to achieve immediate results.

Strategic Plans

Broad, comprehensive, and longer-term plans that set action directions and create a frame of reference for allocating resources across an entire organization or major division.

Vision

A statement that clarifies the purpose of the organization and expresses what it hopes to be in the future.

Tactical Plans

Plans that explain how resources will be used to carry out strategies.

Functional Plans

Plans showing how different departments help achieve the overall strategy.

Operational Plans

Short-term plans outlining daily activities to achieve larger goals.

Policy

General guidelines for making decisions and taking action.

Procedure

A standing plan or rule describing precise actions to be taken in specific situations, often referred to as a standard operating procedure (SOP).

Budget

A single-use plan that commits financial or operational resources to specific projects, activities, or time periods.

Fixed Budget

A budget that allocates a fixed, established amount of resources for a specific purpose.

Flexible Budget

A budget that allows resource allocations to vary in proportion to emergent levels of activity.

Zero-Based Budget

A budgeting approach that treats each new budget period as if it were brand new, requiring all proposals to compete for available funds without guaranteed rollover.

Forecasting

The process of attempting to predict what will happen in the future using qualitative expert opinions or quantitative mathematical models.

Qualitative Forecasting

A forecasting approach that uses expert opinions and human judgment to predict future events.

Quantitative Forecasting

A forecasting approach that uses mathematical models and statistical analyses of historical data and surveys to predict future events.

Contingency Planning

Planning that identifies alternative courses of action to take when things go wrong or when unexpected circumstances arise.

Trigger Points

Preselected indicators within a contingency plan that signal when to activate alternative courses of action.

Scenario Planning

A long-term version of contingency planning that involves identifying several possible future scenarios and making plans to deal with each.

Benchmarking

The use of external and internal comparisons to better evaluate current performance and identify best practices for future improvement.

Best Practices

Methods, actions, or processes used by people and organizations that lead to superior performance.

Staff Planners

Planning specialists who bring technical expertise to assist managers with all steps of the planning process and the application of planning tools.

Five Characteristics of Great Goals

The five essential criteria for effective goals (SMART): Specific, Measurable, Attainable, Relevant, and Timely.

Learning Goals

Goals that set targets for developing the knowledge and skills required for effective task performance.

Outcome Goals

Goals that set targets for actual performance results.

Hierarchy of Objectives

A goal-alignment structure in which the accomplishment of lower-level objectives provides the foundation for achieving higher-level goals and overall organizational purpose.

Management by Objectives (MBO)

A structured management approach where team leaders and team members jointly set objectives, individually act, and jointly review results.

Participatory Planning

An approach that actively includes the people affected by plans and responsible for implementing them in every step of the planning process to build commitment.

Resilience

An attitude of positive adaptation that enables individuals to view workplace adversity as a challenge rather than a threat and bounce back from setbacks.