MGMT CH8 Planning & Goal Setting

Planning

management function that involves setting goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities.

Formal Planning

Specific, time-oriented goals. Goals are written and shared.

Goals (Objectives)

Desired outcomes or targets.

Plans

Documents that outline how goals are going to be met.

Stated Goals

Official statements of what an organization says, and what it wants its various stakeholders to believe.

Real Goals

Goals that an organization actually pursues, as defined by the actions of its members.

Strategic Plans

Plans that apply to the entire organization and establish the organization’s overall goals..

Operational Plans

Plans that encompasses a particular operational area of the organization.

Long-Term Plans

Plans with a time frame beyond 3 years.

Short-Term Plans

Plans covering one year or less.

Specific Plans

Plans that are clearly defined and leave no room for interpretation.

Directional Plans

Plans that are flexible and set out generational guidelines.

Single-Use

A one-time plan specifically designed to meet the needs of a unique situation.

Standing Plans

Ongoing plans that provide guidance for activities performed repeatedly.

Traditional Goal Setting

An approach to setting goals in which top managers set goals that then flow down through the organization and become sub goals for each organizational area.

Means-Ends Chain

An integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level.

Management by Objectives [MBO]

A process of setting mutually agreed upon goals and using those goals to evaluate employee performance.

Environmental Uncertainty

When uncertainty is high, plans should be specific.

Commitment Concept

Plans should extend far enough to meet those commitments made when the plans were developed.

Formal Planning Department

A group of planning specialists whole sole responsibility is helping to write organizational goals.

Environmental Scanning

Screening information to detect emerging trends.

Competitor Intelligence

Gathering information about competitors that allows managers to anticipate competitors’ actions rather than merely reacting to them.

Business Intelligence

Data that managers can use to make more effective strategic decisions.

Digital Tools

Technology, systems, or software that allow the user to collect, visualize, understand or analyze data.

Cloud Computing

Refers to the storing and accessing data on the Internet rather than on a computer’s hard drive or a company’s network.

Internet of Things [IOT]

Allows everyday ‘things’ to generate and store and share data across the Internet.