Chapter 3: Planning - Principles of Management

Vocabulary practice flashcards covering core concepts, levels of planning, goal types, SWOT analysis, and operational planning tools from Chapter 3: Planning.

Planning (Stoner's Definition)

The process of defining organizational goals, establishing a strategy to reach those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities.

Goals

Desired outcomes for individuals, groups, or entire organizations that provide direction and performance evaluation criteria.

Plans

Documents that outline how goals are to be accomplished, describing resource allocation and establishing activity schedules.

Financial Goals

Objectives related directly to the expected internal financial performance of an organization.

Strategic Goals

Objectives related to the performance of the firm relative to factors in its external environment, such as competitors.

Stated Goals

Broadly-worded official statements made by an organization intended for public consumption that may be irrelevant to its actual internal operations.

Real Goals

The authentic objectives that reflect what actually goes on and is pursued within an organization.

Strategic Planning

The process by which an organization makes decisions and takes actions to enhance its long-term performance, typically covering a horizon of $5$ to $10$ years (or $3$ to $5+$ years).

Three Levels of Strategic Planning

The three tiers of organizational strategy comprising corporate strategy, business strategies, and functional strategies.

Strategic Management

The set of managerial decisions and actions that determines the long-run performance of an organization.

Organizational Vision

A mental picture of what an organization wants to achieve and turn into reality in the future.

Organizational Mission

A broad declaration of the overriding purpose of an organization that identifies its products, customers, and how it differentiates itself from competitors.

SWOT Analysis

A strategic management tool used to evaluate internal Strengths and Weaknesses alongside external Opportunities and Threats.

Strengths (SWOT)

Internal characteristics, resources, and capabilities that help an organization achieve successful outcomes or reach its goals (e.g., experienced workforce, established agencies).

Weaknesses (SWOT)

Internal characteristics, absence of strengths, or factors contributing to past failures that hinder successful organizational outcomes (e.g., bureaucracy, silos, skills gaps).

Opportunities (SWOT)

External factors, unmet customer needs, or changes to the status quo that an organization can exploit to foster success (e.g., artificial intelligence, digitalisation, data sharing).

Threats (SWOT)

External factors and environmental changes that could prevent successful outcomes or harm the organization (e.g., cybersecurity risks, natural disasters, economic uncertainty).

Operational Planning

The process of determining the day-to-day frontline activities necessary to achieve the long-term goals of the organization.

Single-Use Plan

A one-time operational plan developed to address specific organizational situations that typically do not recur.

Program

A type of single-use plan that governs a comprehensive set of diverse activities to accomplish a specific set of goals (e.g., Flood Recovery Programme).

Project

A type of single-use plan directing the efforts of individuals or work groups toward a specific, clearly defined goal with a distinct beginning, end, and outcome (e.g., Building a New Government Clinic).

Budget

A single-use plan that specifies how financial resources will be allocated for particular activities over a specified financial period.

Standing Plans

Ongoing plans designed to deal with situations, problems, or activities that occur repeatedly within an organization by providing standardized guidelines.

Policy

A type of standing plan that provides broad, general guidelines for decision-making within an organization.

Procedure

A standing plan that contains step-by-step instructions or detailed guidelines for handling regularly occurring organizational actions.

Rule

An explicit, detailed standing directive that clearly dictates what must or must not be done in a specific situation.

Tactical Planning

Micro-oriented, middle-term planning led by middle management that focuses on the process ('how') and short-term goals over a $1$ to $18$-month time frame to bridge strategic vision and frontline action.

SMART Goals

An acronym outlining the key criteria for effective objective setting: Specific, Measurable, Attainable (or Achievable), Relevant, and Time-bound.