MGMT 309 Exam 2 TAMU All Answers Graded A+
Decision Making - Definition: Choosing from alternatives. - Importance: - Cornerstone of the planning process. - Catalyst that drives planning. - Underpins every aspect of goal setting and plan formulation.
Planning - Definition: The method of achievin...
- Underpins every aspect of goal setting and plan formulation.
Planning
- Definition: The method of achieving organizational goals.
- Characteristics:
- Every organization engages in planning, but the approach varies.
- Plans exist within an environmental context.
- Goals require corresponding plans for achievement.
- Goals are interconnected with higher-level objectives.
Purpose, Premises, Values, Directions
- Context: The organization's mission statement regarding its environmental context and strategic
orientation.
Types of Goals and Plans
1. By Level: Differentiated by management level within the organization.
- Mission Statement: Outlines the organization's fundamental purpose—broad and overarching.
- Strategic Goals: Established by top management to tackle broad, general issues.
- Tactical Goals: Set by middle management, focusing on how to operationalize strategic goals.
- Operational Goals: Defined by lower-level managers, addressing tactical goal-related issues.
2. By Area: Goals categorized by different functional areas within the organization.
,3. By Time Frame: Goals may be:
- Long-term (5+ years)
- Intermediate (1 to 5 years)
- Short-term (1 year or less) and can include explicit deadlines or be open-ended.
Purpose of Organizational Goals
- Provide unified direction and guidance for employees.
- Positively influence other aspects of planning.
- Motivate employees.
- Serve as a basis for evaluation and control within the organization (Management by Objectives).
Who Sets Goals?
- All employees share managerial responsibility for goal-setting, corresponding to their organizational
level.
Optimizing
- Approach for managing multiple, sometimes conflicting, goals.
- Balances trade-offs and fosters collaborative conflict resolution.
Criteria for Effective Goals
- Specific & Measurable: Clear and quantifiable where possible.
- Key Result Areas: Focus on crucial outcomes (e.g., reducing waste).
- Challenging but Realistic: Goals should be demanding yet attainable.
- Defined Time Period: Tied to designated time frames for evaluation.
- Linked to Rewards: Align with what employees value.
Types of Organizational Plans
1. Strategic Plans:
, - General plans from top management outlining resource allocation and actions to achieve strategic
goals.
2. Tactical Plans:
- Plans aimed at achieving specific tactical goals set by middle management.
3. Operational Plans:
- Short-term plans created by lower-level managers focusing on day-to-day operations.
Time Dimensions of Planning
- Long-range Plans: Cover 5+ years (strategic).
- Intermediate Plans: Span 1 to 5 years (tactical).
- Short-range Plans: Year or less (operational, including action and contingency plans).
Planning Structures and Roles
- Planning Staff: Gather information and coordinate planning activities; typically full-time employees.
- Planning Task Force: Formed temporarily for specific purposes or circumstances.
- Board of Directors: Establishes corporate mission and strategic direction.
- Chief Executive Officer (CEO): Plays a significant role in strategic planning and implementation.
- Executive Committee: A group of top executives that regularly reviews strategic plans with the CEO.
- Line Management: Responsible for executing top management's plans and providing valuable
information for strategy formulation.
Contingency Planning
, - Plans that address alternative actions if initial plans are disrupted.
- Helps navigate uncertainty and change effectively.
Crisis Management
- Procedures for addressing unexpected disasters or calamities (e.g., Hurricane Harvey).
Types of Operational Plans
1. Single-Use Plans: Developed for one-time events or specific projects not intended to be repeated.
- Include Programs (a collection of projects) and Projects (specific tasks).
2. Standing Plans: Ongoing plans used repeatedly over time for activities and situations that occur
regularly.
Standing plans ✔️- Developed for activities that recur regularly over a period of time
(broad to specific)
- Policy (broad)
- Standard operating procedure (follow steps)
- Rules & regulations (most specific)
Barriers to Goal Setting and Planning ✔️managers must understand the barriers that can disrupt them
- managers must also know how to overcome them
Major barriers ✔️- inappropriate goals
- improper reward system
- dynamic and complex environment
- reluctance to establish goals
- resistance to change
- constraints
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