Four Management Function

Planning, Organizing, Leading, Controlling

Planning is the most fundamental

Strategic Planning

Review mission, goals, plans to meet environmental changes or the expectation of important stakeholders such as community, owners, or stockholders.

Strategic Goals

commitment to both organizational efficency and effectiveness

Planning

The act of determining the organizations goals and the means for acheiving them.

Plan

Blueprint for goal achievement and specifies teh necessary resource allocations, schedules, tasks, and other actions.

Goal

Desired future state.

Mission

The organization's reason for exsistence

Describes: Organizational values, aspirations, and the reason for being.

Standard of Performance

Because goals have defined desired outcomes they also serve as performance criteria.

Purpose of Goals:

Rationale for Decisions

Through goal setting and planning managers learn what the organization is trying to accomplish

The organization can make policies that are in accordance with desired outcomes.

Operational Plans

Developed at lower levels of the organization to specify action steps towards achieving operational goals and to support tactical plans.

A manager's tool for daily planning.

Purpose of goals

Source of Motivation and Commitment

Goals and plans facilitate employees identification with the organizations and help motivate them by reducing uncertainty and clarifying withat they could accomplish.

Means-end chain

Low level goals lead to accomplishment of high level goals.

Mission Statement

Broadly stated definition of basical busines scope and operations that distinguishes the organization from others of a similar type.

Operational Goals

Specific results expected from departments work groups and individuals.

Example: Acheive 90% of deliveries on time.

Operational Plan

Identify the specific procedures or processes needed at lower levels of the organization, such as individual departments and employees

Purpose of Goals:

Legitimacy

An organization's mission describes what the organization stands for and its reason for exsitence.

Strong mission impacts employees enabling them to be committed.

Purpose of goals:

Guide to Actions

Goals and plans provide a sense of direction.

Goals should be defined time period and be linked to rewards.

Specify time period

Goals should be challenging but realistic

Goals should be challenging but not unreasonably difficult.

Strech Goals

Extremely ambitious but realistic goals that challenge employees to meet high standards.

Goals should cover key results areas

Identify a few key result areas (4-5) for an organizational department or job

Goals should be specific and measureable

Example: Increase profits by 20%

Strategic Plans

Action steps by which the company intends to attain goals.

Long term Planning

Define organizational action steps for 2-5 years in the future.

Management by Objectives

Method whereby managers and employees define goals for every department, project, and person. Must use them to monitor subsequent performance.

1. Set goals

2. Develop action plans

3. Review progress

4. Appraise overall performance.

Decentralized Planning

Planning experts work with managers in major divisions or departments to develop their own goals and plans.

This enables managers to come up with their own creative solutions to problems and therefoer they are more committed to the outcome.

Planning Task Force

Temporary group of managers and employees who take responsibility for developing a strategic plan.

Strategic Goals

Broad statements describing where the organization wnats to be in the future.

Tactical Goals

Results that major divisions/departments within the organization intend to achieve.

Apply to middle management and major subunits. These are the goals middle management must acheive to fufill its part in the strategic plan set up for top management.

Contingency Plan

Define company's response to be taken in the case of an emergency, set backs, or unexpected conditions.

Central Planning Departments

Popular in the 1970s, planning specialist who reported directly to the CEO/ President.

Single-use Plans

Developed to achieve a set of goals that are not likely to be repeated in the future.

Standing Plans

On-going plans that are not used to provide guidance for tasks performed repeatedly within the organization.

Example: Policies on Email, Asbsences, and Hiring