midterm multiple choice
PowerPoint Presentation by Charlie Cook The University of West Alabama
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–1
Management 11e Griffin
Summarize the function of decision making and the planning process.
Discuss the purpose of organizational goals, identify different kinds of goals, discuss who sets goals, and describe how to manage multiple goals.
Identify different kinds of organizational plans, note the time frames for planning, discuss who plans, and describe contingency planning.
Discuss how tactical plans are developed and executed.
Describe the basic types of operational plans used by organizations.
Identify the major barriers to goal setting and planning, how organizations overcome those barriers, and how to use goals to implement plans.
7–2
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Learning Objectives
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7–2
Management 11e Griffin
Decision Making and the Planning Process
Decision Making
Is the cornerstone of planning.
Is the catalyst that drives the planning process.
Underlies every aspect of setting goals and formulating plans.
Planning
All organizations plan, but not in the same fashion.
All planning occurs within an environmental context.
All goals require plans to guide in their achievement.
All goals are tied higher goals and plans.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–3
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–3
Management 11e Griffin
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–4
7.1 The Planning Process
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7–4
Management 11e Griffin
Organizational Goals
Guidance and unified direction
Promotion of good planning
Source of motivation
Evaluation and control
Purposes of Goals
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7–5
Organizations can have several different kinds of goals that serve different purposes critical to organizational effectiveness.
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7–5
Management 11e Griffin
Kinds of Goals
By Level
Mission statement
Strategic goals
Tactical goals
Operational goals
By Area
Operations
Marketing
Finance
Production
Time Frame
Long-term goals
Intermediate goals
Short-term goals
Explicit goals
Open-ended goals
Setting Organizational Goals
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–6
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7–6
Management 11e Griffin
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–7
Kinds of Organizational Goals for a Regional Fast-Food Chain
7.2
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7–7
Management 11e Griffin
Responsibilities of Setting Goals
Who Sets Goals?
All managers
Managerial responsibility for goal setting should correspond to the manager’s level in the organization.
Managing Multiple Goals
Optimizing allows managers to balance and reconcile inconsistent or conflicting goals.
Managers can pursue one goal and exclude all others or to seek a mid-range goal.
7–8
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–8
Management 11e Griffin
Kinds of Organizational Plans
Strategic Plans (upper management)
Tactical Plans (middle management)
Operational Plans (lower-level managers)
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–9
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–9
Management 11e Griffin
Time Frames for Planning
The Time Dimension of Planning
Planning must provide sufficient time to fulfill the managerial commitments involved.
Long-range (strategic) plans of 5 or more years
Short-range (operational) action and reaction plans of 1 year or less
Intermediate-range (tactical) plans of 1–5 years
1
5
10
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–10
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–10
Management 11e Griffin
Responsibilities for Planning
Planning Staff
Gather information, coordinate planning activities, and take a broader view than individual managers.
Planning Task Force
Created when the organization wants a special circumstance addressed.
Board of Directors
Establishes corporate mission and strategy.
May engage in strategic planning.
Chief Executive Officer
May serve as president or board chair; has a major role in planning and implementing the strategy.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–11
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–11
Management 11e Griffin
Responsibilities for Planning (cont’d)
Executive Committee
Is composed of top executives.
Meets regularly with the CEO to review strategic plans.
Line Management
Have formal authority and responsibility for management of the organization.
Help to formulate strategy by providing information.
Are responsible for executing the plans of top management.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–12
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–12
Management 11e Griffin
Contingency Planning and Crisis Management
Contingency Planning
The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate.
These plans help managers to cope with uncertainty and change.
Crisis Management
The set of procedures the organization uses in the event of a disaster or other unexpected calamity.
7–13
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–13
Management 11e Griffin
Ongoing planning process
Action point 1
Action point 2
Action point 3
Action point 4
Develop plan,
considering
contingency events
Implement plan and
formally identify
contingency events
Specify indicators
for the contingency
events and develop
contingency plans for
each possible event
Successfully complete
plan or contingency
plan
Monitor contingency event indicators and
implement contingency plan if necessary
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–14
7.3 Contingency Planning
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7–14
Management 11e Griffin
Management Challenge Question
What effects does an organization’s culture have on its contingency planning?
On its management of a crisis?
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7–15
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–15
Management 11e Griffin
Developing tactical plans
•
Recognize and understand
overarching strategic plans
and tactical goals
•
Specify relevant resource and
time issues
•
Recognize and identify human
resource commitments
Executing tactical plans
•
Evaluate each course of action
in light of its goal
•
Obtain and distribute
information and resources
•
Monitor horizontal and vertical
communication and integration
of activities
•
Monitor ongoing activities for
goal achievement
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–16
7.4 Developing and Executing Tactical Plans
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7–16
Management 11e Griffin
| Plan Type | Description |
| Single-use plans | Developed to carry out a course of action not likely to be repeated in the future |
| Program | Single-use plan for a large set of activities |
| Project | Single-use plan of less scope and complexity than a program |
| Standing plans | Developed for activities that recur regularly over a period of time |
| Policy | Standing plan specifying the organization’s general response to a designated problem or situation |
| Standard operating procedure | Standing plan outlining steps to be followed in particular circumstances |
| Rules and regulations | Standing plans describing exactly how specific activities are to be carried out |
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–17
7.1 Types of Operational Plans
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7–17
Management 11e Griffin
Managing Goal-Setting and Planning Processes
Barriers to Goal Setting and Planning
As part of managing the goal-setting and planning process, managers must understand the barriers that can disrupt them.
Managers must also know how to overcome them.
7–18
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–18
Management 11e Griffin
| Major barriers | Inappropriate goals Improper reward system Dynamic and complex environment Reluctance to establish goals Resistance to change Constraints |
| Overcoming the barriers | Understanding the purposes of goals and planning Communication and participation Consistency, revision, and updating Effective reward system |
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–19
7.2 Barriers to Goal Setting and Planning
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7–19
Management 11e Griffin
Using Goals to Implement Plans
Management by Objectives (MBO)
Is a technique for integrating formal goal setting and planning by giving subordinates a voice and clarifying what they are expected to accomplish.
Is frequently tailored to the special circumstances of firms which may use a special term or name for it.
7–20
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–20
Management 11e Griffin
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–21
7.5 The Formal Goal-setting Process
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7–21
Management 11e Griffin
The Effectiveness of Formal Goal Setting
Strengths (Success)
Improved employee motivation
Enhances communication
Fosters more objective performance appraisals
Focuses attention on appropriate goals and plans
Helps identify managerial talent
Provides a systematic management philosophy
Facilitates control of the organization
Weaknesses (Failure)
Poor implementation of the goal setting process
Lack of top-management support for goal setting
Delegation of the goal-setting process to lower levels
Overemphasis on quantitative goals
Too much paperwork and record keeping
Managerial resistance to goal setting
7–22
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–22
Management 11e Griffin
KEY TERMS
mission
strategic goal
tactical goal
operational goal
optimizing
strategic plan
tactical plan
operational plan
reaction plan
long-range plan
intermediate plan
short-range plan
crisis management
single-use plan
program
project
standing plan
policy
rules and regulations
management by objectives (MBO)
7–23
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7–23
Management 11e Griffin