MGMT 309 Exam 2 notesChapter 7Basic Elements Managers - Planning & Decision MakingDecision Making – cornerstone of planning – catalyst of planning Planning – 1ststep is understanding the environment – 2ndstep is to set goalsThe Environmental Context (4 basic levels of goals)1)The Organizations mission – purpose – premises – values – directions2)Strategic goals  strategic plans 3)Tactical Goals  tactical plans4)Operational Goals  operational plans * All tie back to the organizations mission *Organizational Goals Purpose: 1) Provide guidance 2) Strong effect on other planning aspects3) Motivational tool4) Effective evaluation tool and controlKinds of GoalsBy Level – Top, Middle, Lower level managersBy Area – Functions by levels – CEO/Pres, VP’s, GM’s/directors/managersBy Time Frame – Long-term, intermediate, short-term AND explicit/open-endedResponsibilities of setting goalsALL managers set goalsGoal OptimizingEffective GoalsSmart & MeasurableCover Key result areasChallenging but realisticDefined time periodKinked to rewardsOrganizational PlansStrategic plan– outlines how to achieve the strategic goals, allocate resources, prioritiesTactical plan – more specific and concrete focus than strategic plans, to actually get things doneOperational plan– deal with small activities to carry through

Single-Use – one time usage planProgram – for large set of activitiesProject – detailed plan – more so than programStanding plan – continuous planPolicyStandard operating procedureRules & regulationTime Frames for PlanningLong-range – decades, 5+ yearsIntermediate Plans – 1-5 yearsShort-range – less than 1 yearAction-planReaction PlanResponsibilities in planning Top level planners:Planning staff- position, long-termPlanning taskforce – temporary team to plan, specific time periodBoard of Directors – oversea planningChief executive officer – set vision and valuesMiddle level planners:Executive committee Lower Level planners:Line managementContingency planning – prepare for crisisCrisis management – response to crisisBarriers to Goal setting and planningMajor BarriersInappropriate goalsImproper reward systemDynamic and complex environmentReluctance to establish goalsResistance to change & ConstraintsOvercoming the barriers - Understanding the purposes of goals and planningCommunication and participation

Consistency, revision, and updatingEffective reward system Management by objectives MBOChapter 8Strategy – comprehensive plan for accomplishing an organizations goals through a…