Professional Documents
Culture Documents
Chapter 5
Learning Objectives
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2.
3.
4.
5.
6.
Define goals and plans and explain the relationship between them. Explain the concept of organizational mission and how it influences goal setting and planning. Describe the goals an organization should have and why they resemble a hierarchy. Define the characteristics of effective goals. Describe the four essential steps in the MBO process. Explain the difference between single-use plans and standing plans.
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9. 10.
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Discuss how planning in a turbulent environment differs from traditional approaches to planning. Describe and explain the importance of the three stages of crisis management planning. Define the components of strategic management. Explain the major considerations in formulating functional strategies. Describe the strategic planning process and SWOT analysis.
Copyright 2009 Nelson Education Ltd. 5-4
13.
Describe business-level strategies, including Michael E. Porters competitive forces and strategies and partnership strategies. Discuss the organizational dimensions used for implementing strategy.
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Plan
A blueprint specifying the resource allocation, schedules, and other actions necessary for attaining goals.
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Ex. 5.1
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Goals in Organizations
Mission: The organizations reason for existence.
Mission Statement: A broadly stated definition of the organizations basic business scope and operations that distinguishes it from similar types of organizations.
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Tactical Plans Plans designed to help execute major strategic plans and to accomplish a specific part of the companys strategy.
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Operational Plans
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Ex. 5.3
Goal Characteristics: Specific and measurable Cover key result areas Challenging but realistic Defined time period Linked to rewards
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Ex. 5.4
Step 1: Setting Goals Corporate Strategic Goals Departmental Goals Individual Goals
Action Plans
Appraise Performance
Step 4: Appraising Overall
Performance
Copyright 2009 Nelson Education Ltd. 5-14
Ex. 5.5
Benefits: Manager and employee efforts are focused on activities that will lead to goal attainment. Performance can be improved at all company levels. Employees are motivated. Departmental and individual goals are aligned with company goals.
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Ex. 5.5
Problems: Constant change prevents MBO from taking hold. An environment of poor employer-employee relations reduces MBO effectiveness. Strategic goals may be displaced by operational goals. Mechanistic organizations and values that discourage participation can harm the MBO process. Too much paperwork saps MBO energy.
Copyright 2009 Nelson Education Ltd. 5-16
Types of Plans
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2. 3. 4.
Single-Use Standing Contingency Crisis Management Three Stages: Prevention Preparation Containment
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Strategic Management
Set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.
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Ex. 5.9
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Industry Competition
Competitive Strategies
1. 2.
3.
Focus
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Ex. 5.14
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