Chapter 5 Study Guide - Principles Of Management PDF

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Principles Of Management...

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Disclaimer: This study guide is NOT a substitute for reading the textbook chapters, and this guide alone will not guarantee you a passing grade on exams. You must read the textbook chapters in their entirety in order to fully prepare for the exam.

Management Chapter 5: Planning and decision making

Planning: Choosing a goal and developing a strategy to achieve that goal. Planning has 5 steps: 1. 2. 3. 4. 5.

Set goals Develop and commit to goals Develop Effective Action Plan Track progress Maintain flexibility with the goals standards

How do you write effective goals?  

Make sure they are S.M.A.R.T goals! SMART goals: Goals that are Specific, Measurable, Attainable, Realistic, & Timely

Goal commitment: The determination to achieve a goal. Managers have to want this. Action plan  

A plan that lists the specific steps, people, resources, and time period needed to attain a goal. How, Who, What, When, Why, Where

To track goals must know if they are proximal or distal:  

Proximal goals: Short-term goals or subgoals. Distal goals: Long-term or primary goals.

Options-based planning: Maintaining planning flexibility by making small, simultaneous investments in many alternative plans. Slack resources: A cushion of extra resources that can be used with options-based planning to adapt to unanticipated change, problems, or opportunities. Planning works best when the goals and action plans at the bottom and middle of the ston support the goals and action plans at the top of the organization. 1

Strategic plans: Overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years. 

Top manager responsible for this

Purpose statement  

A statement of a company's purpose or reason to exist Outlines companies mission or vision

Strategic objective: A more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame. Tactical plans: Plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission. Management by objectives (MBO)    (1) (2) (3) (4)

Develops and carries out tactical plans A four-step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment. Has 4 steps: discuss possible goals collectively select goals that are challenging, attainable, and consistent with the company’s overall Goals jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives meet regularly to review progress toward accomplishment of those goals.

Operational plans Day-to-day plans, developed for producing or delivering the organization's products and services over a 30-day to 6 month period.  implemented by lower-level managers  3 kinds of operational plans: (1) o-ss: Plans that cover unique, one-time-only events. (2) Standing plans: Plans used repeatedly to handle frequently recurring events. a. Policies Standing plans that indicate the general course of action that should be taken in response to a particular event. (3) Budgets: Quantitative planning through which managers decide how to allocate available money to best accomplish company goals. 

Procedures 2

 

Standing plans that indicate the specific steps that should be taken in response to a particular event. More specific than policies for this reason

Rules & regulations  

Standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event. More specific than procedures

Decision making: Process of choosing a solution from available alternatives. Rational decision making: A systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. Problem: A ta between desired state (what you wish to face) and existing state (what you are actually facing). Decision criteria: The standards used to guide judgements. Absolute comparisons: A process in which each decision criterion is compared to a standard or ranked on its own merits. Relative comparisons: A process in which each decision criterion is compared directly with every other criterion. Maximize: Choosing the best alternative. Satisficing: Choosing a "good enough" alternative. Groupthink: A barrier to good decision making caused by pressure within the group for members to agree with each other. C-type conflict (cognitive conflict): Disagreement that focuses on problem-and issue-related differences of opinion. A-type conflict (affective conflict): Disagreement that focuses on individuals or personal issues. (more emotional) Decision Making Methods: 1. Devil's advocacy: A decision-making method in which an individual or a subgroup is assigned the role of critic.

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2. Dialectical inquiry: A decision-making method in which decision makers state the assumptions of a proposed solution (a thesis) generate a solution that is the opposite (antithesis) of that solution. ***devil’s advocacy and dialectical inquiry both introduce c-type conflicts into decision making process 3. Nominal group technique: A decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group. 4. Delphi technique: A decision-making method in which members of a panel of experts respond to questions and to each other until reaching agreement on an issue. 5. Stepladder technique: decision making method that begins with discussion between two group members who share their thoughts, ideas, and recommendations before jointly making a tentative decision. 6. Brainstorming: A decision-making method in which group members build on each other’s ideas to generate as many alternative solutions as possible. a. Face to face brainstorming has issues which electronic brainstorming solves 7. Electronic brainstorming: A decision-making method in which group members use computers to build on each other’s ideas and generate many alternative solutions. a. Electronic brainstorming overcomes disadvantages of: i. Production blocking: A disadvantage of face-to-face brainstorming in which a group member must wait to share an idea because another member is presenting an idea. ii. Evaluation apprehension: Fear of what others will think of your ideas.

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