Planning The Foundation of Successful Management

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Planning The Foundation of Successful Management by Mind Map: Planning  The Foundation  of Successful  Management

1. Making Plans

1.1. Mission statement : " What is our reason for being?"

1.1.1. Mission statement expresses the purpose of the organization

1.2. Vision statement "What do we want become?"

1.2.1. Vision statement expresses what the organization should become, where it wants to go strategically

1.3. Strategic planning:"Done by top managers for the next 1-5 years >Goals>Action plans .

1.4. Tactical planning: " Done middle managers for the next 6-24 months . > Goals >Action plans

1.5. Operational planning : Done by first line managers for the next 1-52 weeks .> Goals >Action plans .

2. Planning * coping with uncertainty by formulating future courses of action to achieved specified results. *setting goals and deciding how to achieve them

2.1. Business model outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses

2.2. Business plan a document that outlines a proposed firm’s goals, the strategy for achieving them, and the standards for measuring success.

3. Strategy: a large-scale action plan that sets the direction for an organization *represents an “educated guess” about what must be done in the long term for the survival or the prosperity of the organization or its principal parts.

3.1. Strategic management: a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals.

4. Planning & Strategic Management

4.1. 1- Establish the mission & vision

4.2. 2- Assess the current reality

4.3. 3- Formulate the grand strategy & strategic tactical & operational plans.

4.4. 4- Implement the strategy

4.5. 5- Maintain strategic control

5. Why Planning & Strategic Management Are Important

5.1. 1. Provide direction and momentum 2. Encourage new ideas 3. Develop a sustainable competitive advantage.

5.1.1. Encouraging New Ideas *Management scholar Gary Hamel says that companies such as Apple have been successful because they have been able to unleash the spirit of “strategy innovation.” *Strategy innovation the ability to reinvent the basis of competition within existing industries“bold new business models that put incumbents on the defensive.”

6. Three Levels of Management, Three Types of Planning

6.1. Top management : chief executive officer president , vice president, general managers, division heads.

6.1.1. strategic planning 1-5 years Determine what the organization’s long-term goals should be for the with the resources they expect to have available

6.2. Middle management : functional managers, product- line managers,department managers.

6.2.1. Tactical planning 6-24 months Determine what contributions their departments or similar work units can make.

6.3. First line management: unit managers , team leaders, first line supervisors.

6.3.1. Operational planning 1-52 weeks Determine how to accomplish specific tasks with available resources

7. Three Types of Goals: Strategic, Tactical, & Operational : Goals specific commitment to achieve a measurable result within a stated period of time * known as an objective strategic, tactical, operational

7.1. *Strategic goals : set by and for top management and focus on objectives for the organization as a whole.

7.2. *Tactical goals: set by and for middle managers and focus on the actions needed to achieve strategic goals

7.3. *Operational goals: set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.

8. The Action Plan & the Operating Plan

8.1. Action plan: defines the course of action needed to achieve the stated goal

8.2. Operating plan

8.2.1. designed for a 1-year period

8.2.2. defines how you conduct your business based on the action plan

8.2.3. identifies clear targets such as revenue, cash flow, and market share

9. Standing Plans & Single-Use Plans

9.1. Standing plans

9.1.1. for activities that occur repeatedly over a period of time *Policy outlines the general response to a designated problem or situation *Procedure outlines the response to a particular problem or circumstances *Rule designates specific required action

9.2. Single-use plans

9.2.1. for activities that are not likely to be repeated in the future *Program single-use plan encompassing a range of projects or activities *Project single-use plan of less scope and complexity than a program

10. SMART Goals

10.1. Specific

10.2. Measurable

10.3. Attainable

10.4. Results-oriented

10.5. Target dates

11. Management by Objectives (MBO) Four- Step Process:

11.1. (1) managers and employees jointly set objectives for the employee.

11.2. (2) managers develop action plans.

11.3. (3) managers and employees periodically review the employee’s performance.

11.4. (4) the manager makes a performance appraisal and rewards the employee according to results.

12. Three Types of Objectives Used in MBO:

12.1. Improvement Objectives

12.1.1. PURPOSE : Express performance to be accomplished in specific way for specific area .

12.2. Personal Development Objectives

12.2.1. PURPOSE: Express personal goals to be realized

12.3. Maintenance Objectives

12.3.1. PURPOSE: Express the intention to maintain performance at previously established levels.

13. Cascading Objectives: MBO from the Top Down.

13.1. 1. Top management must be committed

13.2. 2. It must be applied organization-wide

13.3. 3. Objectives must “cascade

13.3.1. MBO works by cascading objectives down through the organization Objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization

14. The Planning/Control Cycle

14.1. 1- Make the plan

14.2. 2. Carry out the plan

14.3. 3. Control the direction by comparing results with the plan

14.4. 4. Control the direction by taking corrective action in two ways

14.4.1. a) Correcting deviations

14.4.2. b) Improving future plans

15. Question?

15.1. Melissa wants her employee, Ralph, to turn in his monthly sales report by the 5th of every month. This meets the ____________ requirement of SMART goals.

15.1.1. A. Specific

15.1.2. B. Measurable

15.1.3. C. Attainable

15.1.4. D. Target dates

16. Question?

16.1. Apple has fired employees who have leaked news about unannounced products. Which step of the Planning/Control is this?

16.1.1. A. Make the plan

16.1.2. B. Carry out the plan

16.1.3. C. Take corrective action

16.1.4. D. Document the plan

17. Question

17.1. Danny is participating with other managers in a discussion about what his organization's goals should be for the next decade. He is participating in:

17.1.1. A. Strategic planning

17.1.2. B. Operational planning

17.1.3. C. Tactical planning

17.1.4. D. Controlling