Conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future. A purposeful effort that is directed and controlled by managers and often draws on the knowledge and experience of employees throughout the organization
What is considered the most fundamental management function?
Planning. Controversial because you're going to change and people may not like it.
Define the 6 planning process steps.
1. Situational analysis
2. Alternative goals and plans
3. Goal and plan evaluation
4. Goal and plan selection
6. Monitor and control
Define situational analysis.
A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.
A target or end that management desires to reach. Specific, measurable, attainable, relevant, time-bound.
Define alternative goals and plans.
Should stress creativity and encourage managers and employees to think in broad terms about their jobs
The actions or means managers intend to use to achieve organizational goals
Define contingency plans.
Sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change
An organization's basic purpose and scope of operations.
What is a mission statement?
Describes values and aspirations. Focuses on customers, values, product quality, and attitude towards employess
Define strategic planning.
A set of procedures for making decisions about the organization's long-term goals and strategies
Define strategic goals.
Major targets or end results that relate to the long-term survival, value, and growth of the organization.
A pattern of actions and resource allocations designed to achieve the organization's goals
Define tactical planning.
A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing.
Define operational planning.
The process of identifying the specific procedures and processes required at lower levels of the organization.
Define strategic management.
A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.
Groups and individuals who affect and are affected by the achievement of the organization's mission, goals, and strategies.
Inputs to a system that can enhance performance. Tangible & Intangible assets.
Process of assessing how well one company's basic functions and skills compare with those of another company or set of companies.
What is the goal of benchmarking?
To thoroughly understand the "best practices" of other firms and to undertake actions to achieve both better performance and lower costs.
Define corporate strategy.
The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities. Concentration. Vertical integration. Concentric diversification.
A strategy employed for an organization that operates a single business and competes in a single industry.
Define vertical integration.
The acquisition or development of new businesses that produce parts or components of the organization's prodct
Define concentric diversification.
A strategy used to ass new businesses that produce related products or are involved in related markets and activities.
Define low cost strategy.
A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product.
Define differential strategy
A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along on or more dimensions
Define illusion control.
People's belief that they can influence events, even when they have no control over what will happen.
Define framing effects.
A decision bias influenced by the way in which a problem or decision alternative is phrased or presented.
A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus.
Define goal displacement.
A condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges. Also called drift.
Define devil's advocat.
A person who has the job of criticizing ideas to ensure that their downsides are fully exploded.
A structured debate comparing two conflicting courses of action.