ORGMA

• a primary managerial activity that

  involves: Defining the organization’s goals Establishing an overall strategy for achieving those goal Developing plans for organizational work activities

  Planning
• Specific goals covering a specific time period

  Written and shared with organizational members

  Formal planning
• Desired outcomes for individuals, groups, or entire

  organizations

  Provide direction and evaluation performance criteria

  Goals (also Objectives)
• Documents that outline how goals are to be accomplished

  Describe how resources are to be allocated and establish

  activity schedules

  Plans
• related to the expected

  internal financial performance of the

  organization.

  Financial Goals
• related to the performance

  of the firm relative to factors in its external

  environment

  Strategic Goals
• Establish the organization’s overall goals

  Seek to position the organization in terms of its

  environment

  Cover extended periods of time

  Strategic Plans
• Specify the details of how the overall goals are to

  be achieved

  Cover a short time period

  Operational Plans
• Time frames extending beyond three years.

  Long-Term Plans
• Time frames of one year or less.

  Short-Term Plans
• Plans that are clearly defined and leave no room

  for interpretation.

  Specific Plans
• Flexible plans that set out general guidelines and

  provide focus, yet allow discretion in

  implementation.

  Directional Plans
• A one-time plan specifically designed to meet the

  need of a unique situation.

  Single-Use Plan
• Ongoing plans that provide guidance for activities

  performed repeatedly.

  Standing Plans
• Broad goals are set at the top of the

  organization.

  Goals are then broken into sub-goals for each

  organizational level.

  Goals are intended to direct, guide, and

  constrain from above.

  Goals lose clarity and focus as lower-level

  managers attempt to interpret and define the

  goals for their areas of responsibility.

  Traditional Goal Setting
• The integrated network of goals that results from

  establishing a clearly-defined hierarchy of

  organizational goals.

  Achievement of lower-level goals is the means by

  which to reach higher-level goals

  Means-Ends Chain
• Specific performance goals are jointly

  determined by employees and managers.

  Progress toward accomplishing goals is

  periodically reviewed.

  Rewards are allocated on the basis of

  progress towards the goals.

  Management By Objectives
• Current plans affecting

  future commitments must be sufficiently

  long-term in order to meet those commitments.

  Commitment Concept
• what managers do to

  develop the organization’s strategies.

  Strategic management
• the plans for how the organization

  will do what it’s in business to do, how it will

  compete successfully, and how it will attract

  and satisfy its customers in order to achieve

  its goals.

  Strategies
• how a company is going to

  make money.

  Business model
• a six-step

  process that encompasses strategic planning,

  implementation, and evaluation.

  Strategic management process
• Identifying the organization’s current

  mission, goals, and strategies

  Step 1
• a statement of the purpose of an organization

  Mission
• the foundation for further planning

  Goals
• Doing an external analysis

  Step 2
• Doing an internal analysis

  Step 3
• an analysis of the

  organization’s strengths, weaknesses,

  opportunities, and threats.

  SWOT analysis
• an organization’s assets that are

  used to develop, manufacture, and deliver a

  product to its customers.

  Resources
• an organization’s skills and

  abilities in doing the work activities needed in

  its business.

  Capabilities
• any activities the organization

  does well or any unique resources that it has.

  Strengths
• activities the organization does

  not execute well or needed resources it does

  not possess.

  Weaknesses
• the organization’s major

  value-creating capabilities that determine its

  competitive weapons.

  Core competencies
• Formulating strategies

  Step 4
• Implementing strategies

  Step 5
• effectively fitting organizational

  structure and activities to the environment.

  Implementation
• an organizational

  strategy that determines what businesses a

  company is in or wants to be in, and what it

  wants to do with those businesses.

  Corporate strategy
• Types of Corporate Strategies

  Growth: expansion into new products and markets.

  Stability: maintenance of the status quo.

  Renewal: examination of organizational weaknesses

  that are leading to performance declines.
• a corporate strategy that’s

  used when an organization wants to expand

  the number of markets served or products

  offered, through either its current

  businesses or new businesses.

  Growth strategy
• a

  corporate strategy in

  which an organization

  continues to do what it

  is currently doing.

  Stability strategy