Planning and Goal setting
5 important questions on Planning and Goal setting
Does formal planning improve organizational performance?
- Formal planning generally means higher profits, higher return on assets, and other positive financial results.
- Quality of planning process and the appropriate implementation of the plan probably contribute to more high performance than does the extent of planning
- In those organizations where formal planning did not lead to higher performance, the environment (e.g. governmental regulations, unforeseen economic challenges) was often to blame.
Why is strategic mgt important?
- Because of change, examine relevant factors in planning future actions
- Organizations are complex and diverse
What strategies do managers use?
- Corporate - what business to be in and what to do in those
- Growth (expanding)
- concentration
- vertical integration
- horizontal integration
- diversification
- Stability strategy (during periods of uncertainty)
- Renewal (address declining performance)
- Retrenchment strategy
- Turnaround strategy
- Competitive strategy - How to compete
- cost leadership
- differentiation
- focus
- stuck in the middle
- The functional - strategy that varies within the different departments
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How to set goal?
- Traditional goal setting: goals set by top managers flow down through the organization and become sub-goals for each organizational area.
- Management by objectives: a process of setting mutually agreed-upon goals and using those goals to evaluate employee performance
What is the cascading method?
The question on the page originate from the summary of the following study material:
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