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benefits of planning

intensified effort, persistence, direction, creation of task strategies, encourages to think of better ways to perform

pitfalls of planning

can impede change and prevent or slow needed adaptation, can create false sense of certainty, detachment to planners.

setting goals

set goals, develop commitment, develop effective action plans, track progress toward goal achievement, maintain flexibility

SMART goals

specific, measurable, attainable, realistic, and timely

goal commitment

determination to achieve a goal, buy in, get employees to buy in by setting goals themselves

increases goal commitment

going public, having individuals or work unit tell others about their goals, obtain top management's support

action plans

lists the specifics steps, people, resources, and time period for accomplishing goal

proximal goals

short term goals

distal goals

long term or primary goals

tracking progress

set proximal and distal goals, and gather to provide performance feedback

options based planning

keep options open by making small, simultaneous investments in many options or plans

slack resources

cushion resources, such as extra time, people, money, or production capacity, that can be used to address and adapt to unanticipated changes

learning based planning

assumes that action plans need to be continuously tested, changed and improved

strategic plans

clear how the company will serve customers and position itself against competitors in the next two to five years


statement of a company's purpose or reason for existing, broad


which flows from the vision, is more specific foal that unifies company wide efforts, stretches and challenges the organization, and posses a finish line and time frame

tactical plans

specify how a company will use resources, budgets, and people to accomplish specific goals within its mission

management by objectives 1

discuss possible goals

management by objectives 2

participatively select goals that are challenging, attainable, and consistent with the company's overall goals

management by objectives 3

jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives

management by objectives 4

meet regularly to review progress toward accomplishment of those goals

operational plans

day to day plans for producing or delivering the organizations products and services

single use plans

deal with unique, one time only events

standing plans

save managers time because once the plans are created, they can be used repeatedly to handle frequent recurring events


indicate the general course of action that company managers should take in response to a particular event or situation


more specific than policies because they indicate the series of steps that should be taken in response to a particular event

rules and regulations

even more specific than procedures because they specify what myst happen or not happen


quantitative planning because it forces managers to decide how to allocate available money to best accomplish company goals

perfect practice

makes perfect

jack welsh

pick a general direction and implement like hell

decision making

process of choosing a solution from available alternatives

rational decision making

systematic process of defining problems, evaluating alternatives, and choosing optimal solutions


gap between a desired state and an existing state

decision criteria

standards used to guide judgements and decisions

absolute comparisons

process in which each decision criterion is compared to a standard or ranked on its own merits

relative comparisons

process in which decision criterion is compared directly with every other criterion

bounded rationality

decisions making process restricted by real world by limited resources, incomplete and imperfect information, and mangers, limited decision making capabilities


choosing the best alternative


choosing a good enough alternative


occurs in highly cohesive groups when group members feel intense pressure to agree with each other so that the group can approve a proposed solution

c type conflict

cognitive, focuses on problem and issue related differences of opinion

a type conflict

affective conflict, refers to the emotional reactions that can occur when disagreements become personal rather than professional, results in hostility, anger, resentment, and distrust

dialectical inquiry

creates c type conflict by forcing decision makers to state the assumptions of a proposed solution and then generate a solution that is the opposite of the proposed solution

nominal group technique

members write down as many problem definitions and alternative solutions as possible

delphi technique

members of a panel of experts respond to questions and to each other until reaching agreement on an issue

stepladder technique

begins with discussion between two group members who share their thoughts, ideas, and recommendations before jointly making a tentative decisions


which group members build on others ideas, it is a technique for generating a large number of alternative solutions

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