Environment & trends
What is environmental scanning ?
The process of screening large amounts of information to detect emerging trends and create scenarios.
What is planning?
Involves defining goals, establishing strategies, and developing coordinated plans to achieve objectives.
What are short-term and long-term plans?
Short-term: less than a year.
Long-term: five years or more.
Why do managers need to plan processes?
To provide direction, reduce uncertainty, avoid waste, and set performance standards.
What are objectives in planning?
Desired outcomes for individuals, teams, or the organization.
How does environmental scanning contribute to effectiveness?
It reduces uncertainty and helps align strategies with external conditions by identifying trends and threats early.
What is the difference between strategic and operational plans?
Strategic plans guide the entire organization toward long-term goals; operational plans explain how to execute those goals.
What is the difference between specific and directional plans?
Specific plans are rigid and clear; directional plans are flexible and based on general guidelines.
What is a challenge of setting objectives in an organization?
Stated objectives may differ from real objectives, leading to confusion or misalignment.
What are stated vs real objectives?
Stated: official claims.
Real: what the organization actually does.
What is competitive intelligence?
Gathering data about competitors to anticipate their actions and make informed decisions.
What is a mission in strategic planning?
It defines the purpose of the organization and guides long-term objectives.
What is the difference between single-use and standing plans?
Single-use: for unique situations.
Standing: used repeatedly for ongoing operations.
What are some contemporary issues that affect planning?
Rapid environmental changes, technological gaps, and internal misalignment of goals.
What is traditional objective setting?
Objectives are set at the top and broken down into subgoals for each level.
What environmental factor must be considered when planning?
The degree of environmental uncertainty affects how flexible or specific your plans should be.
What is the commitment concept in planning?
Plans should cover enough time to meet the commitments made when they were created.
What are the different types of plans organizations use?
Strategic, operational, short-term, long-term, specific, directional, single-use, and standing plans.
What makes planning difficult in uncertain environments?
Unpredictability makes it hard to set clear, long-term strategies; flexible plans are required.
What is Management by Objectives (MBO)?
A system where goals are jointly set, progress is reviewed, and rewards are based on achievement.
Why is centralized planning not always effective in fast-changing situations?
Lacks flexibility; in uncertain environments, decentralized or directional plans are more adaptive.
How is a proper strategy developed for managing a workforce?
By aligning strategic goals with operational plans, accounting for workforce needs, and ensuring commitment over time.
What must be taken into account to plan effectively?
Organizational level, uncertainty, time commitment, and choosing the right type of plan.
What are common challenges managers face when planning?
Choosing the right type of plan, dealing with uncertainty, aligning real vs stated goals, and timing commitments.
What are the four key elements of MBO?
Goal specificity, participative decision-making, explicit time periods, and performance feedback.