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O&M Chapter 7 Summary
O&M Chapter 7 Summary
Goals in Organizations
Mission – The organization’s reason for existence
Mission statement – A broadly stated definition of the organization’s basis
business scope and operations that distinguished it from similar types of
organizations.
Strategic goals – Broad statements of where the organization want to be in the
future; pertain to the organization as a whole rather than to specific divisions of
departments
Strategic plan – The action steps by which the organization intends to attain
strategic goals
Tactical goals – Goals that define the outcome that major divisions and
departments must achieve for the organization to reach its overall goal
Operational goals – specific, measurable results expected from departments,
work groups, and individuals within the organization
Operational plans – Plans developed at the organization’s lower levels that
specify action steps toward achieving operational goals and that support tactical
planning activities
Strategy map – A visual representation of the key drivers of an organization’s
success, showing the cause-and-effect relationship among goals and plans
Operational planning
S – specific, significant, stretching
M – measurable, meaningful, motivational
A – agreed upon, attainable, achievable, acceptable, action-oriented
R – realistic, relevant, reasonable, rewarding, results-oriented
T – time-based, timely, tangible, traceable
Management by Objective (MBO) – A method of management whereby
managers and employees define goals for every department, project, and person
and use them to monitor subsequent performance. Four major steps:
1. Set goals – Involves employees and stuff. Good for company
2. Develop action plans – Defines the course of action needed to achieve the
stated goals.
3. Review progress – Review the progress so far.
4. Appraise overall performance – Check if goals are made and if so reward
the employees to keep them happy and motivated
Single-use plans – Plans that are developed to achieve a set of goals that are
unlikely to be repeated in the future
Standing plans – ongoing plans that are used to provide guidance for tasks
performed repeatedly within the organization
Crisis planning:
Crisis prevention – Prevent crisis’s from happening
Crisis preparation – detailed planning of how to act when a crisis occurs