Mgmt 311 Chapter 5 and 6

Choosing a goal and developing a method of strategy to achieve that goal

Intensified effort, persistence, direction, creation of task strategies

Impedes change of adaption, false sense of certainty, detachment of planners

1. Set goals2. Develop commitment3. develop effective action plans4. track progress toward goal achievement5. maintain flexibility6. revise existing plan or beginning new planning process

S - SpecificM - MeasurableA - Attainable R - RealisticT - Timely

Specific steps, resources, people, time period

Keeps options open by making simultaneous investments- invest more in promising options- maintains slack resources

Plans need to be continuously adjusted

Day-to-day plans for producing or delivering products and services over a 30 day to a 6 month period.

Single-use plans (plans that cover unique, one-time only events)standing plans (plans used repeatedly to handle frequently recurring events)budgets (quantitative planning to decide how to allocate money to accomplish company goals

The process of choosing a solution from available alternatives

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

1. define the problem2. identify decision criteria3. weight the criteria4. generate alternative courses of action5. evaluate each alternative6. compute the optimal decision

A decision-making process restricted in the world by:- limited resources- incomplete and imperfect information- manager's limited decision-making capabilities

Maximize vs. satisfice