RSM100Y1 Chapter Notes - Chapter 7: Strategic Planning, Carry Out, Crisis Management
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Management: the process of achieving organizational goals through people
and other resources.
A manager must combine human and technical resources in the best way
possible to achieve the company’s goals.
o Spend most of their time developing long-range plans for their
organizations (set a direction for their organization).
o They also inspire the company’s executives and employees to achieve
their vision for the company’s future.
o Middle managers are more familiar with day-to-day operations than
o They develop detailed plans and procedures to carry out the firm’s
o Middle managers focus their attention on specific operations,
products, or customer groups.
Supervisory Management (first-line management)
o These managers assign specific jobs to nonmanagerial employees and
assess their performance.
o They carry out middle managers’ plans by motivating workers to
accomplish daily/weekly/monthly goals.
Technical skills: the manager’s ability to understand and use the techniques,
knowledge, tools, and equipment of a specific department or area of study
(important for first line managers).
Human skills: interpersonal skills that help managers to work effectively
with people (communication is key).
Conceptual skills: aid managers to see the organization as a single unit and to
understand how each art of the overall organization interacts with other
parts (important for top level management)
o People with conceptual skills can see the big picture by acquiring,
analyzing, and interpreting information.
Managers carry out four basic functions:
The process of looking forward to future events and conditions
and deciding on the courses of action for achieving
Effective planning helps a business to focus its vision, avoid
costly mistakes, and seize opportunities.
Should be flexible and responsive to changes in the business
The process of blending human and material resources
through a formal structure of tasks and authority: arranging
work, dividing tasks among employees, and coordinating them
to ensure plans are carried out and goals are met.
Sometimes requires studying a company’s existing structure
and deciding whether to restructure it to operate more
efficiently, cost-effectively, or sustainably.
Guiding and motivating employees to accomplish
Can include training, setting up schedules, assigning tasks, and
Weekly meetings with employees allow for the exchange of
information, and individuals can make their views known (can
help motivate employees).
Assesses the success of the planning function and provides
feedback for future rounds of planning.
Has four basic steps:
Setting performance standards
Monitoring actual performance
Comparing actual performance with the standards
Making corrections if needed
Vision: the ability to perceive marketplace needs and what an organization
must do to satisfy them.
o Helps to direct the company toward opportunities and sets it apart
from its competitors.
o It must be focused and flexible enough to adapt to changes in the
Ethical standards are sometimes made to comply with industry or federal
regulations and sometimes are set after unethical actions have been taken by
o Important to a firm’s long-term relationships with its customers,
suppliers, and the general public.
High ethical standards do not just keep employees from doing wrong but it
also encourages, motivates, and inspires them to achieve goals they never
thought possible (i.e. profitability of Mattel).
Good panning can turn a vision into reality.
Planning can be divided into:
o Strategic Planning
The process of deciding on the primary objectives of an
organization and then taking action and setting aside resources
to achieve those objectives (generally done by top executives).
o Tactical Planning
Carrying out the activities set out in the strategic plans.
Guide the current and short-term activities required to carry
out the overall strategies.
o Operational Planning
Sets the detailed standards that help to carry out tactical plans.
Involves choosing specific work targets and assigning
employees and teams to carry out plans.
Strategic planning focuses on the organization as a whole,
whereas operational planning develops and carries out tactics
in specific functional areas.
o Contingency Planning
Help firms to resume operations as quickly and as smoothly as
possible after a crisis.
Involves two components:
Continuing the business
Communicating to the public