What are short-term objectives?
Measurable outcomes achievable or intended to be achieved in one year or less
How do short-term objectives assist policy implementation?
They assist by identifying measurable outcomes of action plans or functional activities, which can be used to make feedback, correction, and evaluation more relevant and acceptable
What are the elements of action plans?
Short-Term Objectives provide:
Specificity
Time frame for completion
Who is responsible—Accountability
What are the qualities of effective short-term objectives?
- Measurable
- Priorities
- Cascading: From long-term objectives to short-term objectives
What are functional tactics ?
They are the detailed statements of the “means” or activities that will be used by a company to achieve short-term objectives and establish a competitive advantage
Functional tactics are different from business or corporate policies in three fundamental ways. What are they?
- Specificity
- Time horizon
- Participants who develop them
What is outsouricng?
It is obtaining work previously done by employees inside the company from sources outside the company
What is empowerment?
Empowerment is the act of allowing an individual or team the right and flexibility to make decisions and initiate action.
What are policies?
Policies are broad, precedent-setting decisions that guide or substitute for repetitive or time-sensitive managerial decision making.
What are the benefits of creating policies that empower?
- Policies reduce uncertainty in repetitive and day-to-day decision making
- Policies counteract resistance
- Policies offer predetermined answers to routine problems
- Policies afford managers a mechanism for avoiding hasty decisions
What are the advantages of formal written policies?
- They require managers to think through the policy’s meaning, content, and intended use
- They reduce misunderstanding
- They make equitable and consistent treatment of problems more likely
- They ensure unalterable transmission of policies
- They communicate the authorization or sanction of policies more clearly
- They supply a convenient and authoritative reference
- They systematically enhance indirect control and organization-wide coordination of the key purposes of policies
What is the goal of an executive bonus compensation plan?
to motivate executives and key employees to achieve the maximization of shareholder wealth
What are some types of bonus compensation plans?
- Stock options
- Restricted stock
- Golden handcuffs
- Golden parachute
- Cash bonuses
What are restricted stock options?
Stock given to an employee who is prohibited or “restricted” from selling the stock for a certain time period and not at all if they leave the company before that time period
What are golden handcuffs?
A form of executive compensation where compensation is deferred (either a restricted stock plan or bonus income deferred in a series of annual installments).
What are golden parachutes?
A form of bonus compensation that guarantees a substantial cash payment if the executive quits, is fired, or simply retires.
