Key Terms
STRATEGIC GOALS
The broad goals the organization will try to achieve; derived from the mission statement.
DEFINITION
Looking at performance levels outside (or sometimes inside) your organization to evaluate your own performance.
SWOT ANALYSIS
Examines external conditions (competitors, laws, resource availability) and internal conditions (workforce skills, equip
OPERATIONAL PLAN
Describes specific goals, objectives, and milestones for a defined period; allocates tangible resources (labor, equipmen
ZERO-BASED BUDGET
Treats each budget as brand new; requires managers to justify every line item; ensures budgets stay tied to current orga
FORECASTING
Making a prediction about the future.
SCIENTIFIC FORECASTING
Using mathematical models, historical data, and statistical analysis to predict future conditions.
COINED BY
Peter Drucker, 1954.
INTENT
Improve employee motivation and organizational communication by aligning individual goals to corporate objectives.
MBO PROCESS (four elements)
1. Manager and employee jointly set goals and objectives for a period.
CRITICISM OF MBO
Managers may focus more on creating goals than on helping employees achieve them.
BENCHMARK
A standard used for comparison purposes.