8 Foundations of Planning.pdf

Foundations of Planning Chapter 8  Learning Objectives 8.1 Define the nature and purposes of planning. 8.2 Classify the types of plans organizations might use. 8.3 Identify the key contingency factors in planning. 8.4 Compare and contrast approaches to objective setting....

Foundations of Planning Chapter 8  Learning Objectives 8.1 Define the nature and purposes of planning. 8.2 Classify the types of plans organizations might use. 8.3 Identify the key contingency factors in planning. 8.4 Compare and contrast approaches to objective setting. 8.5 Discuss contemporary issues in planning.  What is Planning? Planning: Management function that involves setting goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities Formal Planning Specific, time-oriented Goals written and goals shared  Provides Reduce direction uncertainty Why do managers plan Minimize waste Establish the and goals and redundancy standards for controlling  Planning and Performances Quality of Formal planning is associated planning/implementation with positive financial results more important than the extent of it Planning-performance External factors can reduce relationship seems to be the impact of planning on influenced by the planning performance time frame  Goals and Plans Goals Plans: (objectives): documents that desired outline how outcomes or goals are going targets to be met  Objectives and Goals They provide management with direction and serve as a means to measure progress. Real Objectives Stated Objectives Official Objectives statements of that the what the organization organization actually wants the pursues. public to believe. Types of Plans  Types of Plans Plans that apply to the entire Plans with a time organization and frame beyond three establish the years organization’s overall Strategic Plans goals Long Term Plans Plans that encompass Plans covering one a particular year or less operational area of the organization Short Term Plans Operational Plans  Types of Plans Plans that are Plans that are clearly flexible and set out defined and leave no general guidelines room for interpretation Directional Plans Specific Plans A one-time plan Ongoing plans that specifically designed provide guidance for Single-Used to meet the needs of activities performed Plans a unique situation repeatedly Standing Plans Contingency Factors in Planning Degree of Level in organization environmental uncertainty Length of future commitments Planning in the Organizational Hierarchy Strategic Planning Top Management Middle-Level Managers Operational First-Level Managers Planning  Planning – Based on the Hierarchy Source: https://www.elcomblus.com/planning-at-different-levels-in-the-organization/  Approaches to Setting Objectives Traditional objective- “We need to setting improve the company’s Top Management’s objective an approach to setting performance objectives in which top “I want to see a managers set objectives Division manager’s significant that then flow down objective improvement in this division’s through the organization profits” and become subgoals for Department each organizational area “Increase profits, regardless manager’s of the means”. objective Some organization have a formal planning unit Individual employee’s objective “Don’t worry about quality, just work fast”.  Management by Objectives (MBO) Management by objectives (MBO) A process of setting mutually agreed-upon goals and using those goals to evaluate Video time! employee performance https://youtu.be/MX7sserktdY Involves setting objectives that cascade down through the organization that are translated into operational objectives at each level  Planning Effectively in a Dynamic Environment Get employees involve in Get all planning as they have to put involve them into actions Be sure Planning is needed even in to plan uncertainties Develop specific but flexible plans  How Can Managers Use Environmental Scanning? What Where General Environment Political Lobbyists; political representative Economic Fed minutes; financial news Environmental Social Social media scanning: screening Technological Patent reports information to detect Specific Environment emerging trends Industry Business media; industry associations Competitors Web sites; others in the industry Suppliers Vendors Customers Surveys; focus groups  Environmental Scanning Competitive intelligence: gathering information about competitors that allows managers to anticipate competitors’ actions rather than merely react to them Data that managers can use to make more effective strategic decisions Digital tools for data Business Intelligence analysis and processing DIGITAL TOOLS Virtual Reality Social media Potential applications include interviewing Becoming increasingly important job candidates, virtual meetings, complex places to extract competitive job training, and previewing office or plant intelligence layouts.