Chapter 2: Planning - Fundamentals of Management (MGT 162) PDF

CHAPTER 2: Planning FUNDAMENTALS OF MANAGEMENT (MGT 162)  Learning Objective Concept of planning Benefits of planning Vision and Mission statements Types of planning Barriers and overcoming the barriers to planning  Definition The process of outlining the activitie...

CHAPTER 2: Planning FUNDAMENTALS OF MANAGEMENT (MGT 162)  Learning Objective Concept of planning Benefits of planning Vision and Mission statements Types of planning Barriers and overcoming the barriers to planning  Definition The process of outlining the activities to achieve the goals of the organization determine the ways to achieve the goals.  Benefits of Planning Coordinate managers of different functions and division Focus on Forward Thinking Participatory Work Environment More Effective Control System Reduce Overlapping Resources are effectively and efficiently utilized  Vision Identify the organization future direction. Vision statement describes where the organization want to be in future.  Mission The means by which an organization can fulfill its purpose. Mission statement describes what the organization needs to do now to achieve the vision.  Types of planning Tactical & Operational Strategic planning Planning Strategic planning is the Tactical plan is designed to process by which an implement all goals set in the organization makes decisions strategic plan. It outlines and takes actions that affect actions to achieve its long-run performance. strategic plan.  Strategic Planning  Apply broadly to the entire organization.  Establish the organization’s overall objectives.  Seek to position the organization in terms of its environment.  Provide direction to drive an organization’s efforts to achieve its goals.  Cover extended periods of time.  Are less specific in their details.  Tactical Planning  Apply to specific parts of the organization.  Specify the details of how the overall objectives are to be achieved.  Cover shorter periods of time.  Must be updated continuously to meet current challenges.  Operational Planning Operational plan is designed to implement specific action steps to support strategic and tactical plan. It governs the day-to-day operations of an organization. Two types of operational planning Standing plan Single use plan  Standing Plan Standing plan 3 types of (Deals with the standing plan plan that recur frequently) Procedure Policy plan that specifies Rules general guidelines how to proceed in a detailed and for decision making specific situation specific regulation within the that routinely for action. organization. arises  Single-Use Plan Single use plan 3 types of A plan that is used to meet the needs Single-use plan of a particular or unique situation Program Project plan that govern a Budgets plan that direct the comprehensive set of plan that specify how efforts of individuals activities designed to financial resources or work group towards accomplish a should be allocated. the achievement of particular sets of goals goals.  Barriers to effective planning Demands on the leader’s time Lack of commitment Resistance to change Inappropriate goals Lack of top management support  Overcoming barriers to effective planning Planning Planning Involve Tolerate Encourag must be must be employee diversity e clear and organize s in of views strategic definite d decision thinking making  * THE END * “Planning is bringing the future into the present so that you can do something about it now” ~Alan Lakein~