Robbins Mgmt12 Ppt08

7/23/2019 Robbins Mgmt12 Ppt08

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Copyright 2012 Pearson Education,

Inc. Publishing as Prentice Hall

Copyright 2014 Pearson Education 8-1

Foundationsof Planning


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Copyright 2012 PearsonEducation, Inc. Publishing as


Defne the nature and purposes ofplanning.

Classiy the types of goalsorganiations !ight ha"e and theplans they use.

Compare and contrast approachesto goal#setting and planning.

Discuss conte!porary issues inplanning.


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What Is Planning?

Planning - defining the organizations

goals, establishing strategies for achieving

those goals, and developing plans to

integrate and coordinate work activities.

Formal planning

!pecific goals covering a specific time period

Written and shared with organizational

members


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Wh" #o $anagers Plan?

Fo%r reasons for planning

Provides direction

&ed%ces %ncertaint"

$inimizes waste and red%ndanc"

!ets the standards for controlling


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Planning and Performance

Formal planning is associated with'

Positive financial res%lts ( higher profits,

higher ret%rn on assets, and so forth

)he *%alit" of planning and implementationaffects performance more than the e+tent of

planning

)he e+ternal environment can red%ce theimpact of planning on performance

)he planning(performance relationship seems

to be infl%enced b" the planning time frame


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oals and Plans

Goals (objectives) - desired

o%tcomes or targets

Plans - doc%ments that o%tline howgoals are going to be met


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Inc. Publishing as Prentice HallCopyright 2014 Pearson Education 8-7

)"pes of oals

Financial Goals - related to the expected

internal inancial peror!ance o the

organi"ation.

Strategic Goals- related to the peror!ance othe ir! relati#e to actors in its external

en#iron!ent $e.g., co!petitors%.


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)"pes of oals -cont.

Stated goals - official statements of what an

organization sa"s, and what it wants its vario%s

stakeholders to believe, its goals are

Real goals - goals that an organization act%all"p%rs%es, as defined b" the actions of its

members


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)"pes of Plans

Stategic !lans - plans that appl" to the

entire organization and establish the

organizations overall goals

"!eational !lans - plans that

encompass a partic%lar operational area

of the organization


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Inc. Publishing as Prentice HallCopyright 2014 Pearson Education 8-1#

)"pes of Plans -cont.

$ong-te% !lans - plans with a time frame

be"ond three "ears

S&ot-te% !lans - plans covering one "ear or

less S!eci'ic !lans plans that are clearl" defined

and leave no room for interpretation

iectional !lans - plans that are fle+ible andset o%t general g%idelines


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)"pes of Plans -cont.

Single-*se !lan ( a one(time plan

specificall" designed to meet the needs of

a %ni*%e sit%ation

Standing !lans ongoing plans that

provide g%idance for activities performed

repeatedl"


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/+hibit 0(1

)"pes of Plans


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2pproaches to !etting oals

+aditional goal-setting ( an approach to

setting goals in which top managers set goals

that then flow down thro%gh the organization and

become s%bgoals for each organizational area ,eans-ends c&ain - an integrated network of

goals in which the accomplishment of goals at

one level serves as the means for achieving the

goals, or ends, at the ne+t level


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/+hibit 0(3

)he #ownside of )raditional oal(!etting


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2pproaches to !etting oals -cont.

,anage%ent b

objectives (,.") - a

process of setting

m%t%all" agreed %pongoals and %sing those

goals to eval%ate

emplo"ee performance


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/+hibit 0(4 !teps in $56


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!teps in oal(!etting

1. &eview the organizations %ission, or p%rpose.

3. /val%ate available reso%rces

4. #etermine the goals individ%all" or with inp%t

from others

7. Write down the goals and comm%nicate them to

all who need to know

8. &eview res%lts and whether goals are beingmet.


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!teps in oal(!etting -cont.

7. Write down the goals and comm%nicate them to

all who need to know

8. &eview res%lts and whether goals are being

met.


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/+hibit 0(7

Well(Written oals


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9ontingenc" Factors in Planning

&ength o uture co!!it!ents

Commitment Concept:Current plans

aecting uture co!!it!ents !ust be

suiciently long-ter! in order to !eet thoseco!!it!ents.


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/+hibit 0(8

Planning and 6rganizational :evel


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9ontingenc" Factors in Planning -cont.

/nvironmental ;ncertaint"

When %ncertaint" is high, plans sho%ld be

specific, b%t fle+ible.

$anagers m%st be prepared to change oramend plans as the"re implemented.

2t times, the" ma" even have to abandon the

plans


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2pproaches to Planning

In the traditional approach, planning is done

entirel" b" top(level managers often are assisted

b" a formal planning department

/o%al !lanning de!at%ent - a gro%p ofplanning specialists whose sole responsibilit" is

helping to write organizational plans


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9ontemporar" Iss%es in Planning


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9ontemporar" Iss%es in Planning -cont.


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$e"ie% &earning 'utco!e (.1

#efine the nat%re and p%rposes of

planning Planning involves defining the organizations goals,

establishing an overall strateg" for achieving thosegoals, and developing plans for organizational work

activities.

)he fo%r p%rposes of planning incl%de providing

direction, red%cing %ncertaint", minimizing waste andred%ndanc", and establishing the goals or standards

%sed in controlling.


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$e"ie% &earning 'utco!e (.2

9lassif" the t"pes of goals organizations might

have and the plans the" %se.

oals are desired o%tcomes.

Plans are doc%ments that o%tline how goalsare going to be met.

!trategic plans appl" to the entire

organization while operational plans

encompass a partic%lar f%nctional area.

i i ' ( 2


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$e"ie% &earning 'utco!e (.2)cont.*

:ong(term plans are those with a time frame

be"ond three "ears. !hort(term plans cover

one "ear or less.

!pecific plans are clearl" defined and leaveno room for interpretation.

#irectional plans are fle+ible and set o%t

general g%idelines.

$ i & i ' ( 2


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$e"ie% &earning 'utco!e (.2)cont.*

2 single(%se plan is a one(time plan designed

to meet the needs of a %ni*%e sit%ation.

!tanding plans are ongoing plans that provide

g%idance for activities performed repeatedl".


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$e"ie% &earning 'utco!e (.+

9ompare and contrast approaches to goal(

setting and planning.

In traditional goal(setting, goals are set at the

top of the organization and then becomes%bgoals for each organizational area

$56 -management b" ob=ectives is a

process of setting m%t%all" agreed(%pon goals

and %sing those goals to eval%ate emplo"ee

performance.

$ i & i ' t ( +


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$e"ie% &earning 'utco!e (.+)cont.*

Well(written goals have si+ characteristics

1. Written in terms of o%tcomes

3. $eas%rable and *%antifiable

4. 9lear as to time frame

7. 9hallenging b%t attainable

8. Written down

>. 9omm%nicated to all organizational memberswho need to know them.

$ i & i ' t ( +


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oal(setting involves these steps' review

the organizations mission

/val%ate available reso%rces

#etermine the goals individ%all" or with inp%t

from others

Write down the goals and comm%nicate them

to all who need to know them &eview res%lts and change goals as needed

$ i & i ' t ( +


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)he two main approaches to planning

incl%de

)he traditional approach, which has plans

developed b" top managers that flow downthro%gh other organizational levels and which

ma" %se a formal planning department.

)he other approach is to involve moreorganizational members in the planning

process


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$e"ie% &earning 'utco!e (.

#isc%ss contemporar" iss%es in planning.

#"namic environments %s%all" means

developing plans that are specific b%t fle+ible

9ontemporar" planning iss%e involves %singenvironmental scanning to help do a better

anal"sis of the e+ternal environment.

6ne form of environmental scanning,competitive intelligence, can be especiall"

helpf%l in finding o%t what competitors are

doing.


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