8. Planning work activities Flashcards
Planning
defining the organization’s goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities.
Formal planning
- Specific goals covering a specific time period
- Written and shared with organizational members
Four reasons for planning
- Provides direction
- Reduces uncertainty
- Minimizes waste and redundancy
- Sets the standards for controlling
Formal planning is associated with
- Positive financial results – higher profits, higher return on assets, and so forth.
- The quality of planning and implementation affects performance more than the extent of planning.
- The external environment can reduce the impact of planning on performance.
- The planning-performance relationship seems to be influenced by the planning time frame.
Goals (objectives)
desired outcomes or targets.
Plans
documents that outline how goals are going to be met
Financial Goals
related to the expected internal financial performance of the organization.
Strategic Goals
related to the performance of the firm relative to factors in its external environment (e.g., competitors).
Stated Goals
official statements of what an organization says, and what it wants its various stakeholders to believe its goals are.
Real goals
goals that an organization actually pursues, as defined by the actions of its members.
Strategic plans
plans that apply to the entire organization and establish the organization’s overall goals.
Operational plans
plans that encompass a particular operational area of the organization.
Long-term plans
plans with a time frame beyond three years.
Short-term plans
plans covering one year or less.
Specific plans
plans that are clearly defined and leave no room for interpretation.
Directional plans
plans that are flexible and set out general guidelines.
Single-use plan
a one-time plan specifically designed to meet the needs of a unique situation.
Standing plans
ongoing plans that provide guidance for activities performed repeatedly.
Traditional goal-setting
an approach to setting goals in which top managers set goals that then flow down through the organization and become subgoals for each organizational area.
Means-ends chain
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 next level.
Management by objectives (MBO)
a process of setting mutually agreed upon goals and using those goals to evaluate employee performance.
Steps in Goal-Setting
- Review the organization’s mission, or purpose.
- Evaluate available resources.
- Determine the goals individually or with input from others.
- Write down the goals and communicate them to all who need to know.
- Review results and whether goals are being met.
Well-Written Goals
- Written in terms of outcomes rather than actions
- Measurable and quantifiable
- Clear as to a time frame
- Challenging yet attainable
- Written down
- Communicated to all necessary organizational members
Commitment Concept
Current plans affecting future commitments must be sufficiently long-term in order to meet those commitments.
Planning in Environmental Uncertainty
- When uncertainty is high, plans should be specific, but flexible.
- Managers must be prepared to change or amend plans as they’re implemented.
- At times, they may even have to abandon the plans.
Formal planning department
a group of planning specialists whose sole responsibility is helping to write organizational plans.
How Can Managers Plan Effectively in Dynamic Environments?
- In an uncertain environment, managers should develop plans that are specific, but flexible.
- Managers need to recognize that planning is an ongoing process.
Environmental scanning
screening information to detect emerging trends.
Competitor intelligence
gathering information about competitors that allows managers to anticipate competitors’ actions rather than merely reacting to them.
