Chapter 2: Planning and Goal Setting Flashcards
What is the purpose of planning?
- Provides direction
- Reduce uncertainty
- Minimises wastes & redundancy
- Establishes goals/standards used in controlling function
What is Provides direction?
Goals serve as compass which provides a direction for employees to focus their energy, time and resources to work towards the goal.
What is Reduces uncertainty?
Managers anticipate possible scenarios and changes; develop responses or change plans to meet the needs of the situation, helps reduce uncertainty.
What is Minimises wastes and redundancy?
Less duplication and overlap of work, resources are better utilised.
What is “Establishes goals/standards used in control function”?
Goals set in planning function are used as benchmark during the control function.
Goals: Basis/benchmark
What are the type of plans available?
- Breadth
- Strategic
- Operational
(Broad/Narrow) - Time frame
- Long term
- Medium/Short term
(Duration) - Specificity
- Directional
- Specific
(Detailed) - Frequency of Use
- Single Use
- Standing
What is Strategic Plan?
- Establishes overall goal
- Positions organisation
- Tend to be long term, directional and single use
What is Operational Plan?
- Specify details to achieve overall goal
- Comprises a series of
inter-related specific plans - Tend to be short term, specific, standing/single use
What is Long Term Plan?
Plans with time frame beyond three years.
What is Medium Term Plan?
Plans with time frame between one and three years.
What is Short Term Plan?
Plans with time frame less than one year.
What is Directional Plan?
- Plan that is flexible
- Sets out general guidelines
What is Specific Plan?
Plan that is clearly defined.
What is Single Use Plan?
One-time plan specifically designed to meet the needs of a unique situation.
What is Standing Plan?
Ongoing plan that provides guidance for activities performed repeatedly.
