chapter 7 Flashcards
planning definition
The process of determining how an organization can get where it wants to go and what it will do to accomplish its objectives
purpose of planning
-Minimize risk by reducing uncertainties
-Increase degree of organizational success
-Establish a coordinated effort within the organization
-Facilitate the accomplishment of the organization and its objectives
advantages of planning
– Helps managers to become future-oriented
– Enhances decision coordination
– Emphasizes organizational objectives
– Helps ensure sustainability of the firm
– Helps managers to identify and deal with problems that arise as the firm conducts its business
disadvantages of planning
– Managerial time involvement
– Rigidity and lack of adaptability
– Balance of time spent on organizing, influencing, and controlling
primacy of planning
– Planning is the primary management function
– Planning serves as the basis for the other management functions
types of plans
standing and single-use
standing plan
Exist for routine guidelines and actions that occur repeatedly (policies, procedures, rules)
single use plan
Exist for single purpose only (budgets, programs)
planning process
state organizational objectives, List Alternative Ways of Reaching Objectives, Develop Premises on Which to Base Each Alternative, Choose the Best Alternative for Reaching Objectives, Develop Plans to Pursue the Chosen Alternative, Put the Plans into Action
org objectives includes and involves
• The target toward which the organization’s open management system is directed
druckers 8 areas to set objectives
Market Standing, Innovation, Productivity, Physical & Financial Resources, Profitability, Managerial Performance & Development, Worker Performance & Attitudes, Public Responsibility
Market standing
Management should set objectives indicating where it would like the company to be in relation to its competitors.
Innovation
Management should set objectives outlining its commitment to the development of new methods of operation
Productivity
Management should set objectives outlining the target levels of production
Physical and financial resources
Management should set objectives regarding the use, acquisition, and maintenance of capital and monetary resources
Profitability
Management should set objectives that specify the profit the company would like to generate
Managerial performance and development
Management should set objectives that specify rates and levels of managerial productivity and growth
Worker performance and attitudes
Management should set objectives that specify rates of worker productivity as well as desirable attitudes for workers to possess
Public responsibility
Management should set objectives that indicate the company’s responsibilities to its customers and society and the extent to which the company intends to live up to those responsibilities
types of objectives
short term, intermediate, long- term
short term objective
one year or less
intermediate term objectives
one to five years