Chapter 8 Foundations Of Planning Flashcards
Why do managers plan
- Provides direction to managers
- Reduces uncertainty by forcing managers to look ahead
- Minimize waste and redundancy
- Establishes the goal or strategies using in controlling
Planning
Integrate and coordinate work activities
Planning
- Defined organization’s goals
- Establish overall strategies for achieving those goals
- Developed plans for organizational work activities
Classification of plans
- Formal plans : certain rules, certain structured
2. Informal plans: don’t follow a guideline
Planning is called the primary management fuction because..
It establishes the basis for all the other things managers do as they organize, lead and control; it involves goals and plans
Relationships between planning and performance
- Formal planning is associated with positive financial results
- Formal planning increases high performance because it decrease redundancy
- Planning performance is influenced by the time frame (4 years)
Types of plans
Breath:
- strategic: apply to the entire organization and stablish overll goals
- operational: encompass a particular area of the organization.
Time frame:
- long term: more than 3 years
- short term: less than 2 years
Specificity:
- specific: clearly defined and leave no room for interpretation
- directional plan: when uncertainty is high, flexible plans that set out general guidelines
Frequency of use:
- single use: one time plan specifically designed to meet the needs of a unique situation
- standing: ongoing plans that provide guidance for activities performed repeteadly
Types of plans
- Strategic plan - long term- directional- standing
2. Operational plan- short term- specific- single use
Similarities between MBO and TGS
- Tools for planning communication
- Stablish goals
- Results from the bottom to the top
- Control
Traditional goal setting
- Review the organization mision
- Evaluate available resources
- Determine goals
- Write down and comunicate goals
- Review results
“ goals set by top managers flown down through the organization and become sub goals for each organizational area “
Contingency factors
- Level of the organization
- Degree of environmental uncertainty
- Lenght of future commitments
- Stage in the life cycle of the organization
MBO - management by objectives
Setting mutually agreed-upon goals and using those goals to evaluate employee performance
” first negociation, then execution”
Steps in MBO
- Objectives and strategies are formulated
- Objectives are located by divisional and department units
- Collaborately set specific objectives for units
- Actions plans (defining how objectives are to be achieved)
- Specific objectives with all departments members
- The action plan are implemented
- Process is periodically reviewed
- Objectives by performance rewards
Stages in the life cycle
- Formation: long term, strategic, standing, directional
- Growth: short term, single use, specific, operational
- Maturity: long term, oprational, specific, single use
- Decline: strategic, short term, directional, standing
Environmental scanning
Screening information to detect emerging trends
