MIDTERM Flashcards
typically any diagram or list of steps with details of timing and
resources, used to achieve an objective to do something.
Plan
It is commonly
understood as a temporal set of intended actions through which one
expects to achieve a goal.
PLAN
is a specific result to be achieved, the end result of a plan, critically
appraising the present position of an organization, setting objectives.
GOALS
is a specific result toward which effort is directed, and
determining the course of action to follow and achieve objectives set are
themselves positive forces toward good management.
OBJECTIVES
definitely significant as it directs us where to go, it furnishes
direction and decreases the danger of risk by making predictions.
PLANNING
WHAT ARE THE 6 IMPORTANCES OF PLANNING?
- Planning provides directions.
- Planning decreases the chances of risk.
- Planning decreases overlapping and wasteful activities.
- Planning encourages innovative ideas.
- Planning aids decision making.
- Planning sets standards for controlling.
By stating in advance how work is to be done, planning provides
direction for action.
PLANNING PROVIDES DIRECTIONS
Planning guarantees that goals and aim are distinctly defined so that
they operate as a pattern for determining what direction should be
taken.
PLANNING PROVIDES DIRECTIONS
Planning makes the goals and objectives clear in the minds of all
individuals working in different capacities.
Ø Lack of planning brings chaos and lack of coordination.
PLANNING PROVIDES DIRECTIONS
Planning is done for the future and the future is full of
uncertainties.
PLANNING DECREASES THE CHANCES OF RISK
Planning enables a manager to look forward and take
appropriate steps to deal with future uncertainties and
changes.
PLANNING DECREASES THE CHANCES OF RISK
Mis-happenings and uncertain events cannot be eliminated
completely but their effect on the organization can be
minimized if we plan how to overcome such situations.
PLANNING DECREASES THE CHANCES OF RISK
Through planning, the efforts of various individuals and
departments are coordinated properly to eliminate
overlapping & wasteful activities.
PLANNING DECREASES OVERLAPPING AND WASTEFUL ACTIVITIES
It ensures clarity in thoughts and actions, work is carried on
smoothly without any confusion and misunderstanding.
PLANNING DECREASES OVERLAPPING AND WASTEFUL ACTIVITIES
Useless and wasteful activities are reduced or eliminated.
Ø It is easier to detect inefficiencies and take corrective
measures to deal with them.
PLANNING DECREASES OVERLAPPING AND WASTEFUL ACTIVITIES
New ideas can take the shape of concrete plans and innovation.
Ø Innovation is required to modify the plans for the growth
and expansion of the business.
PLANNING ENCOURAGES INNOVATIVE IDEAS
Through planning, managers compare different alternatives
with their benefits and limitations.
Ø Planning helps make rational decisions by choosing the best
most profitable alternative which may bring lower cost,
adaptable to the organisation and situations.
PLANNING AIDS DECISION MAKING
Planning provides standards against which actual performance is
measured. Without standards, the actual performance of each
individual, department, and division cannot be measured.
PLANNING SETS STANDARDS FOR CONTROLLING
WHAT ARE THE 7 PLANNING PROCESS?
- Identification of Opportunities and Threats.
- Evaluation of Present Situation.
- Setting Goals and Objectives.
- Determining Planning Premises.
- Evaluating Alternatives.
- Programming.
- Budget Preparation.
This activity involves collecting and analyzing relevant
external information which define opportunities or
threats to the firms business. The analysis of threats to
the survival of a firm is as important as the evaluation
of opportunities.
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Having assessed the opportunities available to the firm as well
as the threats that challenge its existing business, the next step
is to evaluate the company’s present situation in order to
determine the gap between the desired level of performance
and its present levels of performance.
For example, this gap could be the difference between the
present momentum revenue level using current level of
resources and the potential revenue level with the expansion of
facilities.
EVALUATION OF PRESENT SITUATION
The formulation of company objectives may be done in
different ways. Some firms formulate objectives in three
stages.
The first stage is the statement of purpose or the reason for
being for the organization.
The second stage is the statement of scope activities it will
undertake to achieve the purpose.
And lastly, the statement of objectives, clarifies the level of
performance to be achieved in these activities.
SETTINGS GOALS AND OBJECTIVES
Planning premise are assumptions about the future,
which form an important basis for the strategic choices
as well as the detailed plans of a firm. The premises which underlie business planning usually
concern external and internal variables which are
expected to have a major impact on the firms future
performance.
DETERMINING PLANNING PREMISES
The identification of opportunities and threats in the first
stage of planning process assesses the external factors, while
the evaluation of present situation considers internal factors.
The consideration of both external and internal factors
relates the firms internal capabilities and resources.
EVALUATING ALTERNATIVES
