Ch6Planning

1、Chapter 6 FOUNDATIONSOF PLANNINGWhatWhoWhereWhen How Learning Objectives: Explain why managers plan Define planning and distinguish among the different types of plans How do managers plan Contemporary issues in planning1 What Is Planning?Planning involves defining the organizations goals, establishi

2、ng an overall strategy, and developing a comprehensive set of plans to integrate and coordinate organizational work informal planning - nothing is written down little or no sharing of goals general and lacking in continuity formal planning written and made available to organization members 2. Why Do

3、 Managers Plan?Planning determines where the organization is now and where it will be in the future. Good planning provides: Sense of direction & purpose: Planning sets goals and strategies for all managers. Would you tell me, please, which way I ought to go from here? That depends a good deal o

4、n where you want to get to, said the Cat. I dont much care where- said Alice. Then it doesnt matter which way you go, said the Cat. Coordination: Plans provide all parts of the firm with understanding about how their systems fit with the whole. Reduce overlapping and wasteful activitiesReduce uncert

5、aintycontrolPlanning and Performance generally speaking, formal planning is associated with: higher profits higher return on assets quality of the planning process and the appropriate implementation of the plans probably contribute more to high performance than does the extent of planning external e

6、nvironment may undermine the effects of formal planning planning/performance relationship is influenced by the planning time frame鲁滨逊的梯子鲁滨逊的梯子 鲁滨逊孤身生活在荒岛上，终日为生存而奋斗。唯一的食物来源就是岛上的一片果树林。他必须从这棵树爬到那棵树，来来回回地折腾8小时，才能收集到足够当天吃的食物。 这样劳累了一段时期，鲁滨逊发现如果做一根采摘棒，能省很多力气每天只要6个小时就够了。做一个采摘棒需要8个小时，那就意味着更多的工作，不过，做好之后每天都可以多

7、休息2小时，还是很划算的。 这样又过了一段时间，他发现用棒子还是比较累，如果有个梯子，每天只要工作4个小时。不过做梯子需要花上24小时。 经过一番苦干，梯子终于做好了，鲁滨逊心想，以后每天只需要干4个小时的活，这下可轻松了。 不幸的是，梯子刚做好，那些果树忽然都得了病，纷纷死去了。可怜的鲁滨逊，他只好采草莓、挖地下的植物的块茎充饥。而那把梯子，对他来说已经毫无价值了。3 How Do Managers Plan?Goals goals - desired outcomes provide direction for all management decisions represent the

8、criteria against which actual workaccomplishments can be measured plans - outline how goals are going to be met Types of Goals multiple objectives no single measure can evaluate whether anorganization is successful financial goals - relate to financial performance strategic goals - relate to other a

9、reas of performanceStated Objectives From Large US CompaniesFinancial Objectives Strategic ObjectivesFaster revenue growth A bigger market shareFaster earnings growth A higher,more secure industry rankHigher dividends Higher product qualityWider profit margins Lower costs relative to key competitors

10、Higher returns on invested Broader or more attractive product capital lineStronger bond and credit A stronger reputation with ratings customers Bigger cash flows Superior customer serviceA rising stock price Recognition as a leader in technology and/or productRecognition as a “blue chip” Increased a

11、bility to compete in company international marketsStable earnings during Expanded growth opportunities recessionary periods How Do Managers Plan? stated goals - official statements of theorganizations goals real goals - those goals that an organization actually pursues Characteristics of Well-Design

12、ed Goals written in terms of outcomes measurable and quantifiable clear as to a time frame challenging but attainable written down communicated to all organization members who need to know the goals Approaches to establish goals Traditional approaches MBO specific goal participation explicit time pe

13、riod performance feedbackMissionGoalObjectiveActions/ tasksControlRewardsHow Do Managers Plan? Plans Types Of PlansBreadth Time Frame Specificity Frequency of UseStrategic Long term Directional Single useOperational Short term Specific Standing strategic plans - apply to the entire organization esta

14、blish organizations overall goals seek to position the organization in terms of its environment operational plans - specify the details of how the overall goals are to be achieved tend to cover short time periodsHow Do Managers Plan? long-term plans - time frame beyond three years definition of long

15、 term has changed withincreasingly uncertain organizational environments short-term plans - cover one year or less specific plans - clearly defined with little room for interpretation directional plans - flexible plans that set out general guidelines provide focus without limiting courses of actionH

16、ow Do Managers Plan? Single-use plans: one-time plans specifically designed to meet the needs of a unique situation nonprogrammed issueStanding plans: for programmed decisions. policies, rules, and standard operating procedures (SOP). 4. Contingency Factors in PlanningLevel in the Organizationoperat

17、ional planning dominates managers planning efforts at lower levelsstrategic planning more characteristic ofplanning at higher levelsDegree of Environmental Uncertainty when uncertainty is high, plans should be flexible Length of Future Commitments commitment concept - plans should extend farenough t

18、o meet those commitments made when theplans were developed the more that current plans affect futurecommitments, the longer the time frame forwhich managers should plan5. Contemporary issues in planningCriticisms of Planning 1. Planning may create rigidity unwise to force a course of action when theenvironment is fluid 2. Plans cant be developed for a dynamic environment flexibility required in a dynamic environment cant be tied to a formal plan 3. Formal plans cant replace intuition and creativity mechanical analys