MGMT 3000 1st Edition Lecture 6Outline of Last Lecture I. Supplier Component a. Buyer dependenceb. Supplier dependence II. Advocacy groups III. Environmental Scanning IV. Internal Environments a. Organizational cultures b. SelectionOutline of Current Lecture I. Planning II. Benefits and pitfalls of planning III. Generic planning process IV. Planning within an organization a. Top level b. Middle level c. Bottom level Current LecturePlanning is choosing on a goal and developing a method or strategy to achieve that goal Decision makingis the corner stone of planning and the catalyst that drives the planning processPlanning as a generic process Activity applicable to all organizations at multiple levels within an organization All organizations engage in planning but no two organizations plan in the same fashion Environment gives planning its context All planning occurs within an environmental context If managers do not understand it then they can’t develop effective plans Benefits of planning: Persistence and direction These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Employees are more persistent when they go through planning It also leads to intensified efforts and creation of task strategies Also provides direction Planning has been proven to work for companies and individuals Pitfalls of planning:False sense of certainty: could provide a false sense of certainty if the plan in wrong Impedes change and adaptation: Ex. Microsoft was only concerned with windows Detachment of planners: planners can be detached from the ground levelGeneric Planning Process: 1. Set goals Effective goals are SMART: Specific Measurable Attainable Realistic Timely Long-term goals 2. Develop commitment to goalsGoal commitment is the determination to achieve a goal Be consistent Setting goals participative Make goals reasonable and public 3. Develop action plans How (specific steps), who (people), what (resources) and when (time period) 4. Track progress toward goal achievement Have shorter-term goals (proximal goals), which keep you motivated and gather and provide performance feedback Distal goals are long-term goals Enables workers to make adjustments in effort, direction and strategies 5. Maintain flexibility Options based planning: Keep options open by making simultaneous investments Slack resources: a cushion of extra resources that can be used with options based planning to adapt to unanticipated change Learning based planning: learning better ways of achieving goals by continually testing, changing and improving plans and strategies Planning within the organization Planning from top to bottom Top Level: Organizational vision and mission of company - Strategic plans make clear how the company will serve customers and position it self for the next 2-5 years - Purpose statement: company’s reason for existing - Have an understanding of the environment- Mission and vision outline organization’s purpose, premises, values and directions - Strategic Goals and Plans:General plan outlining vision - Responsible for Purpose statement and strategic objectiveMiddle level: Tactical plans to implement the strategic goals and plans- Set by and for the middle managers- Focus on how to operationalize actions- Tactical plans specify how a company will use resources, budgets and people to accomplish the strategic objective - Tactical plan is aimed at achieving tactical goals and is developed to implement specific parts of a strategic plan - Responsible for tactical plans and Management by objectives: management technique used to develop and carry out tactical plans - Management by objectives:1. Discuss the goals2. Select goals that are challenging, attainable and consistent3. Jointly develop actual plans that lead to accomplishment of the goals4. Meet regularly to review progress toward accomplishment of goalBottom level management: - Operational goals: set by and for lower level managers o Shaped by tactical plans and goals and short term - Operational plans: focused on carrying out tactical plans to achieve operational goals o Day to day plans for producing or delivering products and services - Single use plans: deal with unique one time only events - Standing plans: save managers time because once the plans are created they can be used repeatedly to handle frequently recurring events. - Policies: standing plan that indicates the general course of action that should be taken in response to a particular event - Procedures: a standing plan that indicates the specific steps that should be taken in response to a particular event - Rules and regulations: standing plans that describe how an action should be performed - Budgeting: quantitative planning through which managers decide how to allocate available money to best accomplish company