Chapter Five Planning The Foundation of Successful Management These slides are straight from William Textbook focus heavily on text How do I deal with uncertainty and how does planning help What are the mission and vision statements and the 3 types of planning and goals What is MBO and how can it be implemented How does planning control cycle help keep a manager s plans headed in the right direc tion Planning Uncertainty coping with uncertainty by formulating future courses of action to achieved specified re sults setting goals and deciding how to achieve them Planning Strategic Management establish the organization s mission and vision formulate the grand strategy formulate the strategic plans then the tactical and operational plans implement the strategic plans control the strategy Why Not Plan planning requires you to set aside time to do it You may have to make some decisions without a lot of time to plan How Planning Helps You Helps you check on your progress Helps you coordinate activities Helps you think ahead Helps you cope with uncertainty Four Basic Strategy Types defenders experts at producing and selling narrowly defined products prospectors focus on developing new products and in seeking out new markets rather than watching for things to happen analyzers let other organizations take the risks of product development and marketing and then imitate which seems to work best reactors make adjustments only when finally forced to by environmental pressures Question Fredhadbag Photography scans it environment regularly However it does not tend to seek opportunities outside its present markets This company would most likely be a n A Reactor B Prospector C Analyzer D Defender The Adaptive Cycle businesses are continuous cycling through decisions about three kinds of business prob lems 1 entrepreneurial 2 engineering and 3 administrative Making Plans Mission Statement what is our reason for being expresses the purposes of the organization detailed on how I m going to get there short and understandable like to evoke emotion Vision Statement what do you want to be become long term goal describing what an organization wants to become clear sense of the future and the actions needed to get there Strategic planning Done by top managers for the next 1 5 years goals action plans determine what the organization s long term goals should be for the next 1 5 years with the resources that expect to have available tactical planning done by middle managers for the next 6 24 months goals action plans determine what contributions their departments or similar work units can make during the next 6 24 months Operational planning done by first line managers for the next 1 52 weeks goals action plans determine how to accomplish specific tasks with available resources within the next 1 52 weeks Danny is participating with other managers in a discussion about what his organization s goals should be for the next decade He is participating in a strategic planning b operational planning c tactical planning d controlling Goals Smart Goals Action Plans Operating Plans everyone company will have set of goals goals specific commitment to achieve a measurable result within a stated period of time also known as an objective strategic tactical operational strategic goals set by and for top management and focus on objectives for the organization as a whole tactical goals set by and for middle managers and focus on the actions needed to achieve strategic goals operational goals set by and for first line managers and are concerned with short term matters associated with realizing tactical goals SMART Goals specific measurable attainable results oriented target dates Goals Smart Goals Action Plans Operating Plans action plan defines the course of action needed to achieve the stated goal operation plan designed for a 1 year period defines how you conduct your business based on the action plan identifies clear target such as revenue cash flow and market share Standing Plans Policies Procedures Rules policy outlines the general response to a designated problem or situation procedure outlines the response to a particular problem or circumstances rule designates specific required action Single use plans plans developed for activities that are not likely to be repeated in the future use once and probably won t need them anymore program encompasses a range of projects or activities project plan of less scope and complexity than a program What is MBO jointly set objectives develop action plan periodically review performance promotes staying on track give performance appraisal and rewards if any Three Types of Objectives Used in MBO Table 5 2 pg 152 improvement objectives purpose express performance to be accomplished in a specific way for a specific area example increase sport utility sales by 10 Reduce food spoilage by 15 personal development objectives purpose express personal goals to be realized examples attend 5 days of leadership training Learn basics of Microsoft Office software by June 1 maintenance objectives purpose express the intention to maintain performance at previously established levels examples continue to meet the increased sales goals and specified last quarter produce another 60 000 cases of wine this month Cascading Objectives MBO from the Top Down top management must be committed it must be applied organization wide objectives must cascade Melissa wants her employee Ralph to turn in his monthly sales report by the 5th of every month This meets the requirement of SMART goals a specific b measurable c attainable d target dates The Planning Control make the plan carry out the plan control the direction by comparing results with the plan control the directions by taking corrective action in two ways correcting deviations improving future plans planning control cycle insert graph Apple has fired employees who have leaked news about unannounced products Which step of the Planning Control is this a make the plan b carry out the plan c take the corrective action d document the plan Which of the following is not one of the primary benefits of planning A Planning helps you cope with uncertainty B Planning helps you check your progress C Planning helps you coordinate activities D Planning helps you make decisions with complete information E Planning helps you think ahead According to Miles and Snow when a company facing uncertainty responds by saying Let s let others take the risks of innovating and we ll
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