Management-Ch4-Planning _ Plans Plain.pptx.pdf

Management skillso. Level managers

1. Planning & Plans in
Workplace
4

2. Learning Objectives
1.Define the nature and purposes of planning.
2.Classify the types of goals organizations might
have and the plans they use.
3.Compare and contrast approaches to goal-setting
and planning.
Know how to set goals personally and create a useful,
functonal to-do list.
Develop your skill at helping your employees set
goals.
1.Discuss contemporary issues in planning.

3. What Is Planning?
•Planning – defining the organization’s
goals, establishing strategies for
achieving those goals, and developing
plans to integrate and coordinate work
activities.
•Formal planning
–Specifc goals covering a specifc tme period
–Writen and shared with organizatonal members

4. Why Do Managers Plan?
•Four reasons for planning
–Provides directon
–Reduces uncertainty
–Minimizes waste and redundancy
–Sets the standards for controlling

5. Planning and Performance
•Formal planning is associated with:
•Positive financial results – higher profits, higher return
on assets, and so forth.
•The quality of planning and implementation affects
performance more than the extent of planning.
•The external environment can reduce the impact of
planning on performance.
•The planning-performance relationship seems to be
influenced by the planning time frame.

6. What Are Some Criticisms of Formal
Planning?
•Critcs have challenged some of the basic assumptons of
planning
1.Planning may create rigidity
2.Formal plans can’t replace intuiton and creatvity
3.Planning focuses managers’ atenton on today’s
competton, not on tomorrow’s survival
4.Formal planning reinforces success, which may lead to
failure

7. Goals and Plans
•Goals
(objectives) – desired
outcomes or targets.
•Plans – documents that outline
how goals are going to be met.

8. Types of Goals
•Financial Goals – related to the expected
internal financial performance of the
organization.
•Strategic Goals – related to the performance
of the firm relative to factors in its external
environment (e.g., competitors).

9. Types of Goals (cont.)
•Stated Goals – official statements of what an
organizaton says, and what it wants its various
stakeholders to believe its goals are.
•Real goals – goals that an organizaton actually
pursues, as defned by the actons of its members.

10. Types of Plans
•Strategic plans – plans that apply to the
entre organizaton and establish the
organizaton’s overall goals.
•Operatonal plans – plans that encompass a
partcular operatonal area of the
organizaton.

11. Types of Plans (cont.)
•Long-term plans – plans with a tme frame
beyond three years.
•Short-term plans – plans covering one year or less.
•Specifc plans – plans that are clearly defned and
leave no room for interpretaton.
•Directonal plans – plans that are fexible and set
out general guidelines.

12. Types of Plans (cont.)
•Single-use plan – a one-tme plan
specifcally designed to meet the needs of a
unique situaton.
•Standing plans – ongoing plans that provide
guidance for actvites performed repeatedly.

13. Types of Plans

14. Approaches to Setting Goals
•Traditional goal-setng – an approach to setng
goals in which top managers set goals that then
fow down through the organizaton and become
sub-goals for each organizatonal area.
•Means-ends chain – an integrated network of goals
in which the accomplishment of goals at one level
serves as the means for achieving the goals, or
ends, at the next level.

15. Approaches to Setting Goals
(cont.)
•Management by objectves (MBO) – a process of
setng mutually agreed upon goals and using
those goals to evaluate employee performance.
•MBO programs have four elements: goal
specifcity, partcipatve decision-making, an
explicit tme period, and performance feedback

16. Steps in MBO

17. Steps in Goal-Setting
1.Review the organization’s mission, or
purpose.
2.Evaluate available resources.
3.Determine the goals individually or with input
from others.
4.Write down the goals and communicate them
to all who need to know.
5.Review results and whether goals are being
met.

18. Well-Written Goals-SMART

19. True or False
1-Informal plans are not recognized to be an efectve form of planning.
2-The four reasons that organizatons plan is to provide directon, set standards,
reduce waste, and reduce uncertainty and the impact of change.
3-A major argument against formal plans is that they can't replace intuiton and
creatvity.
4-Traditonal goal setng requires top managers to set goals that are carried out
by the organizatonal levels.

20. True or False
5-The key to MBO, or management by objectves, is that managers and subordinates
mutually agree on goals.
6-Long-term plans used to refer to plans that covered a period of over three years, but
now it refers to any tme period over one year.
7-Directonal plans leave no room for interpretaton.
8-In general, upper-level managers focus on tactcal or operatonal planning.

21. Choose The best Answer
•1) ________ involves defning the organizaton's goals,
establishing strategies for achieving those goals, and developing
plans to integrate and coordinate work actvites.
•
•A) Logistcs
•B) Operatons
•C) Planning
•D) Executon

22. Choose The best Answer
•2) ________ plans are plans that are clearly defned and leave no
room for interpretaton.
•A) Stated
•B) Long-term
•C) Specifc
•D) Directonal

23. Choose The best Answer
•3) The efect of planning on managers is that it forces them to
________.
•A) eliminate uncertainty
•B) antcipate and respond to change
•C) work at cross purposes
•D) grow resistant to change

24. Choose The best Answer
•4) Which of the following factors has contributed to the decline
in the number of years used to defne short-term and long-term
plans?
•
•A) stagnant business conditons
•B) fatened organizatonal structures
•C) proft-orientaton of businesses
•D) environmental uncertainty

25. Choose The best Answer
•5) Operatonal plans are usually ________.
•A) short term, specifc, and standing
•B) short term, directonal, and standing
•C) long term, directonal, and single use
•D) long term, specifc, and standing
•

26. Choose The best Answer
•6) When formal planning fails to lead to higher performance,
which of the following is most likely to be the reason for the
failure?
•
•A) A partcipatve style of planning was used.
•B) The company emphasized the control functon over other
functons.
•C) Constraints of the external environment.
•D) Managers were allowed too much autonomy.

27. Choose The best Answer
•7) Which of the following is the last step in MBO?
•A) Successful achievement of objectves is reinforced by
performance-based rewards.
•B) Acton plans are implemented.
•C) The organizaton's overall objectves and strategies are
formulated.
•D) Progress toward objectves is periodically reviewed, and
feedback is provided.

28. Choose The best Answer
•8) Goals are diferent from plans because ________.
•A) goals describe fnancial objectves, and plans describe
objectves related to social responsibility
•B) goals are desired outcomes, and plans describe how those
outcomes will be accomplished
•C) goals identfy specifc steps that the organizaton needs to
achieve, and plans identfy the overall mission of the organizaton
•D) goals are important only for small companies, and plans are
important only for large companies

29. Choose The best Answer
•9) Plans that encompass only the producton or the sales goals of
a company are termed ________ plans.
•
•A) operatonal
•B) informal
•C) strategic
•D) fnancial

30. Choose The best Answer
•10) An organizaton's ________ goals are official statements of
what an organizaton says, and what it wants its stakeholders to
believe, its goals are.
•A) authentc
•B) stated
•C) implicit
•D) seal

31. Choose The best Answer
•11) Strategic plans are usually ________.
•A) long term, directonal, and single use
•B) short term, directonal, and standing
•C) long term, specifc, and standing
•D) short term, specifc, and standing

32. Choose The best Answer
•12) Which of the following is an assumpton associated with
traditonal goal setng?
•A) Employees will be more motvated to try to atain goals that
they helped set.
•B) Organizatonal goals must not be broken down into individual
goals.
•C) Organizatonal goals must not be communicated to lower level
employees.
•D) Top managers know what is best because they see the "big
picture."

33. Choose The best Answer
•13) ________ is a process of setng mutually-agreed upon goals
and using those goals to evaluate employee performance.
•
•A) Traditonal goal setng
•B) Management by observaton
•C) Management by objectves
•D) Management by excepton

34. Choose The best Answer
•14) A standing plan is ________.
•A) a fexible plan that sets out general guidelines for company
strategy
•B) an ongoing plan that provides guidance for actvites
performed repeatedly
•C) a one-tme plan specifcally designed to meet the needs of a
unique situaton
•D) a plan that stands in place of a preferred plan in case of the
failure of the later

35. Choose The best Answer
•15) ________ refers to gathering informaton about compettors
that allows managers to antcipate compettors' actons rather
than merely react to them.
•
•A) Data aggregaton
•B) Due diligence
•C) Value analysis
•D) Compettor intelligence

36. THE PAPER CLIP FACTORY: Exercise

37. The Exercise
•The scenario takes place at a meetng of the management team of a
frm which produces metal paper clips. The president of the frm
speaks:
•“Members of the management team. I am very sad to announce our
company is in big trouble. As you are well aware, the frm has not
been proftable for the last 18 months and we can’t go on like this
much longer. We need to come up with some ideas to increase our
sales of paper clips - and fast! I would like each of you to think
about new uses of paper clips, new forms of paper clips, and
alternate products we could produce using the technology we
already have.”

38. Instructions (1)
•“For the next (4) minutes, write down your thoughts to two issues:
First, list the possible reasons paper clip sales are down all over the
industry.
Second, list as many new products that can be made from a paper clip,
including new ways of marketng our current product and new, modifed,
or alternate products, using our present, or closely related technology.
 The objective is to come up with as many ideas as
possible. Creative ideas matter
 GOOD LUCK

39. End of Chapter (4)
Thank You