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managment notes part duex

managment notes part duex - CHAPTER 7 Foundations of...

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CHAPTER 7: Foundations of Planning I. What is Planning i. Planning involves defining the organization’s goals, establishing an overall strategy for achieving those goals, and developing plans for organizational work activities 1. Concerned with “what’s to be done” and “how its to be done” ii. Formal planning is writing down goals iii. Informal planning is not writing anything down II. Why do managers plan a. Purposes of planning i. Planning provides direction to managers and non-managers ii. Planning reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact of change, consider the impact of change, and develop appropriate responses iii. Planning minimizes waste and redundancy iv. Planning establishes the goals or standards used in controlling b. Planning and performance i. Formal planning is associated with positive financial results such as higher profits, higher return on assets, and so forth ii. Doing a good job of planning and implementing those plans play a bigger part in high performance than does the extent and amount of planning done iii. Studies where formal planning didn’t lead to higher performance, the external environment often was the culprit iv. The planning/performance relationship seems to b influenced by the planning time frame III. How do manager plan i. Planning is often called the primary management function because it establishes the basis for all the other things that managers do b. The role of goals and plans in planning i. Planning involves two important elements: goals and plans ii. Goals are desired outcomes for individuals, groups, or entire organizations 1. aka: objectives 2. foundation of planning iii. plans are documents that outline how goals are going to be met iv. Types of goals 1. Many company’s goals can be classified as either strategic or financial 2. financial goals are related to the financial performance of the organization while strategic goals are related to other areas of an organization’s performance
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3. stated goals are official statements of what an organization says, and what it wants it various stakeholders to believe, its goals are 4. real goals are goals that an organization actually pursues, as defined by the actions of its members 5. framing is a way to use language to manage meaning v. Types of plans 1. the most popular ways to describe organizational plans are by their breadth (strategic versus operational), time frame (short term versus long term), specificity (directional versus specific), and frequency of use (single-use versus standing) 2. strategic plans are plans that apply to the entire organization, establish the organization’s overall goals, and seek to position the organization in terms of its environment a. strategic plans tend to cover a longer time frame and a broader view of the organization 3. plans that specify the details of how the overall goals are to be achieved are called operational plans 4. long-term plans are plans with a time frame beyond 3 years 5.
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