Principles Chapter 4

Principles Chapter 4 - CHAPTER 4 Planning and Strategic...

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CHAPTER 4 Planning and Strategic Management I. An Overview of Planning Fundamentals (P.132) a. Planning i. Good book definition: The conscious, systematic process of making decisions about goals and activities that will be pursued in the future. 1. Planning entails a. Future i. E.g. Making plans for Spring Break of last week? No. Plans for yesterday? No. The focus is on the future i.e. investments. b. Goals: Targets or ends that management desires to reach. Where the organization wants to go. The future state we want to achieve. i. Effectiveness: Doing the right things means the goals you have set are appropriate. c. Activities: Blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals. i. Efficiency: The right activites will lead to efficiency. b. Importance of formal planning i. Blake and Mouton: Planning is the second leading cause of managerial problems 1. They found this out because they conducted a survey to find problems in management a. The first cause of managerial problems is communication. b. The second leading cause of managerial problems is poor planning. ii. Formal Planning creates a higher profit. The most important aspect of planning are: 1. Formal planning makes the organization effective and efficient. 2. Poor planning is the second leading cause of managerial problems. 3. The more formal the planning, the higher the profitability. II. Specific Formal Planning Steps
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a. Situational Analysis. b. Alternative goals and plans c. Goal and plan evaluation d. Goal and plan selection e. Implementation f. Monitor and Control III. The Basic Planning Process a. Step 2: Alternative goals and plans (P.133) i. Important characteristics of goals. 1. S pecific – Precisely describe particular behaviors/outcomes. . a. Do you r best is NOT an effective way to state a goal. You should be able to describe outcome or what you want in quantitative terms. Instead of saying “I want to lose weight”, say, “I want to lose 20 pounds.” 2. M easureable – Desired results are quantifiable. The goals cannot be too easy or too difficult. 3. A ttainable – Challenging, but realistic. a. Stretch Objectives: Goals that you need to put in 100% in order to attain. The most effective coaches are the ones who know how to set goals. 4. R elevant – Contributes to organizational goals . 5. T ime-bound – Defined time period. a. Instead of saying “I want you to raise sales by 5%” say, “I want you to raise sales by 5% in two months”. 6. THESE WILL ALL HAVE AN EFFECT ON MOTIVATION ii. Plans: The actions or means managers intend to use to achieve organizational goals (P.134) 1. Single-use plans: Designed to achieve a set of goals that are not likely to be repeated in the future. Used for one time or one occasion. a.
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Principles Chapter 4 - CHAPTER 4 Planning and Strategic...

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