Planning_Notes - Page 1 of 8 MGT 3200 PLANNING Planning...

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Page 1 of 8 MGT 3200 PLANNING Planning focuses on the future. Management’s responsibility is to prepare the organization for unseen days ahead. Planning specifies what is to be accomplished in the future and how it’s to be accomplished. More precisely, the planning function of the management process includes those managerial activities, which determine objectives and the appropriate means for achieving those objectives. Planning is basically applied-problem solving. It is mental work. It is basically a combination of goal setting and action planning. Planning involves determining where you are now, determining where you would like to be in the future, and determining what should be done to reduce the gap between the two. Therefore, planning is gap-oriented. The gap can be of two types: a problem gap or an opportunity gap. NOTE: Planning as an activity is performed best in a quiet location where a manger can think can reflect with a minimum of interruptions for a couple of hours. I. THE THREE PURPOSES OF PLANNING. Its fundamental purpose is to establish and help achieve organizational objectives. Second, there is the protective or defensive purpose, which is to offset future uncertainties by reducing the risk surrounding organization’s operations. The third purpose of planning is affirmative or offensive which entails seeking out and taking advantage of opportunities to increase organizational success. II. IMPORTANCE OF PLANNING. A. ORGANIZATIONAL SUCCESS. Planning helps organizations succeed. Studies have shown that organizations that emphasize planning tend to have higher profits and sales than organizations that do not. B. SENSE OF UNITY AND DIRECTION. Planning provides a sense of unity and direction. This shared purpose helps managers to make decisions for the future within a broader framework. It also enables them to coordinate and unify their action-achieves coordinated effort. C. COPING WITH CHANGE. Planning helps managers anticipate and prepare for possible future changes. Managers who plan have more control than managers who do not plan. Thus, planning puts the manager in a position to affect her future rather than simply accepting it.
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Page 2 of 8 D. PERFORMANCE STANDARDS. Planning helps develop performance standards. Plans define expected behaviors, and in management terms, expected behaviors are performance standards. As plans are implemented throughout an organization, the objectives and courses of action assigned to each individual and groups are the basis for standards. These standards can be used to assess actual performance. In some instances, the objectives provide the standards. The performance of the manager can be assessed in terms of how close that manager’s unit comes to accomplishing its objectives. Through planning, management derives a rational, objective basis for performance standards. Without planning, performance standards are likely to be non-rational and subjective. E. MANAGERIAL DEVELOPMENT.
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This note was uploaded on 11/10/2011 for the course MGMT 3200 taught by Professor Sauley during the Fall '10 term at LSU.

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Planning_Notes - Page 1 of 8 MGT 3200 PLANNING Planning...

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