PLANNING (Chapter 8)

 Goals (p. 253)

i) Identification
ii) Making it actionable
iii) Action plan
iv) Determining goal measuring criteria
v) Goal review
 Planning (p. 254)
i) Why Managers Plan? (p. 254)
1. provides direction
2. reduces uncertainty, helps anticipate change(s)
3. minimizes waste and redundancy
4. establishes the goals or standards used in controlling

Notes (p. 255)

Goals: Desired outcomes or targets (p. 255)

Plans: Documents that outline how goals are going to be me

 Types of Goals (p. 255)

i) Stated Goals- Official statements of an organization
ii) Real Goals- Goals that an organization actually Pursues
 Types of Plans (p. 256-258)
i) Breadth:
1. Strategic- Plans that apply to the entire organization and establish the organization’s
overall goals
2. Operational- Plans that encompass a particular operational area of the organization
ii) Time Frame:
1. Long term- Plans with a time frame beyond 3 years (3+ Years)
2. Short term - Plans covering one year or less (<=1 Year)
iii) Specificity:
1. Directional- Plans that are clearly defined and leave no room for interpretation
2. Specific- Plans that are flexible and set out general guidelines
 iv) Frequency of use
1. Single Use - A one-time plan specifically designed to meet the needs of a unique
situation
2. Standing - Ongoing plans that provide guidance for activities performed repeatedly
 Approaches to Goal Setting: (p. 258-260)
1) Traditional goal setting
2) Means-End chain
3) Management by objective (MBO)
 Steps in MBO (p.261)
1) Overall objectives and strategies are formulated
2) Major objectives are allocated among divisional and departmental units
3) Unit managers collaboratively set specific objectives for their units with their managers.
4) Specific objectives are collaboratively set with all department members
5) Action plans
6) Implementation of action plans
7) Periodic review and feedback
8) Reinforcement of objectives through Performance based rewards
 CHARACTERISTICS OF WELL-WRITTEN GOALS (p.262)
1) Written in terms of outcomes rather than actions
2) Measurable and quantifiable
3) Clear as to a time frame
4) Challenging yet attainable
5) Written down
6) Communicated to all necessary organizational members
 STEPS IN GOAL-SETTING (p. 262)
1) Review the organization’s mission
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

Developing Plans (p. 262-264)

 Contingency factors of Planning: (P. 262-263)
1) organizational level
2) degree of environmental uncertainty
3) length of future commitments
 Approaches to planning: (p.263-264)
 1) Formal Planning Department
2) Planning involving Active participation of the organizational members

Contemporary issues in planning (p. 264-268)

I. how managers can plan effectively in dynamic environment
II. how managers can use environmental scanning (especially competitive
intelligence)
III. how digital tools can be used to assist in planning activities
 How managers can plan effectively in dynamic environment (264-265)
I. Develop plans that are specific, but flexible
 stay alert to environmental changes that may impact implementation and
respond as needed
 continue formal planning in order to see any effect on organizational
performance; even in highly uncertain environment
 make the organizational hierarchy flatter for effective planning
 How managers can use environmental scanning (especially competitive
intelligence) (p. 265-266)
 environmental scanning
 Competitor Intelligence
 Corporate Espionage
 Use of Digital Tools in planning (p.266-268)
 Business Intelligence
 Digital Tools
1. Data visualization Tools
2. Cloud Computing
3. Internet of Things (IoT)