Chapter Five Planning

The Foundation of Successful Management

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, All Rights Reserved.

Planning & Uncertainty

Planning
coping with uncertainty by formulating future courses of action to achieved specified results

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Planning & Strategic Management

Figure 5.1
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How Planning Helps You

1. 2. 3. 4. Helps you check on your progress Helps you coordinate activities Helps you think ahead Helps you cope with uncertainty

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The Adaptive Cycle

Adaptive Cycle
businesses are continuously cycling through decisions about three kinds of business problems: (1) entrepreneurial, (2) engineering, and (3) administrative

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Making Plans

Figure 5.2

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Three Types of Planning for Three Levels of Management

Strategic planning
determine what the organizations longterm goals should be for the next 1-5 years with the resources they expect to have available

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Three Types of Planning for Three Levels of Management

Tactical planning
determine what contributions their departments can make during the next 624 months

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Three Types of Planning for Three Levels of Management

Operational planning
how to accomplish specific tasks within the next 1-52 weeks

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Goals, Action Plans, & Operating Plans

Goals
specific commitment to achieve a measurable result within a stated period of time also known as an objective strategic, tactical, operational

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What Is MBO?
1. 2. 3. 4. Jointly set objectives Develop action plan Periodically review performance Give performance appraisal and rewards, if any

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Setting SMART Goals Specific Measurable Attainable Results-oriented Target dates

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The Planning/Control Cycle

Figure 5.5
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Project Planning
Project management
achieving a set of goals through planning, scheduling, and maintaining progress of the activities that comprise the project

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The Project Life Cycle

Figure 5.6

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REVISION
Q1:(p. 143) Engineering is a kind of business problem that is portrayed in the adaptive cycle. TRUE OR FALSE
TRUE

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Q2: (p. 147) The operating plan identifies clear targets such as revenues, cash flow, and market share.

TRUE OR FALSE TRUE

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Q3: (p. 140) Planning is defined as A. coping with uncertainty by analyzing past actions. B. setting goals and deciding how to achieve them. C. correcting problems that have occurred. D. the same process as MBO. ANSWER B. setting goals and deciding how to achieve them.

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 Q4:(p. 145) Roger Enrico of Pepsi Co, had a clear sense of the future and the actions needed to get there. This is an example of a(n) A. mission. B. purpose. C. vision. D. performance. ANSWER C. vision. A vision is a long-term goal describing what an organization wants to become. It is a clear sense of the future and the actions needed to get there.5 - 19

 Q5: (p. 158) Anthony's main focus is to complete his project on time. This project is in the ____________ stage. A. closing B. planning C. execution D. definition

ANSWER C. execution The execution stage is the actual work stage. Your main focus is to complete the project on time and under budget while trying to meet the client's expectations.
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