Professional Documents
Culture Documents
8th Edition
© 2010
An International Perspective
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Chapter Objectives
After studying this chapter, you should be able to:
Chapter Objectives
After studying this chapter, you should be able to:
Definition of Planning
Planning involves selecting missions
and objectives and the actions to
achieve them; it requires decision
making, that is, choosing from among
alternative future courses of action.
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Planning: PURPOSE
• IF GROUP EFFORT IS TO BE EFFECTIVE, PEOPLE
MUST KNOW WHAT THEY ARE EXPETED TO
ACCOMPLISH. THIS IS THE FUNCTION OF
PLANNING.
Planning:
PLANNING PROVIDES A RATIONAL APPROACH
TO ACHIEVING PRE SELECTED OBJECTIVES.
Planning:
• PLANNING IS A FUNCTION OF ALL MANAGERS –
PLANNING IS PERVASIVE
• PLANNING MUST BE EFFICENT.
• REVENUE > COSTS.
Mission Statement:
• A mission statement is a statement of the purpose of a company,
organization or person, its reason for existing.
• The mission statement should guide the actions of the
organization, spell out its overall goal, provide a path, and guide
decision-making. It provides "the framework or context within
which the company's strategies are formulated." It's like a goal
for what the company wants to do for the world.
• DU PONT
• BETTER THINGS THROUGH CHEMISTRY
•
MISSION STATEMENT:
• FEASIBLE, REALISTIC
• PRECISE, NOT TOO NARROW NOR TOO BROAD
• CLEAR ENOGUH TO LEAD TO ACTION. NOT FOR PLATITUDES /
PUBLICITY
• PRIORITIZE CORE VALUES IN MISSION STATEMENT.
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Types of Plans
5. Procedures are plans that establish a required
method of handling future activities
• Characteristics of procedure:
• they involve methods for doing different jobs.
• they may concern many departments.
• they are pervasive.
• they facilitate decision making.
• they help implementation of policies.
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Types of plans:
6. Rules spell out specific required actions or
nonactions, allowing no discretion.
(eg) Traffic Rules, uniform, timecard
punching, car parking etc
Types of Plans:
Types of Plans
• Strategic Planning.
• Functional Planning.
• Short Range Planning.
• Long Range Planning.
• Standard Plans.
• Project Plans / Single Use Plans
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STEPS IN PLANNING
Steps in Planning:
• The steps indicated are for major plans, minor
plans are usually simpler.,
• Problems or opportunities?
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Steps in Planning:
• Objectives or Goals:
• They are the ends towards which
organizational and individual activities
are directed.
• They form hierarchy as well as net work.
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Steps in Planning:
Steps in planning:
• Planning Premises:
• information covers the following;
OBJECTIVES
Objectives are the important ends toward
which organizational and individual
activities are directed
Management by objectives is a
comprehensive managerial system - that
integrates many key managerial activities
- in a systematic manner
MBO
• MBO is also an appraisal tool.
• MBO is a planning and control tool.
• MBO is also a motivational technique.
• MBO as a strategic planning tool.
• Peter Drucker was first to suggest MBO.
McGregor recommended it as an appraisal
tool.
• Objectives must be preferably verifiable.
• Each goal and sub goal should be one
particular person’s responsibility.
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MBO Benefits:
• “there are two things, that might be considerred
fundamental creed at Honeywell: Decentralized
management is needed for Hoenywell to work and
MBO is needed to make decentralization work”.
• encouragement of personal commitment.
• development of effective controls.
• most powerful tool for decentralization of
authority.
• mbo as a motivational tool.
• goal setting
• participation
• incentives
• autonomy
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