MANAGEMENT 1.1
CHAPTER 8
TAKEAWAY 1: Why and How Managers Plan
• Planning
– The process of setting objectives and determining how to accomplish them.
• Objectives and goals
– Identify the specific results or desired outcomes that one intends to achieve
• Stretch goals performance targets that one must work extra hard
and stretch to reach.
• Plan
– A statement of action steps to be taken in order to accomplish the
objectives.
The roles of planning and controlling in the management process
The Planning Process:
1. Define your objectives
2. Determine where you stand vis-à-vis objectives
3. Develop premises regarding future conditions
4. Analyze alternatives and make a plan
5. Implement (= organizing, leading, controlling) the plan and evaluate results
, MANAGEMENT 1.1
CHAPTER 8
Benefits of planning:
– Improves focus and flexibility
– Improves action orientation
• Complacency trap being carried along by the flow of events
– Improves coordination and control
– Improves time management
TAKEAWAY 2: Types of Plans Used by Managers
Most of us
3 month time
frame
A few of us
1 year time frame
Very few of us
20 year time frame
Operational Tactical/functional Strategic
STRATEGIC
• Strategic plans — set broad, comprehensive, and longer-term action directions
for the entire organization
• Vision – clarifies purpose of the organization and what it hopes to be in the future
CHAPTER 8
TAKEAWAY 1: Why and How Managers Plan
• Planning
– The process of setting objectives and determining how to accomplish them.
• Objectives and goals
– Identify the specific results or desired outcomes that one intends to achieve
• Stretch goals performance targets that one must work extra hard
and stretch to reach.
• Plan
– A statement of action steps to be taken in order to accomplish the
objectives.
The roles of planning and controlling in the management process
The Planning Process:
1. Define your objectives
2. Determine where you stand vis-à-vis objectives
3. Develop premises regarding future conditions
4. Analyze alternatives and make a plan
5. Implement (= organizing, leading, controlling) the plan and evaluate results
, MANAGEMENT 1.1
CHAPTER 8
Benefits of planning:
– Improves focus and flexibility
– Improves action orientation
• Complacency trap being carried along by the flow of events
– Improves coordination and control
– Improves time management
TAKEAWAY 2: Types of Plans Used by Managers
Most of us
3 month time
frame
A few of us
1 year time frame
Very few of us
20 year time frame
Operational Tactical/functional Strategic
STRATEGIC
• Strategic plans — set broad, comprehensive, and longer-term action directions
for the entire organization
• Vision – clarifies purpose of the organization and what it hopes to be in the future
