DefinethenatureandpurposeofplanningClassifythetypesofgoalsorganizationsmighthaveandtheplanstheyuseCompareandcontrastapproachestogoal-settingandplanningDiscusscontemporaryissuesinplanningPlanning-aprimarymanagerialactivitythatinvolves:Definingtheorganization’sgoalsEstablishinganoverallstrategyforachievingthosegoalsDevelopingplansfororganizationalworkactivitiesFormalplanningSpecificgoalscoveringaspecifictimeperiodWrittenandsharedwithorganizationalmembersPurposesofPlanningProvidesdirectionReducesuncertaintyMinimizeswasteandredundancySetsthestandardsforcontrollingFormalplanningisassociatedwith:HigherprofitsandreturnsonassetsPositivefinancialresultsThequalityofplanningandimplementationaffectsperformancemorethantheextentofplanningTheexternalenvironmentcanreducetheimpactofplanningonperformanceGoals(alsoObjectives)Desiredoutcomesforindividuals,groups,orentireorganizationsProvidedirectionandevaluationperformancecriteriaPlansDocumentsthatoutlinehowgoalsaretobeaccomplishedDescribehowresourcesaretobeallocatedandestablishactivityschedulesFinancialGoals-relatedtotheexpectedinternalfinancialperformanceoftheorganization.StrategicGoals-relatedtotheperformanceofthefirmrelativetofactorsinitsexternalenvironment(e.g.,competitors).StrategicPlansEstablishtheorganization’soverallgoalsSeektopositiontheorganizationintermsofitsenvironmentCoverextendedperiodsoftimeOperationalPlansSpecifythedetailsofhowtheoverallgoalsaretobeachievedCoverashorttimeperiodLong-TermPlansTimeframesextendingbeyondthreeyears.Short-TermPlansTimeframesofoneyearorless.SpecificPlansPlansthatareclearlydefinedandleavenoroomforinterpretation.DirectionalPlansFlexibleplansthatsetoutgeneralguidelinesandprovidefocus,yetallowdiscretioninimplementation.Single-UsePlanAone-timeplanspecificallydesignedtomeettheneedofauniquesituation.StandingPlansOngoingplansthatprovideguidanceforactivitiesperformedrepeatedly.Broadgoalsaresetatthetopoftheorganization.Goalsarethenbrokenintosub-goalsforeachorganizationallevel.Goalsareintendedtodirect,guide,andconstrainfromabove.Goalsloseclarityandfocusaslower-levelmanagersattempttointerpretanddefinethegoalsfortheirareasofresponsibility.Means-EndsChainTheintegratednetworkofgoalsthatresultsfromestablishingaclearly-definedhierarchyoforganizationalgoals.Achievementoflower-levelgoalsisthemeansbywhichtoreachhigher-levelgoals(ends).MaintainingtheHierarchyofGoalsSpecificperformancegoalsarejointlydeterminedbyemployeesandmanagers.Progresstowardaccomplishinggoalsisperiodicallyreviewed.Rewardsareallocatedonthebasisofprogresstowardsthegoals.KeyelementsofMBO:goalspecificityparticipativedecisionmakinganexplicitperformance/evaluationperiodfeedbackReasonforMBOSuccessTopmanagementcommitmentandinvolvementPotentialProblemswithMBOProgramsArelesseffectiveindynamicenvironmentsthatrequireconstantresettingofgoalsOveremphasisonindividualaccomplishmentmaycreateproblemswithteamworkAllowingtheMBOprogramtobecomeanannualpaperworkshuffle1.Reviewtheorganization’smissionstatement.Dogoalsreflectthemission?2.Evaluateavailableresources.Areresourcessufficienttoaccomplishthemission?3.Determinegoalsindividuallyorwithothers.Aregoalsspecific,measurable,andtimely?4.Writedownthegoalsandcommunicatethem.Iseverybodyonthesamepage?5.Reviewresultsandwhethergoalsarebeingmet.Whatchangesareneededinmission,resources,orgoals?Manager’slevelintheorganizationStrategicplansathigherlevelsOperationalplansatlowerlevelsDegreeofenvironmentaluncertaintyStableenvironment:specificplansDynamicenvironment:specificbutflexibleplansLengthoffuturecommitmentsCommitmentConcept:Currentplansaffectingfuturecommitmentsmustbesufficientlylong-terminordertomeetthosecommitments.EstablishingaformalplanningdepartmentCreateagroupofplanningspecialiststhathelpmanagerswriteorganizationalplans.Planningisafunctionofmanagement;itshouldneverbecomethesoleresponsibilityofplanners.InvolvingorganizationalmembersintheprocessPlansaredevelopedbymembersoforganizationalunitsatvariouslevelsandthencoordinatedwithotherunitsacrosstheorganization.Planningmaycreaterigidity.Planscannotbedevelopedfordynamicenvironments.Formalplanscannotreplaceintuitionandcreativity.Planningfocusesmanagers’attentionontoday’scompetition—nottomorrow’ssurvival.Formalplanningreinforcestoday’ssuccess,whichmayleadtotomorrow’sfailure.Planningisn’tenough.Developplansthatarespecificbutflexible.Understandthatplanningisanongoingprocess.Changeplanswhenconditionswarrantalterations.Persistenceinplanningeventuallypaysoff.Flattentheorganizationalhierarchytofosterthedevelopmentofplanningskillsatallorganizationallevels.planninggoalsplansstatedgoalsrealgoalsframingstrategicplansoperationalplanslong-termplansshort-termplansspecificplansdirectionalplanssingle-useplanstandingplanstraditionalgoalsettingmeans-endschainmanagementbyobjectives(MBO)missioncommitmentconceptformalplanningdepartment