Chapter 5 Foundations of Planning Robbins et al

Chapter 5 Foundations of Planning Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 1

Planning Defining the organization’s goals, establishing an overall strategy, and developing a hierarchy of plans to achieve goals Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 2

Sets Standards to Facilitate Control Provides Direction Reasons for Planning Minimizes Waste and Redundancy Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. Reduces the Impact of Change 3

How Do Strategic and Tactical Plans Differ? Time Frame Scope Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. Objectives 4

The Time Frame of Planning Short-Term Plans Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. Long-Term Plans 5

Specific Plans Low General Directional Plans High Flexibility Objectives Clear Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 6

Single-Use vs. Standing Plans Unique Situations Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. Ongoing Operations 7

What Is Management by Objectives? Organizational Objectives Divisional Objectives Departmental Objectives Individual Objectives Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 8

Common Elements of MBO n n Goal specificity Participative decision making Set time period Performance feedback Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 9

1 Identify Current Mission, Objectives & Strategy 2 Analyze Environment 4 Analyze Resources The Strategic Management Process 3 Note Threats and Opportunities 5 Note Weaknesses and Strengths Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 6 Reassess Mission 7&8 Strategies 9 Evaluate Results 10

Grand Strategies n n Growth Stability Retrenchment Combination Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 11

Determining A Business-Level Strategy Cost Leadership Differentiation Focus Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 12

After Strategies Are Formulated n n Implementation Evaluating results Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 13

Entrepreneurship n n Process by which individuals pursue opportunities, fulfilling need and wants through innovation, without regard to the resources they currently control Important themes n n n Pursuit of opportunities Innovation Growth Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 14

Project Management Process (Exhibit 5 -8) Define objectives Identify activities and resources Establish sequences Compare with objectives Determine project completion date Estimate time for activities Determine additional resource requirements Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 15