Chapter 2 Planning

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Differentiation Chapter 10

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Chapter 2: Planning

Types Of Planning

Single Use Plan

Developed to address a specific organizational situation.

Budget

Projects

Programs

Standing Plan

Standing plans are designed to deal with organizational issues or problems that recur frequently.

Rules

Procedures

Policies

Operating Planning

Determining the day by day to day activities that are necessary to achieve the long term goals of the organization.

Strategic Planning

Level Of Strategic Planning

Functional strategy

Business strategy

corporate strategy

Focuses on enhancing the competitive position and overall performance.

Importance Of Planning

Without planning much will be left out.

Planning enables company to identify the course of action.

Planning can provide effective utilization of available facilities.

Helps to determine what are company's opportunities.

Definition

Planning

The process of setting goals and defining them.

Plain

It prescribe the activities necessary for the organization to realize its goals.

Barriers To Effective Planning

Resistance to change.

Ambiguous and uncertain operating environments.

Demands on the managers time.

Overcoming The Barriers To Planning

Encourage Strategic Thinking

Effective strategic thinking can be developed through training and practice.

Take Advantage of a Diversity of Views

Diverse views lead to a broader assessment of organizational problems and opportunities.

Involve Employees in Decision

Input from all levels of a firm is essential for successful planning.