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Managerial planning
Chapter Summary
• After reading this chapter , you will be able to understand
1. Planning process
2. Types of plans
3. Strategic vs operational plans
4. Model of strategic planning
5. Linking strategy to structure
planning
• Planning includes all the activities that lead to the definition of
objectives and to the determination of appropriate courses of
action to achieve those activities
Steps in planning
4 major benefits
1. Planning forces managers to think ahead
2. It leads to development of performance standards that enable
more effective control
3. Having to formulate plans forces management to articulate
clear objectives
4. Enables an organization to be better prepared for sudden
developments.
The elements of planning
• Requires managers to make decisions about 4 fundamental
elements of plans:
1. Objectives
Integral to plans because they specify future conditions that the planner deems
satisfactory
2. Actions
Specified, preferred means to achieve the objectives
3. Resources
Constraints on the courses of action.
4. Implementation
Involves the assignment and direction of personnel to carry out the plan
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Hierarchy of Goals
Top Strategic
Management Goals •Shrinking middle
management
Middle Tactical •Employee
Management Goals empowerment
1st-line
Management Operational
& Workers Goals Employees
Levels of goals/plans & their
importance
Mission
statement
Strategic goals/plans
Senior Management
(Organization as a
whole)
Tactical goals/plans
Middle Management
Major Divisions, functions
Operational Goals/Management
Lower Management
(Departments, Individuals)
3
Types of Plans
EXHIBIT 3 .2
Planning: Focus and Time
• Strategic plans
• Plans that are organization-wide, establish overall objectives, and position
an organization in terms of its environment
• Tactical plans
• Plans that specify the details of how an organization’s overall objectives
are to be achieved
• Short-term plans
• Plans that cover less than one year
• Long-term plans
• Plans that extend beyond five years
Single-Use and Standing Plans
• Single-use plans
• A plan that is used to meet the needs of a particular or unique situation
• Single-day sales advertisement
• Standing plan
• A plan that is ongoing and provides guidance for repeatedly performed
actions in an organization
• Customer satisfaction policy
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Single-Use Plans
For Goals Not Likely To Be Repeated
Standing Plans
For Tasks Performed Repeatedly
Review Progress
Step 3:
Review Progress