Chapter 7 Foundation Of Planning SUMMARY

In this chapter we will look at the contemporary issues in planing.
Planning is actually defining organization goals. Planning can be formal or informal. By planning managers define how the goals will be reached. Formal planning has gained importance now a days,bcoz it provides direction, reduces uncertanity, minimizes waste & redundancy, establishes goals associated with +tive financial results.
Managers stratergize on the basis of goals & plans. Goals are desired outcomes for individuals,groups or entire organizations.goals are of two types: strategic and real.
Plans are the documents that outline now goals are going to be met.
Plans are of many types:-
1.breadth plans :
include strategic or operational plans.(which specify how the overall goals are to be achieved.)
2.Time frame includes short terms plans (covering 1 year) and long term plans (with a time frame beyond 3 years.)
3.Specificity including directional or specific plans.Directional plans are flexible and set out general guidelines.specific plans are clearly definedand leave no room for interpretation.
4.Frequency of use including single use plan or standing.single use is a one time plan specially designed to meet the need of a unique situation.
Standing is an ongoing plan.they provide guidance for activities performed repeatedly
Manager set goals mostly using taditional methods.it is an approach to set goals at the top level of organization and then broken into subgoals for each level of organizaion.
If the goals are properly defined people will get a close conection of their result and they make strong connections with the company and their job.
If hireachyof goals is clearly defined a mean and chain is formed.but if not clearly defined goals lose clarity and unity.
Management by objective is a processof setting mutually agreed - upon goals and using those goals to evaluate employee performance .It has 4 elements :
1.Goal specificity. 2.Participative decision making. 3.explicite time period. 4.Performance fedback.
Characteristics of well defined goals stated in terms of outcomes,measurable and quantifiable,clear time frame,challenging but attainale are communicated to all organizational members.
Managers plan developing strategy is base influenced by contingency factors:
1.Level in the organization.
2.Environmental uncertanity.
3.Commitment concept.

Managers approach planning is two ways basically.
1.Formal planning department (A group of planning specialist whose sole responsibility is helping to write organizational plans.
2.Involving more organizational members in process.

In planning managers have to face some of the contemporary factors.
The criticism which people make or employees make on a company or manager planning.
Following may be criticism made by employees:
1.Plan formal planning will create rigidity.
2.Itcannot be developed for dynamic environment.
3.Can't replace intution and creativity.
4.Focuses on today,not tomorrow.
5.Reinforces success which can lead to failure .
6.Planning is not enough.

Therefore this chapter explains us alot about planning and clears up(our concept) or way of thinking about planning and its importance.