This is the class blog for Busn170 taught at FCC 2008. All students are required to make at least one meanningful post or comment per week.

Monday, December 1, 2008

Chapter 7 summary by Salman Jehangir

What is Planning and Why Is it Important?
Planning: defining organization's goals, establishing overall strategy, and developing plans.
>Formal planning is important because it:
1. provides direction
2. reduces uncertanity
3. minimizes waste and redundancy
4. establishes the goals or standards used in controlling
5. is associated with positive financial results
> external environment impacts this relationship, as does
> planning time frame
How do Managers Plan?
Two important elements:
>Goals (desired outcomes)
>Plans (documents outlining how goals will be met)
Types of goals
> strategic or financial
> stated and real
Types of plans
> breadth: strategic or operational
> time frame: short term or long term
> specificity: directional or specific
> frequency of use: single-use or standing
How Do Managers Set Goals
Traditional approach: top-down
> If hierarcy of goals is clearly defined, a means - end chain is formed
> If not clearly defined, goals lose clarity and unity
Management by objectives (MBO) approach: four elements
1. goal specificity
2. participative decision making
3. explicit time period
4. performance feedback
How Do Managers Develop Plans?
Influenced by:
Cotingency factors
> level in the organization
> environmental uncertainly
> commitment concept
Approaches
> formal planning
> involve more organizational members in process
What Contemporary planning issues face managers?
Criticisms of planning
> creates rigidly
> cant be developed for dynamic environment
> cant replace intituition and creativity
> foccues on today, not tommorrow
> reinforces success, which can lead to failure
> planning isnt enough

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