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PLANNING
Definition:
Planning encompasses defining the organizations objectives or goals, establishing an overall strategy for achieving those goals and developing a comprehensive hierarchy of plans to integrate and coordinate activities .
PLANNING
The Purpose of Planning:
Gives direction Establishes coordination Reduces uncertainty Reduces overlapping / wasteful action Establishes objectives or standards
Types of Plans
BREADTH TIME FRAME
Strategic
Tactical
Long-term
Short-term
Directional
Specific
Single use
Standing
Types of Plans
Strategic -- organization wide, overall
objectives, position firm in environment
Short term -- less than a year long term -- beyond five years
Types of Plans
Specific -- clearly defined objectives Directional -- flexible plans setting out
general guidelines
Clear
Specific Plans
Low
Flexibility
Objectives
General
Directional Plans
High
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Middle-level Managers
Operational Planning
First-level Managers
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Management By Objectives
Common MBO elements
Identify key job tasks Set specific and challenging goals Encourage active participation Prioritize goals Build in feedback Link rewards to goal attainment
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Management By Objectives
Overall Organizational Objectives
Divisional Objectives
Departmental Objectives
Individual Objectives
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MBO Downside
Overly focussed on what is being measured rather than final result (quantity over quality) Individual rather than team focus Objectives become ceilings rather than floors -- decreases further motivation
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1. 4.
Mission
The fundamental purpose of an organization -- the definition of success
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Competitive Strategies
Cost-leadership Differentiation Focus
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Entrepreneur
Independence 5-10 year growth of business Direct involvement Moderate Acceptance
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