CH # 7 Foundation of Planning

Planning
Defining the organization’s goals
Establishing an overall strategy for achieving those goals

Types of planning
Informal: not written down, short-term focus; specific to an organizational unit.
Formal: written, specific, and long-term focus, involves shared goals for the organization

Purposes of Planning
Provides direction
Reduces uncertainty
Minimizes waste and redundancy
Sets the standards for controlling

Types of Planning
Strategic Plans
Apply to the entire organization.
Establish the organization’s overall goals.
Seek to position the organization in terms of its environment.
Cover extended periods of time.
Operational Plans
Specify the details of how the overall goals are to be achieved.
Cover short time period

Steps in Goal Settings
Review the organization’s mission statement.
Do goals reflect the mission?
Evaluate available resources.
Are resources sufficient to accomplish the mission?
Determine goals individually or with others.
Are goals specific, measurable, and timely?
Write down the goals and communicate them.
Is everybody on the same page?
Review results and whether goals are being met.
What changes are needed in mission, resources, or goals?

Multiple choice questions

Q.1. Plans usually include:
a. resource allocation
b. schedules
c. actions to accomplish goals
d. All of above.

Q.2. Planning concerned with:
a. ends (what's to be done)
b. means (how to be done)
c. both ends & means
d. none of above.

Q.3. The purpose of planning:
a. to motivate the managers
b. to increase the efficiency
c. to minimize the wastes
d. purposeless

Q.4. The type(s) of Plans are:
a. one
b. two
c. three
d. four

Q.5. Features of Setrategic plans are that it:
a. apply the entire orgnaization
b. establish overall goal
c. seek to position the organization
d. all of above

Q.6. kinds of problems that managers face;
a. rational
b. structured, unstructured problems · How many steps are there in decisionmaking?
c. two
d. five
e. none of these