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PPT2-Planning Work Activities and Managing Strategy
PPT2-Planning Work Activities and Managing Strategy
Week 2
• Formal planning
– Specific goals covering a specific time period
– Written and shared with organizational members
Why Do
Managers Plan?
• Purposes of Planning
– Provides direction
– Reduces uncertainty
– Minimizes waste and redundancy
– Sets the standards for controlling
Planning and
Performance
• Efficiency • Effectiveness
– “Doing things right” – “Doing the right things”
– Getting the most – Attaining
output for the least organizational goals
inputs
Exhibit 1-3:
Efficiency and Effectiveness
in Management
Types of Plans
• Strategic Plans
– 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 a short time period
Types of Plans
• Long-Term Plans
– Time frames extending beyond three years.
• Short-Term Plans
– Time frames of one year or less.
Types of Plans
• Specific Plans
– Plans that are clearly defined and leave no room
for interpretation.
• Directional Plans
– Flexible plans that set out general guidelines and
provide focus, yet allow discretion in
implementation.
Types of Plans
• Single-Use Plan
– A one-time plan specifically designed to meet
the need of a unique situation.
• Standing Plans
– Ongoing plans that provide guidance for
activities performed repeatedly.
Traditional Goal Setting
• Means-Ends Chain
– The integrated network of goals that results from
establishing a clearly-defined hierarchy of
organizational goals.
– Achievement of lower-level goals is the means
by which to reach higher-level goals (ends).
Management
By Objectives (MBO)
• Cost Leadership
– On-line activities: bidding, order processing,
inventory control, recruitment and hiring
• Differentiation
– Internet-based knowledge systems, online
ordering and customer support
• Focus
– Chat rooms and discussion boards, targeted
Web sites
Customer Service
Strategies
• Possible Events
– Radical breakthroughs in products
– Application of existing technology to new uses
• Strategic Decisions about Innovation
– Basic research
– Product development
– Process innovation
• First Mover - an organization that brings a
product innovation to the market or uses new
process innovations.
Thank You