Planning

Managers Planning
• Why plan?
• Process
Step 1 Situational Analysis
Step 2 Alternative Goals and Plans
Step 3 Goal and Plan Evaluation
Step 4 Goal and Plan Selection
Step 5 Implementation
Step 6 Monitor and Control
Decision Making Stages and
Formal Planning Steps
 Situational Analysis
• A process planners use, within time and
resource constraints, to gather,
interpret, and summarize all
information relevant to the planning
issue under consideration.
 Alternative Goals and Plans
• Stress creativity and encourage managers and
employees to think in broad terms about their
jobs.
• Goal
– A target or end that management desires to
reach
– Specific, measurable, attainable, relevant, time-
bound - SMART
Benefits of Planning

• Focus and flexibility

• Action orientation
• Coordination
• Time management
• Control
 Goal and Plan Evaluation
• Managers will evaluate the advantages,
disadvantages, and potential effects of each
alternative goal and plan.
• Must prioritize those goals and even eliminate
some of them.
• Managers must consider carefully the
implications of alternative plans for meeting
high priority goals.
 Goal and Plan Selection
• Managers will select the option that is
most appropriate and feasible
• The evaluation process will identify the
priorities and trade-offs among the goals
and plans
 Types of Managerial Plans
• Short-range vs. long-range
• Strategic
• Operational
• Policy
• Procedures or rules
• Budget
• Project
 Implementation
• Managers and employees must understand
the plan, have the resources to implement it,
and be motivated to do so
• Successful implementation requires a plan to
be linked to other systems in the organization,
particularly the budget and reward systems
 Monitor and Control
• Managers must continually monitor the actual
performance of their work units against the
unit’s goals and plans.
• Manager’s also need to develop control
systems to measure that performance and
allow them to take corrective action when the
plans are implemented improperly or when
the situation changes