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17.- Organizational planning and controlling, image - Coggle Diagram

- - - - Step 1: Developing an Awareness of the Present State
        
        That managers build the foundation on which they will develop their plans
        
        This foundation specifies an organization’s current status, pinpoints its commitments, recognizes its strengths and weaknesses, and sets forth a vision of the future
      - Step 2: Establishing Outcome Statements:
        
        consists of deciding “where the organization is headed, or is going to end up”
        
        Goal Planning
        
        Situations in Outcome statements can be constructed around specific goals or framed in terms of moving in a particular direction toward a viable set of outcomes
        
        In goal planning, people set specific goals and then create action statements
        
        Domain Planning
        
        is domain/directional planning, in which managers develop a course of action that moves an organization toward one identified domain (and therefore away from other domains). Within the chosen domain may lie a number of acceptable and specific goals
        
        Hybrid Planning
        
        In this approach, managers begin with the more general domain planning and commit to moving in a particular direction
        
        Managers therefore develop an elaborate network of organizational plans, to achieve the overall goals of their organization
      - Step 3: Premising
        
        Managers establish the premises, or assumptions, on which they will build their action statements
        
        Throughout the planning process, assumptions about future events must be brought to the surface, monitored, and updated
        
        Managers collect information by scanning their organization’s internal and external environments
        
        They use this information to make assumptions about the likelihood of future events
      - Step 4: Determining a Course of Action (Action Statements)
        
        Managers decide how to move from their current position toward their goal (or toward their domain)
        
        They develop an action statement that details:
        
        what needs to be done, when, how,and by whom
        
        Choosing a course of action involves determining alternatives by:
        
        drawing on research,experimentation, and experience
      - Step 5: Formulating Supportive Plans
        
        Managers often need to develop one or more supportive or derivative plans to bolster and explain their basic plan
      - Planning, Implementation, and Controlling
        
        After managers have moved through the five steps of the planning process, they must monitor and maintain their plans
        
        Through the controlling function
        
        Thus, planning and controlling activities are closely interrelated (planning ➨ controlling ➨ planning . . .).
        
        The managers have linked their planning and controlling activities by adopting the Deming cycle (also known as the Shewhart cycle)
- - - - and specify how these goals are to be attained
      - and specify how these goals are to be attained
    - - outcome or goal statements
      - and action statements
    - - retrospectively (about past events)
      - and prospectively (about future opportunities and impending threats)
  - - - Some observers contend that managers
        
        typically are too busy to engage in a regular form of systematic planning.
- - - - First, as we saw earlier, employees working with goals outperform employees working without goals.
    - - Second, it is assumed that participation contributes to the setting of realistic goals for which there is likely to be goal acceptance and commitment.
    - - Setting realistic and acceptable goals is an important precondition for successful outcomes, especially if the goals are difficult and challenging in nature.
    - - Finally, feedback plays an important role.
- - - - Train people in planning.
      - Create a reward system.
      - Top managers support lower-level managers’ planning activities
      - Develop an organizational climate that encourages planning.
      - Use plans once they are created.
    - - Managers of organizations in complex and unstable environments may find it difficult to develop meaningful plans, yet it is precisely conditions of environmental complexity and instability that produce the greatest need for a good set of organizational plans.
- - - - Operating plans (technical core)—cover the day-to-day operations of the organization.
        
        Policies—general statements of understanding or intent; guide decision-making, permitting the exercise of some discretion
        
        Procedures—like rules, they guide action
        
        Rules—guides to action that do not permit discretion in interpretation
- - - - Hewlett-Packard’s Corporate Goals
        
        Profit. To achieve sufficient profit to finance our company growth and to provide the resources
        
        Customers. To provide products and services of the greatest possible value
        
        Field of Interest. To enter new fields only when the ideas we have, together with our technical, manufacturing and marketing skills
        
        Growth. To let our growth be limited only by our profits and our ability to develop and produce technical products
        
        People. To help our own people share in the company’s success
        
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