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PLANNING :black_flag: - Coggle Diagram
PLANNING :black_flag:
DEFINITION OF PLANNING
Planning is defining organizational goals, establishing a strategy to reach those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities (Stoner).
Planning is the most basic managerial function. When done properly, it sets the direction for the organizing, leading, and controlling functions.
PLANNING PITFALLS
Formal planning reinforces success, which may lead to complacency.
Planning focuses managers’ attention on today’s competition, not on tomorrow’s survival.
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IMPORTANCE OF PLANNING
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Planning reduces uncertainty (emergency, nonroutine events)
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ELEMENTS OF PLANNING
Goals (also Objectives)
- Desired outcomes for individuals, groups, or entire organizations
- Provide direction and evaluation performance criteria
Plans
- Documents that outline how goals are to be accomplished
- Describe how resources are to be allocated and establish activity schedules
TYPE OF GOALS
Strategic Goals
- Are related to the performance of the firm relative to factors in its external environment (e.g., competitors).
Stated Goals versus Real Goals
- Broadly-worded official statements of the organization (intended for public consumption) that may be irrelevant to its real goals (what actually goes on in the organization).
Financial Goals
- Are related to the expected internal financial performance of the organization.
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STRATEGIC MANAGEMENT
Definition
The set of managerial decisions and actions that determines the long-run performance of an organization.
Importance of Strategic Management
1) Results in higher organizational performance.
2) Requires that managers examine and adapt to business environment changes.
3) Coordinates diverse organizational units, helping them focus on organizational goals.
Strategic Management Process
1) Identifying vision, mission, goals
2) SWOT Analysis
3) Formulate Strategies
4) Implement Strategies
5) Evaluate Results
OPERATIONAL PLANNING
C. OPERATIONAL PLANNING
1) A process of determining the day-to-day activities that are necessary to achieve the long term goals of the organization.
2) There are two main types of operational plans
which are Single-use Plan & Standing Plans
i. Single-use Plans
- A plan that addresses specific organizational situations that typically do not occur.
- Three (3) types of Single-use Plans which are Program, Project & Budgets
ii. Standing Plans
- Plans that deal with organizational issues and problems that recur frequently. It assists managers in solving problems or processes.
- The major types of Standing Plans which are Policies, Procedures & Rules.
A. STRATEGIC PLANNING
1) A process by which an organization makes decision and takes actions to enhance its long term performance.
2) Includes evaluation and development of the organization’s purpose, mission, and overall objectives and policies for current and future years. It also defines what business the company is in, or wants to be in. It may take 5 to 10 years to complete.
3) Three (3) levels of strategic planning which are corporate strategy, business strategies and functional strategies.
B. TACTICAL PLANNING
1) Micro-oriented and focused your short term S.M.A.R.T. goals, which usually have 1 to 18 month time frames.
2) This type of short term planning is all about the How (i.e., process) of getting things doing.
3) Focus is on operations, which includes creating and executing effective, efficient action plans.
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