foundations of planning

What is the definition of planning in a managerial context?

A primary managerial function that involves defining goals, establishing strategies for achievement, and developing plans for organizational activities.

What are the purposes of planning?

Provides direction, reduces uncertainty, minimizes waste and redundancy, and sets standards for controlling.

How is planning associated with performance?

Planning is linked to higher profits, positive financial results, and its quality affects overall performance.

What does SMART stand for in goal setting?

Specific, Measurable, Attainable, Relevant, Time Bound.

What is the difference between strategic plans and operational plans?

Strategic plans apply to the entire organization and follow overall goals, whereas operational plans specify details of how those goals are to be achieved.

What distinguishes long-term plans from short-term plans?

Long-term plans have time frames extending beyond three years, while short-term plans are for one year or less.

What are standing plans?

Ongoing plans that provide guidance for activities performed repeatedly.

What is Management by Objectives (MBO)?

A process where specific performance goals are determined jointly by employees and managers, with progress reviewed periodically.

What are the steps in goal setting?

1. Review mission statement 2. Evaluate resources 3. Determine specific, measurable, and timely goals 4. Communicate the goals 5. Review results.

What is a criticism of planning?

Planning may create rigidity and cannot replace intuition and creativity.