Chapter 9: Planning Work Activities

Chapter 9: Planning Work Activities

Learning Outcomes

• Define the nature and purpose of planning.
  This includes understanding the fundamental management activity of planning, which involves outlining objectives and the means to achieve those objectives.

• Classify the types of goals organizations might have and the plans they use.
  Goals vary widely, and so do the corresponding plans designed to achieve those goals in different organizational contexts.

• Compare and contrast approaches to goal-setting and planning.
  This involves analyzing traditional methods versus contemporary practices, including management by objectives (MBO).

• Discuss contemporary issues in planning.
  Focusing on current environmental conditions and the need for adaptable planning processes.

What and Why of Planning

Nature of Planning

• Definition:

  • Planning is described as a management function crucial for defining goals, establishing strategies to achieve goals, and developing plans to integrate and coordinate work activities.

Purpose of Planning

• Why do Managers Plan?

  • Provides Direction:

  • Establishes a clear path for actions across all organizational levels.

  • Reduces Uncertainty:

  • Allows for informed decision-making by forecasting potential challenges and opportunities.

  • Minimizes Waste and Redundancy:

  • Encourages efficient resource allocation and the elimination of duplicative efforts.

  • Establishes Goals/Standards:

  • Sets benchmarks for evaluating performance and progress.

Relationship Between Planning and Performance

• Impact of Formal Planning:

  • Higher Profits and Returns:

  • Organizations with formal planning tend to exhibit increased profits and better returns on assets.

  • Quality of Planning vs. Quantity:

  • The effectiveness of planning and implementation is more critical than the volume of planning efforts.

  • External Environment's Influence:

  • Factors beyond organizational control can mitigate the effects of planning on performance.

  • Timeframe for Impact:

  • It often takes several years for the benefits of planning to manifest in organizational performance.

Goals and Plans

Definition of Goals and Plans

• Goals (or Objectives):

  • Defined as desired outcomes or targets that guide performance evaluations.

  • Provide direction for organizational efforts.

• Plans:

  • Documents outlining strategies to meet defined goals.

  • Detail resource allocation and schedule activities.

Types of Plans

• Strategic Plans:

  • Organization-wide plans that establish long-term overall goals.

• Operational Plans:

  • Plans focused on specific operational areas, detailing the how-to of organization operations.

• Long-term Plans:

  • Generally encompass a time frame of over three years.

• Short-term Plans:

  • Plans that address a timeline of one year or less.

• Specific Plans:

  • Clearly defined plans, leaving no room for ambiguity or misinterpretation.

• Directional Plans:

  • Flexible plans that provide general guidelines rather than detailed instructions.

• Single-use Plans:

  • Created for unique situations with a one-time application.

• Ongoing Plans:

  • Provide continual guidance for regularly occurring activities.

Setting Goals and Developing Plans

Approaches to Setting Goals

• Traditional Goal Setting:

  • Goals are established by top management and then cascaded down through the organization into individual objectives, which can result in a loss of clarity and focus as goals are interpreted at lower levels.

Example of Downsides of Traditional Goal Setting

• Concerns may escalate from general performance improvement goals at the top to overly aggressive profit expectations that neglect quality at lower levels.

Means-Ends Chain

• An integrated network of goals where the success of achieving goals at one level serves as a means to achieve the end goals at the subsequent level.

Management by Objectives (MBO)

• MBO includes several crucial elements:

  • Goal Specificity;

  • Participative Decision Making;

  • Explicit Time Period;

  • Performance Feedback.

Steps in Goal Setting

• Review the Organization’s Mission:

  • Assess the overarching purpose of the organization.

• Evaluate Resources:

  • Determine what resources are available to support the achievement of the goals.

• Determine Goals:

  • Engage stakeholders for input, aiming for a thorough consensus.

• Document and Communicate Goals:

  • Ensure goals are recorded and shared with necessary organizational members.

• Review Results:

  • Continuously monitor progress towards the goals and evaluate the success of achieving them.

Characteristics of Well-Written Goals

• Outcomes-focused rather than action-focused.

• Measurable and Quantifiable:

  • This ensures that success can be objectively evaluated.

• Clear Time Frame:

  • Goals should have specific deadlines.

• Challenging Yet Attainable:

  • Goals must push effort without being unattainable.

• Documentation and Communication:

  • Goals should be explicitly communicated to all relevant members.

Current Issues in Planning

Effective Planning in Dynamic Environments

• Plans should be clear yet flexible to accommodate unforeseen events such as the COVID-19 pandemic.

• Understand that planning is a continuous process requiring adaptive strategies.

• Persistence in refining plans is essential for long-term success.

• Encourage a flatter organizational hierarchy to promote planning skills development across all levels.

Utilizing Environmental Scanning

• Environmental Scanning:

  • A proactive method that involves screening information to discern emerging trends that may impact the organization.

• Competitor Intelligence:

  • The process of gathering intelligence about competitors to anticipate actions, allowing proactive rather than reactive stances in competition.