Kinicki_2024R_Ch_5_FINAL (2)

Chapter 5: Planning - The Foundation of Successful Management

Learning Objectives

• 5-1 Role of Strategic Management

• 5-2 Compare Mission, Vision, and Value Statements

• 5-3 Types and Purposes of Goals and Plans

• 5-4 SMART Goals and Implementation

• 5-5 Planning/Control Cycle

• 5-6 Developing Proactive Learning Orientation

Setting Goals and Making a Plan

1. Match skills and aspirations to job opportunities.

2. Evaluate market conditions in the target field.

3. Create an action plan.

4. Track progress.

5. Stay resilient.

Importance of Planning and Strategic Management

• Planning: Coping with uncertainty while setting goals.

• Strategy: Setting long-term direction for the organization.

• Strategic Management: Involves formulating and implementing strategies across all levels of management.

Components of Planning

Planning: Coping with Uncertainty

• Setting goals and deciding on how to achieve them.

• Document form: outlines how to meet objectives.

• Business plan: details goals, strategies, and standards for success.

Strategy: Setting Long-Term Goals

• Represents an educated guess regarding organizational direction.

• Focused on survival and prosperity of the organization.

Strategic Management

• Involves managers across all organizational levels.

• Derives from the organization’s mission and vision.

Importance of Planning and Strategic Management

• Provides direction and momentum.

• Encourages new ideas.

• Develops sustainable competitive advantage.

Process of Planning and Strategic Management

1. Establish mission, vision, and values.

2. Assess current reality.

3. Formulate strategies and plans.

4. Implement strategies and plans.

5. Maintain strategic control.

• Feedback: Revise actions based on ongoing feedback.

Developing a Sustainable Competitive Advantage

• Competitive Advantage: The ability to outperform competitors in producing goods or services.

• Sustainable Competitive Advantage: Maintaining superiority in these areas:

  1. Responsiveness to customers

  2. Innovation

  3. Quality

  4. Effectiveness

Fundamentals of Planning

Mission, Vision, and Values Statements

• Mission Statement: Defines the organization's purpose.

• Vision Statement: Describes what the organization aspires to become.

• Values Statement: Outlines guiding principles and beliefs.

Types of Planning by Management Level

• Strategic Planning: Conducted by top managers for 1-5 years.

• Tactical Planning: Conducted by middle managers for 6-24 months.

• Operational Planning: Conducted by first-line managers for 1-52 weeks.

Goal Setting

Types of Goals

• Short-Term Goals: Span up to 12 months.

• Long-Term Goals: Span 1-5 years; align with strategic goals.

Operating and Action Plans

• Transform long-term goals into actionable short-term targets.

• Action Plan: Defines necessary steps and deadlines for achieving goals.

Contingency Planning

• Essential to prepare responses for unpredictable events.

• Events such as disasters, pandemics, or economic downturns can necessitate immediate plan adjustments.

SMART Goals

1. Specific: Clearly defined.

2. Measurable: Quantifiable metrics.

3. Attainable: Realistic objectives.

4. Results-oriented: Aligns with organizational vision.

5. Target Date: Deadlines are established.

Example of SMART Goals

• SMART Goal: Increase sales revenue by 15% by the end of the quarter.

• Not-SO-SMART Goal: Simply "increase sales revenue" without specific metrics.

Management by Objectives (MBO)

Four-Step Process

1. Jointly set objectives.

2. Develop action plans.

3. Periodically review performance.

4. Appraise and reward based on results.

Cascading Goals

• Ensures alignment throughout all organizational levels.

• Committed top and middle management is crucial for cascading goals.

Career Readiness and Proactive Learning Orientation

Competencies Required

• Knowledge and task-based skills

• Resilience, adaptability, and self-awareness

• Critical thinking, communication, collaboration, and leadership

Strategies for Career Growth

• Focus on solutions versus problems.

• Set practical goals.

• Engage in personal and professional development discussions.

Techniques for Keeping an Open Mind

1. Assess your current commitments.

2. Identify moments requiring open-mindedness.

3. Apply skills such as questioning beliefs and seeking feedback.