essen ch9 Planning Work Activities: Key Concepts and Notes

Learning Objectives

  • 9.1 Define the nature and purposes of planning.

  • 9.2 Classify the types of goals organizations might have and the plans they use.

  • 9.3 Compare and contrast approaches to goal setting and planning.

  • 9.4 Discuss contemporary issues in planning.

The Nature and Purpose of Planning

  • Definition:

    • Planning involves defining goals, establishing a strategy for achieving them, and developing comprehensive plans to coordinate work needed.

    • Goals: What is to be done (ends)

    • Plans: How it's to be done (means)

  • Common Myth:

    • "Planning is a waste of time because no one can predict the future."

    • Myth Debunked: Failing to plan is planning to fail.

    • Contingency planning and scenario analysis can help develop responsive plans in dynamic environments.

Why Do Managers Plan?

  1. Direction:

    • Provides clarity on goals, helping employees coordinate activities effectively.

  2. Reduce Uncertainty:

    • Forces managers to look ahead, anticipate changes, and develop responses.

  3. Minimize Waste:

    • Helps identify inefficiencies and eliminate redundancies.

  4. Control Standards:

    • Enables measurement of work efforts against goals.

Planning and Performance

  • Studies show a positive correlation between planning and organizational performance.

  • Organizations that plan generally see higher profits and better asset returns, though not all planning leads to high performance due to external environmental factors.

  • Time Frame:

    • At least four years of planning may be necessary before seeing performance improvements.

Goals and Plans

  • Goals: Desired outcomes guiding decisions; define success.

  • Plans: Documents outlining methods to achieve goals, including resources and timelines.

  • Types of Goals:

    • Strategic (broad organizational goals)

    • Financial (performance-related goals)

  • Stated vs. Real Goals: Stated goals are official; observing behavior can reveal real priorities.

Types of Plans

  • Breadth: Strategic vs. Operational

    • Strategic Plans: Organization-wide, long-term (3+ years).

    • Operational Plans: Focus on specific areas, short-term (1 year or less).

  • Specificity:

    • Specific Plans: Clearly defined objectives, no ambiguity.

    • Directional Plans: Flexible guiding plans allowing adjustments based on circumstances.

  • Frequency of Use:

    • Single-use Plans: Designed for unique situations.

    • Standing Plans: Ongoing guidance for routine activities.

Setting Goals and Developing Plans

  • Goal Setting Process:

    1. Review organizational mission.

    2. Evaluate available resources.

    3. Determine goals (individually or collaboratively).

    4. Write and communicate goals.

    5. Review and adjust goals as necessary.

  • Characteristics of Well-Written Goals:

    • Outcome-oriented, measurable, time-bound, challenging yet achievable, documented, widely communicated.

Contemporary Issues in Planning

  • Effective Planning in Dynamic Environments:

    • Plans must be specific but adaptable to changes.

  • Environmental Scanning:

    • Screening information to detect trends and competitor actions.

  • Digital Tools:

    • Use of business intelligence and data analytics tools for strategic decision-making.

    • Examples include data visualization, cloud computing, and the Internet of Things (IoT).

Terminologies

  • Planning: The process of defining goals and establishing how to achieve them.

  • Goals: Desired outcomes indicating what needs to be accomplished.

  • Plans: Strategies and documents outlining the methods for achieving goals.

  • Strategic Goals: Long-term objectives focused on overall success of the organization.

  • Operational Plans: Short-term plans targeting specific areas to achieve strategic goals.

  • Contingency Planning: Preparing alternative plans to respond to potential future events.

  • Environmental Scanning: Analyzing trends and changes in the environment that may impact the organization.

  • Digital Tools: Technological resources used for data analysis and strategic decision-making