How and Why Managers Use the Planning Process.
The first step of the management process.
Planning
The length of time for a short-term plan.
A year or less.
Identifies alternative courses of action to take when things go wrong.
Contingency planning.
I've made a to-do list of things that I need to complete tomorrow.
Planning
Specific outcomes or goals that one wants to achieve.
Objectives
This clarifies the purpose of an organization and expresses what it wants to be in the future.
Vision
Define scenario planning.
Back up plans and preparation that offer flexibility and adaptability.
Identifies alternative future scenarios and makes plans to deal with each.
I set aside 15 minutes to cook dinner. I decide to make pasta with homemade sauce. It takes 10 minutes to cook the noodles and an additional 10 minutes to cook the sauce. I have underestimated the time it will take to make this meal.
Planning fallacy
The Hierarchy of Objectives
Lower level objectives help accomplish higher level ones
Purpose of a strategic plan.
Sets broad goals and directions that clarify where an organization is headed
The timely stretch goal.
Linked to due dates and timetable.
I want to turn a vision into a reality. What do I need?
A strategic plan.
Step 5 in the planning process.
Implement the plan and evaluate results.
Purpose of a zero-based budget.
Allocates resources as if each budget was brand new.
This makes sure that goals throughout an organization are linked together to advance the mission.
Goal alignment.
Policy
Name the 4 things planning improves.
Focus, Flexibility, Action Orientation, and Time Management.
The difference between a policy and a procedure.
A policy communicates broad guidelines for decisions and actions. A procedure or rule describes specific actions to take in specific situations.
Name all 5 stretch goals.
Specific, Measurable, Attainable, Relevant, and Timely
Give an example of a Specific Goal.
Open-ended