1、Fundamentals of Management Tenth Edition Chapter 5 Foundationsof PlanningLearning Objectives5.1 Discuss the nature and purposes of planning.5.2 Explain what managers do in the strategic management process.5.3 Compare and contrast approaches to goal setting and planning.5.4 Discuss contemporary issue
2、s in planning.Learning Objective 5.1 Discuss the nature and purposes of planning.What Is Planning?Planning:The primary management function.Exhibit 5-1 Reasons for PlanningCriticisms of Formal Planning May create rigidity Cant replace intuition and creativity Focuses attention on todays success,not t
3、omorrows survival Reinforces success,which may lead to failureFormal Planning and Organizational PerformanceDoes it pay to plan?Higher profits Higher return on assets Improved quality of planning Appropriate implementationLearning Objective 5.2 Explain what managers do in the strategic management pr
4、ocess.Strategic ManagementWhat managers do to develop an organizations strategiesThe Importance of Strategic Management It has a positive impact on organizational performance It prepares managers to cope with changing situations It guides managers to examine relevant factors in planning future actio
5、nExhibit 5-2 Steps in the Strategic Management ProcessExhibit 5-3 Step 1:Identify Mission,Goals and StrategiesSource:Robbins,Stephen P.,Coulter,Mary,Management,13th Ed.,2016,p.238.Reprinted and electronically reproduced by permission of Pearson Education,Inc.,New York,NY.External and Internal Analys
6、esStep 2:External Analysis Competition Components of environment Threats and opportunitiesStep 3:Internal Analysis Resources Capabilities Core competencies Organizational strengths and weaknessesFormulating,Implementing,and Evaluating ResultsStep 4:Formulate Strategies Corporate Business FunctionalS
7、tep 5:Implement StrategiesStep 6:Evaluate Results How effective have strategies been?What adjustments are necessary?Exhibit 5-4 Strategies Managers UseGrowth Strategy An organization expands the number of markets served or products offered Concentration Vertical integration Horizontal integration Di
8、versificationStability and Renewal StrategiesStability strategy Organization continues to do what its doingRenewal strategy Organization addresses declining organizational performance Retrenchment TurnaroundCompetitive StrategyCompetitive strategy:a strategy for how an organization will compete in i
9、ts business.Competitive Advantage What sets an organization apart;its distinctive edge that comes from its:core competencies and resourcesFunctional StrategyThose strategies used by an organizations various functional departments to support the competitive strategyStrategic Weapons Customer service
10、Employee skills&loyalty Innovation Quality Social media Big dataLearning Objective 5.3 Compare and contrast approaches to goal setting and planning.Setting Goals and Developing Plans Types of goals Financial versus strategic Stated versus realPlanning=goals+plansExhibit 5-5 Traditional Goal SettingM
11、anagement by Objectives Goal specificity Participative decision making Explicit time period Performance feedbackWell-Written Goals Written in terms of outcomes rather than actions Measurable and quantifiable Clear as to a time frame Challenging yet attainable Written down Communicated to all necessa
12、ry organizational membersSteps in Goal Setting1.Review the organizations mission and employees key job tasks.2.Evaluate available resources.3.Determine the goals individually or with input from others.4.Make sure goals are well-written and communicate to all who need to know.5.Build in feedback mech
13、anisms to assess goal progress.6.Link rewards to goal attainment.Exhibit 5-7 Types of PlansBreadth of UseTime FrameSpecityFrequency of UseStrategicLong termDirectionalSingle-useTacticalShort termspecificStandingFlexibility ClarityExhibit 5-8 Developing PlansApproaches to Planning Top-down traditional approach Development by organizational membersLearning Objective 5.4 Discuss contemporary issues in planning.Contemporary Issues Planning in dynamic environments Environmental scanningDynamic Environments=Planning Challenges
