Chapter 5Foundations of Planning

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

1

Planning

Defining the organization’s goals, establishing an overall strategy, and developing a hierarchy of

plans to achieve goals

2Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

3Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Reduces theReduces theImpact of ChangeImpact of Change

ProvidesProvidesDirectionDirection

Minimizes WasteMinimizes Wasteand Redundancyand Redundancy

Sets Standards toSets Standards toFacilitateFacilitateControlControl

ReasonsReasonsfor Planningfor Planning

4Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

ObjectivesTime Frame Scope

How Do Strategic and Tactical Plans Differ?

5Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

The Time Frame of Planning

Short-TermShort-TermPlansPlans

Long-TermLong-TermPlansPlans

6Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Specific Plans

Directional Plans

Clear

General

Low

High

FlexibilityO

bjec

tives

7Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Single-Use vs. Standing Plans

UniqueSituations

OngoingOperations

8Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

OrganizationalOrganizationalObjectivesObjectives

DivisionalDivisionalObjectivesObjectives

DepartmentalDepartmentalObjectivesObjectives

IndividualIndividualObjectivesObjectives

What Is Management by Objectives?

9Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Common Elements of MBO Goal specificity Participative decision making Set time period Performance feedback

10Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Identify CurrentMission, Objectives

& Strategy

The StrategicManagement Process

ReassessMission

Strategies

EvaluateResults

1

AnalyzeResources

Note Weaknessesand Strengths

AnalyzeEnvironment

NoteThreats and

Opportunities

2 3

4 5

6

7 & 8

9

11Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Grand Strategies Growth Stability Retrenchment Combination

12Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Determining ABusiness-Level Strategy

DifferentiationDifferentiationCostCostLeadershipLeadership

FocusFocus

13Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

After Strategies Are Formulated Implementation Evaluating results

14Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Entrepreneurship Process by which individuals pursue

opportunities, fulfilling need and wants through innovation, without regard to the resources they currently control

Important themes Pursuit of opportunities Innovation Growth

15Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

Project Management Process (Exhibit 5-8)

Define objectives

Estimatetime foractivities

Identifyactivities and

resourcesEstablish

sequences

Determineadditional resource

requirements

Comparewith

objectives

Determineproject

completiondate