principles of management of mgt week 4.pdf · principles of management week 4 planning •...

Principles of management

Week 4 Planning • Definition • Process • Effectiveness • Organizational levels Decision-making • Rational process • Individual vs group decisions • Disagreements and conflict

Management, 2017, Prof. Dr. P. Zamaros 1

The act or process of making a plan to achieve or do something

i.e. deciding on what to achieve (goals) and developing a method

or strategy to achieve that goal (objectives)

Management, 2017, Prof. Dr. P. Zamaros

Planning Definition – Stoner & Freeman

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Planning is part of a process:


Planning Process

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One needs to assure it works by developing commitment and

detailing action:


Planning Process

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Panning effectiveness refers to the degree to which the set goals

are achieved. Effectiveness is optimized when

• The goals are specific, measurable, attainable, realistic and

timely

• Management and staff are committed to achieving the goals

i.e. when the goals are shared – the mise en commun of

communication

• Actions are detailed in that all know who does what and the

necessary resources identified

• The ways to achieve the goals (objectives) include progress

tracking systems


Planning Effectiveness

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Approaches:


Planning Organizational levels

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Top-bottom:



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Top-bottom:



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Top management - Responsible for developing long-term strategic

plans

• Purpose statement: Declaration of a company’s purpose or

reason for existing

• Strategic objective: Specific goal that:

• Unifies company-wide efforts

• Stretches and challenges the organization

• Possesses a finish line and a time frame



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Middle management - Responsible for developing and carrying out

tactical plans to accomplish strategic objectives

Tactical plans: Direct behavior, efforts, and attention over the

next six months to two years

• Management by objectives: Managers and employees:

• Discuss and select goals

• Develop tactical plans

• Meet regularly to review progress



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Lower-level managers - Responsible for developing and carrying out

operational plans

• Operational plans: Day-to-day plans for producing or

delivering the organization’s products and services over a

thirty-day to six-month period

• Types

• Single-use plans: Plans that cover unique, one-time-only

events

• Standing plans: Plans used repeatedly to handle

frequently recurring events

• Budgeting: Allocate available money



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Decision making: Process of choosing a solution from available

alternatives

Rational decision making: Systematic process of defining problems,

evaluating alternatives, and choosing optimal solutions


Decision-making Definitions

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Steps


Decision-making Rational decision making

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Decision-making Conflict and decision-making

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Decision-making Conflict and decision-making

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Decision-making Conflict and team decision-making

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