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