Foundations of Planning Lec 5
Foundations of Planning Lec 5
Foundations of Planning Lec 5
Foundations of Planning
What Is Planning?
• Planning
A primary managerial activity that involves:
defining the organization’s goals,
establishing strategies for achieving those goals,
and developing plans to integrate and coordinate work
activities
Types of planning
Informal: Goals are not written down, have short-term focus;
and are specific to an organizational unit.
Formal: Specific goals covering a specific time period are
defined.
Written, specific, and long-term focus, involves
shared goals for the organization.
Why Do Managers Plan?
• Purposes of Planning
Provides direction
When employees know what their organization or work
unit is trying to accomplish and what they must contribute
to reach goals, they can coordinate their activities,
cooperate with each other, and do what it takes to
accomplish those goals.
Reduces uncertainty
Planning forces managers to look ahead, anticipate
change, consider the impact of change, and develop
appropriate responses. Although planning won’t eliminate
uncertainty, managers plan so they can respond
effectively