ELISHBA'S SUMMARY ON CHAPTER 7(FOUNDATIONS OF PLANNING)

WHAT IS PLANNING?
PLANNING INVOLVES DEFINING THE ORGANIZATION'S GOALS, ESTABLISHING AN OVERALL STRATEGY AND ACHIEVING THOSE GOALS, AND DEVELOPING PLANS FOR ORGANIZATIONAL WORK ACTIVITIES.


WHY DO MANAGERS PLAN?

1.PURPOSE OF PLANNING

• PROVIDES DIRECTION
• REDUCES UNCERTAINTY
• MINIMIZES WASTE AND REDUNDANCY
• ESTABLISHES THE GOALS OR STANDARDS USED IN CONTROLLING

2.PLANNING AND PERFORMANCE

PLANNING IS ASSOCIATED WITH POSITIVE FINANCIAL RESULTS SUCH AS HIGHER PROFITS,HIGHER RETURNS ON ASSETS,AND SO FORTH.IT SEEMS THAT DOING A GOOD JOB OF PLANNING AND IMPLEMENTING THOSE PLANS THOSE PLANS PLAY A BIGGER PART IN HIGH PERFORMANCE THAN DOES THE EXTENT AND AMOUNT OF PLANNING DONE.

HOW DO MANAGERS PLAN?

PLANNING IS OFTEN CALLED THE PRIMARY MANAGEMENT FUNCTION BECAUSE IT ESTABLISHES THE BASIS FOR ALL THE OTHER THINGS THAT MANAGERS DO.WITHOUT PLANNING,MANAGERS WOULDN'T KNOW WHAT TO ORGANIZE.LEAD,OR CONTROL.MANAGERS PLAN TO WORK OUT ON THE GOALS AND PLANS THEY SET.

GOALS:

GOALS ARE THE DESIRED OUTCOMES OR OBJECTIVES FOR INDIVIDUALS,GROUPS,OR ENTIRE ORGANIZATIONS.THERE ARE TWO TYPES OF GOALS,

• REAL GOALS:THOSE GOALS THAT AN ORGANIZATION ACTUALLY PURSUES.
• STATED GOALS:OFFICIAL STATEMENTS OF WHAT AN ORGANIZATION SAYS, AND WHAT IT WANTS ITS STAKEHOLDERS TO BELIEVE, ITS GOALS ARE.

TYPES OF PLANS

• STRATEGIC PLANS: PLANS THAT APPLY TO THE ENTIRE ORGANIZATION'S OVERALL GOALS, AND SEEK TO POSITION THE ORGANIZATION IN TERMS OF ITS ENVIRONMENT.
• OPERATIONAL PLANS: PLANS THAT SPECIFY THE DETAILS OF HOW THE OVERALL GOALS ARE TO BE ACHIEVED.
• LONG-TERM PLANS: THOSE WITHIN A TIME FRAME BEYOND THREE YEARS.
• SHORT-TERM PLANS: THOSE COVERING ONE OR LESS.
• SPECIFIC PLANS: PLANS THAT ARE CLEARLY DEFINED AND THAT LEAVE NO ROOM FOR INTERPRETATION.
• DIRECTIONAL PLANS: THAT ARE FLEXIBLE AND SET OUT GENERAL GUIDELINES.
• SINGLE-USE PLANS: A ONE-TIME PLAN SPECIFICALLY DESIGNED TO MEET THE NEEDS OF UNIQUE SITUATION.
• STANDING PLANS:ARE ONGOING PLANS THAT PROVIDE GUIDANCE FOR ACTIVITIES PERFORMED REPEATEDLY.

CHARACTERISTICS OF WELL-DESIGNED GOALS:

• WRITTEN IN TERMS OF OUTCOMES RATHER THAN ACTIONS.
• MEASURE ABLE AND QUANTIFIABLE.
• CLEAR AS TO A TIME FRAME.
• CHALLENGING YET ATTAINABLE.
• WRITTEN DOWN.
• COMMUNICATED TO ALL NECESSARY ORGANIZATIONAL MEMBERS.

STEPS IN GOAL SETTING

1.REVIEW THE ORGANIZATION'S MISSION, THE PURPOSE OF AN ORGANIZATION.

2.EVALUATE AVAILABLE RESOURCES.

3.DETERMINE THE GOALS INDIVIDUALLY OR WITH INPUT FROM OTHERS.

4.WRITE DOWN THE GOALS AND COMMUNICATE THEM TO ALL WHO NEED TO KNOW.

5.REVIEW RESULTS AND WHETHER GOALS ARE BEING MET.