Foundations of Planning Chapter 6 Foundations of Planning Chapter 6, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada

Learning Outline After you read this chapter you should know the following learning objectives: #1: What does planning involve? #2: How do managers set goals and develop plans? #3: What are the challenges in planning? Chapter 6, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada

What Is Planning? Planning Managerial function that involves: Defining the organization’s goals Establishing an overall strategy for achieving those goals Developing a comprehensive set of plans to integrate and coordinate organizational work Types of planning Informal: not written down, short-term focus; specific to an organizational unit Formal: written, specific, and long-term focus, involves shared goals for the organization Learning Objective #1 Chapter 6, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada

Purposes of Planning Provides direction Reduces uncertainty Minimizes waste and redundancy Sets the standards for controlling Chapter 6, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada

Planning and Performance The Relationship Between Planning and Performance Formal planning is associated with: Higher profits and returns on assets Other positive financial results The quality of planning and implementation affects performance more than the extent of planning The external environment can reduce the impact of planning on performance Formal planning must be used for several years before planning begins to affect performance Chapter 6, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada