Chapter 5 Foundations of Planning Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 1 1

Planning Defining the organization’s goals, establishing an overall strategy, and developing a hierarchy of plans to achieve goals Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 2 4

Reasons for Planning Sets Standards to Facilitate Control Provides Direction Reasons for Planning Minimizes Waste and Redundancy Reduces the Impact of Change 5

How Do Strategic and Tactical Plans Differ? Time Frame Scope Objectives 8

The Time Frame of Planning Short-Term Plans Long-Term Plans 9

Specific Plans Directional Plans Clear Low Objectives Flexibility General High 10

Single-Use vs. Standing Plans Unique Situations Ongoing Operations 11

What Is Management by Objectives? Organizational Objectives Divisional Objectives Departmental Objectives Individual Objectives 12

Common Elements of MBO Goal specificity Participative decision making Set time period Performance feedback 13

The Strategic Management Process Identify Current Mission, Objectives & Strategy The Strategic Management Process Reassess Mission Strategies Evaluate Results 1 Analyze Resources Note Weaknesses and Strengths Environment Threats and Opportunities 2 3 4 5 6 7 & 8 9 8 17

Grand Strategies Growth Stability Retrenchment Combination

Determining A Business-Level Strategy Cost Leadership Differentiation Focus 23

After Strategies Are Formulated Implementation Evaluating results

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

Project Management Process (Exhibit 5-8) Identify activities and resources Define objectives Establish sequences Determine project completion date Compare with objectives Estimate time for activities Determine additional resource requirements