Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Foundations of Planning FOM3-1

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Learning Objectives Define planning Explain the potential benefits of planning Identify the potential drawbacks of planning Distinguish between strategic and tactical plans State when directional plans are preferred over specific plans FOM3-2

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Learning Objectives Define management by objectives and identify its common elements Outline the steps in the strategic management process Describe the four grand strategies Explain SWOT analysis Compare how entrepreneurs and bureaucratic managers approach strategy FOM3-3

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Planning Defining the organization’s goals, establishing an overall strategy, and developing a hierarchy of plans to achieve goals -4 FOM3-4

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Reduces the Impact of Change ProvidesDirection Minimizes Waste and Redundancy Sets Standards to FacilitateControl Reasons for Planning -5 FOM3-5

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Criticisms of FormalPlanning May Create Rigidity Can’t Replace Intuition and Creativity Can’t Be Done in a Dynamic Environment Focus on Today’s Competition ReinforcesSuccess FOM3-6

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Does Planning Improve Performance? Financial results Environmental concerns Quality and implementation FOM3-7

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. ObjectivesTime FrameScope How Do Strategic and Tactical Plans Differ? FOM3-8

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. The Time Frame of Planning Short-TermPlansLong-TermPlans FOM3-9

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Specific Plans Directional Plans Clear General Low High Flexibility Objectives FOM3-10

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Single-Use vs. Standing Plans UniqueSituationsOngoingOperations FOM3-11

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. OrganizationalObjectives DivisionalObjectives DepartmentalObjectives IndividualObjectives What Is Management by Objectives? FOM3-12

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Common Elements in an MBO Program Specific Goals Set Time Period Participative Decision Making PerformanceFeedback FOM3-13

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. More Difficult Goals Lead To Higher Performance Does MBO Work? Specific Goals Lead to Better Results Support from TopManagement Is Critical Participation Is Key FOM3-14

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Employees Setting Objectives Identify key job tasks Set specific and challenging goals Encourage active participation Prioritize goals Build in feedback Link rewards to goal attainment FOM3-15

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Problems with MBO Efforts directed primarily toward output Encourage individual rather than team efforts Goals may discourage efforts for continuous improvement FOM3-16

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Identify Current Mission, Objectives & Strategy The Strategic Management Process Reassess Mission Strategies Evaluate Results 1 Analyze Resources Note Weaknesses and Strengths Analyze Environment Note Threats and Opportunities & 8 9 FOM3-17

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Starting the Process StrategiesMission Objectives FOM3-18

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. CompetitiveIntelligence EnvironmentalScanning Analyzing the Environment FOM3-19

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. SWOTAnalysis ThreatsOpportunities Weaknesses Strengths FOM3-20

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Identifying Opportunities Opportunities in the Environment Organization’s Resources Organization’s Opportunities FOM3-21

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. RetrenchmentCombination The Grand Strategies StabilityGrowth FOM3-22

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Determining A Competitive Strategy DifferentiationCostLeadership Focus FOM3-23

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Implementation Evaluation What Happens After Strategies Are Formulated? FOM3-24

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Benchmarking Quality As A Strategic Weapon ISO 9000 Six Sigma FOM3-25

Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Comparison: Entrepreneurs and Traditional Managers AcceptanceAvoidanceView toward mistakes ModerateLowRisk tendency Direct involvementDelegationActivity 5-10 year growth of business Short-term goalsTime orientation IndependenceCorporate rewardsPrimary motivation EntrepreneurTraditional Manager FOM3-26