1. 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

2. 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

3. 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

4. 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

5. 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