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1、Fundamentals of Management Chaper 3 Foundations of PlanningCopyright ? 2005 Prentice Hall, Inc1. All rights reserved.Chapter 3Foundations of Planning3PART II: PlanningCopyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3*Learning Outcom
2、esAfter reading this chapter, I will be able to:Define planning.Explain the potential benefits of planning.Identify potential drawbacks to planning.Distinguish between strategic and tactical plans.Recognize when directional plans are preferred over specific plans.Define management by objectives and
3、identify its common elements.Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3*Learning Outcomes (contd)After reading this chapter, I will be able to:Outline the steps in the strategic management process.Describe the four grand stra
4、tegies.Explain SWOT analysis.Describe how entrepreneurs identify a competitive advantage.Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3*Planning DefinedDefining the organizations objectives or goalsEstablishing an overall strateg
5、y for achieving those goalsDeveloping a comprehensive hierarchy of plans to integrate and coordinate activities Planning is concerned with ends (what is to be done) as well as with means (how it is to be done).Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall,
6、Inc. All rights reserved. 3*Reasons for PlanningExhibit 3.1Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3*Criticisms Of Formal PlanningPlanning may create rigidity.Plans cant be developed for a dynamic environment.Formal plans ca
7、nt replace intuition and creativity.Planning focuses managers attention on todays competition, not on tomorrows survival.Formal planning reinforces success, which may lead to failure.Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3
8、*Planning and PerformanceFormal planning generally means higher profits, higher return on assets, and other positive financial results.Planning process quality and implementation probably contribute more to high performance than does the extent of planning.When external environment restrictions allo
9、wed managers few viable alternatives, planning did not lead to higher performance.Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3*Types of PlansExhibit 3.2BREADTH TIME SPECIFICITYFREQUENCY OF USE FRAME OF USEStrategicLong termDire
10、ctionalSingle useTacticalShort termSpecificStandingCopyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3*Planning: Focus and Time Strategic plansPlans that are organization-wide, establish overall objectives, and position an organizatio
11、n in terms of its environmentTactical plansPlans that specify the details of how an organizations overall objectives are to be achievedShort-term plansPlans that cover less than one yearLong-term plansPlans that extend beyond five yearsCopyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyri
12、ght ? 2005 Prentice Hall, Inc. All rights reserved. 3*Strategic PlanningStrategic plans Apply broadly to the entire organization.Establish the organizations overall objectives.Seek to position the organization in terms of its environment. Provide direction to drive an organizations efforts to achiev
13、e its goals.Serve as the basis for the tactical plans.Cover extended periods of time.Are less specific in their details.Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3*Tactical PlanningTactical plans (operational plans)Apply to sp
14、ecific parts of the organization.Are derived from strategic objectives.Specify the details of how the overall objectives are to be achieved.Cover shorter periods of time.Must be updated continuously to meet current challenges.Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005
15、 Prentice Hall, Inc. All rights reserved. 3*Directional versus Specific PlansExhibit 3.3Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3*Specific and Directional PlansSpecific plansPlans that have clearly defined objectives and lea
16、ve no room for misinterpretation.“What, when, where, how much, and by whom” (process-focus)Directional plansFlexible plans that set out general guidelines.“Go from here to there” (outcome-focus)Copyright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights
17、reserved. 3*Single-Use and Standing PlansSingle-use plansA plan that is used to meet the needs of a particular or unique situationSingle-day sales advertisementStanding planA plan that is ongoing and provides guidance for repeatedly performed actions in an organizationCustomer satisfaction policyCop
18、yright ? 2005 Prentice Hall, Inc. All rights reserved. Copyright ? 2005 Prentice Hall, Inc. All rights reserved. 3*Management by ObjectivesManagement by Objectives (MBO)A system in which specific performance objectives are jointly determined by subordinates and their supervisors, progress toward objectiv
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