Chapter # 7

Foundation of planning

What is planning?

Planning involves defining the organization goals, establishing an overall strategy for achieving those goals, and developing plans for organization and work activities.  

Example:

O’Reilly Auto Parts of Springfield, Missouri, has grown from a single store founded in 1957 to over 1400 locations. Its management teams to continuous that pattern of growth with the best possible combination of price, quality and service, and with pay and benefits to attract the right kind of employees. Achieving these goals will require a great deal of formal planning to provide direction, minimize waste and error, and set standards of performance.

Why do managers Plan?

·         Purpose of planning

•   To provide a direction to managers alike. When employ what their organization or work unit to achieve them.
  
•   To reduce uncertainty by forcing managers to look ahead, anticipate change, consider the impact of change and develop appropriate responsive
  
•   To minimize waste and redundancy.
  
•   To establish the goal or standards used in controlling.
  

How do managers plann?

 

        palnning is establish the basis for all the other thing that managers do.

GOls are the outcome we desire . At the bronx zoo, partrick thomas, curator of mammals, recently gazed into the eyes of siberian tiger "Taurus" through a sheet of inch-thick glass "Our goal is to have animals engaged in normal; behaviours," thomas states thomas goes on to say of the tiger habitat, ""you want the exihibit to inspire visitors to care about saving tigers" the goal of the 3-acer Tiger Mountaiin is particularly important; its six residents represent the mere 5000 tigers left in the wild.

 

Type if Goals.

            in reallity , all organiztion have muktiple goals, for instance, buisness, also want to increse market share and seep employees enthused about working for the organization. a church provides a place for religious practicies, but also assists economicallydisadvantages individuals in tos community and acts as asocialgathering place for church mermbers.

 

if manager emphasis one goal, such as profitsandignore other goals so the result would bve in ethical practice because managers and employees will ignore ather important parts of their jobs in order to look good on that one measure.

if manager just look at fdinancial goal, because financila related to the finacial performance of the organizaion ehile strategic goals are related to othjer areas of an organization's  performance. disadvantages of this is that they will not be look at profits of the organization so that's why they failss.

 

GStatred goals :-

            describes that what organization wants to says, and what it wants it stakeholders to belioeve,.

For example:-

 stated goals of large global companies.

 

• McDonald's Corporation:
  
• Grow the buisness profitably.
  
• Identitfy and develop diverse talent.
  
• Promote balanced, Active lifestyles.
  

 

L'Oreal:-

1. continiious to win market share globallyt
   
2. focus in highter-value products.
   
3. reduce productinon costs.
   
4. lower purchasing costs.
   
5. integrated diversity
   
6. gain ISO 140001 certification for all factories.
   

 

Group of Bimbo:-

• Respect the enviourment.
  
• respect and supprot family unity and national traditions.
  
• promote community welfare.
  
• continue implementing qualitysystems.
  
• continious to be a strong cash generator.
  

 

Costco:-

• contol invertoryy.
  
• maintain industry's lowest inventory shinkag rate.
  
• open 25-30 new locations in fiscal 2006.
  
• live by the code of ethics every day.
  

 

Target

• expand selection of competitively pricied products.
  
• manage inicentory carefully.
  
• continiue to improve store format every few years.
  
• oprate 2000 store by the end of the decade.
  
• continue gaininjg market share.
  

 

Starbiuks:-

• Roll out newly-designed environmentally friendly cup in 20006.
  
• open approximatley 1800 new store globally in 2006.
  
• attain net revenue growth of approximately 20 percent in 2006.
  
• attain annual EP's growth betwqeen 20 percent to 25 mpercent for the next 3 to9 5 years.

 

Type of Plans:-

 

strategic Plans:-  

are planns that aply to the entire organization, establish the organization's overall goals, and seek to position the orghanization in terms of its enviornmetn.

 

operational plans:- 

it specifies the detail of how the two type s of plans differ?

 

Specific planns:-

this type of planns creally defines and that leave no room for interprepretation. they clearly define the objectives.

Directinal plans:-  

these planns are flecible plans that set out genral guidlines.

      For example:- Sylvia phon, president of Motown Records says she has a simple goal- to "single great artist" So instead of creating a specigfic plann to produce plannto produce market 10 albums from new artist this year, she might formulate a directional plan to use a network of people around the world to alert her to new and promossing talentso she can increase the number of new artist she has under contact.

 

Single use plann:- this is a one-time plan specifically desingned to meeyt the needs of a unique situation, for instance, when wal-mart decided to drastically expand the number of its store china.

 

Standing plans:- are ongoing plans that provide guiddance for acticities performed repeatdly.

stnding plans include policies , rules and procedures.

 

Approch to establishing Goals:-

 

The organization's overall objectives and strategies are fromulated.

major objectives are allocated amon divisonal and departmental units.

unit managers collaboratively set specific objecitives for their units with their managers.

specific objective are collaboratively set with all department members.

action plans, define how objectices are to be achieved , are specified and agreed up on by managers and emplotees.

the action planms are implements.

progress toward objectives in perokdically reviewed and feedback is provided.

successful achievement of objectives is reingorced by performance- base reward.

 

Charcteristics of well-define Goals\|       

 

 

witten in terms of outcomes rather that actions.

measurable and quantifieable

clear as to a time frame

challenging yet arrainable

written down

communicated to all necessary organizational members.

 

Steps in Goal Setting:-

 

Review the organization's mission, the purpose of an organization.

Evaluate available resources.

determine the goals individually or with input from others

write doen the goals and communicate them to all who need to know.

review result and wether goals are being met.

 

 

Developing Plans:-

   continious Factor in Planning:-

the factor that affects planning is environmental uncertaninty when environmental uncertainty is high, p[lann should be specific but flexible .

that way plann is divided in to three categories .

Top Executive

Middle-level Managers

First line managers

 

Approch ion planning:-|Approch to planning:-

As compnies prepare plansto keepm their buisness operation if a bid fllu pandemic his throny issue are arising. for instance, procter & gamble "asked it's company doctors wether it should try to scure aprivate stash of the avain-influenza. drug Tamilu for its stafff in Asia"The company medical leader in sought Asia said"How it be of we were holding supplies that general public didn't have to but protect its own employees? why or why niot ? what other alternatives might therebe?

 

Criticisms of planning:-

Planning may create rigidity. formal planning efforts can lock an organization into specific goals to be achieved within specific stimetables.

plans can't be development for a dynamic envirommenbt

formal plans can't repl;ace and creativity.

planning focuses managers attention on today's competition not on tomorrow's survival.

formal planning reingorces success, which lead to failure.

just planning isn't enough.Ho