Chap 005

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, All Rights Reserved.

Chapter Five

PlanningThe Foundation of Successful

Management

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Planning & Uncertainty

• Planning

coping with uncertainty by formulating

future courses of action to achieved

specified results

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Planning & Strategic Management

Figure 5.1

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How Planning Helps You

1. Helps you check on your progress

2. Helps you coordinate activities

3. Helps you think ahead

4. Helps you cope with uncertainty

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The Adaptive Cycle

• Adaptive Cycle

businesses are continuously cycling

through decisions about three kinds of

business problems: (1) entrepreneurial, (2)

engineering, and (3) administrative

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Making Plans

Figure 5.2

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Three Types of Planning for Three Levels of Management

• Strategic planning

determine what the organization’s long-

term goals should be for the next 1-5 years

with the resources they expect to have

available

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Three Types of Planning for Three Levels of Management

• Tactical planning

determine what contributions their

departments can make during the next 6-

24 months

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Three Types of Planning for Three Levels of Management

• Operational planning

how to accomplish specific tasks within the

next 1-52 weeks

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Goals, Action Plans, & Operating Plans

• Goals

specific commitment to achieve a

measurable result within a stated period of

time

also known as an objective

strategic, tactical, operational

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What Is MBO?

1. Jointly set objectives

2. Develop action plan

3. Periodically review performance

4. Give performance appraisal and

rewards, if any

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Setting SMART Goals

• Specific

• Measurable

• Attainable

• Results-oriented

• Target dates

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The Planning/Control Cycle

Figure 5.5

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Project Planning

• Project management

achieving a set of goals through planning,

scheduling, and maintaining progress of

the activities that

comprise the project

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The Project Life Cycle

Figure 5.6

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REVISION

Q1:(p. 143) Engineering is a kind of

business problem that is portrayed in

the adaptive cycle.

TRUE OR FALSE

TRUE

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Q2: (p. 147) The operating plan identifies

clear targets such as revenues, cash

flow, and market share.

TRUE OR FALSE

TRUE

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Q3: (p. 140) Planning is defined as

A. coping with uncertainty by analyzing past

actions.

B. setting goals and deciding how to achieve

them.

C. correcting problems that have occurred.

D. the same process as MBO.

ANSWER

B. setting goals and deciding how to achieve

them.

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• Q4:(p. 145) Roger Enrico of Pepsi Co, had a

clear sense of the future and the actions needed

to get there. This is an example of a(n)

A. mission.

B. purpose.

C. vision.

D. performance.

ANSWER

• C. vision.

• A vision is a long-term goal describing what an

organization wants to become. It is a clear sense

of the future and the actions needed to get there.

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• Q5: (p. 158) Anthony's main focus is to complete his project on time. This project is in the ____________ stage.A. closingB. planningC. executionD. definition

• ANSWER

• C. execution

• The execution stage is the actual work stage. Your main focus is to complete the project on time and under budget while trying to meet the client's expectations.