chAPTER 3 PRINCIPLE OF MANAGEMENT

1. CHAPTER 3
FOUNDATION OF PLANNING

2. WHAT IS PLANNING
1. Defining the organizational goal
2. Establishing the overall strategy to achieve
those goals
3. Developing a comprehensive set of plans to
integrate and coordinate organizational work
4. It is concerned with both ends and means

3. PURPOSES OF PLANNING
1. Provides direction
2. Reduces uncertainty
3. Minimize waste and redundancy
4. Set the standards used in controlling

4. TWO ELEMENTS OF
PLANNING
1. Goals
2. Plans

5. 1. Financial Goals
2. Strategic Goals
3. Stated Goals
4. Real Goals
TYPES OF GOALS

6. TYPES OF PLANS
1. Strategic plans
2. Operational plans
3. Long term plans
4. Short tem plans
5. Specific plans
6. Directional plans
7. Single use plans
8. Standing plans
Please refer to exhibit 8-1 on page 207

7. ESTABLISHING GOALS AND
DEVELOPING PLANS
Approaches to establishing goals:
1. Traditional Goal Setting
Please refer to exhibit 8-2 on page 209
2. MBO
Please refer to exhibit 8-3 on page 210
Please refer to exhibit 8-4 on page 210 for the
Characteristics of well written goals

8. STEPS IN GOALS SETTING
1. Review the organization’s mission
2. Evaluate available resources
3. Determine the goals individually or with input
from others
4. Write down the goals and communicate them to
all who need to know
5. Review results and whether goals are being met

9. DEVELOPING PLANS
Three contingency factors that affect
planning:
1. Level in the organization
2. Degree of environmental uncertainty
3. Length of future commitments

10. APPROACHES TO
PLANNING
FORMAL PLANNING DEPARTMENT