often called the primary management function because it establishes the basis for all the other things managers do
It’s concerned with ends (what is to be done) as well as with means (how it’s to be done)
Managers engage in planning to:
–set the standards to facilitate control
–minimise waste and redundancy
–reduce the impact of change
because of changes in the environment
Critics have challenged some of the basic assumptions of formal planning
2.What about intuition and creativity?
3.Focus -where is it?
4.Formal planning reinforces success ………
What managers do to develop an organization’s strategies
What are an organization’s strategies?
Strategic Management Process
A six-step process that encompasses strategy planning, implementation, and evaluation
Strategic Management Process Steps
1. identify organization’s current mission, goals, and strategies
2&3. SWOT Analysis- Internal&External Analysis
4. Formulate strategies
5. Implement strategies
6. Evaluate results
Types of Goals
–Stated Goals (official statements of what an organization says, and what its stakeholders believe,
Setting goals: Traditional Goal Setting
Goals set by top managers flow down through the organisation and become sub-goals for each organisational area
An integrated network of goals in which higher level goals are linked to lower-level goals, which serve as the means for their accomplishment
Management By Objectives (MBO)
A process of setting mutually agreed-upon goals and using those goals to evaluate employee performance
Four elements to MBO programs:
–participative decision making
–explicit time frame
Steps in Goal Setting
1 .Review the organisation’s mission and employee’s key job tasks.
2. Evaluate available resources.
3. Determine the goals individually or with input from others.
4. Make sure goals are well-written and then communicate them to all who need to know.
5. Build in feedback mechanisms to assess goal progress.
6. Link rewards to goal attainment.
The most popular ways to describe plans are in terms of their:
–Breadth (strategic versus tactical)
–Time frame (long term versus short term)
–Specificity (directional versus specific)
–Frequency of use (single-use versus standing)
In the traditional approach planning is done by _____ ______________.
Often assisted by a _____ _________ ____________.
formal planning department
formal planning department
A group of planning specialists whose sole responsibility is to help write the various organizational plans
Another approach is to actively involve organisational members in the planning process.
•Involving employees more closely in planning processes means giving them access to all the relevant information.
So how do you plan effective plan when the environment keeps changing?
types of strategies
1) corporate strategy
2) competitive strategy
3) functional strategy
organization strategy that specifies what business a company is in or wants to be in and what it wants to do in those businesses
how an organization will compete in its businesses
strategies used in an organization’s various functional departments to support the competitive strategy
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