1. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 All of the other management functions
stem from planning
 How do you plan for an undefined future?
 No plan is perfect
Without plans and
goals, organizations flounder
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A goal is a desired future state
that the organization attempts to
realize
A plan is a blueprint for goal
achievement and specifies
the necessary resource
allocations, schedules, tasks
, and other actions
PLANNING

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5. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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6. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Organizational mission – the organization’s
reason for existence
 Strategic goals – official goals, broad
statements describing the organization’s
future
 Strategic plans – define the action steps the
company will take
 Goals should be aligned using a strategy
map
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7. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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8. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Direct employees and resources
 Guide toward efficient and effective
performance
 Includes planning approaches:
Management-by-Objectives (MBO)
Single-Use Plans
Standing Plans
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9. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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10. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Defined in 1954 by Peter Drucker
 Method for defining goals and monitoring
performance
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12. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Single-Use Plans
Achieve one-time goals
Programs and projects
Standing Plans
Ongoing plans
Policies, rules, procedures
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13. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Single-Use Plans
Program: building new
headquarters, converting paper files to
digital
Project: renovating the office, setting up a
new company intranet
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14. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Standing Plans
Policy: Sexual harassment policies, Internet
and social media policies
Rule: No eating rule in areas of company
where employees are visible to public
Procedure: Procedures for issuing refunds,
Procedures for handling employee
grievances
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15. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
• Goals and plans provide a source of motivation
and commitment
• Goals and plans guide resource allocation
• Goals and plans are a guide to action
• Goals and plans set a standard of performance
• Goals and plans can create a false sense of
certainty
• Goals and plans may cause rigidity in a turbulent
environment
• Goals and plans can get in the way of intuition and
creativity
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16. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Contingency Planning
Planning for emergencies, setbacks, or
unexpected conditions
 Building Scenarios
A forecasting technique to look at current
trends and discontinuities and visualize future
possibilities
 Crisis Planning
Unexpected events that are sudden and
devastating
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18. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Stretch goals are highly ambitious
 Clear, compelling, and imaginative
 Require innovation
 Goals must be seen as achievable
 Like Big Hairy Audacious Goal (BHAG) from
1996 article on “Building Your Company’s
Vision”
 As times move faster and become more
turbulent, these are important
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