Mgmt

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Learning objectives

MGMT1001 – Principles
of Management

At the end of this session, students should be able to:
At
to:
Assess
Assess the nature and importance of the planning
function
Identify
Identify and describe different types of goals and plans
set in organisations.
organisations.
Identify
Identify the major rules governing the planning
function.
function.
Assess
Assess the contingency factors and
limitations
associated with planning.
planning.

The Planning Function
& Revision
Lecturer: Dwayne Devonish

Planning
“involves
“involves defining the organization’s goals
establishing an overall strategy for achieving
those goals, and developing plans for
organisational work activities” (Robbins and
Coulter, 2007, p.184)
2007, 184)
Considered
Considered to be the most fundamental
managerial function in organisations.
organisations.
Goals
Goals are defined, and plans are set in place to
achieve these goals.
goals.

What is a Plan?
“A blueprint for goal achievement and specifies
“A
the necessary resource allocations, schedules,
tasks, and other actions” (Daft and Marcic,
2001, 140)
2001, p.140).
Plans
Plans specify the current means of achieving
goals.
goals.
Goals
Goals are what we want, plans are how we will
reach them.
them.

What is a Goal?



A goal is a desired outcome that the organisation
wants to achieve or reach in order to fulfil their
purpose or mission:
mission:
To obtain first class honours.
To
honours.
To increase sales by 30% by year end.
To
30%
end.
To increase road tax, gas prices, and everything
To
else but salaries.
salaries.
Goals specify the ends.
ends.

Importance of Planning
Is considered to be the main (premier) managerial
Is
function;
function; it precedes all other functions.
functions.
Provides
Provides direction to managers and non-managers.
non-managers.
Facilitates
Facilitates and complements other management
functions.
functions.
Reduces
Reduces uncertainty as managers are forced to look
ahead, anticipate changes, and respond appropriately.
appropriately.
Minimises
Minimises waste and redundancy; planning early allows
redundancy;
managers to be aware of those resources that will be
sufficient for achieving organisational outcomes –
efficiency is maintained.
maintained.

1

Planning



Occurs
Occurs at all levels of management:
Top
Top management
Middle
Middle management
First
First line management
Planning complements and supports each managerial
function:
Organising
Organising
Leading
Leading
Controlling
Controlling

Types of Plans I
Specific
Specific plans – clearly defined plans set by the
organisation that leave no room for
interpretation (no ambiguity) – however, are not
effective in uncertain environments – plans are
rigid.
rigid.
Directional
Directional plans – these are flexible and
general (adequate for uncertain environments
where flexibility is needed); not set deadlines or
needed);
course of action.
action.

Types of Plans III
Long-term plans - Plans with time
frames extending beyond three years
Short-term plans - Plans with time
frames on one year or less

Types of Goals
Goals
Goals can also exist as:
as:
Stated
Stated Goals – Written (official) statements of
organisational goals – included in annual reports,
mission statements, etc.
etc.
Real
Real Goals - Actual goals pursued by the
organization (observed actions of the members
of the organisation – stated goals may be too
vague or unrealistic)

Types of Plans II
SingleSingle-use plans – A one-time plan specifically
onedesigned to meet the needs of a particular situation;
situation;
used to achieve one-time goals. Shorter time
onegoals.
horizon.
horizon. E.g. setting a plan for a programme for a a
specific project (one-time).
(one-time).
Standing
Standing plans – Ongoing plans that provide
guidance for activities performed repeatedly. E.g...
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