Management a practical introduction 3rd kinicky chapter 05

Management A Practical Introduction Third Edition Angelo Kinicki & Brian K Williams Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 5: Planning The Foundation of Successful Management Planning & Uncertainty Fundamentals of Planning The Planning/Control Cycle Management by Objectives Project Planning Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.1 Planning & Uncertainty HOW CAN PLANNING HELP MANAGERS DEAL WITH UNCERTAINTY?  Planning: defined as setting goals and deciding how to achieve them  Another definition: Planning is coping with uncertainty by formulating future courses of action to achieve specified results Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.1 Planning & Uncertainty HOW CAN PLANNING HELP MANAGERS DEAL WITH UNCERTAINTY? Planning is used together with strategic management and evolves from the company’s mission and vision Planning covers strategic planning (done by top managers, tactical planning (done by middle managers), and operational planning (done by first-line managers) Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.1 Planning & Uncertainty Figure 5.1: Planning and Strategic Management Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.1 Planning & Uncertainty WHY NOT PLAN? Managers need to be cautious when planning for two reasons: Planning requires managers to set aside their regular responsibilities to develop plans Managers need to be flexible enough to react to new events because there may not always be enough time to plan Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.1 Planning & Uncertainty HOW DOES PLANNING HELP? There are four main benefits of planning: Organizations can use plans to check their progress toward their goals Plans define the responsibilities of a firm’s departments and coordinates their activities Planning requires managers to consider what may happen in the future Planning for unpleasant contingencies helps managers deal with uncertainty Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Why not plan?   Planning requires you to set aside time to it  Most managers are time-starved  Hard to set aside time to plan You may have to make some decisions without a lot of time to plan  Even in today’s computer age, you may not have time to plan a decision  Plan need not be perfect to be executable McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved The Benefits of Planning 1) Planning helps you check on your progress 2) Planning helps you coordinate activities 3) Planning helps you think ahead 4) Above all, planning helps you cope with uncertainty McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved 5.1 Planning & Uncertainty There are three types of uncertainty: State Uncertainty Effect Uncertainty Response Uncertainty Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 5: Planning CLASSROOM PERFORMANCE SYSTEM Good goals should have all of the following characteristics except A) results-oriented B) target date C) supportive D) attainable Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 5: Planning CLASSROOM PERFORMANCE SYSTEM Good goals should have all of the following characteristics except A) results-oriented B) target date C) supportive D) attainable Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.3 The Planning/Control Cycle WHY HAVE PLANNING AND CONTROL? Once an organization has a plan, it needs to make sure it stays on track The planning/control cycle has two planning steps, and two control steps: planning steps: make the plan, and carry out the plan control steps: control the direction by comparing results with the plan, and control the direction by taking corrective actions Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 5: Planning Figure 5.5: The Planning/Control Cycle Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.4 Promoting Goal Setting: Management By Objectives HOW CAN MANAGERS PROMOTE GOAL SETTING? Peter Drucker developed a system called Management by Objectives (MBO) designed to motivate employees to achieve goals MBO has four steps: Managers and employees jointly set objectives for the employee Goals should include improvement objectives, personal development objectives, and maintenance objectives Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.4 Promoting Goal Setting: Management By Objectives Managers develop action plans Action plans should be developed at each level describing how goals will be attained Managers and employees periodically review the employee’s performance Formal and informal meetings are used to review progress and provide feedback The manager makes a performance appraisal and rewards the employee according to the results Performance that meets objectives should be rewarded, and poor performance should be addressed Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.4 Promoting Goal Setting: Management By Objectives If MBO is to be successful, three things must occur: Top management must be committed Commitment translates to productivity gains It must be applied organization-wide To be successful, MBO must be applied in all divisions and departments Objectives must cascade MBO works by cascading objectives down through the organization Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Three Types of Objectives Used in MBO  Improvement objectives: Increase sport utility sales by 10%  Personal development objectives: attend five days of leadership training  Maintenance objectives: continue to meet the increased sales goals specified last quarter McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved 5.5 Project Planning WHAT IS PROJECT PLANNING? The preparation of single-use plans or projects is called project planning Project management involves achieving a set of goals through planning, scheduling, and maintaining progress of the activities that comprise the project Project planning reduces the risk of uncertainty and speeds up the process of getting things done Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Why Project Planning Is Important Today Project Planning Preparation of single-use plans or projects, followed by… Project Management Achieving a set of goals through planning, scheduling, and maintaining progress of the activities that comprise the project Fastest way of getting things done Works outside usual chain of command Brings people with different skills together on a temporary basis McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved 5.5 Project Planning Figure 5.6: The Project Life Cycle Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.5 Project Planning All projects go through a life cycle: In the definition stage, the problem is stated, assumptions and risks are identified, goals and objectives are determined, and the budget and schedule are set In the planning stage, facilities and equipment are identified, people and their duties are selected, and the schedule is considered During the execution stage, the management style and control tools are established Closing occurs when the client accepts the project Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin The Project Life Cycle: The Predictable Evolution of a Project Definition State the problem and identify goals and objectives Planning Identify resources needed and schedule of activities required Execution Actual work stage On time and under budget Closing Client accepts project McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved Chapter 5: Planning CLASSROOM PERFORMANCE SYSTEM At what stage in the project life cycle is the budget determined? A) definition B) planning C) execution D) closing Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 5.5 Project Planning WHY IS PROJECT PLANNING IMPORTANT? Deadlines are an essential component in the project planning process Deadlines help keep managers on track and provide feedback Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin ... Goals set by top management that focus on objectives for the organization as a whole are A) tactical goals B) operational goals C) strategic goals D) organizational goals Kinicki/Williams, Management: ... B) operational goals C) strategic goals D) organizational goals Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 5: Planning CLASSROOM PERFORMANCE SYSTEM... organization as a whole Tactical Goals: are set by and for middle managers and focus on the actions needed to achieve strategic goals Operational Goals: are set by and for first-line managers and