This chapter discusses the first of four functions in the management process: Pl
ID: 389205 • Letter: T
Question
This chapter discusses the first of four functions in the management process: Planning. which involves setting goals and deciding how to achieve them, which is linked to strategy. Planning consists of translating an organization’s mission and vision into objectives. The organization’s purpose is expressed as a mission statement, and what it hopes to become is expressed as a vision statement. A values statement expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world. Using the organization’s mission, vision, and values as their foundation, managers conduct strategic planning, then tactical planning, then operational planning.
1. What are planning, strategy, and strategic management; why are they important to me as a manager; what is VRIO and how does VRIO work?
2. What are mission and vision, and value statements, and what are three types of planning?
3. What are the two types of goals, and what are different kinds of plans?
4. What are SMART goals, and how can they be implemented through management by objectives and goal cascading?
5. How does the planning/control cycle help keep a manager’s plans headed in the right direction?
Explanation / Answer
1.PLANNING
planning is one of the most important management process, which deals with the setting of goals/objectives and designing the course of action and selection of missions and resources to achieve those targets. Planning can be simply explained as preparing for the future in a particular manner to achieve its set goals. According to Koontz and O'Donnell,''Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are and where we want to go. It makes possible things occur which would not otherwise occur".
The Steps in Planning functions are:
Strategy
The term simply means the goals that are to be achieved and plans of action to be performed in various scenarios to achieve the ultimate goals.strategy is anything from a precisely formulated course of action, a positioning in a particular environment to the entire personality the soul and existential rationale behind a company's existence. According to chandelier "Strategy is the determinant of the basic long-term goals of a firm, and the adoption of courses of action and the allocation of necessary resources necessary for carrying out the goals"
Strategic Management
Strategic Management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goal and objectives. Simply saying it is the careful selection and optimal utilization of resources to achieve the objective and goals of the company. Strategic management is an ongoing process and the implementation of decisions and actions that decides the performance and the success of the company.
VRIO
it is a business framework that forms a major part of the organization's strategic scheme. It is an analysis conducted internally. It helps in the identification and evaluation of the resources in an organization and the help in analysing the organization's capabilities. This tool was developed by Barney J.B.The VRIO is an improvement of the first founded VRIN model. The VRIO Analysis stands for four questions that ask if a resource is
Working of Vrio
2.the three major types of planning are
Mission, Vision and Value Statements
Mission defines the business of the organization, its objectives and the approach it will use to reach those objectives. It is a brief description of the reason for the organization's existence. It describes the overall intention and purpose of the organization.
A Vision statement whereby reflects upon the desired future position of the organization. The vision statement is supported by the mission statement and describes the ultimate goal of the organization.
value Statement
Value statement describes the organization's top priorities and core beliefs to it customers and staff. value statement helps to identify and connect to its potential customers and reminds the staff about its priorities and goals.
3. The different types of goals are:
kinds of plans
The different kinds of plans are:
a.short-range plans
b.long-range plans
c.operational plans
d.standing plans
e.single-use plans
4.Smart Goals
A Smart goal provides a direction for what an organization wants to achieve. This gives Direction to everyone who wishes to achieve the goals and has high chances of success. A well-formulated goal makes it easy for everyone to understand. SMART Goals stands for
Specific
measurable
Acceptable
realistic
time bound
SMART goals can be put into tasks that are assigned by managers to the staff, business and project plans and, marketing plans, It can be used for obtaining weekly, monthly and quarterly goals. Goals may not be necessarily be achieved bu may help in maintaining focus.
5.Planning cycles
planning cycle helps in bring all aspects of planning together into a single process. It helps the manager in