Planning

Essentials of Planning and Managing by Objectives

OBJECTIVES

After studying this chapter, you should be able to: 1. Understand what managerial planning is and why it is important. 2. Identify and analyze the various types of plans and show how they relate to one another. 3. Outline and discuss the logical steps in planning and see how these steps are essentially a rational approach to setting objectives and selecting the means of reaching them. 4. Explain the nature of objectives. 5. Describe how verifiable objectives can be set for different situations. 6. Outline the evolving concepts in management by objectives (MBO). 7. Understand the model of the systems approach to MBO. 8. Describe the benefits of MBO. 9. Recognize the weaknesses of MBO and suggest ways to overcome them.

You are now familiar with the basic management theory and have

been introduced to the five essential managerial functions: planning, : organizing, staffing, leading, and controlling. In Part 2 of this book, we shall discuss planning. In designing an environment for the effective performance of individuals working together in a group, a manager's most essential task is to see that everyone understands the group's mission and objectives and the methods for attaining them. If group effort is to be effective, people must know what they are expected to accomplish. This is the function of planning. It is the most basic of all the managerial functions. Planning involves selecting missions and objectives and deciding on the actions to achieve them; it requires decision making, that is, choosing a course of action from among alternatives. Plans thus provide a rational approach to achieving preselected objectives. Planning also strongly implies managerial innovation, as will be discussed in Chapter 6. Planning bridges the gap from where we are to where we want to go. It is also important to point out that planning and controlling are inseparable—the Siamese twins of management (see Figure 4-1)....