Summary MGT2900 Principles of Management
By 5510101
CHAPTER 5
Planning
The foundation of successful management
Planning = Thinking
It is an action of setting goals and making decision about how
to reach them. Planning copes with uncertainty action which is
going to happen in the future.
Planning and strategic management
There are 5 steps for strategic management process
Step1: Establish company’s mission
(reason that open business= พันธกิจ) and vision
(the long-term optimal desired future state=
Step2: Formulate the
corporate strategy
วิสัยทัศน์) “Make a commitment with customers”
Step4: Implement the
strategic plans
Step5: control the strategy
Step3: Formulate the “Strategic plan” (by top
managers 1-5 yrs) then the tactical plan (by
middle managers 6-24 months) and operational
plans (by first-line managers 1-52 weeks),
respectively
Summary MGT2900 Principles of Management
By 5510101
The three types of planning for three levels of management:
Strategic, Tactical and Operational
Types of planning
Characteristics
Strategic planning
Long-term goals, 1-5 years
Tactical planning
shorter term, 6-24 months, more specific
Operational planning
1-52 weeks, very specific procedures
The action plan and the operating plan
Action Plan – the course of action needed to achieve the stated goal
Operating Plan – a 1 year period plan, how to conduct business based on action plan
Standing plans: Policies, Procedures and rules
Standing plan – developed plan for activities that occur repeatedly over a
period of time
Policy = standing plan that outlines the general response to a designated
problems or situation Ex. Save energy policy in company
Procedure (Standard operating procedure) = standing plan that outlines the
response to particular problems or circumstances
Rule and regulation= standing plan that designates specific require action
Single-use plans: programs and project
Single-use plans = plans developed for activities that are not likely to be
repeated in the future
Program = a single-use plan include a range of projects or activities
Project = a single-use plan of less scope and less complexity than a program
**Program contains one or more than 2 projects**
Summary MGT2900 Principles of Management
By 5510101
MBO = Management by objective
It is the 4 steps process including
1. Managers and employees jointly set objectives for the employee
2. Managers develop action plan
3. Managers and employees periodically review the employees’ performance
4. The manager makes a performance evaluating and rewards the employees
according to results
Cascading objectives: MBO from top to down
1. Top management must be committed. The commitment of top level
manager reflect in the productivity of employees
2. It must be applied organization wide. The program has to be put in place
throughout the whole organization
3. Objective must “cascade” MBO works by cascading down through the
organization that is objectives are structured in a unified hierarchy becoming
more specific at lower levels of the organization.
When applying MBO, relationship in organization is really good.
The planning/control cycle
Make the plan
Carry
out/
follow
plan
Control result
Control 2 ways
direction
1. Correcting
deviation in the plan
2. Improving future
plan