© Pearson Education Limited 2015 5-1 Chapter 5 Foundations of Planning
© Pearson Education Limited 2015 5-1
Chapter5Foundationsof Planning
Learning Outcomes
• Discuss the nature and purposes of planning.
• Explain what managers do in the strategic management process.
• Compare and contrast approaches to goal setting and planning.
• Discuss contemporary issues in planning.
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5.3 Compare and
contrast
approaches to goal
setting and
planning.
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Setting Goals and Developing Plans
Types of PlansFinancial versus strategic
Stated versus real
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Traditional Goal Setting
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Management by Objectives
1. Goal specificity
2. Participative decision making
3. Explicit time period
4. Performance feedback
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Well-Written Goals
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Steps in Goal-Setting
1. Review the organization’s mission and employees’ key job tasks.
2. Evaluate available resources.
3. Determine the goals individually or with input from others.
4. Make sure goals are well-written and communicate to all who need to know.
5. Build in feedback mechanisms to assess goal progress.
6. Link rewards to goal attainment.5-8© Pearson Education Limited 2015
Types of Plans
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Developing Plans
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Approaches to Planning
Top-down traditional approach
Development by organizational members
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5.4Discuss
contemporary
issues in planning.
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Contemporary Issues
• Planning in dynamic environments
• Environmental scanning
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© Pearson Education Limited 2015 6-15
Chapter6Organizational Structure and Design
Learning Outcomes
• Describe six key elements in organizational design.
• Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.
• Compare and contrast traditional and contemporary organizational designs.
• Discuss the design challenges faced by today’s organizations.
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Http://www.bonkersworld.net/organizational-charts/
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6.1Describe six key
elements in
organizational
design.
Elements of Organizational Structure
• Work specialization
• Departmentalization
• Authority and responsibility
• Span of control
• Centralization vs. decentralization
• Formalization
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Specialization
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Departmentalization
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Types of Authority Relationships
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Line and Staff Authority
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Unity of Command
A structure in which each employee reports to only one manager.
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How Do Authority and Power Differ?
Authority:
a right whose legitimacy is based on an authority figure’s position in the organization; it goes with the jobAuthority is part of the larger concept of power. The higher one is in the org., the greater one’s authority.
Power:
an individual’s ability to influence decisions.Three dimension:
(1) Functional
(2) Hierarchical
(3) Centrality
Authority is defined by one’s vertical position in the hierarchy, power is made up of both the one’s vertical position and one’s distance from the org’s power core or center.
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Power Versus Authority
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