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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.

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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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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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