Class Notes (806,448)
Canada (492,252)
GMS 200 (1,232)

Chapter 6.docx

2 Pages
Unlock Document

Ryerson University
Global Management Studies
GMS 200
Shavin Malhotra

Chapter Six: Planning Processes and Techniques Lecture Notes: 1. Look at the three scenarios in the lecture notes. 2. What is planning? a. It is the process of deciding today what has to be done today to be ready for tomorrow b. Planning is the process of collecting info and making decisions by which management formulates objectives, and choose the pattern of action to achieve those objectives. 3. Why planning creates value? a. Leads to an increased match between the internal organizational conditions of the firm and its external environment b. Creates awareness of problems, strengths and weaknesses c. Improves focus and flexibility – avoids wasting time, takes into account all factors and focus on critical ones, Pareto principle (“80/20 Rule”, 20% of the activities you do accounts for 80% of your success), allows systematic resource allocation d. Minimization of effects of adverse conditions e. Improves action orientation (complacency trap: is being carried along by the flow of events), coordination, control f. Gives advantage over competitors and helps stakeholders to plan their future 4. Beware of planning paralysis: when you plan too much, and you aren’t able to do it 5. Why people avoid planning? Takes time and money, disappointment, poor reward structure (you get rewarded for your executed structure NOT your plan), fire-fighting (as and when things happen), opposition to time and expense of planning, resistance to change, fear of failure, prior bad experience (Managerial Hubris), overconfidence 6. Approaches to Planning: 7. What types of plans do managers use? Short-range (1 year or less) and long-range plans (3 years or more) a. People vary in their capability to deal effectively with different time horizons b. Higher management levels focus on longer time horizons 8. Three levels of strategy in organizations: corporate, business, functional strategies 9. What types of plans for manager’s use? a. Strategic plans: set board, comprehensive, and longer-term action directions for the entire organization b. Vision-mission 10. Vision: what do you want to become? A vision clarifies the purpose of the organization and expresses what it hopes to be in the future a. Short be short, preferably one sentence, and as many managers as possible should have input. Chapter Notes: 1. Planning should focus attention on objectives that identify the specific results or desired outcomes that one intends to achieve. Planning should also create a real plan, a statement of action steps to be taken in order to accomplish the objectives. 2. Planning involves five steps: i. Define your objectives: identify desired outcomes in very specific ways ii. Determine where you stand vs. objectives: evaluate current accomplishments relative to the desired results – know the strengths and weaknesses (SWOT, BCG, etc.) iii. Develop premises regarding future conditions: anticipate future events, generate alternative “scenarios” for what may happen iv. Analyze alternatives and make a plan: list and evaluate possible actions, choose the alternative most likely to accomplish your objectives v. Implement the plan and evaluate results: take action and carefully measure your progress toward objectives. 3.
More Less

Related notes for GMS 200

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.