Chapter 8 – Planning and Controlling
How and Why Managers Plan
Planning is the process of setting objectives and determining how to accomplish them.
•When Planning is done well it creates a solid platform for the other management functions:
organizing – allocating and arranging resources to accomplish tasks; leading – guiding the
efforts of human resources to ensure high level of task accomplishment; and controlling –
monitoring task accomplishments and taking necessary corrective action.
Objectives are specific results that one wishes to achieve.
A plan is a statement of intended means for accomplishing objectives.
Benefits of Planning
•Planning improves focus and flexibility. An organization with focus knows what it does
best, knows the needs of its customers, and knows how to serve them well. An individual
with focus knows where he or she wants to go in a career or situation, and is able to retain
that objective even when difficulties arise. An organization with flexibility is willing and able
to change and adapt to shifting circumstances, and operates with an orientation toward the
future rather than the past. An individual with flexibility adjusts career plans to fit new and
•Planning improves action orientation. Good planning makes us more (1) results
orientated- creating a performance-oriented sense of direction; (2) priority oriented – making
sure the most important things get first attention; (3) advantage oriented – ensuring that all
resources are used to best advantage; and (4) change oriented – anticipating problems and
opportunities so they can be best dealt with.
•Planning improves coordination. Good planning throughout an organization creates a
means-end chain or hierarchy of objectives in which lower level objectives lead to the
accomplishments of higher level ones.
•Planning improves Time Management. In daily living and in management, it is
important to distinguish between things that you must do (top priority), should do (high
priority), would be nice to do (low priority), and really don’t need to do (no priority).