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1、CHAPTER5FOUNDATIONSOFP1.ANNING1.EARNINGOUTCOMES/Mterreadingthischapter,studentsshouldbeableto:5-1.DiscussthenatureandPUlposeSofplanning.5-2.ExplainwhatmanagersdointheSlrategicmanagementPr(KrCS$.5-3.Compareandcontrastapproachestogoalsellingandplanning.5-4.Discusscontcmporarjissuesinplanning.Managemen
2、tMythMYTH:Planningisawasteoftimebecausenoonecanpredictthefuture.TRUTH:Nomatterhowwellyouplan,there,salwaystheunexpected.Flexibleplanningthatincliesmultiplescenarioscanpreparemanagersforavarietyofsituations.SUMMRYOrganizationsmustdevelopgoals,plans,andstrategicsforhowbesttoachievetheirpuosc.However,s
3、ometimesafterevaluatingtheoutcomesofthoseplansandstrategics,managershavetochangedirectionasconditionschange.TUHChinRTips:Studentsshouldbeencouragedtothinkabouttheadvantageoflong-termplanningforcompanies. Howdoorganizationsplaninenvironmentswheretechnologyisconstantlychanging? Havestudentsthinkofsome
4、innovationsthatwerehotonedayandthendisappearedthenext.Whydidtheseinnovationsnotsucceedinthelong-term?VVHATISP1.ANNINGANDWHYDOMANAGERSNEEDTOP1.AN?A. Introduction1. PlanningisthePrimarymanagc11wntfunction,settingthebasisfortheotherfunctions.2. Itencompassesdefiningtheorganizationobjectivesorgoals,esta
5、blishinganoverallstrategy,anddevelopingaCOmPrChCnSiVChierarchyofplanstointegrateandcoordinate.a)Itisconcernedwithends(whatistobedone)andwithmeans(howitistobedone).3. Planningcanbefurtherdefinedintermsofwhetheritisinformalorfo11nal.a) IninR)11alplanningverj,Iitlle,ifanything,iswritlendown.b) Informal
6、planning,specificobjectivesarewrittendownandmadeavailabletoorganizationmembers.B. WhyShouldManagersFormallyPlan?1. Managersshouldengageinplanningforatleastfourreasons.(SeeExhibit5-1).a) Planningestablishescoordinatedeffort.1) Understandingwheretheorganizationisgoingandwhatmustbecontributedtoreachthe
7、objectives,helpsmembersocoordinatetheiractivitiesandfostersteamwork.2) Alackofplanningcancausevariousorganizationalmembersor(heirunitsIoworkagainstoneanother.b) Planningreducesuncertainty.1) Itclarifiestheconsequencesofactions.2) Itispreciselywhatisneededwhenmanaginginachaoticenvironment.c) Planning
8、alsoreducesoverlappingandwastefulactivities.1) Whenmeansandendsareclear,inefficienciesbecomeobvious.d) Finally,planningestablishesobjectivesorstandardsIhatTacililatccontrol.1) Wiihoulplanning,therearenogoalsagainstwhichiomeasureorevaluateworkefforts.C. WhatAreSomeCriticismsofFormalPlanningandHowShou
9、ldManagersRespond?1. Crificism:PlanningmayCrCatCrigidity.a) Formalplanningeffortslockanorganizationintospecificgoalsandspecifictimetables.b) Theassumptionmaybethattheenvironmentwon,tchangeduringthetimeperiodtheobjectivescover.1) Forcingacourseofactionwhentheenvironmentisfluidcanbearecipefordisaster.
10、2. ManagersResponse:Managersneedtoremainflexibleandnotbetiedtoacourseofactionsimplybecauseitistheplan.3. Criticism:Eomialplanscan,treplaceintuitionandcreativity.a) Visionshaveatendencyobecomefornvalizedasheyevolve.b) FormalplanningeffortstypicallyfollowanethnoftheplansPrObHblycontributemoretowardshi
11、ghper(rmuncethandoestheextcnlofplanning.C)Finally,inthoseOrganizxitionsinwhichformalplanningdidnotleadtohigherperformance,theenvironmentwastypicallytheculprit.1)Governmentregulationsandsimilarenvironmentalconstraintsleavemanagerswithfewerviablealternatives.WHATDOMANA(iERSNEEDTOKNOWABOUTSTRATE(JICMANACEMENT?A. WhatisStrategicManagement?1. Strategicmanagementiswhatmanagersdotodevelopanorganizationsstrategies.2. TheSeplansencompass:a) Howtheorganizationwilldowhatitsinbusinesstodo,b) Howilwillcompetesuccessfully,c) A
