Principles of Management - Organizational Planning - Quick Guides

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Study GuidePrinciples of Management–Organizational Planning1. Detailing Types of PlansPlanning is a core part of management. When managers create plans, they commit people,departments, and organizational resources to actions that will take place in the future. Good planshelp everyone understand what needs to be done and how their work contributes to the organization’ssuccess.How Goals Work Together: The Means–Ends ChainOrganizational goals are arranged in levels. Lower-level goals support higher-level goals. Whenemployees achieve smaller, specific goals, those accomplishments help the organization reach itsbigger objectives. This connection is called ameans–ends chain—lower-level goals are the means,and higher-level goals are the ends.To guide this process, managers use different types of plans.1.1 Major Types of PlansManagers rely onthree main types of plans:•Operational plans•Tactical plans•Strategic plansThese plans work together. Operational plans support tactical plans, and tactical plans supportstrategic plans. In addition, managers also preparecontingency plansin case things do not go asexpected.1.2 Operational PlansOperational plans focus on the day-to-day work of the organization. They describespecific andmeasurable resultsexpected from departments, teams, and individual employees.Examples of Operational Goals•“Process 150 sales applications each week”

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Study Guide•“Publish 20 books this quarter”These goals are clear, precise, and easy to track.Supervisors, team leaders, and facilitators usually create operational plans. Their purpose is tosupport tactical plans and help managers carry out their daily responsibilities.Types of Operational PlansOperational plans can be eithersingle-use plansorongoing plans.Single-Use PlansSingle-use plans are created for activities that happen only once or do not repeat. They answerquestions such as who, what, where, how, and how much.Examples include:•A special sales promotion•A project budget that estimates income and expenses for a specific taskOnce the activity is completed, the plan is no longer needed.Ongoing (Continuing) PlansOngoing plans are used repeatedly over time. They are usually created once and updated as needed.Common types of ongoing plans include:•PoliciesPolicies are general guidelines that help managers handle routine decisions. For example,human resources policies often cover hiring, promotions, performance reviews, payincreases, and employee discipline.•ProceduresProcedures explainstep-by-stephow tasks should be completed. For instance, a purchasingprocedure might describe how a request moves from a supervisor to management approvaland then to the purchasing department. Procedures ensure consistency and efficiency whendealing with repeatedactivities.•RulesRules clearly state what employeescan and cannot do. They help maintain safety, fairness,and consistent behavior. Rules about tardiness or absenteeism, for example, allowsupervisors to apply discipline fairly and quickly.

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Study Guide1.3 Tactical PlansTactical plans focus onhow things will get donewithin specific departments or units. They explainwhat lower-level units must do, how they will do it, and who is responsible.Tactics are the actions needed to make a strategy work.Key Features of Tactical Plans•Short-term focus (usually one year or less)•Narrower scope than strategic plans•Developed mainly by middle managersMiddle managers take the organization’s broad strategy and break it down into specific actions thatteams and departments can follow.1.4 Strategic PlansStrategic plans are long-term plans that focus on the organization as a whole. Instead ofconcentrating on individual departments, these plans look at where the organization wants to go in thefuture.Strategic planning begins with the organization’smission.Characteristics of Strategic Plans•Long-term focus (two, three, five, or more years)•Developed by top-level management•Require coordination across all levels of the organizationTop management sets the overall direction, while lower-level managers develop plans that align withthese goals. The strategic plan serves as a framework that guides all other planning activities.1.5 Contingency PlansEven the best plans can fail because of unexpected changes. That is why managers also preparecontingency plans.

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