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Chapter 5 - Planning and decision making. After you have mastered the material in this chapter, you will be able to: Describe the different levels of planning in an organization; explain the difference between strategic, tactical, operating, and unit plans; outline the value of simple-use plans, standing plans, and contingency plans;. | chapter 5 Planning and Decision Making McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning Objectives Describe the different levels of planning in an organization. Explain the difference between strategic, tactical, operating, and unit plans. Outline the value of simple-use plans, standing plans, and contingency plans. Describe the main components of a typical strategic planning system. Identify the main pitfalls that managers encounter when engaged in formal planning processes, and describe what can be done to limit those pitfalls. Discuss the major reasons for poor decisions, and describe what managers can do to make better decisions. Steps in Planning Choose goals Identify actions Allocate responsibility Review Performance Make adjustments Learning Objective 1: Describe the different levels of planning in an organization. See Text Page: 106 Unit plans (heads of departments, teams, individuals Levels of Planning Operating | chapter 5 Planning and Decision Making McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning Objectives Describe the different levels of planning in an organization. Explain the difference between strategic, tactical, operating, and unit plans. Outline the value of simple-use plans, standing plans, and contingency plans. Describe the main components of a typical strategic planning system. Identify the main pitfalls that managers encounter when engaged in formal planning processes, and describe what can be done to limit those pitfalls. Discuss the major reasons for poor decisions, and describe what managers can do to make better decisions. Steps in Planning Choose goals Identify actions Allocate responsibility Review Performance Make adjustments Learning Objective 1: Describe the different levels of planning in an organization. See Text Page: 106 Unit plans (heads of departments, teams, individuals Levels of Planning Operating plans (heads of functions) Business-level strategic plan (heads of businesses) Shaped by input from Sets the context for Corporate-level Strategic plan (CEO) Learning Objective 1: Describe the different levels of planning in an organization. See Text Pages: 107-108 Types of Plans Strategic plans: A plan that outlines the major goals of an organization and the organizationwide strategies of attaining those goals. Operating plans: Plans that specify goals, actions, and responsibility for individual functions. Tactical plans: The action managers adopt over the short to medium term to deal with a specific opportunity or threat that has emerged. Unit plans: Plans for departments within functions, work teams, or individuals. Learning Objective 2: Explain the difference between strategic, tactical, operating, and unit plans. See Text Pages: 107-108 Types of Plans Single-use plans: Plans that address unique events that do not reoccur. Standing plans: Plans used to handle events that reoccur .
