100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary Introduction to Business Management Chapter 7 Complete $2.94   Add to cart

Summary

Summary Introduction to Business Management Chapter 7 Complete

 11 views  0 purchase
  • Course
  • Institution
  • Book

This document provides an in depth and thorough summary of chapter 7 of Introduction to Business Management 11th edition (Erasmus et. al.). It is ready for exam and tests. Everything is laid out as it is in the textbook. All needed information is provided in short. It is written in an easy to study...

[Show more]

Preview 2 out of 6  pages

  • No
  • Unknown
  • July 25, 2024
  • 6
  • 2023/2024
  • Summary
avatar-seller
Chapter 7
The benefits and costs of planning
Benefits of planning Costs of planning
Planning provides direction Planning may create rigidity
Planning reduces impact of change Planning consumes management time
Planning promotes co-ordination Formal plans may replace intuition and creativity
Planning ensures cohesion Planning could cause relays in decision making
Planning facilitates control


The benefits of planning
 Planning provides Direction
 Planning gives direction in the form of goals and plans
 By having goals and creating plans to reach the goals, managers ensure the organisation is
 Effective- providing products or services that the market wants) and
 Efficient- providing products and services at the lowest cost)
 Planning reduces the impact of change
 Managers constantly scan the environment to predict changes that may affect organisation in future
 They plan to benefit from opportunities and avoid threats, to reduce uncertainty, and impact caused by change
 Planning promotes co-ordination
 Planning focuses all activities in an organisation in one direction to attain the set goals
 If all members are aware of their goals, they can effectively co-ordinate their activities
 This will foster cooperation and teamwork
 Planning ensures cohesion
 The interdependence and increasing complexity in organisations show the necessity of planning for cohesion
 Top management can see the company as a whole and set goals that align with the main goals of the organisation
and with those of all its individual sections.
 Planning facilitates control
 Enables measurement of performance against set goals and plans in order to fix problems should they occur


The costs of Planning
 Planning may create rigidity
 Managers might have to change their plans if changes in the environment occur
 Planning consumes management time
 Planning takes time, and managers may have to spend a lot of their important time and energy on it
 Formal plans may replace intuition/insight and creativity
 Planning may become regular, reducing the necessity for creativity and intuition in planning
 Planning could cause delays in decision-making
 Planning may move an organization's attention from performance to evaluation, resulting in a delay in making critical
decisions regarding external changes which influence the organisation.

, Managerial goals and plans
 Defined as a specific achievement to be achieved in the future
 Goals are influenced by the organization's mission, business environment, management values, and experience
 Planning involves determining and developing plans to achieve goals

The nature of goals
 Goals are the starting point of the planning process, and flow directly from the mission statement
 The focus of goals differ because different goals affect different parts of the organisation
 Goals may be short, intermediate or long
 Goals may be publicly stated or not

The importance of goals
 Goals provide guidance and agreement
 Clearly formulated goals facilitate effective resource distribution.
 Goals facilitate effective planning
 Goals can inspire and motivate employees
 Goals provide a basis for effective evaluation of employee and organisation performance


Criteria for effective goals


S Specific

M Measurable

A Attainable

R Relevant

T Time-bound


 Specific- relates to the time frame of the goal and the specific outcomes of that goal
 Measurable- It's created in a way that makes it possible to judge the result accurately. Managers must see whether the
goals are met when they compare real results with predicted outcomes
 Attainable- realistic in the face of challenge. Managers can delegate responsibility to someone in the organisation.
 Relevant- individual goals should be compatible and consistent with other departments’ goals
 Time-bound- means it has a specific time limit to give attention to the sense of urgency associated with them


A goal-setting technique
 Management by objectives (MBO)- technique to achieve the integration of individual and organisational goals
 MBO is a system by which managers and employees define goals in every department
 Process:

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller tanjanel1303. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $2.94. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

82191 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$2.94
  • (0)
  Add to cart