Setting goals that challenge everyone in the organization to strive for better performance is one of the key aspects of the planning process. Goals must be aggressive, but realistic. Organizations cannot allow themselves to become too satisfied with how they are currently doing — or they are likely to lose ground to competitors. The goal setting process can be a wake-up call for managers that have become complacent.
The other benefit of goal setting comes when forecast results are compared to actual results. Organizations analyze significant variances from forecast and take action to remedy situations where revenues were lower than plan or expenses higher.
Even the largest corporations cannot control the economic and competitive environment around them. Planning is the process through which managers establish goals and detail how these goals will be attained. Skip to content Organizational Planning and Controlling. Prepare for Employees in the Boardroom.
Principles of management: An analysis of managerial functions. New York: McGraw-Hill, — Management planning and control. New York: McGraw-Hill. Why Should Managers Plan? Dalton, D. Absenteeism in remission: Planning, policy, culture [Electronic version]. Human Resource Planning, 10 2 , Do Managers Really Plan? Harvard Business Review, The classical management functions: Are they really outdated? Academy of Management Proceedings — Mahoney, T.
Carroll, Jr. Development of managerial performance: A research approach. Cincinnati: Southwestern; T. The jobs of management. California Management Review —; J. Hass, A. Actual vs. Personnel Psychology —75; R. Preparing for the future allows business leaders to consider the impact they would like the company to have and to find a way to get there.
When a team works together to set goals, it allows everyone to be on the same page, working toward a common, shared purpose. Workers are better able to recognize ways to work to achieve goals, as well as behaviors to avoid that could prevent the company from reaching its objectives.
Planning allows a business to determine which responsibilities are most important, so that proper time can be allocated to completing them. Employees can only handle so many projects at one time.
Having a plan to guide the direction of the company allows managers to choose assignments for employees to work on that make the most sense to meet the objectives of the business.
When everyone works together on projects that can have the most impact, it puts the company in a better position to achieve success. When a company has a plan in place, management is better-equipped to handle uncertainty.
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