Operations managementLesson 3 of 3 in the course Organizational Planning and Controlling

Organizational Planning: Goals, Participation, and Support Systems

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

Formal planning helps organizations anticipate needs, coordinate action, and work toward shared outcomes. This lesson examines how formal long-range planning became common, why managers sometimes resist planning, and how organizations can make planning a practical part of everyday work.

Formal planning has become widespread in large organizations. In the 1950s, approximately 8.3 percent of major U.S. firms—about one in twelve—employed a full-time long-range planner. By the late 1960s, the figure had risen to 83 percent. Today, nearly all U.S. corporations with sales over $100 million are estimated to prepare formal long-range plans.

All flashcards

What is blueprint planning?
Blueprint planning is preplanning: defining intended outcomes and actions before moving forward. It helps people anticipate and coordinate work.
What is in-process planning?
It is planning that occurs as events unfold. People interpret conditions and determine the next step shortly before acting.
Why might managers resist planning?
They may see it as too time-consuming, complicated, or costly, or fear being held responsible if newly set goals are not achieved.
How can senior managers encourage planning?
They can model planning, support lower-level managers, and provide resources such as personnel, technology, time, and funding.
Why must organizations use the plans they create?
Using plans connects planning to real decisions and shows that the effort matters. Ignored plans can weaken employees’ confidence in planning.

Quiz questions

  1. By the late 1960s, approximately what share of major U.S. firms employed a full-time long-range planner?Answer: About 83 percent.
  2. In management by objectives, who may participate in setting objectives?Answer: Managers and employees.
  3. What conclusion is justified by studies reporting stronger financial performance among some organizations that plan?Answer: The findings show an association, not proof that planning alone caused the difference.
  4. Which task is commonly performed by planning specialists?Answer: Coordinating plans across organizational levels and departments.
  5. What role do self-managed work groups have in the socio-technical model?Answer: They have a major role in planning and organizing their work.

Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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