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Chapter Four Summary Mgt 230

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Chapter 4 of the text detailed the planning process for organizational structures. Step one involves situational analysis of reviewing all resources available and needed for the planning of the goals for the company. This analysis looks at past and projected circumstances from internal and external influences. The second step concerns alternate plans and goals. This means that optional methods and goals are explored for future endeavors. Goals fall into categories known as SMART, which stands for specific, measurable, and time-bound. Plans are the methods used to achieve the goals set. Step three of the planning process entails managers reviewing the pros and cons of the plans and goals set. This is the point when managers establish priorities and eliminate potential risks. The fourth step is called the goals and plans selection, which means the best course of action is determined for reasonableness and feasibility. Implementing the plan is the fifth step, and this involves putting the plan into action. The action over a reasonable tome period will reveal if the plan needs changes, and specifically where. The last planning step is to monitor and control the process implemented to see if the action for the plan work s well enough to sustain the goal for the desired term. Planning also has different types as well as steps. Strategic planning is used for long-term planning. This allows a company to plan strategies for long-tern economic survival through strategic goals. Tactical and operational plans are implemented after strategies and strategic goals are determined. Tactical plans apply to middle managers and operational plans apply to frontline managers. The difference is that tactical planning is a broader strategic goal, and operational strategies require frontline supervisors to detail the strategies for employee application on a

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