The fable at the beginning of the chapter-provided some insights into the s good for planning. Planning is the primary management function and is inherent in everything a manager does. It is Futile for a manager to attempt to perform the other management functions without having a plan. WHO managers attempt to organize without a plan for reorganizing Themselves will find on a regular basis. The manager WHO attempts to staff without a plan will be constantly hiring and firing employees. Motivation is almost impossible in an organization Characterized by continuous reorganization and excessive employee turnover.
Planning enables a manager or organization to Affect rather than accept the future. By setting objectives and charting a course of action, the organization commits itself to "making it happen". Such a commitment Allows the organization to Affect the future. Without a planned course of action, the organization is much more Likely to sit back and "let things Happen" and then react to Reviews These happenings in a crisis mode.
Planning Provides a means for Actively involving personnel from all areas of the organization in the management of the organization. Involvement produces a multitude of benefits. First, soliciting inputs from throughout the organization improves the quality of the plans. Good suggestions concerning the future of the organization can come from any level in the organization. Involvement in the planning process enhances the overall Also understanding of the organization's direction. Understanding the big picture can minimize friction between departments, sections, and individuals. Planning enables the sales department and Reviews their relationship to organizational goals. Involvement in the planning process fosters a greater personal commitment to the plan Because It develops an attitude toward the plan as "our plan" rather than "their plan". Positive attitudes created by involvement Also improve the overall company morale and loyalty.
A final reason for planning is that it positively Affects managerial effectiveness. Laboratory studies have demonstrated that employees WHO stressed planning earn very high performance ratings from supervisors. Field studies have shown that planning Also has a positive impact on the quality of work produced. Another study that Showed Significantly Organizations using formal plans outperformed Organizations using informal plans with respect to economic Several measures, Reviews such as return on investment and earnings. Furthermore, this same study Showed that the formal planning Organizations using bettered the records they had Achieved before planning was formally-adopted. Not only does the evidence support a positive relationship between planning and performance, but the relationship Appears to hold at all levels, the individual managers, decision-making groups, and the company as a whole.
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