The Planning Function

Planning is concerned with the future impact of today's decisions. It is the fundamental function of management from which the other four stem. The need for planning is often apparent after the fact. However, planning is easy to postpone in the short-run. Postponement of planning especially plagues labor oriented, hands on managers.

The organizing, staffing, leading and controlling functions stem from the planning function (Higgins, Figure 6.1.) The manager is ready to organize and staff only after goals and plans to reach the goals are in place. Likewise, the leading function, influencing the behavior of people in the organization, depends on the goals to be achieved. Finally, in the controlling function, the determination of whether or not goals are being accomplished and standards met is based on the planning function. The planning function provides the goals and standards that drive the controlling function.

Planning is important at all levels of management. However, its characteristics vary by level of management. (Figure 6.2) Note in this figure that the characteristics of the world being simple, certain, structured and short-term often become rationalizations for top managers not to plan. Top managers acting as if they are lower level managers plagues planning.

Planning Terminology

Basic planning terminology is illustrated in Figure 6.3. The order from general to specific is: vision-mission-objectives-goals (Figure 6.4.) (Note-->In ManagementExcel practice established before the use of Higgins as the basic reference, we adopted the order: vision-mission-objectives-goals. The Higgins text switches the order of objectives and goals. In reading the Higgins text, simply substitute the term objective for goal and the term goal for objective.) The key terms are defined as follows:

Vision Nonspecific directional and motivational guidance for the entire organization. Top managers normally provide a vision for the business. It is the most emotional of the four levels in the hierarchy of purposes.

Mission An organization's reason for being. It is concerned with scope of the business and what distinguishes this business from similar businesses. Mission reflects the culture and values of top management.

Objectives Objectives refine the mission and address key issues within the organization such as market