CHAPTER 5

Question 1

What is planning?

Answer 1

Planning can be defined as the consideration and visualisation of what the organisation, or departments in the organisation, should achieve within a particular time span, and the development of a plan (or set of plans) to achieve these goals.

Question 2

four good reasons why planning is an important management task.

Answer 2

• Planning gives direction in the organisation.
• Planning reduces the impact of uncertainty during changes.
• Planning minimises wasted time and resources and redundancy.
• You can only control what you have planned

Question 3

What are some points of critique (dysfunctional aspects) against planning

Answer 3

– plans can’t be developed for a dynamic environment;
– formal plans can’t replace intuition and creativity;
– planning focuses managers’ attention on today’s competition, not on tomorrow’s survival; and
– formal planning reinforces success and this success groove thereby ultimately may lead to failure.

Question 4

Why do managers plan?

Answer 4

– Increases efficiency
– Reduces business-related risks
– Facilitates proper coordination
– Assists with organising
– Gives direction
– Keeps control
– Helps to achieve objectives
– Motivates personnel
– Encourages creativity and innovation
– Helps in decision-making 14

Question 5

steps in the planning process

Answer 5

– Identify the purpose of planning – Establish goals
– Develop commitment
– Develop alternative plans
– Evaluate the different alternative plans
– Implement the plan
– Control and evaluating the results of the plan

Question 6

Contemporary issues and factors that managers must consider during planning

Answer 6

– Significance
– Increasingdemand – Technology
– Legalissues
– Financing
– Marketing