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Six Steps Of Management Planning

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Category: Business

Autor: anton 18 January 2011

Words: 780 | Pages: 4

Most organizations follow the same set of fundamentals when dealing with management. The list of fundamental management principals are; planning organizing, leading, and controlling. The purpose of this paper is to focus on planning. What are the steps on the planning process? Which step is the most crucial? Why? Can organizations over-plan? Why or why not? Planning is basically preparing, scheduling, arranging, or setting up to achieve company goals. In other words, “planning is the conscious, systematic process of making decisions about goals and activities that an organization will pursue in the future” (Bateman & Snell, 2007). There is an actual strategy managers have when planning and the strategy consists of six steps; Situational Analysis, Alternative Goals and Plans, Goal and Plan Evaluation, Goal and Plan Selection, Implementation, and Monitor and Control (Bateman & Snell, 2007). Each step is important and fits in to the organizations plans and goals.

Situational analysis is the beginning of the six step organizational planning process. Situational analysis is “a process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration” (Bateman & Snell, 2007). For example, if a manager at a men’s clothing store is thinking about launching a new line of polo shirts, analysis would be factors such as popularity of polo shirts for men, are polo shirts in style, what kind of polo shirts are in style, is there a demand for polo shirts, and if other men’s stores are selling polo shirts. This type of analysis would help the manager decide if they need to move any further in the planning process.

Alternative goals and plans come next in the organizational planning process. “Based on the situational analysis, the planning process should generate alternative goals that may be pursued in the future and the alternative plans that may be used to achieve those goals” (Bateman & Snell, 2007). Going along with the men’s clothing store, alternatives a manager would think about having are, what age group of men are they targeting to sell polo’s to or if they should target the polo’s to be sold to all age groups of men.

Goal and plan evaluation is third in the list of organizational planning. In the goal and plan evaluation step “managers will evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan. They will prioritize those goals and even eliminate some of them from consideration” (Bateman & Snell, 2007). With the men’s clothing store example managers may conclude that creating a new line of polo’s targeted for older men wouldn’t make much sense in the bottom line.

Goal and plan selection is forth in the list of organizational planning. The goal and plan selection is done after evaluating the different goals and plans coming up with the ones that are best suitable for the organizations main goals and plans. For example, the men’s clothing store management after evaluation might decide that launching a new line of polo’s for men of all ages to wear would be best for the organization.

Implementation is the fifth step in the list of organizational planning. “Once managers have selected the goals and plans, they must implement the plans designed to achieve the goals. The best plans are useless unless they are implemented properly” (Bateman & Snell, 2007). Implementing a plan property takes help from everyone in the organization from the employees to the finance department.

Monitor and Control is the sixth and final step in organizational planning. “Managers must continually monitor the actual performance of their work units according to the unit's goals and plans. They will also need to develop control systems that measure that performance and allow them to take corrective action when the plans are implemented improperly or when the situation changes” (Bateman & Snell, 2007). As an example using the men’s clothing store, monitoring the sales of the polo’s, after they have been implemented, on a regular basis and controlling or measuring the sales will help the organization with its plans and goals.

Each step in the planning process is as important as the next. Missing one step can cause major problems for an organization. Organizations can over-plan by having too many alternatives which could take up valuable time and money. On the other hand organizations can also under-plan which can be disastrous. Either way the six step planning process is important in management to help goals and plans be met for organizations.


Bateman, T.S., & Snell, S.A. (2007). Management: Leading and collaborating in a competitive world. [University of Phoenix Custom Edition e-Text]. , : The McGraw-Hill Companies, Inc. . Retrieved February 6, 2008, from University of Phoenix, rEsource, MGT330 Web site.

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