Planning

Planning is the first managerial function used to pursue organizational goals. Planning involves the process of setting objectives. Therefore, it is important to understand what goals are and how they differ from objectives. Goals are the broad, long-term aims an organization wishes to attain. Objectives, on the other hand, are specific, short-term statements detailing how to achieve the goals.

Strategic (long-range) planning determines the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. In this definition, policies are broad guides to action, and strategies determine the best way to use resources. At the strategic planning stage, the company decides which customers to serve, what products or services to sell, and the geographic areas in which the firm will compete.

Tactical (short-range) planning is the process of developing detailed, short-term decisions about what is to be done, who is to do it, and how it is to be done. Just as objectives are specific plans to meet broad goals, tactical planning involves defining specific plans to achieve broad strategic plans. Tactical planning is normally done by managers at lower levels of the organization, whereas strategic planning is done by the top managers of the firm (for example, the president). Tactical planning involves setting annual budgets and deciding on other details of how to meet the strategic objectives.

Contingency planning is the preparation of alternative courses of action that may be used if the primary plans do not achieve the objectives of the organization. The economic and competitive environments change so rapidly that it is wise to have alternative plans of action ready in anticipation of such changes.

Vocabulary:

to pursue	преследовать, гнаться
to set	устанавливать
goal	цель
long-term	долгосрочный
to attain	достигать
objective	стремление, цель
short-term	краткосрочный
to detail	детализировать, рассказывать
to follow	следовать, следить, подражать
state	положение, состояние, ранг
opportunity	удобный случай, возможность
profitable	выгодный, доходный, прибыльный
competitor	конкурент, соперник
growth	прирост, рост, нарост
contingency	вероятность, случайность
to obtain	получать, добывать, доставать
to use resources	использовать ресурсы
the best way	лучший путь
the geographic area	географическое пространство, площадь
decision	решение
lower level	низкий уровень
preparation	приготовление, подготовка
environment	среда, окружение
wise	мудрый
anticipation	ожидание

Ответьте на вопросы.

1. Is planning always performed by top-level mangement?

2. Does strategic planning focus on setting short-term or long-term objectives?

3. What is planning?

4. What requirements must objectives meet to be effective?