Professional Documents
Culture Documents
MGT 501 Planning
MGT 501 Planning
Planning is concerned with both ends (what is to be done) and means (how it is to
be done).
Planning may be either formal or informal. You will learn formal planning.
• Goals
• Plans
Goals: Goals are desired outcomes for individuals, groups of people, or entire
organization. Goals are objectives, and these two terms are used interchangeably.
Goals provide direction for all management decisions. So, they are often called the
foundation of planning.
Types of goals:
There are two types of goals –
• Stated Goals: These goals are written down and shared with others. They
are stated in different official statements of what an organization says and
what the organization wants its various stakeholders to believe.
• Real Goals: Goals that an organization actually pursues. These goals are
not stated or written down in official statements. They are understood from
the actions or behavior of the organization’s members.
Strategy: The decisions and actions which determine how the organization will
move from its present business to the business it wants to be in. That means how
the organization will move from its current position to its expected future position
(which explains how the organization will create its place / position among the
competitors).
For example: The rank of a Private University ‘A’ is 19 th among the 100 Private
Universities. In the next 5 years, the University ‘A’ wants to be one of the top 10
Private Universities. That means it wants to move from its current position (19 th) to
its expected future position (10th). So, the decisions and actions will be taken to
create the University ‘A’s place / position among the other Private Universities
(competitors), which is called Strategy.
For example: To move to that expected future position (10 th), the University ‘A’
must bring changes to its following matters:
- The University must take care to establish / develop its own campus.
Plans: Plans are documents that outline how goals are going to be met. It includes
resource allocations, schedules of activities and other necessary actions to
accomplish / achieve the goals.
Types of Plans: Plans are divided in four broad groups and each broad group
has two types of plans. They are as follows:
ii) Operational Plans: Plans that specify the details of how the overall
goals are to be achieved.
i) Long Term Plans: Plans with a time frame beyond three years, i.e.
the implementation period of the plan takes more than three years.
ii) Short Term Plans: Plans covering one year or less, i.e. the
implementation period of the plan is one year or less than one year.
i) Directional Plans: Plans that are flexible and that set out general
guide lines. There is scope to bring change in these types of plans.
ii) Specific Plans: Plans that are clearly defined and that leave no room
for interpretation. It means there is no scope to bring any change in
these types of plans.
ii) Standing Plans: Ongoing plans that provide guidance for activities
performed repeatedly, i.e. these plans are used for activities performed
for more than one time.
1. Goal specificity
2. Participative decision-making
3. An explicit time period, and
4. Performance feedback