Professional Documents
Culture Documents
05 - Planning
05 - Planning
WEEK 4
• After this session, you should be able to:
Introduction to Planning –Explain the needs for planning
–Describe the different types of planning
–Understand the principles of planning
–Describe the stages and steps of the planning process.
• All managers engage in planning • Specific objectives are written down and made
–In informal planning very little if any is written down available to organization members
• What is to be accomplished is in the head of one or a few –Management clearly defines the path it wants to take
people from where it is to where it wants to be
– The organizations objectives are rarely verbalized
• This describes planning in many small businesses
– The manager or owner has a private vision of where they want
to go and how they expect to get there
– This type of planning is general and lacks continuity
–Informal planning exists in some large organisations
while some small businesses have sophisticated
formal plans
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Need For Planning Why Planning Is Important
Proper coordination of all the individuals in the group. • Planning determines where the organization is
– If the group effort is to be successful then its every now and where it will be in the future.
member must –Participation: all managers are involved in setting
• Know exactly what is expected of them. future goals.
– This is the fundamental function of planning. –Sense of direction and purpose: planning sets goals
– This is a basic function of the manager. and strategies for all managers.
– Planning is the most crucial part of the functions of the –Coordination: plans provide all parts of the firm with
manager. understanding about how their systems fit with the
• It has been rightly said, “Failure to plan is planning to fail”. whole.
Most organisations very often fail due to poor planning. –Control: Plans specify who is in charge of
accomplishing a goal.
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Why
Provide direction
Why
Provide direction
Why
Reduce
impact of change
Managers
Managers
Plan
Managers
Plan
Plan
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Decision Making and the Planning Process Organizational Goals
• Purposes of Goals
–Provide guidance and a unified direction for people in
the organization.
–Have a strong effect on the quality of other
aspects of planning.
–Serve as a source of
motivation for
employees of the
organization.
–Provide an effective
mechanism for evaluation
and control of the organization.
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Types of Plans Types of Plans
Standing Plans
Policies –Used in programmed decision situations
– Policies, procedures, and rules developed for
Programs handling repetitive situations.
Standing Single Use – Policies
Procedures • General guidelines to be followed when making decisions.
Plans Plans
These are general guides to action.
Budgets
– Procedures
• A sequence of actions to be followed in order to achieve an
Rules objective. Standard Operating Procedures (SOP) specify an
exact series of actions to follow.
– Rules
• A statement of exactly what should or should not be done.
Rules are formal written specific guides to action.
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Special-Purpose Plans Planning From Top to Bottom
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Steps in Planning Steps in Planning
Stage II Stage III
Formulating strategy Implementing strategy
–Managers analyze current situation and develop the –Managers must decide how to allocate resources
strategies needed to achieve the mission between groups to ensure the strategy is achieved.
2. Determining the planning premises 6. Decision making.
3. Decide the planning period. 7. Making of derivative plans.
4. Search for and examine alternative courses of
actions.
5. Evaluating the alternatives.
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Strategic Planning
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