Planning

Lt Col Farhan Iqbal

What is Planning
• Planning is the first Management Function that involves setting goals, establishing
strategies for achieving those goals, and developing plans to integrate and
coordinate work activities.
• Definition of an organization: Division of Labor, Integration, Common Goals, Coordination
• In a sense, it lays down the foundation for the other three management functions:
organizing, leading and controlling.

• Why do Managers Plan?

• Planning provides direction to managers and non-managers alike.
• Without planning, people will work cross purposes and prevent efficiency and effectively. Ex: Pull the rope
game
• Planning reduces uncertainty by forcing managers to look ahead, anticipate, and change
• Planning wont eliminate uncertainty. Ex: Pak Cricket Team Wins at T 20 (2021)
• Planning minimizes waste and redundancy.
• Inefficiencies are minimized, including inefficient people
• Planning establishes the goals or standards used in controlling.
• Without planning, there would be no goals against which to measure work effort
 Goals
Goals (objectives) are desired outcomes or targets.

1. Watch Video on Goals Can we have a single Goal?

2. What are your personal goals Single goals can’t define organizational success
3. What are your company goals

Goals

Strategic: All other areas of Performance. UN food Financial – Related to financial performance. Sale
Program: to ensure that no child goes to bed growth of 10 % with earning per share to increase
hungry by 10%.

Goals
Stated : Official statements. Real : Actual goals that company
Nike: Delivering inspiration and pursues
innovation to every athlete
 Approaches to Goals
Traditional and By Objectives (MBO)
TRADITIONAL
MBO A PROCESS OF SETTING MUTUALLY AGREED-UPON
GOALS AND USING THOSE GOALS TO EVALUATE
Top EMPLOYEE PERFORMANCE.

Division ADOBE, GE, AND MICROSOFT HAVE REPLACED

TRADITIONAL PERFORMANCE RATINGS WITH MBO.
Department
ADOBE “CHECK IN PROGRAM”. EVERY TWO MONTHS,
THEY MEET TO SEE PROGRESS. AT THE END OF YEAR,
Worker THE “REWARDS CHECK IN” MEETING TO DECIDE
ABOUT PROGRESS, AND DECISIONS FOR PAY AND
Turning broad goals into specific at each level is frustrating BONUSES
and tedious.
Not followed in letter and spirit. MBO USES GOALS TO MOTIVATE THEM AS WELL
Misinterpretation and biases is expected.
Clarity is lost. FOUR PARTS: GOAL SPECIFICITY, PARTICIPATIVE
DECISION MAKING, EXPLICIT TIME PERIOD,
NOT ALWAYS TRUE. YOU HAVE FEED BACK AND CONTROLLING PERFORMANCE FEED BACK
AS WELL IN MANAGEMENT
Approaches to Goals
MBO – Steps to Implement
Approaches to Goals
Characteristics of Goals

 Written in terms of outcomes rather than actions

 Measurable and quantifiable
 Clear as to a time frame
 Challenging yet attainable
 Written down
 Communicated to all necessary organizational members
Steps in Goal Setting

 Review the organization mission or purpose

 Evaluate Available resources
 Determine the goals individually or with input from others
 Write down and communicate
 Review results and whether goals are met
Plan
Plans are documents that outline how goals are going to be met. They usually include resource
allocations, schedules, and other necessary actions to accomplish the goals.
Uncertainty is high. Needs
flexibility. Ex: Once employees
Apply to entire held themselves responsible to
organization. Ex: Based achieve mission
on Dr Adeeb vision:
treatment for all - SIUT

One time plan. Ex: If

Imtiaz wants to open
store at Peshawar or
Kabul

One Year or Less.

Ex: Bahria Plan to
launch another SOPs. Ex: Khaddi
phase plan for building
Apply to particular Initially 7 or more years.
operational area. Ex: new store
Recent - Beyond Three Years. No Room for
SIUT requires fund Due to environmental
from Zakat – extensive interpretation. Ex: A
uncertainty. NASA: What is out soldier is given a specific
fund raising. there in space task at the border
Developing Plans
Process of Developing plans is influenced by 3 contingency factors
Organizational Level
Top Management: Strategic Planning
Lower Management: Operational, but
within the ambit of strategic planning.
See previous slide. However, it does not
mean that no strategic planning is done
at Lower management
Environmental Uncertainty
High Uncertainty:
Be specific, but
Flexible. Plan A
And Plan B,C,D,E
Government impose taxes or
financial liabilities or pose certain taxes.
For ex: Gain Tax in property market by
Shabbar Zaidi in recent govt.
Sale of any property before 5 years,
you need to make 1% of gross besides
other taxes
Commitment Concept
Make plans with commitment.
Walmart laid off employees but
expanded its store. How could
you ensure shelves stocked if
you lay off employees
Read: How managers plan in
uncertain environment
Approach to Plans

Process of Developing plans is influenced by the planning approach it takes

Formal Planning
Like Top Down Goal
Planning by Organizational
Setting Members
Each Department screens Weekly Meetings
the parameters and extracts
Supply Chain Marketing
its plans.
Production
Draw back.
Mostly a shelf binder.

Work Team 1 Work Team 3 Ex: Dell performs this

Top leadership meet
Work Team 2 weekly basis
Lower teams meet on
Daily Meetings
daily basis
 In Class Read

1. How Managers plan in uncertain environment?

1. What is an uncertain environment? Do your companies work in uncertain environment?
2. Why we need to be specific and flexible both? Give example.
3. Keeping in view what you have studied today, how LinkedIn has planned.

1. Planning for Holiday Shipping at Fedex?

1. How can the planning process help FedEx meet the company’s goal of meeting on-time
delivery promises?
2. FedEx noted that inclement weather and last-minute online sales surges impacted the
company’s ability to deliver packages by Christmas. How could planning help overcome
unexpected challenges such as these in the future
3. Would it be valuable for FedEx to gather competitor intelligence? Why or why not?
4. What other trends could affect the shipping industry in the future?