Professional Documents
Culture Documents
07 Topic2 Planning
07 Topic2 Planning
2 Planning
Planning
Planning Defined
– The process of outlining the activities that
are necessary to achieve the goals of the
organization.
A Plan
– A blueprint for action that prescribes the
activities necessary for an organization to
realize their goals.
3 Planning
Purpose of Planning
To ensure that the organization is both effective and
efficient in its activities.
Help determine opportunity
Identify course of actions
Avoid risk, utilise resources efficiently
Achieve goals and reduce overlapping
Attain confidence & identify future changes
4 Planning
Why Planning Is Important (Henri Fayol)
Unity
• At any one time, only one central, guiding plan is put
into operation.
Continuity
• Planning is an ongoing process in which managers
build and refine previous plans and continually modify
plans at all levels.
Why Planning Is Important (cont’d…)
Accuracy
• Managers need to make every attempt to
collect and utilize all available information at
their disposal.
Flexibility
• Plans can be altered if the situation changes.
The Benefits of Planning
(Why Plan?)
A “Road map”
– Planning provides a guide and direction
Better Coordination
– Planning provides a foundation for the coordination
of a broad range of organizational activities.
– A plan helps to define the responsibilities of
individuals and work groups and helps coordinate
their activities.
7 Planning
The Benefits of Planning (cont’d)
Focus on Forward Thinking
– The planning function forces managers to think ahead and
consider resource needs and potential opportunities or threats
that the organization may face in the future.
Participatory Work Environment
– Successful planning requires the participation of a wide range
of organizational members.
More access to a broad base of experience and knowledge
in the planning process.
More “buy in”—organizational members are more likely to
accept a plan that they have helped develop.
8 Planning
The Benefits of Planning (cont’d)
9 Planning
Planning as a Linking Mechanism
Goals
Provide a clear,
engaging sense
of direction and
specify what is to
be accomplished.
10 Planning
Planning as a Linking Mechanism
Goals Control
Management time
A waste of time. Fail to plan means plan to
fail
Delayed decision making
Time wasted caused what the managers
decide to do cannot be implement
accordingly.
13 Planning
Where Should Planning Begin?
↓Top-Down Planning↓
Planning efforts begin with the board
of directors and top executives of the
firm
↑Bottom-Up Planning↑
Planning is initiated at the lowest level
in the organization
14 Planning
Advantages of Each Planning
Approach
Top-Down Planning
– Top managers, who are the most knowledgeable
about the firm as a whole, drive the development
of the plan.
Bottom-Up Planning
– The people closest to the operating system,
customers, and suppliers drive the development
of the plan.
15 Planning
Goals
Goals
– Target which activity is aimed.
– Are very broad statements of the results that an
organization wishes to achieve in the long run.
– Relate to the mission and vision of the
organization and specify the level of performance
that the organization wants to achieve.
16 Planning
Goals (cont’d)
SMART goals are:
– Specific…
– Measurable…
– Achievable…
– Realistic/ Results-oriented…
– Timeline
17 Planning
MISSION STATEMENT
18 Planning
MISSION STATEMENT
19 Planning
Mission Statements for Three Internet Companies
Promotes unity
Helps allocate scarce resources
Helps move from ideas to action
Establishes culture
21 Planning
Types of planning
Strategic Planning
Operational Planning
22 Planning
Strategic Planning
23 Planning
Levels of Strategic Planning
PLANNING FOCUS
24 Planning
Operational Planning
Operational Planning
– Focuses on the day-to-day activities that are necessary to
achieve the long-term goals of the organization.
Operational Plans
– Are more specific, address shorter-term issues, and are
formulated by mid- and lower-level managers who are
responsible for the work groups in the organization.
– Can be categorized as either standing or single-use
plans.
25 Planning
Single-Use Plans
Single-Use Plans
– Are developed to address a specific organizational
situation. They include:
Programs: govern a relatively comprehensive set of activities
that are designed to accomplish a particular set of goals.
Projects: direct the efforts of individuals or work groups
toward the achievement of specific, well-defined objectives.
Budgets: specify how financial resources should be allocated.
26 Planning
Standing Plans
Standing Plans
– Designed to deal with organizational issues or
problems that recur frequently. They include:
Policies: general guidelines that govern how certain
organizational situations will be addressed.
Procedures: more specific and are designed to give
explicit instructions on how to complete a recurring task.
Rules: provide detailed and specific guidelines and limits
for action.
27 Planning
Individual Plans
28 Planning
Management by Objectives (MBO)
29 Planning
MBO Benefits
30 Planning
MBO Disadvantages
31 Planning
MBO
Program
Steps
32 Planning
The Balanced Scorecard (BSC)
34 Planning
Barriers to Effective Planning
35 Planning
Barriers to Effective Planning
(cont’d)
36 Planning
Overcoming the Barriers to
Planning
Apply Management Functions
– Priority, use of plan, delegate, communicate & coach
employees
Involve Employees in Decision Making
– Input from all levels of a firm is essential for successful
planning
37 Planning
Overcoming the Barriers to
Planning
Take Advantage of a Diversity of Views
– Diverse views lead to a broader assessment of
organizational problems and opportunities.
Encourage Strategic Thinking
– Effective strategic thinking can be developed through
training and practice.
38 Planning
Ifyou failed to plan, then you are
planning to fail.
39 Planning