LECTURE 2

PLANNING

Click to edit Master subtitle style

5/4/12

11

Planning Setting performance Objectives & deciding How to achieve them Controlling Measuring performance & taking action to Ensure desired results

The Managemen t Process

Leading Inspiring people to Work hard to achieve High performance

Organizing Arranging tasks, people, & other resources To accomplish the work

5/4/12

22

THE OVERALL PLANNING PROCESS

Visio n

Goal s

Plan s

Operations

Click to edit Master subtitle style

5/4/12

33

Vision

This is the true joy in life, the being used for a purpose you consider a mighty one, the being a force of nature rather than a feverish, selfish cold of ailments and grievances, complaining that the world will not devote itself to making you happy. (Bernard Shaw)
5/4/12 44

Vision

Just as Socrates felt that it was necessary to create tension in the mind, so that individuals could rise from the bondage of myths and half truths so must we create the kind of tension in society that will help men rise from the dark depths of prejudice and racism. (Martin Luther King Jr.)
5/4/12 55

Creative Tension
Seeing clearly where we want to be, our vision, and telling the truth about where we are, our current reality. (Fritz 1989) The gap between the two generates 5/4/12 a natural tension.

66

Creative Tension

Creative tension can be resolved in two ways: by raising current reality toward the vision, or by lowering the vision toward the current reality. Individuals, groups and organizations who learn how to work with creative tension learn how to use the energy it generates to move reality more reliably toward their visions.
5/4/12 77

VISION

"Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion."

Jack Welch, Chairman, General Electric

5/4/12

88

VISION

Essentially, the planning process builds on the vision of the organization, the organizations purpose or fundamental reason for existence. Organizational Vision is broad declaration of the basic, unique purpose and scope of operations that distinguish the organization from others of its type. Develop a vision statement - define the firms values, purpose and direction.
5/4/12 99

GOALS AND PLANS

A goal is a future end result that an organization wants to achieve. A plan, normally a written document, is the means devised for attempting to reach a goal.

Some use the term goal interchangeably with objective. Others consider goal to be a broader term, encompassing a longer term 5/4/12 1010 horizon, and use objective to refer to

LEVELS OF GOALS
Operatio nal Tactica l Strate gic

1 year 1 to 5 years 5+ years

5/4/12

Short Range

Intermed iate

Long Range

1111

APPROACHES TO PLANNING

Bottom-up planning

Individual business units are given considerable freedom to develop their own objectives and strategies, with corporate management requiring only that the target sets are then achieved.

Top-down planning

Corporate management sets the objectives and maintains a close involvement with both the development and the implementation of strategy and tactics.

Goals down/Plans up
Corporate management establishes the broad planning parameters in terms of targets and then allows the 5/4/12 1212 business units to decide how these will be achieved.

VISION

The organizations vision sets out the ground rules to its approach to doing business, & good vision statement focuses on:

The shared beliefs and values A definition of business: which covers the target customers, their specific needs that are going to being satisfied, and mode for satisfying the needs Attitudes to growth, innovation, quality etc..
1313

5/4/12

VISION

Most vision/mission statements (often specified in annual reports), document some or all, of the following:
Target Customers & Markets. Principal Products or Services. Location. Where does the organization compete? Core Technologies.

Concern for survival. commitment to 5/4/12 economic objectives (growth and 1414

VISION

Basic Philosophy. What are the basic beliefs, values, aspirations, and philosophical priorities of the organization? Self-concept. What does the organization think of itself? In terms of its major strengths and competitive advantages? Concern for Public image. What does the organization want the public to think of it? What are the organizations public responsibilities, & what public image is desired?
5/4/12 1515

Examples

ASME will be recognized as a premier global organization demonstrating an inclusive culture and environment for developing highly effective and successful leaders. "To be a leading entity to provide training, knowledge and consulting services all over the world in the fields of self development and 5/4/12 1616

Examples

To be at the heart of next generation electronic products Ensure capacity creation through improvement of the state of innovation, intellectualism and empowerment of human capital. Teleca will be the software solutions partner of choice for companies whose products and services use 5/4/12 1717 mobile or wireless technology.

TASKS

ASSIGNMENT 1:

PREPARE A BRIEF INTRODUCTORY PROFILE OF THE COMPANY. THIS PROFILE SHOULD STATE

COMPANY NAME MAJOR PRODUCTS / SERVICES NUMBER OF EMPLOYEES VISION / MISSION / GOALS / FUTURE PLANS IF THE COMPANY DOES NOT HAVE A VISION OR MISSION.!? 1818

5/4/12