Foundation of planning defined by stephon Robbins.ppt

The planning chapter defines by Stephon P. Robbins

1. Planning
Planning is determining in
advance:
a)What is to be done?
b)How it is to be done?
c)When it is to be done?
d)Who will do it?

2. We can proper define planning as:
A process that involves defining the
organization’s goals, establishing an
overall strategy for achieving those
goals, and developing a
comprehensive set of plans to
integrate and coordinate
organizational work.

3. Why Plan
Planning is a way to anticipate and offset
change.
Planning reduces contradictions,
inconsistently, overlapping and
wasteful activities
Planning establishes coordinated
efforts.
Finally planning establishes the
objectives and standards which will be
used for facilitating control.

4. The role of goals & plans in
planning:
Goals are desired outcomes for
individuals, groups and entire
organizations.
&
Plans are documents that outline how
goals are going to be met and that typically
describe resource allocation

5. Types of Plans
A.Strategic vs. Operational
B.Specific vs. Directional
C.Single use vs. Standing
D.Short term, medium and long term

6. Strategic Vs. Operational
On the basis of Breadth
i. Strategic plans:
Strategic plans have relatively long time frame, are
broad in scope, have input from many organizational
units, and include the formation of organizational
overall goals.e.g. A bigger market share, lower costs
relative to key competitors, recognition as a leader in
technology or product innovation etc.
ii. Operational plans
Where as operating plans have a short time frame, a
narrow scope and assumes that objectives are already
known and instead offer ways for attaining these
goals. e.g. an organizations monthly, weekly or day-to-
day plans.

7. Specific Vs Directional
On the basis of specificity:
i.SPECIFIC PLANS: have well defined goals and have well defined goals and
strategies. e.g. strategies. e.g. a manager who seeks to increase his a manager who seeks to increase his
or her unit’s work output by 8 percent over a given 12-or her unit’s work output by 8 percent over a given 12-
month period might establish budgets allocation, month period might establish budgets allocation,
procedures. procedures.
ii. DIRECTIONAL PLANS: identify general guideline. They
formulate the direction of an organization's thrust but
do not define hard and fast objectives.e.g. instead of
detailing increase percentage of output manager
formulates the plan for improving profits by 5-10
percent over next 6 months.

8. Single use vs. Standing
On the basis of frequency
Single use plans:
A one time plan specifically designed
to meet the needs of a unique situation e.g.
programs of changing name of brands,
projects.
Standing Plans:
on going plans that provide guidance
for activities performed repeatedly e.g. rules,
polices, SOP.

9. Short, Intermediate and
Long Term Plans
With reference to time frame plans
are divided into three categories
i.e.
Short term plans
 Intermediate term plans
Long term plans

10. Commonly Short Term Plans are
those which cover a period of less
than one year, Intermediate Term
Plans ranges from one to three years
and any plan which exceeds three
year is termed as Long Term Plan.

11. Moreover short term plans treat
Structure, Strategy and Quantities
as fixed, intermediate plans accept
the general structure and strategy as
given but interpret quantities as
variable. In long term plan, all factors
are variable.

12. Difference between
Objective & Goal
There is no difference between
objective and goal both the terms are
inter changeable. However some
scholar take objective broader term
and goal in narrow term.

13. Planning Process
Planning process consists of following
steps
i.Goal setting
ii.Forecasting
iii.Strategy formation
iv.Setting specific standards
v.Continual review & revision
MBO

14. Traditional Goal Setting Vs
MBO
Traditional goal setting is an approach in which
goals are set at the top level of an organization and
then broken-down into subgoals for each level of the
organization.
While MBO is a management system in which specific
performance goals are jointly determined by
employees and their managers, progress towards
accomplishing those goals is periodically reviewed,
and rewards are allocated on the basis of this
progress.

15. What is MBO
As we know planning process is
composed of five steps and the last two
steps(i.e)
1.Setting specific standards.
2.Continual review and revision
are collectively called MBO

16. Implementing MBO
The MBO process is made up of four
essential elements:
1.Goal Setting
2.Action planning
3.Self control
4.Periodic reviews

17. Problems in implementation
a.Setting unclear immeasurable goals
b.Time consuming
c.Lack of commitment by top management
d.Inconsistent with top management’s
philosophy
e.Use of input rather than output measures
f.Selection of easy measurable and visible
goals
e.Resolutions of conflicts are not automatic
f.Failure of organization is reward
performance.
g.Failure to provide differentiating rewards

18. Goal Setting
Goal setting is first step in
planning process.

19. What are Goals?
By goals we mean ends towards which
all activities are directed. In other
words goals are desired outcomes for
individuals, groups and entire
organization.
Different organizations have different
goals e.g.
Business’s goal is to earn high profit
Church's goal is way towards heaven
Static's goal is to promote welfare.

20. Types of Goals
Goals may be internal or external
but all the profitable or non
profitable organizations have a
common goal of “SURVIVAL”

21. Some of the following goals directly
contribute towards SURVIVAL
A.Internal Goal (i.e) profitability, growth
market, penetration, leadership,
productivity.
B.External Goal includes client satisfaction
and social awareness.

22. Real vs. State Goals
Stated Goals:
Official statements of what an organization
says and what it wants various stake holders
to believe, it’s goals are e.g. annual reports,
mission statement, public announcement.
Real Goals:
Goals than an organization actually pursues,
as defined by the actions of it’s member e.g.
profit motive

23. Steps in Goal Settings
1.Review the organizations mission
statement
2.Evaluate available resources
3.Determination of goals
4.Write down and communicate the
goals
5.Review of results.

24. Characteristics of well- designed goals
(Goals should be Smart) :
S Specific
(in terms of outcomes)
M Measurable
(Quantifiable)
A Action oriented
(Contains plan of action)
R Realistic
(Not too small, nor too big)
T Time Bound

25. Criticism of Planning
Planning may create rigidity
Plans can’t be developed for a dynamic
environment.
Formal plans cant’s replace intuition &
creativity
Focus is on today’s competition
Formal planning may lead to failure.