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Planning in an organization

1. PLANNING IN MANAGEMENT PRESENTED BY : OPIO DANIEL 1

2. PRESENTATION OUTLINE : What is Planning? What are the importance of planning in an organization? What are the processes /cycle involved in planning stage? What are different levels of Organizational planning? What are the different types of planning methods? 2

3. CONT’d “If you don’t have daily objectives, you qualify as a dreamer” -Zig Ziglar “Planning is deciding in advance what is to be done. It involves the selection of objectives, policies, procedures and programs from alternatives.” - M.E Harley Planning is a trap laid down to capture the future.” - Allen “If you don’t know where you are going, how can you expect to get there ?” -Nelson Mandela 3

4. PLANNING IN MANAGEMENT WHAT IS PLANNING? It is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning involves the creation and maintenance of a given organizational operation. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be good decision makers. 4

5. PLANNING IN MANAGEMENT Planning is considered a basic function of management. It means that a plan is necessary for any other managerial function, be it organising, directing, staffing, or controlling: Planning dictates how to effectively organise a business. It encompasses determining necessary future activities, assigning them to the right personnel, delegating authority, providing tools and raw material, etc. Having a plan of action facilitates directing as it makes instructions, guidance, and motivation grounded in a brand strategy. 5

6. PLANNING IN MANAGEMENT Planning informs staffing , as it shows what work- force a company will need. Establishment of standards and measurement of actual performance – controlling – is done against the expectations that planning sets 6

7. IMPORTANCE OF PLANNING IN AN ORGANIZATION BEN EFIC IAL BEN EFICIAL Managing Risk And Uncertainty BENE FICIAL PLANNING Efficient Use of Resources Establishing Organizational Goals Team Building and Cooperation BEN EFICIA L Creating Competitive Advantages BENEFICIAL 7

8. IMPORTANCE OF PLANNING IN AN ORGANIZATION Efficient Use of Resources All organizations, large and small, have limited resources. The planning process provides the information top management needs to make effective decisions about how to allocate the resources in a way that will enable the organization to reach its objectives. Productivity is maximized and resources are not wasted on projects with little chance of success. 8

9. CONT’d Establishing Organizational Goals Setting goals that challenge everyone in the organization to strive for better performance is one of the key aspects of the planning process. Goals must be aggressive, but realistic. Organizations cannot allow themselves to become too satisfied with how they are currently doing – or they are likely to lose ground to competitors. 9

10. CONT’d Managing Risk And Uncertainty Managing risk is essential to an organization’s success. Even the largest corporations cannot control the economic and competitive environment around them. Planning encourages the development of “what- if” scenarios, where managers attempt to envision possible risk factors and develop contingency plans to deal with them. The pace of change in business is rapid, and organizations must be able to rapidly adjust their strategies to these changing conditions. 10

11. CONT’d Creating Competitive Advantages Planning helps organizations get a realistic view of their current strengths and weaknesses relative to major competitors. The management team sees areas where competitors may be vulnerable and then crafts marketing strategies to take advantage of these weaknesses. Observing competitors’ actions can also help organizations identify opportunities they may have overlooked, such as emerging international markets or opportunities to market products to completely different customer groups. 11

12. CONT’d They see how their work contributes to the success of the organization as a whole and can take pride in their contributions. Potential conflict can be reduced when top management solicits department or division managers’ input during the goal setting process. Individuals are less likely to resent budgetary targets when they had a say in their creation. 12

13. CONT’d Team Building and Cooperation Planning promotes team building and a spirit of cooperation. When the plan is completed and communicated to members of the organization, everyone knows what their responsibilities are, and how other areas of the organization need their assistance and expertise in order to complete assigned tasks. 13

14. Levels of Organizational planning 14

15. Define Objectives Develop Premises Evaluate alternatives Identify resources Establish tasks Determine tracking and evaluation methods THE PLANNING PROCESS/CYCLE 15

16. THE PLANNING PROCESS/CYCLE DEFINE OBJECTIVES The first, and most crucial, step in the planning process is to determine what is to be accomplished during the planning period. The vision and mission statements provide long-term, broad guidance on where the organization is going and how it will get there. The planning process should define specific goals and show how the goals support the vision and mission. Goals should be stated in measurable terms where possible. 16

17. Define Objectives Develop Premises Evaluate alternatives Identify resources Establish tasks Determine tracking and evaluation methods THE PLANNING PROCESS/CYCLE 17

18. THE PLANNING PROCESS/CYCLE DEVELOP PREMISES Planning requires making some assumptions about the future. We know that conditions will change as plans are implemented and managers need to make forecasts about what the changes will be. These include changes in the following conditions: External conditions - Laws and regulations, competitors’ actions, new technology being available Internal conditions - what the budget will be, the outcome of employee training, a new building being completed 18

19. THE PLANNING PROCESS/CYCLE These assumptions are called the plan premises . It is important that these premises be clearly stated at the start of the planning process. Managers need to monitor conditions as the plan is implemented. If the premises are not proven accurate, the plan will likely have to be changed. 19

20. Define Objectives Develop Premises Evaluate alternatives Identify resources Establish tasks Determine tracking and evaluation methods THE PLANNING PROCESS/CYCLE 20

21. THE PLANNING PROCESS/CYCLE EVALUATE ALTERNATIVES There may be more than one way to achieve a goal. For example, to increase sales by 12 percent, a company could hire more salespeople, lower prices, create a new marketing plan, expand into a new area, or take over a competitor. Managers need to identify possible alternatives and evaluate how difficult it would be to implement each one and how likely each one would lead to success. It is valuable for managers to seek input from different sources when identifying alternatives. Different perspectives can provide different solutions. 21

22. Define Objectives Develop Premises Evaluate alternatives Identify resources Establish tasks Determine tracking and evaluation methods THE PLANNING PROCESS/CYCLE 22

23. THE PLANNING PROCESS/CYCLE IDENTIFY RESOURCES To implement the plan, managers must examine the resources the organization currently has, what new resources will be needed, when the resources will be needed, and where they will come from. The resources could include people with particular skills and experience, equipment and machinery, technology, or money. This step needs to be done in conjunction with the previous one, because each alternative requires different resources. Part of the evaluation process is determining the cost and availability of resources. 23

24. Define Objectives Develop Premises Evaluate alternatives Identify resources Establish tasks Determine tracking and evaluation methods THE PLANNING PROCESS/CYCLE 24

25. THE PLANNING PROCESS/CYCLE PLAN AND IMPLEMENT TASKS Management will next create a road map that takes the organization from where it is to its goal. It will define tasks at different levels in the organizations, the sequence for completing the tasks, and the interdependence of the tasks identified. Techniques such as Gantt charts and critical path planning are often used to help establish and track schedules and priorities. This step needs to be done in conjunction with the previous one, because each alternative requires different resources. Part of the evaluation process is determining the cost and availability of resources. 25

26. Define Objectives Develop Premises Evaluate alternatives Identify resources Establish tasks Determine tracking and evaluation methods THE PLANNING PROCESS/CYCLE 26

27. THE PLANNING PROCESS/CYCLE DETERMINE TRACKING AND EVALUATION METHODS It is very important that managers can track the progress of the plan. The plan should determine which tasks are most critical, which tasks are most likely to encounter problems, and which could cause bottlenecks that could delay the overall plan. Managers can then determine performance and schedule milestones to track progress. Regular monitoring and adjustment as the plan is implemented should be built into the process to assure things stay on track. 27

28. Define Objectives Develop Premises Evaluate alternatives Identify resources Establish tasks Determine tracking and evaluation methods THE PLANNING PROCESS/CYCLE 28

29. THE DIFFERENT TYPES OF PLANNING Financial or Non-Financial Planning Formal and Informal Planning Specific or Routine Planning Profit Planning Short and Long- Range Planning 29

30. THE DIFFERENT TYPES OF PLANNING Financial or Non- Financial Planning Financial Planning - relates to the financial position of a concern and the resources where money can be borrowed from . Non- Financial Planning - are plans relating to the physical resources of concern . 30

31. THE DIFFERENT TYPES OF PLANNING Formal and Informal Planning Informal Planning - Mere thinking is informal planning. Formal Planning - these are the plans which are reduced to b la ck and white. They are more than just talk put on paper. It facilitates adequate control and pinpoints the weaknesses. 31

32. THE DIFFERENT TYPES OF PLANNING Specific or Routine Planning Specific Planning - Any plan for a particular purpose is known as ‘ specific planning ’ Routine Planning - the methods adopted for accomplishing a particular object, and during a particular period, are the same without any major change. Methods are merely repeated under a planned programmed. Routing does not require any ingenuity or creativity on the part of the planners. 32

33. THE DIFFERENT TYPES OF PLANNING Profit Planning Thus, specific efforts in this regard may relate to ‘ profit planning’ . Profit planning is generally based on forecast, and therefore, to get profit, certain steps must be taken, duties must be assigned and the future forecasted in such a way as to get the object fulfilled. Profit planning helps the management in attaining higher level of profit. 33

34. THE DIFFERENT TYPES OF PLANNING Short and Long- Range Planning The definition of long- range and short- range planning depends on the manager ' s level in the organisational hierarchy, on the type of business, the kind of industry in which the firm is engaged, the production cycle, the quality of managerial practices and many other factors. Short- range planning can be defined as planning which covers a period from six to twelve months. Long- range planning usually involves time interval of three to five years. 34

35. THANK YOU! REFERENCE: Kerzner, H.(2017). Project Management: A systems approach to planning, scheduling, and controlling by John Wiley & sons. 35