Planning.ppt very good material to understand what planning is

planning

1. •Planning
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2. L E A R N I N G O U T L I N E
What Is Planning?
Why Do Managers Plan?
How Do Managers Plan?
Establishing Goals and Developing Plans
Contemporary Issues in Planning
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3. What Is Planning?
•Planning
A primary functional managerial activity that involves:
Defining the organization’s goals
Establishing an overall strategy for achieving those
goals
Developing a comprehensive set of plans to integrate
and coordinate organizational work.
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4. Planning …
Planning 
means looking ahead and chalking out future
courses of action to be followed.
It is a preparatory step.
It is a systematic activity which determines when, how
and who is going to perform a specific job.
Planning is a detailed program regarding future courses
of action.
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5. Planning …
It is rightly said “Well plan is half done”
Therefore planning takes into consideration available &
prospective human and physical resources of the
organization so as to get effective co-ordination,
contribution & perfect adjustment.
It is the basic management function which includes
formulation of one or more detailed plans to achieve
optimum balance of needs or demands with the available
resources.
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6. Planning …
Planning is a mental predisposition to do things in orderly
way, to think before acting and to act in the light of facts
rather than guesses(Urwick ).
Planning is deciding best alternative among others to
perform different managerial functions in order to achieve
predetermined goals.
Planning is deciding in advance what to do, how to do
and who is to do it. Planning bridges the gap between
where we are to, where we want to go(Koontz &
O’Donell ).
It makes possible things to occur which would not
otherwise occur”.
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7. mission and Vision
•Mission: A statement of the basic purpose that makes
an organization different from others
Vision is a mental trip from what is well known
to what is much stronger, the creation of the
future from an assembles of rally facts, hopes,
dreams, risks and opportunities, Hickman &Silva
(1984)
•If you don’t know where you are going, any road
will take you there”
anon
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8. SETTING GOALS and OBJECTIVES
Goals -- The broad, long-term accomplishments an
organization wishes to attain.
Objectives -- Specific, short-term statements detailing
how to achieve the organization’s goals.
Properly set goals are
Set at every level in the organization
Consistent (supportive) with each other
Optimized (balanced) to reduce conflicts between
goals
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9. Approaches to Establishing Goals
•Traditional Goal Setting
Broad goals are set at the top of the organization.
Goals are then broken into subgoals for each
organizational level.
Assumes that top management knows best because
they can see the “big picture.”
Goals are intended to direct, guide, and constrain
from above.
Goals lose clarity and focus as lower-level managers
attempt to interpret and define the goals for their
areas of responsibility.
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10. Approaches to Establishing Goals…
•Maintaining the Hierarchy of Goals
Means–Ends Chain
The integrated network of goals that results from a
establishing a clearly-defined hierarchy of
organizational goals.
Achievement of lower-level goals is the means by which
to reach higher-level goals (ends).
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11. Approaches to Establishing Goals…
•Management By Objectives (MBO)
Specific performance goals are jointly determined by
employees and managers.
Progress toward accomplishing goals is periodically
reviewed.
Rewards are allocated on the basis of progress
towards the goals.
Key elements of MBO:
Goal specificity, participative decision making, an
explicit performance/evaluation period, feedback
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12. Types of Goals
•Financial Goals
Are related to the expected internal financial
performance of the organization.
•Strategic Goals
Are related to the performance of the firm relative to
factors in its external environment (e.g., competitors).
•Stated Goals versus Real Goals
Broadly-worded official statements of the organization
(intended for public consumption) that may be
irrelevant to its real goals (what actually goes on in the
organization).
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13. Steps in Goal Setting
1.Review the organization’s mission statement.
1.Do goals reflect the mission?
2.Evaluate available resources.
1.Are resources sufficient to accomplish the mission?
3.Determine goals individually or with others.
1.Are goals specific, measurable, and timely?
4.Write down the goals and communicate them.
1.Is everybody on the same page?
5.Review results and whether goals are being met.
1.What changes are needed in mission, resources, or goals?
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14. Goals and Objectives Should Be
SMARTER
–Specific
–Measurable
–Acceptable
–Realistic
–Timeframe
–Extending
–Rewarding
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15. Characteristics of Well-Designed Goals
•Written in terms of outcomes, not actions
Focuses on the ends, not the means.
•Measurable and quantifiable
Specifically defines how the outcome is to be measured and
how much is expected.
•Clear as to time frame
How long before measuring accomplishment.
•Challenging yet attainable
Low goals do not motivate.
High goals motivate if they can be achieved.
•Written down
Focuses, defines, and makes goal visible.
•Communicated to all
Puts everybody “on the same page.”
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16. Why Do Managers Plan?
•Purposes of Planning
Provides direction
Reduces uncertainty
Minimizes waste and redundancy
Sets the standards for controlling
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17. Steps in Planning Function
•1.Establishment of objectives
Planning requires a systematic approach.
Planning starts with the setting of goals and
objectives to be achieved.
Objectives provide a rationale for undertaking various
activities as well as indicate direction of efforts.
Moreover objectives focus the attention of managers
on the end results to be achieved.
As a matter of fact, objectives provide nucleus to the
planning process.
Therefore, objectives should be stated in a clear,
precise and unambiguous language.
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18. Steps in Planning Function
•Otherwise the activities undertaken are bound to
be ineffective.
As far as possible, objectives should be stated in
quantitative terms.
For example, Number of men working, wages given,
units produced, etc.
But such an objective cannot be stated in quantitative
terms like performance of quality control manager,
effectiveness of personnel manager.
Such goals should be specified in qualitative terms.
Hence objectives should be practical, acceptable,
workable and achievable.
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19. 2.Establishment of Planning Premises
Planning premises are the assumptions about the
lively shape of events in future.
They serve as a basis of planning.
Establishment of planning premises is concerned with
determining where one tends to deviate from the
actual plans and causes of such deviations.
It is to find out what obstacles are there in the way of
business during the course of operations.
Establishment of planning premises is concerned to
take such steps that avoids these obstacles to a great
extent.
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20. 3.Choice of alternative course of action
When forecast are available and premises are
established, a number of alternative course of actions
have to be considered.
For this purpose, each and every alternative will be
evaluated by weighing its pros and cons in the light of
resources available and requirements of the
organization.
The merits, demerits as well as the consequences of
each alternative must be examined before the choice
is being made.
After objective and scientific evaluation, the best
alternative is chosen.
The planners should take help of various quantitative
techniques to judge the stability of an alternative.
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21. 4.Formulation of derivative plans
Derivative plans are the sub plans or secondary plans
which help in the achievement of main plan.
Secondary plans will flow from the basic plan. These
are meant to support and expediate the achievement
of basic plans.
These detail plans include policies, procedures, rules,
programs, budgets, schedules, etc.
For example, if profit maximization is the main aim of
the enterprise, derivative plans will include sales
maximization, production maximization, and cost
minimization.
Derivative plans indicate time schedule and sequence
of accomplishing various tasks.
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22. Follow up/Appraisal of plans
After choosing a particular course of action, it is put
into action.
After the selected plan is implemented, it is important
to appraise its effectiveness.
This is done on the basis of feedback or information
received from departments or persons concerned.
This enables the management to correct deviations or
modify the plan.
This step establishes a link between planning and
controlling function.
The follow up must go side by side the
implementation of plans so that in the light of
observations made, future plans can be made more
realistic.
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23. Types of Plans
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24. Types of Plans..
•Long-Term Plans: Plans with time frames extending
beyond three years
•Short-Term Plans: Plans with time frames on one
year or less
•Specific Plans: Plans that are clearly defined and
leave no room for interpretation
•Directional Plans” Flexible plans that set out general
guidelines, provide focus, yet allow discretion in
implementation.
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25. Types of Plans…
•Single-Use Plan: A one-time plan specifically
designed to meet the need of a unique situation.
•Standing Plans: Ongoing plans that provide
guidance for activities performed repeatedly.
•Planning can be
Informal: not written down, short-term focus; specific to
an organizational unit.
Formal: written, specific, and long-term focus, involves
shared goals for the organization.
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26. Developing Plans
•Contingency Factors in A Manager’s Planning
Manager’s level in the organization
Strategic plans at higher levels
Operational plans at lower levels
Degree of environmental uncertainty
Stable environment: specific plans
Dynamic environment: specific but flexible plans
Length of future commitments
Current plans affecting future commitments must be
sufficiently long-term to meet the commitments.
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27. Contemporary Issues in Planning
•Criticisms of Planning
Planning may create rigidity.
Plans cannot be developed for dynamic
environments.
Formal plans cannot replace intuition and creativity.
Planning focuses managers’ attention on today’s
competition not tomorrow’s survival.
Formal planning reinforces today’s success, which
may lead to tomorrow’s failure.
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28. Contemporary Issues in Planning…
•Effective Planning in Dynamic Environments
Develop plans that are specific but flexible.
Understand that planning is an ongoing process.
Change plans when conditions warrant.
Persistence in planning eventually pay off.
Flatten the organizational hierarchy to foster the
development of planning skills at all organizational
levels.
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29. Features of planning
Planning seeks to achieve certain objectives.
Planning is oriented towards the future.
Planning is a mental exercise
Planning involves choices from alternatives
Planning is the basics for all other functions.
It is a continuous function
It is pervading.
Planning is directed towards efficiency.
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30. Advantages of planning
It focuses attention on desired objectives
It helps to minimize risk
It improve efficiency
It avoid confusions
It encourage innovation and creativity
It enables co operation and group work
It serves as the basis of control.
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31. Limitations of planning
Lack of accurate information
Time consuming
Expensive
Rigidity due to strict compliance with plans
Unwillingness to people change
External limitations (political )
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32. How we overcome the limitations?
Top management support
Better forecasting
Developing clear-cut objectives
Participation of employees in planning
Sound communication
Overcoming resistance to change
Scientific planning
Well balanced keeping plans.
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33. Planning to Plan

•Planning to plan requires:
Organizational readiness
Recognition of need to plan
Commitment to plan
Organizational commitment
Board and volunteer commitment
Staff commitment
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34. Planning to Plan
Organizational Capacity
Human resources
–Staff
–Volunteers
–Board committees
–Special/Standing committees
Financial resources
–Identify budget
–Determine resources
Time
–Allocate organizational time
–Determine realistic time lines
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35. •Thank You!!
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