socio economic develop planning in case of wolaita sodo ethiopia 2024

socio economic planning

1. Course ; socio economic development planning By; Tadele .T(Assistant professor in socio economic development planning) Ects ;Four Acadamic year ; 2023/24 1 12/16/2023 Tadele .T(Assistant professor in SEDP)

2. 1.1 PLANNING: Concepts and Definitions What is planning? Planning is an art as well as a science. It requires judgment, sensitivity and creativity as an art. While as a science it has its own logical procedures, principles which govern it. The Concept of Planning Planning is the process of evaluation of options and subsequent decision-making which precedes implementation of a decision or plan. 12/16/2023 Tadele .T(Assistant professor in SEDP) 2

3. Planning refers to the process of deciding what to do and how to do it . Planning occurs at many levels , from day-to-day decisions made by individuals and families, to complex decisions made by businesses and governments. 3 12/16/2023 Tadele .T(Assistant professor in SEDP)

4. C ertain features of planning in general & features common to all types of planning can be identified. Major features of general planning include is a sequence of actions which are designed to solve problems in the future . E.g., the planning problems may vary but commonly economic and social. The planning period, the time horizon of ‘the future’ also varies depending up on the type and levels of planning. But all planning involves a sequence process which can be conceptualized into a number of stages. 4 12/16/2023 Tadele .T(Assistant professor in SEDP)

5. The identification of the problem. the formulation of general goals and more specific and measurable objectives relating to the problem ( SMART : S = Specific ,M=Measurable, A = Attainable R = Realistic, T = Time-Sensitive/bounded) the identification of possible constraints the projection of the future situations. evaluation of alternative course of action . Planning requires preparing for a future that is often impossible to predict, and so must incorporate uncertainty. Forecasts should usually describe ranges and probabilities rather than point estimates, and plans should usually incorporate contingencies. 5 12/16/2023 Tadele .T(Assistant professor in SEDP)

6. Such contingency-based plans can include various actions, some to be implemented only if future conditions require. Planners are professionals who facilitate decision-making . Planners do not make decisions themselves ; rather, they support decision-makers (managers, public officials, citizens) by coordinating information and activities. Their role is to create a logical, systematic decision-making process that results in the best actions. 6 12/16/2023 Tadele .T(Assistant professor in SEDP)

7. Planning is a social activity – it involves people . Successful planning requires effective involvement of stakeholders . Planners should be prepared to work with people from diverse backgrounds, interests and abilities. Planning tends to evolve over time, with new issues and tools. For example , in recent years social equity, environmental risk management, heritage preservation, energy planning, security, non-motorized transportation, public health, and sustainability have all become planning issues . Planning increasingly incorporates the concept of sustainability, which refers to comprehensive, strategic planning that explicitly considers long-term and indirect impacts, 7 12/16/2023 Tadele .T(Assistant professor in SEDP)

8. Daniel Gilbert (2006) , the human species greatest and most unique ability is to imagine and anticipate objects and episodes that do not currently exist , that is, to plan for the future. Effective planning takes into account diverse perspectives and impacts , allowing decision-makers to identify and implement the most effective ways to achieve goals. In short, planning is different things to different men . That is why; it has no clear cut definition rather depends on the context. Planners help communities create their preferred future: 8 12/16/2023 Tadele .T(Assistant professor in SEDP)

9. “ Good planning makes progress toward paradise while bad planning leaves a legacy of problems and disputes.” Good planning requires special skills and perspectives: Most people prefer to ignore problems until they become unavoidable . Planners are professional worriers who seek out potential problems so they can be mitigated. Most people look at a problem from a single perspective. Planners are responsible for considering multiple perspectives; they ask “what is best for everybody overall ?” Most people prefer simple problems and solutions . Planners learn to appreciate complexity, and search for deeper meanings and underlying causes . Planners learn to work with uncertainty and ambiguity. Most people consider compromise a sign of weakness and failure. 9 12/16/2023 Tadele .T(Assistant professor in SEDP)

10. Planners are passionate about compromise because it resolves conflicts and often leads to better solutions . Most people prefer to consider one issue at a time. Planners apply integrated analysis, so individual, short-term decisions are consistent with multiple, long-term goals . Planning : Linking Goals/Knowledge to Action 10 12/16/2023 Tadele .T(Assistant professor in SEDP)

11. The term  planning  can be applied to an activity, a process, a profession , and/or a discipline . As an activity, its primary concern is to visualize future possibilities and intentionally choose, guide, and/or create current behaviors, structures, and/or tools to achieve and/or target toward desirable future states. As a process , it refers to the methods, mechanisms and tools for accomplishing the activity , especially in a group or social context. As a profession , it refers to the group of individuals carrying appropriate skill sets who fulfill an agreed upon social responsibility to guide the processes. 11 12/16/2023 Tadele .T(Assistant professor in SEDP)

12. As a discipline , it refers to the body of knowledge , related to all aspects of planning, held symbolically or in the minds of practitioners, researches, and theorists. In planning process managers : Establish goals Anticipate future development Identify course of actions required to attain the goals Determine the time frame 12 12/16/2023 Tadele .T(Assistant professor in SEDP)

13. 13 1.2.The Needs for Planning Why Planning? improve efficiency of outcomes widen the range of choice increase civic engagement counterbalance market failures balance b/n public and private interests as it is a means to correct market failure. Regional inequality, Poverty, crowdness , backwardness, Pollution, Infrastructural problems, Unemployment, etc 12/16/2023 Tadele .T(Assistant professor in SEDP)

14. 14 The result of planning is a plan. Representation of future behavior … usually a set of actions, with temporal and other constraints on them provides a sense of direction; focus attention on specific targets or direct efforts toward important outcomes. Provides a clear understanding of what you need to do in order to achieve your development goals Guides you in prioritizing and making decisions; Allows you to focus possibly limited resources on the actions that will benefit your work the most Keeps you in touch with your global, national and local context ; Provides a tool to help you communicate your intentions to others; 12/16/2023 Tadele .T(Assistant professor in SEDP)

15. 15 Several reasons /rationales/, enforce government and non-government organizations to adopt planning . Of these reasons the major ones include : Growing complexity of modern business Performance improvements Scarcity of resources. The increasing demand of service users In general planning is appropriate means of response towards changing environments inside and out side organization. In simple terms , we plan, because we are engaged in development activities. 12/16/2023 Tadele .T(Assistant professor in SEDP)

16. 16 Planning, as a key management function, enables managers to answer six basic questions in regard to any intended activity. What (the goal or goals), When (the time frame in which it will be accomplished), Where ( the place or places where the plans or planning will reach its conclusion), Who (which people will perform the tasks), How (the specific steps or methods to reach the goals), and How much (resources necessary to reach the goals). 12/16/2023 Tadele .T(Assistant professor in SEDP)

17. 17 The planning function can be characterized as follows: Planning is the primary management function . Planning occurs before organization, staffing, directing and controlling. Planning is a continuous process. Planning deals with the future, and the future by its nature is uncertain. It is a process which moves from a certain beginning to a definite ends continuously. Planning concerns all managers . Planning is the responsibility of all managers. Plans are arranged in hierarchy. Plans first set for the entire organization called the corporate plan. The corporate (strategic) plan provides framework for the formulation of divisional, departmental, and sectoral goals . 12/16/2023 Tadele .T(Assistant professor in SEDP)

18. 18 Planning is future oriented . All types of plans established by managers affect future effectiveness of the organization, as decisions made activities undertaken in the present continue to have their impact in to the future Planning is antithesis (direct opposite) of status quo . undertaken with the conscious purpose of attaining a position for the company that would not be accomplished otherwise.Therefore , it implies change in organizational objectives, polices, producers, etc. However , planning itself is affected by unforeseen environmental changes. Flexibility- planning allows managers the opportunity to adjust the organization to the environment instead of merely to react to it. 12/16/2023 Tadele .T(Assistant professor in SEDP)

19. 19 Planning is action–oriented. Plans that are blue print should necessarily followed by action they should not be paper tigers. As occasion needs, plans need to be translated in to action. Planning has a number of importance to organization: With out plans, leaders cannot know how to organize people and resources effectively . They may not even have a clear idea of what they need to organize . Without a plan they cannot lead with confidence or expect others to follow them. And without a plan, managers and their followers have little chance of achieving other goals or knowing when and where they stray from their path. 12/16/2023 Tadele .T(Assistant professor in SEDP)

20. 20 More specifically , sound planning has the following functio n : Planning establishes coordinated effort . It gives directions to management when every one knows where the organization is going and what they are expected to contribute to achieve the objectives; there should be increased coordination, and teamwork . Planning is a way to reduce uncertainty through anticipating change. Planning also clarifies the consequences of the actions management might take in response to change. Planning forces managers to look a head, anticipate changes, consider the impact of these changes, and develop appropriate responses. 12/16/2023 Tadele .T(Assistant professor in SEDP)

21. 21 Planning can reduce overlapping and wasteful resources and activities coordination before the fact is likely to uncover waste and redundancy. Planning establish the objectives or standards that are to be used to facilitate control 12/16/2023 Tadele .T(Assistant professor in SEDP)

22. What is an Economic Development Plan? An economic development plan helps you realize your community’s economic vision and take control of your economic future. It can help bring together community residents with private and public sectors. The economic development plan provides a comprehensive overview of the economy, sets policy direction for economic growth, and identifies strategies, programs, and projects to improve the economy. 12/16/2023 Tadele .T(Assistant professor in SEDP) 22

23. An economic development plan should : Outline the economic vision, mission, and goals of a community Outline the economic strategies and specific actions that will be taken Help residents, businesses, and local governments understand the economic priorities for a community Effective economic development plans help communities respond to economic challenges and seize opportunities. 12/16/2023 Tadele .T(Assistant professor in SEDP) 23

24. Who Leads Economic Development Planning? The economic development plan is often led by an economic development professional like an economic development practitioner or economic development officer, although this can be different depending on the economic development model a community chooses.  The plan should be reviewed often to make sure it stays up to date. Usually , plans need to be updated every three to five years to align to new community needs and priorities. 12/16/2023 Tadele .T(Assistant professor in SEDP) 24

25. What Should an Economic Development Plan Include? An economic development plan is closely tied to a performance measurement process and is usually made up of around five components:   Vision Mission Goals  Strategies  Actions 12/16/2023 Tadele .T(Assistant professor in SEDP) 25

26. 1.2.Strategic economic development plans Sedp ; are integral to achieving measurable, sustainable economic growth and quality of place. By putting a formal plan in place, communities can take control of their economic development, set clear and attainable economic development objectives, and design policies and programs to achieve them . Without a plan, your economic future is reactive at best. At worst, it’s in the hands of others – especially in this time of uncertainty. But how do you create a strategic economic development plan? Where should you begin? How can you make sure your plan is actionable? Here are five steps to developing a plan that is right for you, one that will lay the foundation for long-term economic viability. 12/16/2023 Tadele .T(Assistant professor in SEDP) 26

27. 1. Accept that you need a formal economic development strategy. Economic development plans are carefully and strategically built frameworks. Long-term in scope, they provide a pathway that communities can follow to overcome diverse, often challenging situations. They can help you account for the following if created the right way: Rapid population growth or decline Booming economy or stagnation Job creation or retention issues Economic stability in an unpredictable federal and/or global market Public and private partnerships and investment Human resource development, education and training Land use and sustainable housing growth Commercial and industry stock 12/16/2023 Tadele .T(Assistant professor in SEDP) 27

28. 2. Assemble a team of 6-12 key stakeholders. Next, you need to create a team of key stakeholders who are committed to developing a strategic plan. “ Key” isn’t used loosely here; each member should have a distinct role not only within your community but on the team. In addition, a dynamic plan requires a dynamic team . Your list of potential representatives should consider the following types of individuals: Influential local elected officials Local economic development organization (LEDO) representatives Leaders within the business community Resident members Non-profit agencies Local churches or places of worship A member of a local or regional workforce development office 12/16/2023 Tadele .T(Assistant professor in SEDP) 28

29. 3. Develop your plan! A strategic economic development plan can be complex, but it’s important to keep things as simple and straightforward as possible . The most successful plans are understandable to your key stakeholders and economic development officials . Ultimately, the success of your economic development plan hinges on the activities, investments and programs you have in place to, for example, increase employment and job quality, improve quality of life for today and in the long term, and boost the overall business climate. 12/16/2023 Tadele .T(Assistant professor in SEDP) 29

30. At minimum, your economic development plan's framework should include these items . "Processes" include policies, programs and projects. "Methods" include approach (project management team), benchmarking, budgeting and financing. As you create your plan, it’s important to keep in mind these six factors: Weigh economic and demographic data from research, analysis and forecasting – similar to an investor in the stock market. Rely on the natural assets of your community in order to develop realistic goals for economic development . Make sure you know your community as a product – this includes its past, present and forecasted future. Recognize your strengths, opportunities, weaknesses and potential threats. Gain an understanding of future market trends and industry advances. Combine your research and analysis with public input and dialogue. 12/16/2023 Tadele .T(Assistant professor in SEDP) 30

31. 4. Implement your plan. Much like any capital improvement plan, implementation of your economic development plan should be based on key projects and programs upcoming or in the works. Prioritize by short-, medium- and long-term goals, and consider costs associated with implementation. I mplementation (i.e., “action”) must be a standalone chapter or section within your plan document. Short-term, quick-win programs might include: Creating a list of all commercial, office and industrial businesses within your community. Establishing an annual local economic development report card to monitor and track economic growth. 12/16/2023 Tadele .T(Assistant professor in SEDP) 31

32. Long-term, strategic programs might include: Identifying and developing an area for industrial development. Improving local educational programs to meet the employment needs of a targeted industry. Cultivating social, cultural, arts and/or recreational infrastructure or programs – such as walking and biking trails, nature conservation areas and other cultural amenities to supplement community programming. Developing technology-based or application-based districts for individuals in order to develop high-tech tools or computer applications. Your ultimate goal is to be the first in your area to develop an economic niche. 12/16/2023 Tadele .T(Assistant professor in SEDP) 32

33. 5 . Never Stop Updating . Truly strategic economic development plans are dynamic and fluid . It’s unwise to “set it and forget it .” Use your annual local economic development report card or other progress-monitoring tools to ensure that economic growth and your plan remain consistent with the vision, mission and goals you’ve established. Lastly , review your plan for modifications on a regular basis – always weighing new development, evolving economic trends and emerging technologies. Continuously evaluate your plan and your progress. This is the best way to make sure your plan aligns with the needs and goals of your community. 12/16/2023 Tadele .T(Assistant professor in SEDP) 33

34. Perspectives on local economic development Local Economic Development (LED) has emerged globally as a vital planning approach for local economies. The emergence and growing significance of LED planning approaches are inseparable from the changing world economy and especially the advance of globalization. The question of catalyzing LED planning initially emerged in Europe and spread to other advanced economies . The geographical diffusion of LED has occurred to late-developing economies in sub-Saharan Africa and Latin America. 12/16/2023 Tadele .T(Assistant professor in SEDP) 34

35. What is Local Economic Development? James Robertson (Robertson 1985), as: “Local Work for Local People using Local Resources”. From a descriptive perspective Local Economic Development would cover all economic activities which happen at local or regional level and/or have any impact on the localities . From this perspective the locality is seen as an economic actor in its own right . In traditional economic thinking the locality exists more or less only as a place or space where other economic actors like enterprises, industries, investors, authorities etc compete and use or exploit their natural and human resources. Although such an analytically approach of Local Economic Development seems to be very important, it is not very often put into practice. 12/16/2023 Tadele .T(Assistant professor in SEDP) 35

36. But far more interesting is the political perspective of Local Economic Development: It is definitely more than just “economic development at local level”; it is a special way or certain type of economic development and different from other forms or types of economic development . To understand its specific character I will present four scenarios : The first scenario is called “ development from above ”: The main actor here is the state, working top-down from the central government to regional government and local authorities. In this scenario the local actors, people, enterprises as well as authorities wait for decisions as well as resources coming from above, because they believe that the state is either mainly responsible for all kinds of development or has only the power to do so. This scenario is usually accompanied by a high degree of dependency and arbitrary measures. 12/16/2023 Tadele .T(Assistant professor in SEDP) 36

37. The second scenario is called “ development from outside ”: It often follows the breakdown of the first option. What they have in common is that the local actors believe they cannot do anything on their own. Therefore , outside “investors” are needed to bring in the necessary resources , especially money. In all parts of the so-called “underdeveloped” world everybody is desperately looking for investors . Financial investments of this type are nowadays highly dynamic and flexible so that they can easily move from one place to the next, if they can find better conditions or if plans have changed . From the view point of “ sustainability” attracting investors from outside is a very risky business . 12/16/2023 Tadele .T(Assistant professor in SEDP) 37

38. The third scenario could be called “ wait and see ”: The local actors remain more or less passive waiting for things to come . Some might look at it as a quasi natural process of selection , some might have resigned as a result of the failures of option one and two. The traditional “solution” in this scenario is migration. In fact, this is the most popular option, although it becomes more and more difficult to find places to go, not only because of political restrictions , but also for economic reasons, because the islands of prosperity around the world become smaller and smaller in size and numbers. The final scenario I would call “ development from within ”: As option number one is dominated by the state, number two by private investment and number three by fatalism, in this scenario the local actors, the people themselves play the key role. And here we are at the heart of Local Economic Development: It starts when people realize that neither the state nor the market economy serve their needs or solve their problems, and if they are unwilling or unable to leave their homes. 12/16/2023 Tadele .T(Assistant professor in SEDP) 38

39. The goals of Local Economic Development are to  create wealth, generate jobs, increase incomes and, ultimately, reduce poverty and improve the quality of life for both women and men in the locality . T he World Bank in 2002 defined LED as: LED is the process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation. The aim is to improve the quality of life for all in the community 12/16/2023 Tadele .T(Assistant professor in SEDP) 39

40. LED ; a process to mobilize stakeholders from the public and the private sectors as well as from civil society, to become partners in a joint effort to improve the economy of a defined subnational territory and thus increase its competitiveness. LED as a broad set of activities, which aim at creating a competitive advantage for an urban or rural territory and for the enterprises in this territory to improve territorial attractiveness and economic wellbeing. 12/16/2023 Tadele .T(Assistant professor in SEDP) 40

41. The ILO defined it as “LED is a participatory development process that encourages partnership arrangements between the main private and public stakeholders of a defined territory, enabling the joint design and implementation of a common development strategy, by making use of the local resources and competitive advantage in a global context, with the final objective of creating decent jobs and stimulating economic activity 12/16/2023 Tadele .T(Assistant professor in SEDP) 41

42. From these different definitions of LED there are several core elements that are common: It takes place within a defined territory It has a strong bottom-up orientation, it is driven by local stakeholders It involves a range of stakeholders from the public and private sector, as well as from civil society It is about improving the competitiveness and attractiveness of the location It is undertaken for the purpose of fostering economic well-being 12/16/2023 Tadele .T(Assistant professor in SEDP) 42

43. With the rapid changes in global, national and local economies, increasingly definitions of LED are adding aspects of inclusiveness, sustainability and resilience. Many international development organisations see LED as complementary to other support measures, such as improving governance , reducing inward migration and improving urban development . International development projects or national government projects can help to establish or enhance LED locally , but should not replace or displace local effort 12/16/2023 Tadele .T(Assistant professor in SEDP) 43

44. The purpose of local development is to build the capacity of a defined area to improve its economic future and the quality of life for inhabitants. Local development makes an important contribution to national economic performance and has become more critical with increased global competition, population mobility, technological advances, and consequential spatial differences and imbalances. Effective local development can reduce disparities between poor and rich places, add to the stock of locally generated jobs and firms, increase overall private sector investment, improve the information flows with investors and developers, and increase the coherence and confidence with which local economic strategy is pursued. 12/16/2023 Tadele .T(Assistant professor in SEDP) 44

45. Prosperity in the 21st Century will be based on creating and maintaining a sustainable standard of living and a high quality of life for all. To meet this challenge, a comprehensive new model is emerging which recognizes the economic value of natural and human capital. Embracing economic, social, and environmental responsibility, this approach focuses on the most critical building blocks for success, the community and the region. It emphasizes community-wide and regional collaboration for building prosperous and livable places. While each community and region has unique challenges and opportunities, the following common principles should guide an integrated approach by all sectors to promoting economic vitality within their communities, and in partnership with their neighbors in the larger region. 12/16/2023 Tadele .T(Assistant professor in SEDP) 45

46. A. Integrated Approach Government, business, education, and the community should work together to create a vibrant local economy, through a long-term investment strategy that: encourages local enterprise serves the needs of local residents, workers, and businesses promotes stable employment and revenues by building on local competitive advantages protects the natural environment increases social equity is capable of succeeding in the global marketplace . B. Vision and Inclusion Communities and regions need a vision and strategy for economic development according to these principles. Visioning , planning and implementation efforts should continually involve all sectors, including the voluntary civic sector and those traditionally left out of the public planning process. 12/16/2023 Tadele .T(Assistant professor in SEDP) 46

47. C.Poverty Reduction Both local and regional economic development efforts should be targeted to reducing poverty, by promoting jobs that match the skills of existing residents, improving the skills of low-income individuals, addressing the needs of families moving off welfare, and etc. D.Local Focus Because each community’s most valuable assets are the ones they already have, and existing businesses are already contributing to their home communities, economic development efforts should give first priority to supporting existing enterprises as the best source of business expansion and local job growth. Luring businesses away from neighboring communities is a zero-sum game that doesn’t create new wealth in the regional economy . E. Industry Clusters Communities and regions should identify specific gaps and niches their economies can fill, and promote a diversified range of specialized industry clusters drawing on local advantages to serve local and international markets. 12/16/2023 Tadele .T(Assistant professor in SEDP) 47

48. F. Long-Term Investment Publicly supported economic development programs, investments, and subsidies should be evaluated on their long-term benefits and impacts on the whole community, not on short-term job or revenue increases. G. Human Investment Because human resources are so valuable in the information age, communities should provide life-long skills and learning opportunities by investing in excellent schools, post-secondary institutions, and opportunities for continuous education and training available to all. H. Environmental Responsibility Communities should support and pursue economic development that maintains or improves, not harms, the environmental and public health . I. Corporate Responsibility Enterprises should work as civic partners, contributing to the communities and regions where they operate, protecting the natural environment, and providing workers with good pay, benefits, opportunities for upward mobility, and a healthful work environment. 12/16/2023 Tadele .T(Assistant professor in SEDP) 48

49. J. Livable Communities To protect the natural environment and increase quality of life, neighborhoods, communities and regions should have compact, multi-dimensional land use patterns that ensure a mix of uses, minimize the impact of cars, and promote walking, bicycling, and transit access to employment, education, recreation, entertainment, shopping, and services. K. Center Focus Communities should have an appropriately scaled and economically healthy center focus . At the community level, a wide range of commercial, residential, cultural, civic, and recreational uses should be located in the town center or downtown . At the neighborhood level, neighborhood centers should contain local businesses that serve the daily needs of nearby residents. At the regional level, regional facilities should be located in urban centers that are accessible by transit throughout the metropolitan area . 12/16/2023 Tadele .T(Assistant professor in SEDP) 49

50. L.Distinctive Communities Having a distinctive identity will help communities create a quality of life that is attractive for business retention and future residents and private investment. Community economic development efforts should help to create and preserve each community’s sense of uniqueness, attractiveness, history, and cultural and social diversity, and include public gathering places and a strong local sense of place. M.Regional Collaboration Since industries, transportation, land uses, natural resources, and other key elements of a healthy economy are regional in scope, communities and the private sector should cooperate to create regional structures that promote a coherent metropolitan whole that respects local character and identity. 12/16/2023 Tadele .T(Assistant professor in SEDP) 50

51. Planners and Economic Developers Developers often have a single-project focus, while planners are more concerned with the whole community . An economic developer is responsible for  planning, designing, and implementing economic development strategies, as well as acting as a key liaison between public and private sectors and the community. What is the meaning of planners? a person who plans something one whose job is to create a comprehensive or systematic plan or design within a particular field or for a particular project What are the roles of planners? In the creation of a plan, planners  identify the strategies by which the community can reach its goals and vision . Planners are also responsible for the implementation or enforcement of many of the strategies, often coordinating the work of many groups of people. 12/16/2023 Tadele .T(Assistant professor in SEDP) 51

52. A central goal of urban and economic development planning is producing policies and programs to promote economic growth. Urban planners and economic planners always struggle to define economic development policies to improve the growth in way that enhance the quality of life in the community people live and work. Hence , investigation of factors affecting economic growth at the regional level helps decision makers such as urban planners and economic development planners develop smarter policies to increase more opportunities for economic growth. 12/16/2023 Tadele .T(Assistant professor in SEDP) 52

53. The Relationship Between Planners and Economic Developers Planners and economic developers necessarily have considerable interaction, as both are concerned with public investment in infrastructure, land-use controls, environmental regulations, and anything else that affects the what and where of industrial and commercial development. Sometimes the relationship between the community's planners and its economic developers will be a happy one, but sometimes it will not. To the planner, bringing in new firms and encouraging the expansion of firms already in the community will be one of a number of goals. To the economic developer, these may be, in practice, the only goals. 12/16/2023 Tadele .T(Assistant professor in SEDP) 53

54. Development planners are professionals who assist with city planning and project execution. They assess trends, environmental impact and population data to understand how a region can best use its land . A development planner is a professional who uses data to determine how a city can develop to best use its resources . Development planners may gather support for projects and consider the environmental effects of various development projects and decisions. Development planners may develop their geographical understanding, organizational skills and interpersonal abilities to be successful in their positions . 12/16/2023 Tadele .T(Assistant professor in SEDP) 54

55.   Factors Affecting Economic Development and Growth Economists generally agree that economic development and growth are influenced by four factors: human resources, physical capital, natural resources and technology. Highly developed countries have governments that focus on these areas. Less-developed countries, even those with high amounts of natural resources, will lag behind when they fail to promote research in technology and improve the skills and education of their workers. 12/16/2023 Tadele .T(Assistant professor in SEDP) 55

56. A. The Impact of Human Resources The skills, education and training of the labor force have a direct effect on the growth of an economy . A skilled, well-trained workforce is more productive and will produce a high-quality output that adds efficiency to an economy. A shortage of skilled labor can be a deterrent to economic growth. An under-utilized, illiterate and unskilled workforce will become a drag on an economy and may possibly lead to higher unemployment . B. Investment in Physical Capital Improvements and increased investment in physical capital – such as roadways, machinery and factories – will reduce the cost and increase the efficiency of economic output . Factories and equipment that are modern and well-maintained are more productive than physical labor. Higher productivity leads to increased output. Labor becomes more productive as the ratio of capital expenditures per worker increases. An improvement in labor productivity increases the growth rate of the economy. 12/16/2023 Tadele .T(Assistant professor in SEDP) 56

57. C. Quantity and Availability of Natural Resources The quantity and availability of natural resources affect the rate of economic growth . The effectiveness of a county at utilizing and exploiting its natural resources is a function of the skills of the labor force, type of technology and the availability of capital. Skilled and educated workers are able to use these natural resource to spur the growth of the economy. D. Improvements in Technology Improvements in technology have a high impact on economic growth. The application of better technology means the same amount of labor will be more productive, and economic growth will advance at a lower cost. Countries that recognize the importance of the four factors that affect economic growth will have higher growth rates and improved standards of living for their people . Technological innovation and more education for workers will improve economic output which lead to a better living environment for everyone . 12/16/2023 Tadele .T(Assistant professor in SEDP) 57

58. What is the Role of Local Government? Local governments are key in leading or supporting the creation of an  economic development strategy . Local governments can initiate a community's economic planning efforts, to build on their  official community plan  and role of shaping community growth and determining land use.  Local government functions that influence economic development and planning include: Planning and zoning bylaws Taxation Local business support Collaborating between communities  and in the larger region  Accessing and using programs offered by provincial and federal governments  Advocating for community economic development priorities with governments and industry 12/16/2023 Tadele .T(Assistant professor in SEDP) 58

59. Local governments can promote economic development by: Keeping your community members informed and include them whenever possible in the decision making and marketing of the community Promoting the growth of all economic sectors in the region Encouraging sustainable business practices Creating an  official community plan  and  a strategic plan Developing, using and promoting  business retention strategies Identify and market the community's assets  Creating projects that support economic development Acting as point of contact for possible investors; providing accurate information, encouragement and support Championing current economic development plans; reviewing and updating as needed Identifying key members for boards and assignments Working with and supporting economic development officers 12/16/2023 Tadele .T(Assistant professor in SEDP) 59

60. The Role of the Economic Developer An economic development officer (EDO) carries out the economic development priorities and initiatives for municipalities and economic development organizations. The role varies with the community’s priorities and the direction and support it provides. The EDO should have the following : • People skills – working with a variety of individuals and organizations in the community, negotiating, developing partnerships and networking • Communication skills – developing and delivering public presentations, public and media relations, developing communications plan • Technical Expertise – knowledge of the economic development process, skills in business planning, facilitation, project development and project management Clerical skills – computer skills, basic accounting, website management, etc. Flexibility – to adapt to change and new ideas planning expertise – strategic plans and municipal plans Marketing abilities – developing and implementing marketing and sales plans The functions an economic development officer can play are as varied as the communities they work in. They usually coincide with the key functions of an economic development organization. 12/16/2023 Tadele .T(Assistant professor in SEDP) 60

61. 1. Planning The EDO can help the municipal corporation(s) prepare and maintain a broadly based development strategy. These plans should fit in with, and be an integral part of, the community’s municipal planning processes such as the local planning district development plan. Plans should be well documented, with short and long-term perspectives. Plans should be reviewed and updated regularly (every three years is a good guideline). 2. Liaison EDOs can help plan, co-ordinate and implement community-based initiatives with community stakeholders . Stakeholders often include groups such as service clubs, chambers of commerce, municipal government agencies, tourism associations and education associations. The strongest partnership is usually with the municipal governments that fund the CED organization. The local government should not control the mandate of the CED organization, however as it should be directed by a broad-based, representative board. The granting agency also has a contact point for the community, rather than trying to contact multiple community organizations. 12/16/2023 Tadele .T(Assistant professor in SEDP) 61

62. 3 . Mentoring/Advocacy Skilled EDOs can mentor local government representatives by providing input to municipal councils. The EDO can also provide similar types of mentorship to business owners with advice on sales tax, regulatory requirements, accounting, zoning , Business issues, Industrial park developments and etc . 4. Promotion / Marketing The CED organization should be highly visible in the community. This helps to promote the work and achievements of the organization and encourages growth and competitiveness. Community visibility is important so that other organizations and communities, governments and business are aware of the assets of the community. The EDO should develop a community public relations program. Local community consultations, community visioning and action planning can be part of this public relations program. Promotion can be accomplished through a wide range of tools, which can include print and electronic media. 12/16/2023 Tadele .T(Assistant professor in SEDP) 62

63. 5 . Prospecting The EDO can help to prospect for new business, investment and resources (ex: funding programs, developers, etc.) with research, promotion and personal contacts. The EDO can gather information to find potential new opportunities for the community by: networking at local, provincial or national conferences or business gatherings researching business and government publications and/or websites providing local tours or community promotional days 6. Business Assistance The EDO can play a very active role to promote, encourage and assist new and expanding businesses, facilities and industries. This can be achieved through mentorship, business assistance and financial support and/or training. Examples include: Assist entrepreneurs with the development of business plans. Assist entrepreneurs to find other sources of support – ex: provincial or federal programs. Promote locally made products through development of local food initiatives such as farmers’ markets and trade fairs. Organize or facilitate industry, labour and/or business management courses and seminars. Facilitate business partnerships (ex: co-ordinate a project with local investors). 12/16/2023 Tadele .T(Assistant professor in SEDP) 63

64. 7. Research Through research, the EDO can provide current and effective data that will have a direct impact on planning, negotiations, implementation and development of local projects and initiatives. The type of research may include: Human, business and natural resource inventory labour and market trends Government programs and services local and regional organizations, initiatives and plans 8. Monitoring The EDO can help monitor programs, services and projects that allow the organizations to judge the effectiveness of its plans and initiatives. Effective monitoring also allows a CED organization to adapt or modify its plans or approaches to changing circumstances. Monitoring is important and should be done as efficiently as possible, but it should not be a substitute for action. 12/16/2023 Tadele .T(Assistant professor in SEDP) 64

65. Social planning Social planning involves the drawing up of plans for future action in regard to social institutions and resources . A “social” plan is designed to meet the needs of a  society,  which means, in many cases, an entire nation. This usage, in which social planning is equivalent to societal planning, is generally accepted by social scientists (see, for example, Myrdal 1959); but social planning is sometimes also used to mean planning by a group as opposed to planning by an individual. Also social planning is sometimes viewed as complementary to, rather than inclusive of,  economic planning ; in that case, social planning means the planning of a society’s noneconomic activities. 12/16/2023 Tadele .T(Assistant professor in SEDP) 65

66. Social planning has developed through recognition that collective action is needed to advance social welfare . Seeks to achieve expanding opportunities for the raising of standard of living of the whole society, through deliberate steps initiated by the government. It implies that: Economic growth is necessary but not a sufficient condition for social welfare. Social planning will help to solve some of the special problems Ex , Unemployment Social planning is more important for 3 rd world countries facing triple – crisis of a low standard of living and high growth rate of population and urbanization . This is due to :- Need to make efficient use of limited resources Need to make maximum use of the available map power Need to control urban growth & sprawl Need to reduce growth rates in population 12/16/2023 Tadele .T(Assistant professor in SEDP) 66

67. Since social planning is more concerned with welfare of the people or society, it is also called’ Societal planning ’ . Planning can be of short term or long term based on the temporal point of view The planning meant for the solution of those problems that require only small scale changes in production and employment pursuits can be termed as ‘ short term planning’ . Long term planning or sometimes called perspective planning is a planning that deals with institutional and structural changes for a long term socio –economic development. Planning by territorial space – size in a ascending order may be of the: Local level planning –planning at revenue settlement or cluster of settlement level, Micro levels planning –planning at block or district levels Meso level planning –planning at zone, state or cluster or state’s level Macro level planning –planning at national or into national level 12/16/2023 Tadele .T(Assistant professor in SEDP) 67

68. Economic planning: also referred to us development planning It involves planning mainly from the view – point of maximization of economic production . It works through controls and indirect checks . Is often considered as systematic management of country’s assets. Goals of Economic planning To maintain a balance b/n the output of goods and commodities by setting targets & controlling the flow of investment resources and key raw materials. To stabilize fluctuation in nationals income & employment To allocate resources b/n current, public and private wants, leading to desired rate of economic growth. To achieve fair distribution of income It is more comprehensive and it is very difficult to plan the entire economic system. There are four major difficulties in the economic planning retention of incentives at all levels of production specification of targets need to respond consumer preferences correct allowance for unforeseen difficulties & delay s 12/16/2023 Tadele .T(Assistant professor in SEDP) 68

69. 69 Aspects of Planning Classification of Different types of planning on the basis of the following main themes / aspects: Sphere of planning Spatial levels of planning Operational fields of planning Time horizons of planning

70. 70 . The Sphere of Planning Based on sphere or area of competence: Centrally Planned Economies Market Based Economies Mixed Economies i . Centrally Planned Economies common in the former socialist countries where the means of production-land , water and capital are owned by the state planning has a controlling role and output is determined by plans. Planning is by direction

71. 71 Decisions of firms, industries and cooperatives are guided by centrally issued directives Planning covers all major spheres of economic activity What, where, when and how to produce is decided by the central government, It was effective in accelerating economic growth in the former Soviet Union ii. Market Based Economies Most decisions are made individually by owners of productive assets & coordination takes place via the market. Dev’t planning is mostly indicative. planning in these economies is planning by inducement, i.e., planning by manipulating the market.

72. 72 There is no compulsion but persuasion . There is freedom of enterprise, freedom of consumption and production, which is of course subject to state control and regulation . Iii. Mixed Economies is somewhere in between the two ,(C.P& Market) State, communal and private ownership exist side by side has some role of the state in development planning, is more than indicative because of the economic relationships among the three.

73. 73 1.3.2. Spatial Levels of Planning Based on spatial levels: National , Regional and Urban . SLP-are interdependent- urban within a region and both of them within a nation. 1. National Planning -Macro: undertaken by central government agencies, sector oriented, capital intensive, not participatory, top to down

74. 74 2. Regional Planning- Meso : Region? is a geographical entity smaller than a nation which has common physical, economic and social characteristics different from other regions, has a defined boundary and is discrete/different from one another. But sometimes we cannot get clear cut boundaries because the phenomena that is found in one region may be found in the other, e.g. vegetation regions Region is an area in which many physical and human factors interact to form a part of geographical space which is recognizably different and distinct from others.

75. 75 Richardson gives a definition for region as: a sub-national areal unit, the sub-division of the national economy into a limited number of fairly large and contiguous . Chisolen defines region as: an area with in a nation which enjoys certain powers of government or at least administration. This is our working definition because it includes some basic element that is powers of government on his definition Regions are delimited on the basis of: Homogeneity : a region has a homogenous characteristics Nodality : a region is characterized by interaction and concentration of population, e.g., polar region, city region

76. 76 Size of regions The size of regions can be measured in terms of population, area and hierarchy (level of regions) The recent trend in terms of planning regions is having small administrative region as a planning region , for example, in Ethiopia Woreda is the smallest administrative institution, which is useful for planning . Planning – regions are defined in terms of some planning problems, for e.g., drought prone regions, surplus regions, food insecure regions. Administration-defined for administrative convenience. It has some mandate recognition by the government.

77. 77 Planning region is an area displaying some coherence of unity of economic decision . It is an area which is large enough to enable sustainable changes in the distribution of employment to take place within its boundaries yet which is small enough for its planning problems to be seen as a whole ( Kebele ). Planning regions should not be too large. It has to be manageable. Planning region: Must be large enough to take investment decisions of economic size Must be able to supply its own industry with a necessary labour .

78. 78 Regions should have a homogenous economic structure (depressed or congested) Contain at least one growth point Have a common approach to and awareness of its problems . Regions should be viable It should sustain itself in terms of: economy, administration, defense , to feed its people etc Conditions to be fulfilled for a viable region : has to be large enough to support regional administrators has to control its hinterlands (both human & material)

79. 79 should supply its own talents to its own industries (if the talents is from other regions they make money in it & invest the money they get in their own regions ). The land should be suitable for different activities (topographic factors should be considered especially drainage). has to be regional consciousness . People should develop a sense of belongingness to the region .

80. 80 Planning region is a geographic area suitable for designing and implementing of development plans. It is rarely found because data is collected not for planning region but for administrative regions Thus, planners use administrative regions as planning regions because they are implementing institutions and data (census data). Administrative region is a political division of a country. It evolved on the basis of culture and historical facts but may be heterogeneous in climate, environment economic activities.

81. 81 But some administrative regions are homogenous , thus they are ideal for planning Eg . Somali region Regional planning is more detailed than national planning . Regional planning is either inter-regional or intra-regional planning Inter-regional planning- is planning across regions Planning is to address regional inequalities It is allocating resources for regional balance.

82. 82 The government must provide equal opportunities to all regions. It is the region to make use of the opportunities . The aim is balanced growth (equity) Balance does not imply uniformity, equality or conformity. Intra-regional planning-is planning for only a particular region Intra-regional planning has: social objectives such as the provision of social amenities (housing, clinics, etc ).

83. 83 Economic objectives such as the control of the diseconomies of congested regions and stimulation of growth in backward regions through the distribution of new investment. Environmental objectives -it is about the quality of the environment both rural and urban . Intraregional planning is also the allocation of resources to sub-regions of a region. Countries may use one or two regional planning aspects. That is, interregional planning when regions are diverse and intraregional planning if they are not diverse

84. 84 Both aspects are complementary. The ultimate objectives of regional planners is keeping satisfactory r/ship b/n people and jobs. The first country who plan for region was UK. The reasons were : the problems of rapid population growth, increasing urbanisation , increasing living standard (people were demanding a lot). The problem of depressed regions or the pathology of regions. The existence of separate regional cultures. The problems of congestion.

85. 85 Approaches of Regional Planning Even though implementation vary country to country, there are two approaches of regional planning. These are: Conventional approaches Non-conventional approaches 1. Conventional approaches include: Regional economic planning Regional disaggregation of national plans Regional land use plans Natural resource plans Metropolitan planning

86. 86 Regional Economic Planning Focus on economic structure of a region and its property It deals with the spatial aspects of regional development. It attempts to harmonize the spatial patterns of development between regions . It emphasized on balanced regional development Some corrective measures like provision of public resources, public services, etc must be taken to adjust spatial differences.

87. 87 Regional Disaggregation of National Plans Is an activity which is very much close to the regional economic planning. It is mostly undertaken by economists with the objective to disaggregate national plans in order to facilitate the implementation of national plans Regional Land Use Planning It is physical planning and town planning Workout the detail use of land of regions. It is planning for land use and infrastructure Originated to regulate and control town development

88. 88 It is dominated by architects and later by social sciences such as geography Works under the direct control of the government Regional economic planning and physical planning are interdependent (one cannot exist without the other) - two faces of the same coin. Natural Resource Planning It is conventional planning It is one of the oldest type of regional planning exercises. It takes place in the form of river basin planning , for example Awash Valley Authority. The aim is for the proper utilization of the resources especially water for HEPG, irrigation, etc land near to water

89. 89 The natural resource regions, for example, forest regions needs to plan Metropolitan Planning It is conventional type of planning It is planning the city and around the city It is broader than urban planning The problem of the surrounding area may be the problem of the city Because the city and towns who are found near to it interacts on a daily basis. It is physical and/or economic planning Resource planning for resource region is in an integrated approach, i.e., it also involves the expansion of agro-processing industries

90. 90 It is more multi-purpose type of planning which is essential type of planning 2. Non-conventional Planning Non-conventional planning include: Integrated rural development planning Community planning They are indirectly related to regional planning Integrated Rural Development Planning Focused on rural areas. It is area focused to solve the area problem in an integrated approach It addresses problems of different sectors in rural areas

91. 91 It focuses on: adequate and accessible farm supply, adequate farm credit, intensive educational programme , individual farm plans, strong village institutions, etc Community Planning It is planning at local level in association with the community. It has to be focused on localities

92. 92 Regional planning Issues Regional planning is a planning response to issues of a regional dimension. Regional planning is multi-objective Regional inequality issues: Social inequality- refers to inequality among individuals, social groups etc for example, educated, poor, marginalized and gender inequality Economic inequality- refers to differences in levels of standard of living between or among regions.

93. 93 Williamson gave an “inverted hypothesis about the pattern of regional development. According to him , as countries development increases , the level of regional inequality decreases . Regional inequality is high in the earlier stage and low in the later stages . He gave reasons for this regional inequality: Inequality is high in the lower stage of development because in the lower stages of development there is : Migration of labor force from poorer to richer regions, Migration of capital from poorer to richer regions

94. 94 When regions are at their low level of development there is no linkage between different markets and industries and this reduce the spread effects of innovation/modernization. So , planning is needed to solve all these problems . At the later stage of development, Labor and capital moves from the richer to poorer regions resulting from the growth of infrastructure in the poorer regions which have a pulling effect

95. 95 The government policy might also encourage investments dispersed to other regions . The other regional planning issues are: Industrial development Agricultural development Non-farm activities development Service and infrastructure development Tourism development Poverty reduction and employment creation Environmental protection and conservation Education and health, etc

96. 96 3. Urban / town / village level planning-Micro: participatory and the purpose is to solve local problems. It is bottom up. Urban planning is one of the local development planning. Local development planning refers to the overall planning and management of economic and physica l development of the area. Local development planning involves: Physical planning Urban planning and design Socio-economic planning Overhead capital Infrastructure etc

97. 97 But, earlier town planning solely concentrated on physical planning about Land uses and Street layouts. Thus, planners designed various urban land use models: 1925: Concentric Zone Theory by Burgess 1939: Sector Theory by Hoyt 1945: Multiple Nuclei Model by Harris and Ullman

98. 98 The master planning is the oldest approach . Master plans are : prepared for the city or town for 15-20 years in the future a long year plan Describe the future land use and infrastructural patterns of the city. Produced in the form of text and maps with emphasis on land use. Designed by urban planners and engineers and people from different disciples. This approach is increasingly abandoned because of the following criticisms: It is costly: it takes to long time to prepare usually 3 or 4 years. When the plan completed some information are outdated.

99. 99 It is expensive and not easily accessible to the community It is comprehensive. It doesn’t contain details Master plans rarely offer guidance on the techniques of implementation. Master plans rarely evaluate the cost of development it proposed or how the plan is financed. Master plan is seldom realistic for the city economic potential and population growth. They are not using accurate projection In master plan preparation community leaders and private sectors are seldom included. It is provided by professionals.

100. 100 Master plans are infrequently updated. If it is not infrequently updated it will immediately become outdated because cities are dynamic . Operational Fields of Planning Based on Operational Fields : Project planning Sectoral planning Integrated Areal Planning

101. 101 1.Project Planning: the most specific and concrete. prepared for specific place, time and purpose . is the smallest unit at which development planning is organized, has time limit, boundary and geographical location defined. e.g , dam, water supply, school, hospital etc 2. Sectoral Planning The coordination of the sectoral plan is the task of the national plan. Plans through respective ministers at national level The purpose is to enhance the efficiency of a particular sector. e.g , agriculture, trade, industry, tourism, etc

102. 102 3. Integrated Areal Planning This is planning at region or district level is multi-sectoral approach and area focused is similar to national planning, but instruments are different. The main instruments for integrated areal planning are a statutory and development control nature . Time Horizon in Planning All planning deals with the future and the future is measured in time. Hence, it is convenient and acceptable to think of different kinds of planning in terms of the time periods for which the planning is intended i.e. based on time horizon: short term,mid term,long term

103. 103 Short term A form of planning activity taking place within a one year cycle. Derived from larger or medium term planning exercises. Are sometimes named as annual planning It is directly linked with budgetary resource allocation process. Medium term The life span is from 3 to 5 years, Such a plan would identify the main development problems and analyze these in a time perspective . By taking into account expected resources, it establishes development priorities, It often contains an elaborated development strategy, It contains strategic issues.

104. 104 3. Long term Planning for 10 years and above It takes the form of “perspective plans”, which focus on specific issues that are analysed in great depth & detail . Characteristics of a Good Plan: Sound (good) plan is characterized by the followings. Objectivity- planning should, first of all be based on objective thinking and it should be factual, logical and realistic . Futurity- since a plan is a forecast of some future action, it must have the quality of futurity; other wise it has little valve as a basis for action.

105. 105 Flexibility - because no one can foresee the future, plans must have flexibility. They must smoothly and quickly adjust to changing conditions without seriously losing their effectiveness . Stability- is related to flexibility. A stable plan will not have to be abandoned because of long-term changes in the company’s situation. Comprehensiveness- organizations plan must be comprehensive enough to provide adequate guidance, but not so detailed as to be unduly restrictive. Clarity and simplicity : - although a good plan must be comprehensive, it should also be simple. A plan should not be ambiguous. Lack of clarity makes understanding & implementation difficult.

106. 106 The Principles of planning Good planning requires a methodical process that clearly defines the steps that lead to optimal solutions. This process should reflect the following principles : Comprehensive – all significant options and impacts must be considered. Efficient – the process should not waste time or money. Inclusive – people affected by the plan have opportunities to be involved. Informative – results are understood by stakeholders (people affected by a decision).

107. 107 Integrated – individual, short-term decisions should support strategic, long-term goals. Logical – each step leads to the next. Transparent – everybody involved understands how the process operates. Planners should strive to understand factors that will affect the future. Planners must manage information flows including gathering, organizing and distribution Planners should anticipate questions and provide accurate and understandable information, Planners should strive to be objective and fair. They must not reflect their personal interests in planning

108. 108 Stakeholders Users Citizens/tax payers Impacted residents Businesses Employees/workers Public officials Affected organizations/interest groups. Lawyers … Planning increasingly incorporates the concept of sustainability, Planning is an interactive process: Interaction of planners with politicians, agencies, the public .

109. 109 Types of Planning Have you ever heard the saying 'Those who fail to plan, plan to fail ’. Based on their scope or breadth, plans can be classified into three categories: Strategic, Tactical and Operational . It is important to note that these three types of plan have relationship to one another and interact each other. Strategic plans cannot be accomplished without the implementation of tactical and operational plans . Tactical and operational plan on the other hand, do not make sense if they are not coordinated through a broader strategic plan.

110. 110 Operational plans are necessary to attain tactical plans and tactical plans lead to the achievement of strategic plans. Then , in true planning fashion , there are also plans to backup plans that fail. These are known as  contingency plans . 1. Strategic Plans Strategic plans are designed with the entire organization in mind and begin with an organization's mission . Strategic planning is prepared by top-level-executives , such as CEOs or presidents, by taking in to account internal environment (strengths and weakness) and external environment (threat and opportunities) to paint a picture of the desired future and long-term goals of the organization.

111. 111 Strategic plans also tend to require multilevel involvement so that each level of the organization plays a significant role in achieving the goals being  strategically planned for. Top-level managers , develop the organizational objectives so that middle- and lower-level managers can create compatible plans objectives aligned with theses. Essentially, strategic plans look ahead to where the organization wants to be in three, five, even ten years . Strategic plans, provided by top-level managers , serve as the framework for lower-level planning.

112. 112 Strategic plans: Are organizational wide Establish the organizations over all goals Tend to be the long term success and direction of the organization (mostly long-term in its time frame) Expressed in relatively general non-specific terms . 2. Tactical Plans: Tactical plan is the process of making detailed decisions about what to do that will do it and how to do it based on the organization’s strategic plan. Top level managers set very general, long-term goals that require more than one year to achieve. Middle managers interpret these goals and develop tactical plans for their departments that can be accomplished with one year or less.

113. 113 Tactical plans are concerned with the responsibility and functionality of lower-level departments to fulfill their parts of the strategic plan 3. Operational Plans Operational plans sit at the bottom of the organization; they are the plans that are made by frontline, or low-level, managers. All operational plans are focused on the specific procedures and processes that occur within the lowest levels of the organization . Managers must plan the routine tasks of the department using a high level of detail .

114. 114 are made at the operational level and concerned with the day-to-day, week-to-week activities of the organization. First-level-managers are responsible for accomplishing (preparing) the operational planning. Operational Planning is narrow in scope and short lived, usually a few months . Examples are Production schedules, sales Plan, lesson plans etc . Based on repetitiveness Operational plans can be classified in to two a s: Single use Standing plans or ongoing plans .

115. 115 Single-use plans: are developed to deal with “one short” situation for a given purpose or a given period of time and then discarded, not repeated and often have an expiration and are intended to be used only once . “ prepared for unique one-of- a- kind of situations” and discarded once they achieve their objectives (they are not used over and over again). The most common forms of single use plans found in organization are monthly budget, promotional advertisement, Project and Program.

116. 116 Standing plans: are built to withstand the test of time. are used several times over and over again (frequently) and undergo changes when necessary. are long-range plans enable top management to provide a clear guideline for middle and lower level management. are typically and include: Policy, Procedures, and Rule . Policies are general statements , or guidelines, that aid a manager in understanding routine responsibilities of his or her role as a manager. Examples of policies include things such as hiring, training, outlining and assessing performance appraisals and disciplining and terminating subordinates.

117. 117 A procedure details the step-by-step process of carrying out a certain task, such as assessing, ordering and stocking inventory. A rule provides managers and employees with specific and explicit/clear guidelines of behavior that is what they should and should not do as a member of the organization. Structural Plan: A structure plan is one that singles out for attention of certain aspect of the environment usually the land-uses, the main movement systems and the location of critical facilities and buildings.

118. 118 Comprehensive Plan The comprehensive plan seeks to combine in one document the prescriptions for all aspects of city development. It includes an analysis of the city’s economy, its demographic characteristics, and the history of its spatial development as a preface to plan for how the city should evolve over 20 year period . Developmental plan: Means a plan for the development or re- development or improvement of the area within the jurisdiction of a planning authority. It includes a regional plan, master plan, detailed development plan and a new town development plan .

119. 119 . The Planning Process Planning is a logical and systematic activity. The planning process indicates the major steps that are taken in planning. It involves a series of steps. The steps are interrelated and there is no rigid boundary between or among the steps, and one is base for the other. The planning process consists of the following steps : 1.Establishing objectives : Organization objectives give direction to the major plans 2.Understanding of the existing situation : have adequate knowledge about both the internal and external environment. 3.Forecasting : obtain necessary information about what the future will look like.

120. 120 4. Selecting a course of action (selecting the best solution ): This step refers to selecting the course of action that has the most advantages and fewest disadvantages. This is the point at which the plan is adopted the real point of decision-making . 5. Numbering plans by budgeting: Converting the activities in plan in to budget. Estimating budget to carry out the plan . 6.Implementing the Plan : After the optimum alternative has been selected, the manager needs to develop an action plan to implement it. determine who will be involved, what resource will be assigned, how the plan will be evaluated, what type and degree of authority will be granted to achieve the ends,

121. 121 by what date the tasks to be initiated and completed, and what reporting procedures are to be used . 6. Controlling and evaluating the results: once the plan is implemented, the manager must monitor the progress that is being made, evaluate the reported results, and make any modifications Limitations of Planning Planning is a dynamic process. Internal and external forces adversely affect the planners’ ability to carry out their plans effectively. It is important, to improve the effectiveness of the plan by understanding its limitations.

122. 122 These includes: 1. Uncertainties of the Future Planning is based on the estimates of the future conditions in and outside the organization. Since future can not be predicted accurately, the forecasts and premises underlying the plans are subject to error. Long range planning specially suffer from this limitation . 2. Past Decisions Past decisions hinder the future planning. Particularly decisions involving commitment of substantial financial resources impose serious limitations in planning . 3. Externally Imposed Conditions Such conditions as government intervention, tax lows, labor laws, New technologies and others .

123. 123 4. Human Problems resistances to change 5. Expense and Time expenditure of financial, Physical, and human resources as well as time. Recognition of limitations helps for more careful . Why Plans Fail? There are situations in which sometimes even well designed plans fail to bring the desired results. Some of the reasons are: 1. Lack of understanding of the different steps of the planning process: the management may not be knowledgeable or skilled in understanding all steps of the planning requirements.

124. 124 2 . Management at different levels in the organization has not properly contributed to planning activities. Since planning is generally formulated and conducted at top management level , the middle and lower management which is closer to the operations may not understand all aspects of planning and thus may not be able to contribute some necessary key factors as input . 3. Poor information and inadequate inputs: reliable data and information are the backbone of formal planning, Poor information may lead to faulty forecasting or poor judgments

125. 125 4. In starting formal planning, too much is attempted at once. Due to excitement and emotional expectations, the plans may be implanted too quickly and with too high expectations 6 . The management is not always willing to cancel or modify poor plans. 7 . The management may be unwilling to accept and modify that the plan was poorly formulated. 8 . Management fails to operate by the plans. because of lack of full understanding of all the aspects of the plan or it may be due to some inherent resistance to the plan, or it could be due to some effect of unforeseen events and circumstances, which could disrupt the effectiveness of the plans. 9 . Resistance to change: by organizational members.