Planning

TOPIC 2 PLANNING

DEFINITION• The processes of determining in

advance what should be accomplished and how it should be realized (MONDY)

• A process that begins with objectives, defined strategies, policies & detailed plan in order to achieve them

• The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.

OBJECTIVE OF PLANNING

• To provide sense of direction• To encourage innovation &

creativity• To guide decision making• To facilitate control

THE IMPORTANCE OF PLANNING IN ORGNIZATION

• Enables us to identify the course of action by setting objectives

• Through plans, resources are efficiently & effectively utilized thus resulting in saving

• Planning helps to determine what opportunities there are to exploit

TYPES OF PLANS

GOAL

STRATEGIC PLANS

OPERATIONAL PLANS

STRATEGIC PLANS

• Strategic plans are long-term planning done by the top management to determine the overall organizational purposes & objectives & how they are to be achieved.

STRATEGIC PLANS

STRATEGIC PLANS

CORPORATE STRATEGY

BUSINESS STRATEGY

FUNCTIONAL STRATEGY

STRATEGIC PLANSLEVEL SPECIFY PARTICIPANTS TIME HORIZON

CORPORATE STRATEGY

BROAD • BOARD OF DIRECTORS•TOP LEVEL EXECUTIVES

5- 10 YEARS

BUSINESS STRATEGY MORE SPECIFIC THAN THE CORPORATE STRATEGY

• TOP LEVEL EXECUTIVES • MANAGERS WITHIN THE BUSINESS UNIT

1- 5 YEARS

FUNCTIONAL STRATEGY

VERY SPECIFIC • MIDDLE LEVEL MANAGERS• LOWER LEVEL MANAGERS

< 1 YEARS

OPERATIONAL PLANS

• Done at all levels & involves directing the organization’s day-to-day operation to achieve overall strategic objectives

OPERATIONAL PLANS

OPERATIONAL PLANS

SINGLE USE PLANS

PROGRAMS

PROJECT

BUDGET

STANDING PLANS

POLICIES

PROCEDURE

RULES

BARRIERS TO EFFECTIVE PLANNING

• Lack of commitment to planning• Lack of meaningful objectives of

goals• Failure to see the scope of plans• Rely too much on experience• Lack of top management support• Lack of clear delegation of

authority

OVERCOMING BARRIERS

• Planning must not be left to chance

• Planning must be organized• Planning must be clear & definite• Managers must participate in

planning