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  1. 1. Organization & Management <ul><li>Planning & Strategic Management </li></ul>
  2. 2. Planning “ The successful establishment and attainment of GOAL coordinated with the successful modification of the organization’s structure”
  3. 3. Planning <ul><li>Basic process we use to select our goals and determine how to achieve them. </li></ul><ul><li>Process of establishing objectives and suitable courses of action before taking action. </li></ul>
  4. 4. Planning <ul><li>Every manager’s job </li></ul><ul><li>Before manager’s can organize, lead, or control, they must make the PLANS that give purpose and direction to the organization – deciding what needs to be done, when and how it needs to be done, and who has to do it. </li></ul>
  5. 5. Planning <ul><li>The need for planning exists at all levels and actually increases at higher levels, where it has the greatest potential impact on the organization’s success. </li></ul><ul><li>Variation in planning responsibilities depend on the organization’s size, purpose and on the manager’s specific function or activity </li></ul>
  6. 6. Decision Making <ul><li>An important aspect of planning </li></ul><ul><li>Process of developing and selecting a course of action to solve a specific problem. </li></ul><ul><li>May be made at any point in the planning process </li></ul>
  7. 7. Four basic Steps in Planning Develop a set of Actions
  8. 8. 1. a Goal or set of goals <ul><li>Indespensable part of planning </li></ul><ul><li>What the organization or subunit wants or needs </li></ul><ul><li>Identify priorities and being specific about aims </li></ul>
  9. 9. Reasons why some managers hesitate to set goals Lack of knowledge of the environment Lack of Confidence
  10. 10. 2. Define the present situation <ul><li>How far is the organization falling short of its goal? </li></ul><ul><li>What resources are available for closing the gap? </li></ul><ul><li>Open lines of communication – necessity for this stage </li></ul>
  11. 11. 3. Identify Aids and Barriers <ul><li>What factors in the internal and external environments can help the organization reach its goals? </li></ul><ul><li>What factors might create problems? </li></ul><ul><li>Essential part of planning – anticipating situations, problems and opportunities </li></ul>
  12. 12. 4. Develop a Course of action <ul><li>Step in which decisions about future action are made and during which the guidelines for effective decision making are most relevant </li></ul>
  13. 13. Planning & Controlling <ul><li>Plans are implemented through detailed actions aimed at realizing specified objectives. It is at this action-taking stage that planning moves into another function – controlling </li></ul><ul><li>Controlling – process of ensuring that actions conform to plans. It cannot take place unless a plan exists and a plan has little chance of success unless some efforts are made to monitor its progress </li></ul>
  14. 14. Budgeting <ul><li>Most common link between Planning and Controlling </li></ul><ul><li>A budget is almost always a key part of the planning process because it guides decision about allocating resources toward the attainment of goal; </li></ul>
  15. 15. <ul><li>Although the planning and controlling are linked, there are advantages in keeping the two functions formally separated. It emphasizes the importance of each; it encourages employees to take control seriously and to ensure that relevant activities are not neglected or performed haphazardly </li></ul>
  16. 16. Two main types of plan <ul><li>Strategic Plans – focuses on the right thing( effectiveness) </li></ul><ul><li>Operational Plans – focuses on doing those thing right (efficiency) </li></ul>
  17. 17. <ul><li>EFFECTIVENESS </li></ul><ul><li>ability to determine the appropriate objective </li></ul><ul><li>“ doing the right thing” </li></ul><ul><li>EFFICIENCY </li></ul><ul><li>ability to minimize the use of resources in achieving organizational objectives </li></ul><ul><li>“ doing things right” </li></ul>
  18. 18. Strategic Planning <ul><li>Designed to meet the broad objectives of the organization – to implement the mission that provides the unique reason for the organization’s existence </li></ul><ul><li>Planning activity of an organization in which top management’s role is most crucial because coordination of the organization’s functional areas become crucial </li></ul>
  19. 19. Operational Plan <ul><li>Provide details as to how the strategic plans will be accomplished </li></ul><ul><li>Planning done at lower level </li></ul>
  20. 20. 2 main type of Operational Plan <ul><li>Single-use plans are developed to achieve specific purposes and to be dissolved when these have been accomplished </li></ul><ul><li>Standing plans are standardized approaches for handling recurrent and predictable situation </li></ul>
  21. 21. Single-Use Plan <ul><li>Detailed courses of action that probably will not be repeated in the same forms in the future </li></ul><ul><li>Major types: program, project and budget </li></ul>
  22. 22. Types of single-use plans <ul><li>1. program – covers a relatively large set of activities; shows (1) the major steps required to reach an objective, (2) the organization unit or member responsible for each steps, and (3) the order and timing of each step </li></ul>
  23. 23. Types of single-use plans <ul><li>2. Projects – are smaller, separate portions of programs of limited scopes and distinct directives concerning assignments and time </li></ul>
  24. 24. Types of single-use plans <ul><li>3. Budget – formal quantitative statement of resources allocated to specific programs or projects for a given period; statement of financial resources set aside for specific activities in a given period of time </li></ul><ul><li>- primarily devices to control an organization’s acts and are thus important components of programs and projects </li></ul>
  25. 25. Standing Plans <ul><li>An established set of decisions used by managers to deal with recurring or organizational activities </li></ul><ul><li>Once established , it allows managers to conserve time used for planning and decision making because similar situations are handles in a predetermined, consistent manner </li></ul>
  26. 26. Types of Standing Plan <ul><li>1. Policies – general guidelines for decision making; sets up boundaries around decisions, including those that can be made and eliminating those that cannot. </li></ul><ul><li>2. Procedure – a standing plan of detailed guidelines for handling organizational actions that occur regularly; provides a detailed set of instructions for performing a sequence of action that occurs often or regularly </li></ul>
  27. 27. Types of Standing Plan <ul><li>3. Rules – standing plans that detail specific actions to be taken in a given situation; are statement that a specific action must or must not be taken in a given situation. </li></ul><ul><li>- most explicit of standing plans and are not guides to thinking or decision making, rather, they are substitute for them. </li></ul>
  28. 28. Presented by: Rinalyn G. Magtibay Batangas State University MAED EM