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  • 1. Definition of Planning  Planning involves selecting missions and objectives and the actions to achieve them; it requires decision making, that is, choosing from among alternative future courses of action.Close Relationship of Planning and ControllingTypes of PlansPlans can be classified as:1. Missions or purposes2. Objectives or goals3. Strategies4. Policies5. Procedures6. Rules7. Programs8. BudgetsTypes of Plans  The mission, or purpose, identifies the basic purpose or function or tasks of an enterprise or agency or any part of it.  Objectives, or goals, are the ends toward which activity is aimed.
  • 2.  Strategy is the determination of the basic long term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals.  Policies are general statements or understandings that guide or channel thinking in decision making.Types of Plans – contd…  Procedures are plans that establish a required method of handling future activities.  Rules spell out specific required actions or non-actions, allowing no discretion.  Programs are a complex of goals, policies, procedures, rules, task assignments, steps to be taken, resources to be employed, and other elements necessary to carry out a given course of action.  A budget is a statement of expected results expressed in numerical terms.Steps in PlanningVerifiable Objectives  Objectives are the important ends toward which organizational and individual activities are directed.  An objective is verifiable when at the end of the period one can determine whether or not the objective has been achieved.
  • 3. Relationship of Objectives and the Organizational HierarchyEvolving Concepts in MBO  Management by objectives is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and is consciously directed toward the effective and efficient achievement of organizational and individual objectives.Systems Approach to MBO
  • 4. Benefits of Management by ObjectivesClear Goals:  Motivate.  Improve managing through results-oriented planning.  Clarify organizational roles, structures, and the delegation of authority.  Encourage commitment to their personal and organizational goals.  Facilitate effective controlling, measuring of results, and implementation of corrective actions.Definition of Strategy and Policies  Strategy is the determination of the mission (or the fundamental purpose) and the basic long- term objectives of an enterprise, and the adoption of courses of action and allocation of resources necessary to achieve these aims.
  • 5.  Policies are general statements or understandings that guide managers thinking in decision making.The Strategic Planning ProcessThe Strategic Planning Process  Inputs to the organization  Industry analysis  Enterprise profile  Orientation, values, and vision  Mission (purpose), major objectives, and strategic intent  Present and future external environment  Internal environment
  • 6. The Strategic Planning Process – contd..  Development of alternative strategies  Evaluation and choice of strategies  Medium- and short-range planning  Implementation through reengineering, staffing, leadership, and control  Consistency testing and contingency planningMission, Objectives, and Strategic Intent  Mission relates to the kind of business.  Objectives are the end points for activities.  Strategic intent is the commitment to win in the competitive environment.Definition of the TOWS Matrix  The TOWS Matrix is a conceptual framework for a systematic analysis that facilitates matching the external threats and opportunities with the internal weaknesses and strengths of the organization.TOWS Matrix: 4 Alternative Strategies  SO strategy: Maxi–Maxi  WO strategy: Mini–Maxi  ST strategy: Maxi–Mini  WT strategy: Mini–MiniTOWS Matrix for Strategy Formulation