PLANNING is the process of settingobjectives and determining how toaccomplish them. Planing creates a solid platform for other management functions Planning sets the stage for the others by providing sense of direction
Importance of Planning Planning to set direction •Decide where you want to go ? •Decide how to best go about it? Organising – Leading–to create structures Controlling – to inspire effort To ensure results •Measure performance •Take corrective action
Purposes of planning1) Planning provides direction2) Planning reduces uncertainty3) Planning minimises waste and redundancy4) Planning establishes goals or standards that are used for controlling.
Goals and Plans• Goals Desired outcomes for individuals, groups, or entire organisations• Plans Plans are documents that outline how goals are going to be met including resource allocations, schedules and other necessary actions to accomplish that goals
Planning Process• Perception of opportunities• Define your Objectives• Develop premises regarding future conditions• Identification of alternatives• Evaluation and choose amoung alternatives• Formulation of supporting plan• Implement the plan and evaluate the results
Benefits of Planning• Planning improves Focus and flexibility• Planning improves action orientation• Planning improves coordination• Planning improves time management• Planning improves Control
Types of Plans1) By their Breadth Strategies and Operational Plans (Tactical Plans)2) Time frame Short term and Long term plans
Types of Plans3) Specificity Directional and specific plans4) Frequency of use Single use and Standing
P • Strategic Plansl Plans that apply to the entire organisation, establish the organisation’s overall goals,a and seek to position the organisation inn terms of its environment.s • Operational Plans Plans that specify the details of how the overall goals are to be achieved
• Long term PlanP Plans with a time frame beyond three yearsl • Short Term Plansa Plans covering one year or less • Specific plansn Plans that are clearly defined and that leave nos room for interpretation (Specific procedures,Schedules of activities) • Directional Plans Plans that are flexible and that set out general guidelines ( Used When uncertainity is high)
• Single Use plansP A one time plan specifically designed tol meet the needs of a unique situation.a • Standing Plansn Ongoing plans that provide guidance fors activities performed repeatedly Eg : Policies, Rules and procedures.
Hierarchy of plans Purpose or Mission Objectives Strategies Policies Rules and Procedures Programmes or projects Budgets
Planning Tools and Techniques• Environmental Scanning• Forecasting• Benchmarking
Environmental Scanning The screening of large amounts of information to anticipate and interpret changes in the environment Competitor Intelligence Environmental scanning activity that seeks to identify who competitors are, what they are doing, and how their actions will affect the organisation
Forecasting Prediction of outcomes• Quantitative forecasting• Qualitative forecasting• CPFR ( Collaborative Planning, forecasting, and replenishment)
Benchmarking The search for best practices amoung competitors or non competitors that lead to their superior performance Form a benchmarking planning teamPrepare and implement Gather internal and action plan external data Analyse data to identify Performance gaps
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