The document discusses organizational planning and management by objectives. It outlines the key elements of planning including establishing a mission, vision, goals and objectives. Goals and objectives should be SMART (specific, measurable, attainable, relevant and time-bound). Planning involves different levels from strategic to tactical to operational plans. The organizational planning process involves developing the mission, setting goals and objectives, developing plans, and implementation. Management by objectives is a collaborative process where managers and employees jointly set goals, define responsibilities, and evaluate performance. It is an ongoing cycle of setting goals, planning actions, implementing plans, and reviewing performance.
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Module 4- PLANNING.ppt
1. 12/20/2022 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 1
ORGANIZATION FUNCTIONS:
PLANNING
Outlines:
• Basic Elements Of Planning
• Organizational planning
• Management goal setting and
planning
• Levels and Types of Plans
• Planning Process
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WHAT IS PLANNING?
Simply defined, Planning is the
process which determines what
needs to be done, who will do it, what
resources will be needed, within what
time scale and how it is to be done.
In an organizational context, this
involves decisions by management
about:
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3. Cont…
What objectives organization wants to
achieves?
What actions to be taken to achieve them
(How?).
When should actions be taken to achieve
them?
What organizational position (who) is
assigned to do them, and
Who will be responsible for actions
needed?
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4. Some importance of Planning
Focuses attention on objectives and
results.
Reduce uncertainty and risk.
Provide sense of direction.
Encourages innovation and creativity.
Helps in coordination.
Guides decision making
Provides a basis for decentralization.
Facilitates control etc.
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5. KEY CONCEPTS IN
OGANIZATION PLANNING
Mission
Vision
Goal
Plans
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6. MISSION
An organization’s mission is its overall
purpose. It answers the question: What’s
the organization supposed to do?
A mission statement is a document that
sets the organization’s purpose into
words and defines the organization’s
scope of operation’s allowing for
everyone to channel energies in the same
direction.
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MISSION AND VISION
A mission should not be confused
with a vision, which is a distant
dream-a management’s view of
the organization’s future state.
A mission is designed to help the
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The organization’s raise
vision.
A vision is more of a goal
while a mission is the
means by which the vision
is achieved.
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9. GOALS/OBJECTIVES
Although some people use the two
terms by synonymously, there is a
difference between the two
(Ramadhan, D.J,et.al. 1985).
A goal is a broad, long –range target
of the organization.
An objective is a specific short –range
target to be synonymous.
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10. Types of Goals
Tactical goal (also called business-
level goals ) are set by top and middle
managers and are targets for future
results to be achieved by specific
division or functional units of the
organizational.
Operational goals(also called
functional level goals) are set by
middle managers and first line
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managers as specific targets to be
achieved by departments and
individuals the functional units or the
business divisions. When applied to
functional units these goals cover
particular short-term results needed to
support the organization’s tactical and
strategic goals.
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12. CHARACTERISTICS OF EFFECTIVE
GOALS/OBJECTIVE
Managers should be sure that the goals they
set are SMART, that is:
Specific
Measurable (SMARTER)
Attainable
Relevant
Time-defined.
Evaluate
Review
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Specific-i.e. clear and precise, so that
managers understand exactly what is
expected
Measurable- i.e. capable of being
assessed so that progress can be
evaluated.
Attainable-i.e. realistic and capable of
being achieved with the resources
available.
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Relevant-to the mission and to the
higher level goals as well as
appropriate to the managers scope of
responsibility and skills also
challenging in order to motivate
managers to achieve results while
developing and improving their own
managerial skills.
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Time-bound-i.e. given a time frame
to enable the measurability of goals a
well as facilitate coordination of
organizational activities during the
appropriate period and provide a
deadline for performance.
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16. Cont…
Evaluate - to ensure that your goals are
evaluated. By evaluating your goals every
single day, you’ll be much more likely to
achieve them. Why is that? Well, long-term
goals (and also goals that are 3 months or
6 months out), can easily be ignored if they
aren’t evaluated every single day.
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17. Cont…
Re-adjust - to re-adjust your approach. If,
for example, you find yourself pursuing a
goal but continuously hitting a brick wall,
readjust your method and techniques. For
example, when a plane has a goal of flying
from LAX to MIA, it has to constantly
evaluate its progress and readjust its
approach to ensure that it reaches its
target. The plane constantly evaluates and
readjusts until it arrives in MIA. You should
be doing the same for your goals.
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18. BENEFITS OF SMART
GOALS/OBJECTIVES
Setting SMART goals
Increases employee motivation
Provides standards by which
individuals and group performance
can be measured;
Guide employee activity; and
Clarifies management’s expectation.
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19. LEVELS OF PLANS
To achieve ends represented
by organizational goals,
managers prepare a plans to
identify the means by which
goals are pursued.
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20. Strategic plans
Strategic plans-are actions designed
to accomplish strategic goals, usually
defined for periods of two to five
years. The generally cover resources
allocations and define a broad scope
of longer-term organizational actions
designed to attain strategic goals.
They are developed by top
managers,who consult with board
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21. Tactical plans
Members and middle managers.
Tactical plans- are actions
designed to achieve the
organization’s tactical goals and
to support strategic plans, usually
defined for shorter periods than
strategic plans.
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They consists of specific ations to be
taken by business divisions or
individuals groups and are therefore
narrower in scope than strategic
plans.
They are developed by middle
managers, who consult with first line
managers before committing to top
management.
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23. Operational plans
Operational plans are actions
designed to achieve the
organization’s operational goals.
They support the implementation of
tactical plans, and they specifically
define necessary decisions and
actions to be taken by divisions or
functional department.
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24. Types of plans
To achieve desired results, managers
seek to match the type of plan they
use to the situation they face.
Generally ,plans are needed to
handle three types of situations: one-
time situations not likely to recur,
situation that recur regularly and
situation less likely to occur.
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25. 1. Single use plans
Programme
Project
Strategy
Budget
Schedule
Procedure
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26. 2. Standing Plans
These are plans used in a situation
that recur regularly and situation less
likely to occur (Ready made
solutions). These include;
Laws
Rules
Regulations
Policies etc.
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27. 3. Contingency Plans
o Contingency plans are
alternative courses of action to be
followed in the event of influential
environmental shifts that were not
considered in the original plan.
o Contingency planning covers less
likely events.
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28. Why contingency planning?
Rarely do situations unfold exactly as
managers have planned.
At times ,unexpected environmental
shifts such as economic recession
and severs weather conditions can
cause serious problems that require
managerial response if goals are to
be achieved.
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29. PLANNING TIME FRAME
Organizational planning covers
three types of planning
frame(Bovee,1993)
Long –range planning
Short-range planning.
Intermediate-range planning and
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Long –range planning
This encompasses strategic goals and
plans that may extend more than 5
years into the future, although the
exact time horizon varies from
organization to organization.
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Intermediate range planning
This generally covers time spars from
1-5 years and involves tactical goals
and planning. Again, the exact time
from depends on the circumstance of
each organization.
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Short –range planning
This covers operational goals
and plans and to manage
activities for the periods of 1
year or less.
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33. THE ORGANIZATIONAL
PLANNING PROCESS
The organizational planning process
includes according to Bovee,(1993)
four distinct stages;
o Developing the organization mission
o Setting organizational
objectives/goals
o Developing organizational plans
o Implementation.
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34. MANAGEMENT BY OBJECTIVE
MBO has been define by
Bovee,(1993) as “the collaborative
process by which managers and
employees jointly set mutually
agreeable goals, define the
responsibility for achieving these
goals, and determine the means of
evaluating individual and group
performance.
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35. THE MBO PROCESS
The MBO process is an ongoing cycle
of four steps (Bovee,1993):
Setting goals
Planning action
Implementation plans, and
Reviewing performance.
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36. Setting Goals
This is the first step, whereby top
managers formulate the overall
organizational goals and plans and
then work with middle managers to
develop goals for the organizational
divisions or units they manage.
In turn middle managers work with
first line managers to set goals for
their department or groups.
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During this process ,managers and
employees at all levels, in
collaboration with their supervisors,
also set individual goals for
performance.
Planning action
In the second step, managers
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Determine exactly how their individual
and group goals will be accomplished.
During action planning ,managers
decide on the “who, what, when,
where, and how” details needed to
achieve each objectives.
Managers also prepare a schedule for
the action plan to ensure that goals
are reached on time.
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39. Implementing plans
• Once managers have made a
commitment to achieve specific goals
and have received approval for their
plans, the third step is
implementation.
• This involves carrying out the actions
plan devised in step two by getting
the right person perform designated
activities within the framework and
resources.
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40. Reviewing performance
In the last step of the MBO, Process,
managers periodically review the
performance of the people they
supervise and evaluate how well the
plans are working in achieving group
and individual goals.
During review, managers and their
personnel:
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Identify any obstacles to performance
Discuss how these obstacles can be
overcome and
Discuss any corrective action
necessary to put the plan back on
track.
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