1. The document discusses various aspects of planning including defining planning, why managers plan, types of planning such as long-term strategic planning and short-term operational planning including standing plans, single use plans, and individual plans like management by objectives. 2. It also discusses topics like top-down versus bottom-up planning, measuring performance with the balanced scorecard, contingency planning, the impact of information technology on planning, and barriers to effective planning. 3. Planning allows organizations to be effective and efficient in achieving goals, provides focus on the future, and leads to better coordination and control.

1. CHAPTER 3 - PLANNING
COURSE CODE : MGT 420 - PRINCIPLES AND PRACTICE OF MANAGEMENT
GROUP : BA K2 1E 2019/2020
Blog Memori Cikgu Hawa : https://memoricikguhawa.blogspot.com/
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UiTM Kampus Puncak Alam – BA 242 Bachelor of Business Administration (Hons) Finance

2. What is planning?
Setting goals & defining the actions necessary to achieve the goals
Plangoals control
A plan is a blueprint for action (activities necessary for the
organization to realize its goals)

3. Why should managers plan?
To ensure that organization is both effective & efficient in its activities
& achieves goals
Benefits of Planning :
A road map
Better
coordination
Focus on
forward
thinking
More effective
control
systems

4. Cost of Planning :
Management time Delayed decision making
Where should planning begin?
Planning that starts at the top-
level of the organization
Planning that starts at the lower
level of the organization
Top-down planning Bottom-up planning

5. Top-Down and Bottom-Up Planning :
Top-Down Bottom-Up
Organizational
Level
CEO, Board of Directors
People/department closest to product,
service, customer
Role of
Organizational
Unit
As the plan moves down the hierarchy,
units determine actions needed to
support the plan.
Units develop goals and plans. As plans move
up the hierarchy, they are evaluated and
adjusted for accuracy and feasibility.
Specificity of
Plan
Begins broad, becomes more specific
as it moves down the hierarchy.
Begins specific and probably fragmented;
becomes cohesive and integrated as it moves
up the hierarchy.
Potential
Advantages
Plans are driven by top-level managers
who are most knowledgeable about all
factors affecting the organization.
Those closest to customers, suppliers, and
operating systems provide focus of plans.
Potential
Disadvantages
Top-level managers may be removed
from the front line.
Lower-level managers may lack understanding
of all factors affecting the organization.

6. The Types of Planning :
• Long-term planning
Strategic
Plans
• Focus on day-to-day activities that
are necessary to achieve the long
term goals
Operational
Plans

7. Three Types of Operational Plans :
• Plans that are designed to deal with
organizational issues or problems that recur
frequently
1) Standing Plans
• A guideline for decision making within an organizationi. Policies
• An instruction on how to complete recurring tasksii. Procedures
• A detailed and specific regulation for actioniii. Rules

8. • Plans that are developed to address a specific,
nonrecurring organizational situation2) Single-Use Plans
• Single-use plans that govern a relatively comprehensive set
of activities designed to accomplish a particular set of goalsi. Programs
• Plans that direct the efforts of individuals or work groups
toward the achievement of specific, well-defined goalsii. Projects
• Plans that specify the financial resource requirements
associated with other plans such as programs & projects,
and provide a mechanism for controlling cost
iii. Budgets

9. • Plans developed for specific employees so that they
can fully understand their role in the fulfilling an
organization’s mission & achieving its vision
3) Individual Plans
• A method for developing personalized plans that guide the
activities of individual members of an organization
i. Management
by Objectives
(MBO)
• A system-wide performance measurement process that aligns
individual goals with an organization’s strategic goals
• Allow an organization to translate its strategy into operational
actions at every level
• Employees can ensure their individual action plans & goals are
consistent with organization’s overall strategic direction
ii. Balanced
Scorecard

10. Preparation of next
period’s objectives
by employee
Mutual setting of
objectives by employee
& supervisor
Mutual agreement on criteria
for measuring accomplishments
of objectives
Action planning &
job performance
by employee
Intermittent review of
ongoing performance as
needed
End-of-period review by
employee & supervisor
Management by Objectives :
The Cycle

11. 1. Can result in better achievement of goals*
2. Forces managers to establish priorities &
measurable goals or standards of
performance
3. Encourage participation of employees &
managers in establishing goals*
4. Facilitates control
5. Lets individuals know what is expected
6. Can help improve communication*
7. Increases motivation & commitment of
employees
1. Requires time & commitment of top-
level managers*
2. May require excessive paperwork*
3. May create tendency to focus on
short-term goals
4. Can be difficult to establish & put
into operation
5. Goals of individuals may not be
coordinated with higher-level goals*
Potential Advantages & Disadvantages of MBO :

12. Measuring Performance with the Balanced Scorecard :
Key Principles Measurement Criteria Implications for Leaders
Align organization to the
strategy
Customers
Understand the “big
picture”
Translate the strategy to
operational terms
Internal processes
BSC measures
performance at all levels
View strategy as a
continual process
Innovation
Execute strategy into
action
Make strategy everyone’s
job
Growth
Emplower frontline
employees

13. A popular approach in today’s
rapidly changing business
environment
Secondary plans that will be
used if the circumstances facing
an organization change in a
significant way from what was
anticipated in the original plan
Helps organization prepare
for a variety circumstances
There was at least two
varitions :
i. Plan A
ii. Plan B
Contingency
Planning

14. In some very complex
business environment,
developing plans C, D, E and F
maybe appropriate
To address certain
environmental risks
Natural disasters
Contingency Planning
Appropriate When ;
Those plans that will be used if the
circumstances facing an
organization change in a significant
way from what was anticipated in
the original plan
Contingency Plans

15. The Impact
of
Information
Technology
on Planning
Data
People
IntegrationStorage
Access

16. Barriers to Effective Planning
Overcoming Barriers to Planning
Learn to apply
the managerial
functions better
Involve
employees in
decision making
Encourage
strategic
thinking
Take advantage
of a diversity of
views
Demands on the
Manager’s Time
Ambiguous & Uncertain
Operating
Environments
Resistance to Change