2. Synopsis
• Goals and objectives introduce us to the
PLANNING and ORGANISING
• Planning is a dynamic function that prepares
an organisation for the continuous changes
which occur in its environment
• Planning implies developing a programme for
accomplishing the organisation’s desired
objectives and goals
3. Stages of Planning
• It has three stages of action:
(a) Carrying out an investigation
(b)Carrying out an analysis; and
(c) Decision making
4. Definition of planning
Choosing a course of
action
Deciding in advance
what is to be done
In what sequence
When and how
Planning is
5. Definition of planning
• Planning is the sphere of administration,
where the ideas of policy laid down by the
principals or Board of Directors are
interpreted by the managers and translated
into instructions for action
• It is particular and not general
• Dependent on reliable and accurate
information and standards
6. Five planning questions
• What has to be done?
• Where will the work be done?
• When does the work have to be done?
• Why should be work be done?
• Who is going to do the work?
Planning must be flexible balanced and based upon
accurate standards of performance from observed
facts.
7. Purpose of planning
• 1. to determine appropriate goals; and
• 2. to prepare for adaptive and innovative
change
• What for?
- Survival and growth because of change
- Hence the need for effective planning
8. Purpose of planning
• Change occurs
• 1. Externally from economic, social, political
and technological
Which must change
2. Internal changes in size, organisation
structure, staffing, work methods and services
9. Elements of planning
• Five fundamental activities for planning
process:
1. Evaluation of present conditions
2. The factor of time
3. The problems of forecasting
4. The collection and analysis of data
5. The co-ordination of plans
10. Elements of planning
• 1. Evaluation of present
conditions
• Check for inadequacies
needing change
• 2. Time factor
• Planning is continuous
• Short-run planning
(1,2years)
• Long range planning
(5,10,20 years)
• Time span – planning
accuracy decreases
11. Elements of planning
• 3. Forecasting
• Procedures and techniques for
prediction of future
• Forecasting techniques:
A. Judgemental forecasts (Expert
judgement, Delphi methods, Scenario
methods)
B. Model based forecasts
- 1) Explanatory models (analytical
models, Simulation models)
- 2) Statistical models (Intrinsic models
–curve fitting, time
- Extrinsic models – Regression,
Econometrics, input and output
• 4. Collection and
analysis of data
• Quality and quantity of
data
• Cost of obtaining such
data
12. Elements of planning
• 5. Co-ordination of
plans
• Plans form a hierarchy
corresponding to the
levels in the
organisation
Top mgt
Middle
Lower
13. Obstacle to effective planning
• 1. inability to forecast effectively
• 2. difficulty of planning for non repetitive
operations
• 3. inflexibility in administering plans
• 4. negative cost benefits
• 5. possible stifling of initiative
14. Setting organisational goals and objectives
- Definitions
• An objective is an end result, the end point,
or something that you can aim for and try to
reach
• A negotiator may be given a target which
will be a ‘goal’ or ‘target’
• Mission (or purpose) must first be set up
before the objective
• The mission defines the function that the
organisation intends to perform within its
section of the social and economic system.
15. Organisational objectives
• They are beyond ‘what is business?’
• Objectives are specific
• Overall objectives may be stated broadly with details
coming through specific sub-objectives
• They provide greater direction and people are
happier with some purpose and aim
• Provide unity within the organisation
• They are a motivational force
• Help to aid the control of an organisation
16. Arguments against objectives
• Requirements for information are large
• It takes time to gather information, to set
objectives and to know costs and benefits
involved
• Depending on the organisation, they can
create difficulties with the inception of many
committees and other groups
17. Areas for organisation objectives
Objectives should be set in every area where performance and results directly
and vitally affect the survival and performance of the business
• Market standing
• Productivity
• Physical and financial resources
• Profitability
• Innovation
• Manager performance and development
• Public and social responsibility
• Worker performance and attitudes
1 to 5 can be measured and quantified, which is important to M.B.O
6 to 8 are intangibles
18. Areas for organisation objectives
• Objectives need balancing by management
• Management must determine the mix of the
objectives
• Management must exercise judgement in
setting multiple objectives that allow some
flexibility and trade-offs in reflecting the
interests of the key groups within an
organisation
19. Why objectives?
• They permit unified planning
• Top management establish overall objectives
• These become the framework within which
lower-level management establish their own
sub-objectives and plans
• Objectives provide motivation and a sense of
accomplishment
20. motivation and accomplishment
• Objectives embody the basic ideas and fundamental
theories of what the organisation is trying to
accomplish
• Objectives serve to identify the organisation and link
it to the groups upon which its existence depends
• Objectives provide a basis for guiding, leading and
directing an organisation
• Objectives provide standards that aid the control of
human effort in the organisation
• Objectives help to motivate people
21. Objectives vs Strategy
• There will be problems in the execution of
objectives
1. Strategy as a response to internal and
external forces to the organisation – 3 types:
A. External economic strategies
B. External social strategies
C. Internal organisation strategies
22. Performance measures
• Development of job analysis and job
descriptions depends on this for individuals
working in the company
• Training and development programmes are
also dependent on the kind of objectives
stated
• Fair and objective performance appraisal
done by Management By Objectives (MBO)
23. Management By Objectives (MBO)
• Superior and subordinate mutually agree on
targets and key areas of the subordinate’s job
• Following on, results and reviews are
presented to subordinate in planning and
analysis feedback session
• Focus must be on results rather than
subjective (clambering on personal character)
24. Management By Objectives (MBO)
• MBO concept is based on two hypotheses:
• 1. If one is strongly attached to a goal, one is
willing to expend more effort to reach it than
if one were less committed to it
• 2. The ‘self fulfilling’ prophecy, i.e. whenever
we predict that something will happen, we
will do everything possible to make it happen.
