the ladakh protest in leh ladakh 2024 sonam wangchuk.pptx
Unit 2--- Planning
1. UNIT II
Planning
Nature and Purpose planning – Planning process
– Types of plans – Objectives – Managing by
objective (MBO) Strategies – Types of strategies
– Policies – Decision Making – Types of decision
– Decision Making Process - Rational Decision
Making Process – Decision Making under
different conditions.
2. What Is Planning?
Planning - a primary managerial activity that involves:
Defining the organization’s goals
Establishing an overall strategy for achieving those goals
Developing plans for organizational work activities
3. Nature of planning
Planning – a primary function
Planning – a dynamic process
Planning – based on objective and policies
Planning - a selective process
Pervasiveness of Planning (clear)
Planning – an intellectual process (logical)
Planning is directed towards efficiently
Planning – focus with future activities
Flexibility of Planning
Planning is based on facts
4. Importance or objective of
planning
To achieve objectives
To cope with uncertainty and changes
To facilitate control
To help in coordination
To increase organisational effectiveness
To guide decision making
5. Planning process
1. Identification of opportunities
2. Establishment of objectives
3. Developing planning premises
4. Identification of alternatives
5. Evaluation of alternatives
6. Selecting an alternative
7. Formulating derivative plans
8. Establishing sequence of activities
6. Elements of Planning
Goals (also Objectives)
Desired outcomes for individuals, groups, or entire
organizations
Provide direction and evaluation performance criteria
Plans
Documents that outline how goals are to be accomplished
Describe how resources are to be allocated and establish
activity schedules
7. Types of Goals
Financial Goals - related to the expected internal financial
performance of the organization.
Strategic Goals - related to the performance of the firm
relative to factors in its external environment (e.g.,
competitors).
8.
9. Types of Plans
Strategic Plans
Establish the organization’s overall goals
Seek to position the organization in terms of its
environment
Cover extended periods of time
Operational Plans
Specify the details of how the overall goals are to be
achieved
Cover a short time period
10. Types of Plans
Long-Term Plans
Time frames extending beyond three years.
Short-Term Plans
Time frames of one year or less.
11. Types of Plans
Specific Plans
Plans that are clearly defined and leave no room for
interpretation.(explanation)
Directional Plans
Flexible plans that set out general guidelines and provide
focus, yet allow discretion(care) in implementation.
12. Types of Plans
Single-Use Plan
A one-time plan specifically designed to meet the need of a
unique situation.
Standing Plans
Ongoing plans that provide guidance for activities
performed repeatedly.
13. Advantages
Helps in achieving objectives
Better utilization of resources
Economy in operation
Reduces uncertainty and risk
Improves competitive strength
Effective control
Coordination
Encourage motivation
Guide in decision making
Provides decentralization
Improves efficiency
Anticipation of crisis
14. Limitations
Lack of accurate information
Time and cost
Inflexibility
Delay during emergency period
False sense of security
15. OBJECTIVE
Objective are the aims, purposes or goals
that an organization wants to achieve over
varying period of time
16. Important characteristics of
objective
Objectives have an hierarchy
Objectives form a network
Multiplicity of Objectives
Objectives have a time span
Objectives may be tangible or intangible(SOLID)
Objectives must have social sanction
17. Significance or role or advantages of
Objective
Unified planning (UNIFORM)
Defining an organization
Direction
Individual motivation
Basis for decentralization
Basis for control
Co-ordination
18. Management By Objectives (MBO)
Specific performance goals are jointly determined by
employees and managers.
Progress toward accomplishing goals is periodically
reviewed.
Rewards are allocated on the basis of progress towards
the goals.
19. Management By Objectives (MBO)
Key elements of MBO:
goal specificity
Decision making
performance/evaluation period
feedback
21. Does MBO Work?
Reason for MBO Success
Top management commitment and involvement
Potential Problems with MBO Programs
Are less effective in dynamic environments that require
constant resetting of goals
Over emphasis on individual accomplishment may create
problems with teamwork
Allowing the MBO program to become an annual
paperwork shuffle
22. THE PROCESS OF MBO
i. Setting preliminary objectives
ii. Fixing key result areas
iii. Setting subordinate’s objectives
iv. Recycling objectives
v. Matching resources with objectives
vi. Periodic performance reviews
vii. Appraisal
23. Benefits of MBO
1. Improvement of managing
2. Clarification of organization
3. Personal satisfaction
4. Team work
5. Development of effective control
6. Fast decision making
24. Weakness of MBO
1. Failure to teach the philosophy of MBO
2. Failure to give guidelines to goal setters
3. Difficulty of setting goal
4. Emphasis on short term goals
5. Danger on inflexibility
6. Time consuming
7. Increased paper work
25. Contingency Factors in
Planning(Future)
Manager’s level in the organization
Strategic plans at higher levels
Operational plans at lower levels
Degree of environmental uncertainty
Stable environment: specific plans
Dynamic environment: specific but flexible plans
26. Contingency Factors in Planning
Length of future commitments
Commitment Concept: Current plans affecting future
commitments must be sufficiently long-term in order to
meet those commitments.