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Foundation of planning


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These slides discuss steps of planning in order to complete organization’s goals.

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Foundation of planning

  1. 1. Foundation of Planning
  2. 2. You can download this presentation at:You can download this presentation at: http:// Please visitPlease visit FFreePresentation.reePresentation.orgorg for morefor more presentations on marketing, strategypresentations on marketing, strategy and case solutionand case solution
  3. 3. Planning A process that involves defining the organization’s goals. Establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans to integrate and coordinate organizational work.
  4. 4. Purpose of Planning • Gives direction – When employees know where the organization or work unit is going and what they must contribute to reach goals, they can coordinate their activities, cooperate with each other, and do what it takes to accomplish those goals • Reduces the impact of change – Reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact of change, and develop appropriate responses.
  5. 5. Purpose of Planning • Minimize waste and redundancy – Reduces overlapping and wasteful activities, when work activities are coordinated around establishing plans, wasted time and resources redundancy can be minimized. • Set the standards – Planning establishes goals or standards that are used to controlling. Then Through controlling, we compare the actual performance against the goals.
  6. 6. Types of Goals Goals desired outcomes for individuals, groups, or entire organizations.
  7. 7. Types of Goals • Stated Goals – Official statements of what an organization says, and what it wants its various stake holders to believe, its goals are. • Real Goals – Goals that an organization actually pursue, as defined by the actions of its members.
  8. 8. Types of Plans Plans documents that outline how goals are going to be met including resources allocations, schedules, and other necessary actions to accomplish the goals.
  9. 9. Types of Plans • Strategic Plans – Plans that apply to the entire organization, establish the organization’s overall goals, and seek to position the organization in terms of its environment. • Operational Plans – Plans that specify the details of how the overall goals are to be achieved.
  10. 10. Types of Plans • Long Term Plans – Plans with time frame beyond three years. • Short Term Plans – Plans covering one year or less.
  11. 11. Types of Plans • Specific Plans – Plans that are clearly defined and that leave no room for interpretation. • Directional Plans – Plans that are flexible and that set out general guidelines.
  12. 12. Types of Plans • Single-use Plan – A one time plan specifically designed to meet the needs of a unique situation. • Standing Plans – Ongoing plans that provide guidance for activities performed repeatedly.
  13. 13. Approaches to Establishing Goals Traditional Goal Setting: – An approach to setting the goals in which goals are set at the top level of organization and then broken down into sub goals for each level of the organization. Top Management’s Objective Division Manager’s Objective Department Manager’s Objective Individual Manager’s Objective
  14. 14. Approaches to Establishing Goals Management by Objectives (MBO): – A management system in which specific performance goals are jointly determined by employees and their managers, progress towards accomplishing those goals is periodically reviewed, and rewards are allocated on the basis of this progress.
  15. 15. Step in a Typical MBO Program • The organization’s overall objectives and strategies are formulated. • Major objectives are allocated among divisional and departmental units. • Unit managers collaboratively set specific objectives for their units with their managers. • Specific objectives are collaboratively set with all department members. • Action plans, defining how objectives are to be achieved, are specified and agreed upon by managers and employees. • The action plans are implemented. • Progress toward objectives is periodically reviewed, and feedback is provided. • Successful achievement of objectives is reinforced by performance-based rewards.