Theories of Planning by: Dr. Eusebio F. Miclat Jr. Development Planning & Budgeting, PSU (2004)


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Theories, Rationale of Planning !st Semester 2013, PSU,Urdaneta City

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Theories of Planning by: Dr. Eusebio F. Miclat Jr. Development Planning & Budgeting, PSU (2004)

  1. 1. 3.Theories, Concepts, & Rationale of Strategic Planning a. Theories of Planning b. Concepts of Strategic Planning c. Rationale of Strategic Planning
  2. 2. At the end of the lecture, the students will be able to: 1. Describe the different theories of strategic planning and the crisis it had undergone; 2. Compare and contrast the different concepts of strategic planning in the context of the business world, administrative leadership and behavior, and socio-economic development; and 3. State the various purposes and rationale of strategic planning
  3. 3. • Planning as a human and professional activity and an area of academic inquiry lacks disciplinary focus • Planning, just like her mother PA, has no intellectual turf of its own. Each is like a moon which borrows its light from the sun and stars • Thus, its heavy reliance from multiple disciplines makes planning an easy target for question and debate
  4. 4. H. Simon (1969) describes it as an “artificial” science Wildavsky (1973) observes: “If planning is everything, maybe it is nothing” S.J. Klees (1986) argues that “it is technocratic cultism and political curtailment of individual freedom”
  5. 5. D. Adams (1991) – “Planning is a quasi- science that incorporates the latest developments in the information technology and administrative sciences, the insights of the social science disciplines, and the design capabilities of engineering profession
  6. 6. Planning is a process for accomplishing purpose. • It is blue print of business growth and a road map of development. • It helps in deciding objectives both in quantitative and qualitative terms. • It is setting of goals on the basis of objectives and keeping in view the resources (wikipedia)
  7. 7. In spite of new and powerful technology capable of analyzing vast amounts of data, determining trends, and modeling alternative futures, planning suffers from identity, theory and utility
  8. 8. According to Adams (1991) these are: 1. Philosophical synthesis 2. Rationalism 3. Organizational Development (OD) 4. Empericism
  9. 9. PHILOSOPHICAL SYNTHESIS – tends to emphasize a broad aspect to planning which seek insights into social, economic, and ethical conditions as well as environmental context of the institution or sector for which planning is being undertaken
  10. 10. RATIONALISM models of planning assume a sequential, observable, cycle that includes setting of goals, determining objectives, making plans, implementing the plans, and reviewing the results
  11. 11. ORGANIZATIONAL DEVELOPMENT – focuses primarily on ways to achieve organizational change. It includes a human relations approach to innovation and change in management style, employee satisfaction, decision-making process. And the general health of the organization
  12. 12. EMPERICISM – recognizes the significance of system behavior studies by public administrators, economists and other social scientists concerned with planning theory
  13. 13. SOCIO-ECONOMIC DEVELOPMENT: The concept of DEVELOPMENT PLANNING planning came about as the more legitimate, appropriate and culturally-oriented framework in the formulation of social, economic, and political national plans and policies
  14. 14. DEVELOPMENT PLANNING – is basically the act of choosing. It is deciding in advance the WHAT, the HOW, the WHEN, and the WHO of determining goals, policies and plans and conscious setting of alternative courses of action, procedures and strategies needed to achieve the purposes of government (NEDA, 1982)
  15. 15. BUSINESS PLANNING • 1922 – Harvard Dean Wallace Donham made the argument that unless businesses systematized decision-making practices, they were not much from gambling efforts • 1960s-’70s – Harvard Business Review had indicated its interest articles on long- range strategic planning (N. Capon et al., 1987)
  16. 16. • 1976 Lorange and Vancil viewed strategic planning (SP) as a single process whereby managers must agree on a detailed integrated plan of action for the coming year starting with the delineation of corporate objectives and concluding with one-or two-year profit plan • Further, they identified six processes that top management has to deal with: a) communicating corporate goals, b) developing the goal setting process, c) scanning the environment, d) understanding the subordinate-manager focus e) developing the planner’s role, and f) developing the link between planning and budgeting
  17. 17. • 1974 defines SP as the continuous process of making entrepreneurial decisions systematically and with the greatest knowledge of their futurity, organizing systematically the efforts needed to carry out these decisions and measuring the results of these decisions against expectations through organized feedback (Peter Drucker). • 1981 in the perspective of education and social development, SP is perceived as a set of purposeful actions influencing and organization or some part therein to effect change (K.C. Tanner and E.J. Williams)
  18. 18. • 1984 SP is viewed as the effective application of the best alternative information to decisions that have to be made now to ensure a secure future (G.S. Day) • 1994 SP is viewed as a long-term planning to achieve a preferred vision for an organization, school or school district. It defines the WHATS to be achieved
  19. 19. • SP as a dynamic process which scans current realities and opportunities in order to yield useful strategies and tactics for arriving a better tomorrow. • It is not a linear, lock-step process derived or implemented in an authoritarian manner. Nor it is intuitive or built on hunches and raw feelings. • It involves the educational partners in defining and supporting the purposes and missions and its provides blueprints for result-oriented program ( R.A. Kaufman, 1972, 1988 R.A. Kaufman and J. Herman, 1991, R.A. Kaufman, J. Herman and K. Watters, 1996)
  20. 20. • It appears that no single definition has been able to capture all facets of contemporary SP practices despite the array of disciplinary perspective. Six common distinguishing features, however, shape the acceptable meaning: 1. external orientation, 2. a holistic or systematic approach, 3. a process of formulating plan, objectives, strategies and programs, 4. use of systematic methods in the analysis of strategic situation and alternatives, 5. commitment to actions, and 6. a knowledge of results
  21. 21. • To reorient the organization to the needs of the community in order to foster relevant and quality service • As we plan for expansion, a certain level of minimum standard to be observed to guarantee a certain level of minimum quality performance
  22. 22. • Effective SP efforts make the organization become more viable instrument of socio- economic development of the nation • Since resources for sectoral services are irreversibly becoming less, priorities have to be established • The galloping inundation and explosion of a new knowledge and the emergence of new technologies as brought about by advances in science and ICT.
  23. 23. • SP means realistic forecasting of events and in exercise “futurology”
  24. 24. Reference: Miclat, Jr. Eusebio F. Development Planning & Budgeting, PSU, 2004