M. Ibrahim EAU Presentations


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M. Ibrahim EAU Presentations

  1. 1. Group Names:  Ismail Ahmed Dayib  Abdirahman Ali Hassan  Ahmed Shirre Musse  Mohamed Ibrahim Ismail  Mohamed Mirre Hussein  Zakariye Ali Ahmed  Abdiqadir Said Hirsi
  2. 2. Slide Contents:  Definition of Planning  Importance Of Planning  Levels of Planning  Four major aspects of Planning  Types of Planning
  3. 3. Definition of Planning  WHAT IS PLANNING?  Planning is the systematic process of establishing a need and then working out the best way to meet the need, within a strategic framework that enables you to identify priorities and determines your operational principles.
  4. 4. Continue…  Planning is the French word “prevoyance” which means to look a head. According in a Pffifner and Presthus planning is “a rational process charactrised of all human behavior”  According to Dimock “Planning is an organized attempt to anticipate and to make rational arrangement for dealing with future problems by projecting trends.  Planning is also defined future course of action the resource have to be managed to achieve goals which exist in future point in time in all definition of planning, there is a one common element i.e. “Future course of action”.
  5. 5. Importance of planning  Planning is the most important activity of the organization and of managers, because without planning organization may not be able to achieve their goals and objectives.
  6. 6. What is business/action/operational planning?  Once you have a strategic plan, the action plan answers the following questions:  What needs to be done?  How will it be done?  Who will do it?  By when must it be done?  What resources are needed to do it?
  7. 7. Levels of planning  National level is made at a country level  Provincial level is made at provincial level  Organizational level is made at organizational level  Department is made at department level  Unit level is made at unit level  Personal level plan could be professional plan or private plan
  8. 8. Four major aspects of Planning 1. Its contribution to purpose and objectives 2. Its importance in managerial task 3. Its pervasiveness 4. The efficiency vs effectiveness of plan we will discuss it each one in detail
  9. 9. Continue… 1.The contribution plan to purpose and objective: Every plan must contribute to the accomplishment of purpose of the organization. This concept derives from the nature of the organized enterprise which exists for the accomplishment of the group purpose. 2. The importance of planning to the managerial task: Planning precedes all other managerial tasks. (organizing, staffing leading, motivating, controlling, budgeting and evaluating) its
  10. 10. What kind of organization structure to have What kind of people we need and when How most effectively to lead By developing standards of control Plans Objectives and how to achieve them Which helps us to know Which effective the kind of leadership To ensure Success of plan Plans as Functions of management Figure 1 Figure 1 shows that plans sets out objectives, and then the kind of organization structure will be determined that will have achieve those objectives . Then to achieve the plan objective the manager should select the right people. After selection of right people this most be effectively led. Finally the control standard must be developed to determine if plan has achieved the objectives.
  11. 11. Relationship of Planning and Controlling Figure 2 Planning Implementati on of Plan Controlling: Comparing plans with result No Deviation Corrective action Figure 2 shows the relationship between planning and controlling. The relationship between planning and controlling is inextricable, because the two support each other.
  12. 12. Continue… 3. The pervasiveness: Planning is a function of all managers. If manager are not allowed to plan to a certain degree then they may not be able to function as manager. All managers plan-from chief executive to the first level supervisor. 4. The efficiency Vs effectiveness of plan: A plan is said to be efficient if it achieves its purpose with minimizing cost. It’s the contribution of the plan to the objectives. E.G. if a cost is higher than the benefits, the plan is said to be inefficient. Effectiveness is the achievement of goals and objectives set out in the plan.
  13. 13. Types of Plans  Plans are future course of action and these are varied according to the time frame. These are classified as: 1. Purpose or Mission 2. Objectives or Goals 3. Strategies 4. Policies 5. Procedures 6. Rules 7. Programmes 8. Budgets We will examine each separately
  14. 14. 1. Purpose or mission: The mission or purpose identifies the basic tasks of the organization. Every Organization should have purpose or mission. 2. Objectives or goals: Objectives or goals are end towards which activity is aimed. These represent not only the end point of planning but also end towards which organizing, staffing, leading and controlling are aimed. While, the objectives are the basic plan of an organization, its department may have objectives.
  15. 15. 3. Strategies Strategies mean “grand plan” made in the light of what an opponent might do or not. Strategy is defined as determination of long term plan of an organization and flowing course of action and allocation of resources necessary to achieve the goals. 4. Policies Policies are general statement or understanding that guide or channel thinking in decision making not all policies are “statement”, they can be implied from the actions of managers.
  16. 16. 5. Procedures: Procedures are plans that establish a required method of handling future activities. 6. Rules: Rules spell out specific action or non action allowing no discretion. Rules are unlike procedures in that they guide action without specifying time sequence.
  17. 17. 7. Programs: Programs are complex of goal, policies, rules, tasks procedures, resources to be employed. Program have time period and this are for specific purpose. 8. Budgets: Budget is a statement of expected results in numerical terms. Its referred to as a “number zed” plan. For private sector organization financial operating budget is called a “profit plan”.
  18. 18. Planning Process 1. Recognizing the need for planning 2. Determining the objectives 3. Forecasting the future 4. Determining alternatives 5. Evaluating alternatives 6. Selecting a course of action 7. Implementing the plan 8. Revising the plan
  19. 19. 1. Recognizing the need for planning: This precedes planning and starts with intention of either solving problem or to attain some objectives. Organization have need for planning to use scarce resources efficiently, and make best use of opportunities and prepare for treats. This is because plan are considered as future course of action. The organizations have to look a head to solve their problems. 2. Determining Objectives: The second step in the planning process is establishing objectives for the organization and then for each subordinate/employee. Objectives specify expected results and indicate end point of what is to
  20. 20. 3. Forecasting the future: Forecasting is based on certain assumptions about the future in which the plan is to be carried out. The basis of forecasting is to understand of markets, the prices? What services needs to be provided?, what technological change there will be? What population changes will there be? 4. Determining alternatives: This involves examining alternative course of action. There would hardly be plan for which alternatives do not exist.
  21. 21. 5. Evaluating alternatives: Each alternative is evaluated or examined in terms of cost and benefits. One course of action may have large investment and little benefits in the short run. Other alternative may be risky and have more benefits/profits 6. Selecting one alternative: At this point the decision has to be taken to adopt and alternative from the various alternatives. The choice could be one or more than one alternatives, depending on the emphasis on objectives to be achieved and the cost. At this stage the plans are made part of the budget, budgets become means of tying up the plans.
  22. 22. 7. Implementing plan: Implementation of plan is the most crucial aspect. The implementation determines whether the plan was able to achieve the objectives or not. Planning as a rational process: As indicated by the planning process, it’s a rational approach to accomplish objectives. This process is illustrated in the following graph:
  23. 23. Assumption s Progress Time ----- - ------------------ -- --- X 1 Y The Panning Process X In this diagram progress (high profits, more services etc.) are shown on vertical axis and time on the horizontal axis. X indicates where we are (to) and Y where want to be at future time (tn). Often we do not have all the data but we start planning and we may start our planning at x1. the arrows shown around the line X and Y are the assumptions that we make ability the future. When we are plan we are in fact charting an unknown
  24. 24. Figure 2 Socio- economic purpose Mission Overall objectives of organization (strategies) More specific objectives Department or branch or unit objectives Individual Objectives: 1. Performance, 2. Personal objectives Top Down Bottom Up Board of Directors Top management ………………… …….. Middle management………………… Lower level Management ………. Hierarchy of Objectives