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  1. 1. Formation of PlanningFormation of Planning Presentation by Anlia Yasmin M. Naeem Ashraf
  2. 2. Formation of PlanningFormation of Planning Content 1.Define the nature and purpose of planning. 2.Classify the types goals organization might have and plans they use. 3.Compare and contrast the approaches to goals setting and planning. 4.Contemporary issues in planning.
  3. 3. What is planning?What is planning? • Planning involves defining the organizational goals establishing strategies for achieving those goals and developing plans to integrate and coordinate work activities. • It concerned both ends and means.
  4. 4. Formal planningFormal planning In formal planning specific goals for a specific time period are defined. Where goals are written and shared with organizational members to reduced ambiguity and create a common understanding about what needs to be done.
  5. 5. Why do manager plan?Why do manager plan? At least four reasons exist behind planning. 1. Provide direction 2. Reduces uncertainty 3. Establishing goals use in planning 4. Planning minimizing waste and redundancy
  6. 6. Provide DirectionProvide Direction Planning provide direction to manger and non manger alike. When employees know what their organizational objectives behind planning. So that employees can coordinate cooperate and feel their individual responsibilities.
  7. 7. Reduce uncertaintyReduce uncertainty When manager plan he looks ahead and after planning he consider change and control develop appropriate responses to respond effectively that anticipate change. Establishing goals use in planning  After planning the manger can see whether plans have been carried out and the goals met.
  8. 8. Planning minimizing waste andPlanning minimizing waste and redundancyredundancy When work activities are coordinated around plans, inefficiencies became obvious and can be corrected or eliminated.
  9. 9. Relationship between planning andRelationship between planning and performance.performance. Formal planning is associated with positive financial result, higher profits , higher returns on assets. Its more important to implementing the plans than doing extensive planning. External environment can effect the plan don't achieve high level of performance. Time frame also influenced on relationship.
  10. 10. GoalsGoals Goals are desired outcomes that guide management decisions and described as essential elements of planning.
  11. 11. Characteristics of goalsCharacteristics of goals Written in terms of outcomes rather than actions. Measureable and quantifiable. Clear as to a time frame. Challenging but attainable. Written down Communicated to all necessary organizational member.
  12. 12. Steps in goals settingSteps in goals setting Three steps in goals settings 1. Review of organizational mission 2. Evaluate available resources 3. Determine the goals individually
  13. 13. 1-Review of organizational mission1-Review of organizational mission A mission is a board statements of an organization's purpose that provide an overall guidance to what organizational members think is important. 2-Evaluate available resources An organization do, not want to set goals that are impossible to achieve. It should keep in consideration that resources are available when setting organizational goals.
  14. 14. 3-Determine the goals individually3-Determine the goals individually The goals reflect desired outcomes and should be congruent with organizational mission and goals in other organization areas. These goals should be measureable specific and include a time frame for accomplishment.
  15. 15. Types of goalsTypes of goals There are four types of goals 1. Financial goals 2. Strategic goals 3. Stated goals 4. Real goals
  16. 16. 1-Financial goals1-Financial goals Financial goals are related to the financial performance of the organization. 2-Strategic goals Strategic goals are related to all other area of an organization. 3-Stated goals Stated goals are official statements of what an organization says and what it wants its stakeholders. These can found in an organization's charter, annual report, public relation announcements.
  17. 17. 4-Real goals4-Real goals Real goals are those which an organization actually pursues . Observe what organizational members are doing. Action define priorities.
  18. 18. Goals settings approachesGoals settings approaches 1. Traditional approach 2. MBO(Management by objectives) approach
  19. 19. 1-Traditional approach1-Traditional approach In traditional goal setting, goals are set by the top manager and than become sub-goals for each organizational area. This traditional perspective assumes that top mangers know what's best because they see the big picture. Goals passed down to each succeeding level, guide individual employees as they work to achieve these goals.
  20. 20. MBO(Management by objectives)MBO(Management by objectives) approachapproach MBO is a process of setting mutually agreed upon goals and using these goals to evaluate employees performance.
  21. 21. Steps in MBO(Management bySteps in MBO(Management by objectives) approachobjectives) approach 1. The organization's overall objectives and strategies are formulated. 2. Major objectives are allocated among divisional and departmental units. 3. Unit manager collaboratively set with all department managers. 4. Specific objectives are collaboratively set with all department managers. 5. Actions ,plans defining how objectives are to be achieved are specified and agreed upon by managers and employees.
  22. 22. Steps in MBO(Management bySteps in MBO(Management by objectives) approachobjectives) approach 1. Actions plans are implemented. 2. Progress towards objectives is periodically reviewed and feed back is provided. 3. Successful achievement of objectives is reinforced by performance based reward
  23. 23. PlansPlans Plans are documents that outline how goals are going to met.
  24. 24. Types of planningTypes of planning 1-Breadth planning Strategic plans Operational plans 2-Time frame of planning Long term plans Short term plans Intermediate plans
  25. 25. Types of planningTypes of planning 3-Specificity of planning Specific plans Directional plans 4-Frequency of use planning Single use plans Standing plans
  26. 26. 1-Breadth planning (a)Strategic plans Strategic plans are apply to entire organization and establish organizational overall goals (b)Operational plans Operational plans encompass a particular operational area of organization. These are not broad like strategic plans but narrow.
  27. 27. 2-Time frame of planning (a)Long term plan Long term plans are those with a time frame beyond seven years. (b)Short term plan Short term plans are those that cover year or less. (c)Intermediate plans Any time period between long term and short term plan.
  28. 28. 3-Specificity of planning (a)Specific plans Specific plans are clearly define and leave no room for interpretation, these state its objectives in a way that eliminates ambiguity and problems with misunderstandings. (b)Directional plans Directional plans are flexible that setout general guidelines to deal with high uncertainty and ambiguity.
  29. 29. 4-Frequency of use planning (a)Single use plans Single use plans is one time plans specifically designed to meet the need of a unique situation. (b)Standing plans Standing plans are on gonging plans that provides guidance for activities performed repeated. Its include policies, rules and producers.
  30. 30. Contingency factors in process ofContingency factors in process of developing plansdeveloping plans Organizational level Degree of environmental uncertainty Length of future commitments
  31. 31. Organizational levelOrganizational level Organizational level shows the relationship between manager's level in the organization. Lower level manager do operational planning while upper level manager do strategic planning.
  32. 32. Degree of environmentalDegree of environmental uncertaintyuncertainty Degree of environmental uncertainty factor shows in high uncertainty, plan should be specific but flexible.
  33. 33. Length of future commitmentsLength of future commitments The commitment concept says that plans should extend far enough to meet those commitments made when the plans were developed.