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. 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. 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. 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. 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. 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. 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. 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. GoalsGoals
Goals are desired outcomes that guide
management decisions and described as
essential elements of planning.
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. 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. 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. 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. Types of goalsTypes of goals
There are four types of goals
1. Financial goals
2. Strategic goals
3. Stated goals
4. Real goals
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. 4-Real goals4-Real goals
Real goals are those which an
organization actually pursues .
Observe what organizational members
are doing.
Action define priorities.
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. 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. 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. 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
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. Types of planningTypes of planning
3-Specificity of planning
Specific plans
Directional plans
4-Frequency of use planning
Single use plans
Standing plans
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. 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. 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. 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. Contingency factors in process ofContingency factors in process of
developing plansdeveloping plans
Organizational level
Degree of environmental uncertainty
Length of future commitments
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. Degree of environmentalDegree of environmental
uncertaintyuncertainty
Degree of environmental uncertainty
factor shows in high uncertainty, plan
should be specific but flexible.
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.
