This document discusses planning and organizational planning. It defines planning as outlining activities to achieve organizational goals. There are different types of planning including strategic, operational, and functional planning. Strategic planning focuses on how to implement corporate and business strategies over long time horizons. Operational planning focuses on day-to-day activities and includes standing plans like policies and single-use plans like projects. Barriers to planning include manager and employee resistance, but these can be overcome with improved communication, training, and involvement in the planning process.

2. Planning
CHAPTER 2

3. Chapter Outline
2.1 Definition and importance of planning
2.2 Types of planning and goals
2.3 Strategic Planning
2.4 Mission Statement
2.5 Types of organizational plan/ operational plan

4. • Planning
• The process of outlining the activities that are necessary
to achieve the goals of the organization.
• A Plan
• A blueprint for action: it prescribes the activities
necessary for an organization to realize their goals.
Planning Defined:
2.1 Definition and importance of
planning
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5. • The purpose of planning is simple - to ensure that the
organization is both effective and efficient in its activities.
Purpose Of Planning:
Importance Of Planning:
• Foundation
• Effective & Efficient
• Appopriate
• Guidance & Direction
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6.  Better Coordination
 Focus on Forward Thinking
 Participatory Work Environment
 More Effective Control System
Benefits Of Planning:
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7. Steps in the Planning Proess:
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8. Organizational Objectives/Goals
Individual Objectives/Goals
2.2 Types of planning and goals
Types of Objectives/Goals :
Importance of Organizational
Objectives/Goals :
1. Guides For Decision Making
2. Guides For Organizational Efficiency
3.Guides For Organizational Consistency
4. Guides For Organizational Evaluation
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9. In general, most organizations engage in both:
 Strategic planning
 Operational/Organizational Planning
Types of Planning :
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10.  Definition
 Mission
 Vision
 Strategy
 Mission Statement
2.3 Strategic Planning
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11.  Developing mission statement
 Written document
Mission statement; develop
Mission statement; importance
 Increase the probability
Focus on human effort in a common direction.
The mission makes explicit the major targets the organization is trying
to reach.
Helps managers keep these targets in mind as they make decisions.
Serves as a sound rationale for allocating resources
Guidelines
Help management define broad but important job areas within an
organization and critical job that must be accomplish.
2.4 Mission Statement
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12. • Organizational Objectives is defined as the targets toward which the open
management system is directed.
• Organizational objectives reflect and flow naturally from the purpose of
the organization.
• The organization's purpose is expressed in its mission statement.
• Useful organizational objectives must reflect and flow naturally from an
organizational mission.
The relationship between mission
statement & objectives
The purpose of strategic planning
To move the organization from where it is to where it wants to be.
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13. “How do we implement our corporate and business strategies?”Functional
“How do we compete in our existing lines of business?”Business
“What business should we be in?”Corporate
PLANNING FOCUS
Levels of strategic planning
PARTICIPANTS
SCOPE & TIME HORIZONS
“Board of directors and top-level executives
Top-level executives and managers within the business unit
Mid-level managers and lower-level managers
Corporate
Business
Business
Corporate
Functional
Functional
Broad strategies5 to 10 year time horizon
More specific strategies1 to 5 year time horizon
Very specific strategies1 to 2 year time horizon
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14.  Functional strategy specifies activities necessary to implement
the organization's corporate and business strategies.
 Operations
 R&D
 Financial
 Human resource management
 Marketing
Functional strategic planning
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15.  In general, a successful planning process must fit the organization's
focus on creating value for its customers and its shareholders.
 In other words, it must be customized for the organization based on
its specific and unique needs.
Customizing startegic planning
process
Types of Planning :
In general, most organizations engage in both:
Strategic planning
Operational/Organizational Planning
2.5 Types of organizational plan/ operational
plan
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16.  Operational planning focuses on the day-to-day activities that
are necessary to achieve the long-term goals of the
organization.
 Operational plans can be categorized as:
• Standing, or
• Single-use plans
Operational planning:
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17.  Standing Plans are designed to deal with organizational issues
or problems that recur frequently. They include:
 Policies
 Procedures
 Rules
Standing plan:
Single-use plan:
Single-use plans are developed to address a specific
organizational situation. They include:
 Programs
Projects
Budgets
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18. 1. Managers resistance to plan :
• fear of failure
• Lack of knowledge
• Insufficient knowledge of environment
• Lack of confidence
Barriers to goal setting & planning:
2. Employees resistance to change :
uncertainty about the causes and
effect
uncertainty about the job
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19. Managers :
 Develop and improved communication system
 Develop program that enable them to establish
 Contact with the various department.
 Training and managers’ development program
 Increase knowledge and skills.
 Recognition and reward
 Provide support
Overcoming barriers to planning:
Employees :
 Allow employees involved in planning process
 Give detailed information
 Guaranty
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