The document discusses the concepts and types of planning. It defines planning as the process of thinking about and organizing activities to achieve goals. There are different types of plans including:
- Strategic plans which are long-term plans created by top managers to achieve organizational goals.
- Tactical plans which support strategic plans by translating them into specific area plans.
- Operational plans which focus on procedures and processes at the lowest organizational levels.
- Contingency plans which provide alternative courses of action if original plans fail.
The document also outlines characteristics and principles of effective planning such as being future oriented, goal focused, and requiring teamwork. Barriers to planning include the time and expense required as well as potential restrictions
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The fundamentals in this slide presentation are important in understanding the concept of planning, the various types of plans, and the strategic management process
There are several theories which explain the organization and its structure .Classical organization theory includes the scientific management approach, Weber's bureaucratic approach, and administrative theory.
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The fundamentals in this slide presentation are important in understanding the concept of planning, the various types of plans, and the strategic management process
There are several theories which explain the organization and its structure .Classical organization theory includes the scientific management approach, Weber's bureaucratic approach, and administrative theory.
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Deciding in advance :
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4. It is the basic management function which includes
formulation of one or more detailed plans to achieve
optimum balance of needs or demands with the
available resources.
5. • Planning is important in management because it
provides security and organization to the company.
• A manager needs to plan the expectations and
regulations that the company needs.
7. Planning (is also called forethought) is the
process of thinking about and organizing the
activities required to achieve a desired goal.
8. •Planning is basic or primary function of management.
•Planning is the process of setting goal and selecting
best course of action to reach the goal. It is looking
ahead.
•Planning is deciding in advance, what to
do, who is to do, how to do and when to do.
9. •Planning bridge the gap between where we are
and where we want to go.
•Planning provide target, they allocate
resources in a coordinate manner.
•Planning also solve as standard for control.
10. •Planning is mental exercise and intellectual process.
•Planning may be long term and short term.
•Planning may be strategic, tactical and
operational.
12. Strategic Plans
To best understand the relationship between the
different types of plans, let's start at the top. Strategic
plans are designed with the entire organization in mind
and begin with an organization's mission. Top-level
managers, such as CEOs or presidents, will design and
execute strategic plans to paint a picture of the desired
future and long-term goals of the organization.
Essentially, strategic plans look ahead to where the
organization wants to be in three, five, even ten years.
Strategic plans, provided by top-level managers, serve
as the framework for lower-level planning.
13. Tactical Plans
Tactical plans support strategic plans by
translating them into specific plans relevant to a
distinct area of the organization. Tactical plans are
concerned with the responsibility and functionality of
lower-level departments to fulfill their parts of the
strategic plan.
For example, when Martha, the middle-level manager at
Nino's, learns about Tommy's strategic plan for
increasing productivity, Martha immediately begins to
think about possible tactical plans to ensure that
happens.
14. Tactical planning for Martha might include
things like testing a new process in making pizzas
that has been proven to shorten the amount of time it
takes for prepping the pizza to be cooked or perhaps
looking into purchasing a better oven that can speed
up the amount of time it takes to cook a pizza or even
considering ways to better map out delivery routes
and drivers. As a tactical planner, Martha needs to
create a set of calculated actions that take a shorter
amount of time and are narrower in scope than the
strategic plan is but still help to bring the
organization closer to the long-term goal.
15. Operational Plans
Operational plans sit at the bottom of the totem pole;
they are the plans that are made by frontline, or low-level,
managers. All operational plans are focused on the specific
procedures and processes that occur within the lowest levels of
the organization. Managers must plan the routine tasks of the
department using a high level of detail. Frank, the frontline
manager at Nino's Pizzeria, is responsible for operational
planning. Operational planning activities for Frank would
include things like scheduling employees each week; assessing,
ordering and stocking inventory; creating a monthly budget;
developing a promotional advertisement for the quarter to
increase the sales of a certain product (such as the Hawaiian
pizza) or outlining an employee's performance goals for the
year.
16. Operational plans can be either single-use or ongoing
plans. Single-use plans are those plans that are intended to
be used only once. They include activities that would not be
repeated and often have an expiration. Creating a monthly
budget and developing a promotional advertisement for the
quarter to increase the sales of a certain product are
examples of how Frank would utilize single-use planning.
Operational plans are made by low-level managers.
Ongoing plans are those plans that are built to withstand the
test of time. They are created with the intent to be used
several times and undergo changes when necessary.
17. Contingency Plans
Even the best plans can fail, especially in
today's fast-paced, chaotic business environment,
and as such, it is important for managers at all levels
to engage in contingency planning. Contingency
plans allow a manager to be flexible and changesavvy by providing an alternative course of action,
which can be implemented if and when an original
plan fails to produce the anticipated result. Having a
contingency plan might seem like extra work, but
much like a reserve parachute when skydiving, it's
better to have it and not need it than to need it and not
have it.
19. Characteristics of Planning
1.
Intellectual process: - Planning is mental
exercise and intellectual process.
2.
Future oriented: - Planning is always future
oriented.
3.
Goal focused: - Planning aims to achieve goal
in future.
20. 4.
Pervasiveness of plan: - Planning is needed at
all level of management.
5.
Increase efficiency: -Planning increase
efficiency. Planning aims to achieve goal at low cost.
6.
Decision making: - Planning and decision
making are interrelated. Planning is selecting right
course of action to reach the goal.
21. Planning Principles
By: John C. Maxwell
1) The Principle of Passion
When we're passionless, we procrastinate on the
plan or burnout trying to execute it. With passion, we
approach our plans with excitement and a sense of
urgency. Passion gives planning energy. Passion also
gives planning focus. As Tim Redmond says, "There are
many things that will catch my eye, but there are only a
few things that will catch my heart. It is those I consider
to pursue." Passion narrows our vision so that the plan
dominates our attention and distractions fade into the
background.
22. 2) The Principle of Creativity
Of the seven planning principles, we violate the
principle of creativity the most. By gravitating to
concreteness, we sacrifice creativity. We settle for what's
easy to wrap our minds around, and we neglect to
wrestle with harder, more difficult dilemmas. Leaders are
too busy doing to think and provide ideas. Even the rare
leaders who think creatively often neglect to encourage
the people around them to do the same. Consequently, a
majority of teams rely on one person for creative
thought and end up starved with good ideas.
23. 3) The Principle of Influence
When you prepare your plans, ask yourself the
question, "Am I able to influence the resources needed
to fulfill my planning and mission?" To accomplish your
plan, you'll need influence over people, finances, and
you schedule. The support of people, especially other
influencers, can make or break your plan. Make a
priority to build relationships with them. In
particular, find the key to their lives by learning what
matters most to them. If you continually add value to
the influencers around you in meaningful ways, then
you'll be more likely to receive their assistance when
you need it.
24. 4) The Principle of Priorities
Giving importance to the things you have to do or
deal with, or must be done or dealt with before
everything else you have to do. You have no right, nor any
reason, to start planning your life until you know what
you're living for and what you're willing to die for. It's
important to find your purpose so that you run, not on
the fast track, but on your track. The key to a prioritized
life is concentration followed by elimination. As Peter
Drucker observed, "Concentration is the key to economic
results. No other principle 4 of effectiveness is violated as
constantly today as the basic principal of concentration.
Our motto seems to be, let's do a little bit of everything."
We must cease to dabble in everything before we can
become excellent at anything”.
25. 5) The Principle of Flexibility
In leadership, be mentally prepared that not
everything will go according to your plans. Then, when
plans unfold unexpectedly, you'll be prepared to see
new opportunities. Some of the best things we
received in life have been surprises that we could
never have planned in advance. When plans go
awry, don't just stand there. By staying in motion, you
create
movement. Be resourceful enough to improvise when
circumstances push you off course.
26. 6) The Principle of Timing
Most of the time, our decisions are based on our
emotional environment rather than reality. When
we're in the valleys of life, we don't see clearly. Our
perspective is limited, and all we see are the problems
around us. In the valleys we make decisions, not to
better ourselves, but to escape our problems. Never
make a major decision in the valleys. Wait until you get
to the peak where you can see clearer and farther. By
reserving big choices for the peaks, you'll avoid making
rash decisions that you’ll regret later.
27. 7) The Principle of Teamwork
A worthwhile plan ought to be bigger than your
abilities. You shouldn't be able to accomplish it alone.
Each of us has areas of weakness, blind spots, and
shortcomings. Unless we rely on a team to help us, our
plans succumb to our personal limitations. A sign in
Coach Bill Parcells' office stated his philosophy
plainly, "Individuals play the game but teams win
championships." What we can do alone pales in
comparison to the potential we have when we work
together.
29. Barriers or Limitations of Planning
1. Planning is an expensive and time consuming process.
-It involves significant amount of money, energy and
also risk, without any assurance of the fulfillment of the
organization’s objectives.
2. Planning sometimes restricts the organization to the
most rational and risk free opportunities.
- It curbs the initiative of the manager and
forces him to operate within the limits set by it.
30. 3. The scope of planning is said to be limited in the
case of organizations with rapidly changing situations.
- For example, it is claimed that for industries
producing fashionable articles or for industries engage
in the publication of textbooks, working on a day-today basis is more economical than plan basis.
4. Flexibility of planning cannot be maintained when
there are unforeseen changes in the environment.
- such as business recession, change in the
government policy, crop failure etc. When such events
take place, the original plan loses its value and there is
a need to draw up a fresh plan.
31. 5. Another limiting factor in planning is the difficulty
of formulating accurate premises.
- Since these premises are the background
against which a set of plan is made, they necessarily
deal with the future. Since the future cannot be
known with accuracy, premising must be subject to a
margin of error.
6. Planning may sometimes face people’s resistance to
it.
- In old, established organizations, managers are
often frustrated in instituting a new plan simply by the
unwillingness or inability of people to accept it.
32. “Thinking well is wise; planning well, wiser; but
doing well is the wisest and best of all.” - unknown
Today we have learned about the concept of planning, and while it is time to say goodbye, I hope you won’t be saying farewell to what you have learned in this session.