SlideShare a Scribd company logo
1
Essentials of Planning
&
MBO
How to Bake a Cake?
Develop a business plan for.....
• A retail store in a mall
• Selling used clothes
• House cleaning service
• Pet sitting
• Shopping service for seniors
• Child care
• Lemonade and Hot dog stand
• Travel services
BUSINESS PLAN QUESTIONS
•How can you describe the business...in only one paragraph please?
•What is your product, or service?
•Who will buy it?
•Where should you locate the business?
•How can you attract customers?
•What is your competition?
•How much should you charge for the products or service?
•What advice do you need and who can provide it?
•How will you organize the managers and/or workers of the business?
•How will you split the profits? Who is responsible for the losses?
•What should you consider to be able to produce the product and get it to the customer?
•How much money is needed to get the business started?
•How many customers will you have per month and how much will they buy per
month?
•How much does it cost to make the product or provide the service?
•What are your operating costs? (Include your own salary)
•How much money will your business earn each month by selling your product or
service?
•How much investment will you need to keep the business going until you make a
profit?
•What is your potential profit per year for Year I, Year II, and Year III?
•How much money do you need to borrow to start this business?
•How will you make the business grow in the future?
What Is Planning?
– involves defining the organization’s goals, establishing an
overall strategy, and developing a comprehensive set of
plans to integrate and coordinate organizational work
– Planning is an intellectual process, the conscious
determination of courses of action, the basing of decisions on
purpose, acts and considered estimates
– informal planning - nothing is written down
• little or no sharing of goals
• general and lacking in continuity
– formal planning - written
• defines specific goals
• specific action programs exist to achieve goals
© Prentice Hall, 2002
Reduce the
Impact of
Change
Provide
Direction
Minimize
Waste /
Redundancy
Set Control
Standards
Reasons
for Planning
Growing
complexities
Growth of
trade union
Rapid socio-
Economic
changes
Need for
R&D activity
Benefits of planning
• Reduces uncertainty
• Encourage innovation & creativity
• Improves motivation
• Achieve better coordination
• Facilitates control
• Planning leads to success
• Focuses attention
Arguments
Against
Strategic
Planning
Rigid Assumptions
of Stability
Intuition
and Creativity
Environmental
Turbulence
Focus on Today’s
Competition
Preoccupation with
Current Success
Does Planning Improve Performance?
• Financial results
• Environmental concerns
• Quality and implementation
Hierarchy of Plans (cont..)
Plans can be classified as
(1) mission or purposes,
(2) objectives or goals,
(3) strategies,
(4) policies,
(5) procedures,
(6) rules,
(7) programs, and
(8) budgets
Hierarchy of Plans
(cont..)
• The mission, or purpose, identifies the basic purpose or
function or tasks of an enterprise or agency or any part of it
• Objectives, or goals, are the ends toward which activity is
aimed
• Strategy is the determination of the basic long-term objectives of
an enterprise and the adoption of courses of action and
allocation of resources necessary to achieve these goals
• Policies are general statements or understandings that guide or
channel thinking in decision making
• Procedures are plans that establish a required method of
handling future activities
Hierarchy of Plans –
cont.
• Rules spell out specific required actions or
non actions, allowing no discretion
• Programs are a complex of goals, policies, procedures, rules, task
assignments, steps to be taken, resources to be employed, and other
elements necessary to carry out a given course of action
• A budget is a statement of expected results expressed in numerical
terms
Steps in Planning
STEPS IN PLANNING
• Being aware of opportunity :In light of Market, Competition Customer
desire, Our strengths Our weaknesses
• Setting objectives or goals: Where we want to be& what we want to
accomplish & when
• Considering planning premises: In what environment will our plans
operate
• Identifying alternatives: What are the most promising alternatives to
accomplishing our objectives
• Comparing alternatives in light of goals sought Which alternative meets
our goals at lowest cost &at highest profit
• Choosing an alternative Selecting the course of action
• Formulating derivative plans such plans as to :- Buy equipment Buy
materials, Hire& train workers,
• Budgets: Develop such budgets as Volume & price of sales, operating
expenses necessary for plans, Capital expenditure
Types Of Plans
Breadth
Strategic
Operational
Specificity
Directional
Specific
Frequency
of Use
Single use
Standing
Time Frame
Long term
Short term
© Prentice Hall, 2002
Specific Versus Directional Plans
© Prentice Hall, 2002
Planning In The Hierarchy Of
Organizations
Strategic
Planning
Operational
Planning
Top
Executives
Middle-Level
Managers
First-Level
Managers
© Prentice Hall, 2002
Contemporary Issues In Planning
(cont.)
• Effective Planning in Dynamic Environments
– develop plans that are specific, but flexible
– recognize that planning is an ongoing process
– change directions if environmental conditions
warrant
– stay alert to environmental changes
© Prentice Hall, 2002
Barriers to effective planning
• Difficulty of accurate premising
• Problems of rapid change
• Internal inflexibilities
policy & procedural inflexibility
capital investment
• External inflexibility
political climate
trade unions
technology changes
• Time & cost factors
• Failure of people in planning
How Do Managers Plan?
• Traditional Objective Setting
• Management by objectives (MBO) - specific
performance goals are jointly determined by employees
and their managers
– progress toward accomplishing these goals is periodically reviewed
– rewards are allocated on the basis of this progress
– MBO consists of four elements
» goal specificity
» participative decision making
» explicit time period
» performance feedback
© Prentice Hall, 2002 7-21
Traditional Objective Setting
Individual
Employee’s
Objective
Top
Management’s
Objective
Department
Manager’s
Objective
Division
Manager’s
Objective
“Increase profits, regardless
of the means”
“I want to see a
significant improvement
in this division’s profits”
“We need to improve
the company’s performance”
“Don’t worry about
quality: just work fast”
Management by Objectives
Establishing Goals (cont.)
• Management by objectives (cont.)
– increases employee performance and organizational
productivity
» depends on support of top managers for MBO
» problems with MBO
- can be useless in times of dynamic change
-overemphasis on personal rather than
organizational goals
-may be viewed simply as an annual exercise
in paperwork
© Prentice Hall, 2002
Hierarchy of Goals
FIGURE 4–1
Principles of Goal-Setting
 Set SMART goals—make them specific,
measurable, attainable, relevant, and timely.
Choose areas (sales revenue, costs, and so forth)
that are relevant and complete.
 Assign specific goals.
 Assign measurable goals.
 Assign doable but challenging goals.
 Encourage participation.
 Use executive assignment action plans, or
management by objectives.

More Related Content

Similar to Planning & MBO.ppt

Integrated Business Planning Process
Integrated Business Planning ProcessIntegrated Business Planning Process
Integrated Business Planning Process
Kiran Sohi
 
Planning And Mission.pptx
Planning And Mission.pptxPlanning And Mission.pptx
Planning And Mission.pptx
kristinalimarenko7
 
Fp&a operating model
Fp&a operating modelFp&a operating model
Fp&a operating model
jarobertson2
 
L 3 - Management goals and objectives.ppt
L 3 - Management goals and objectives.pptL 3 - Management goals and objectives.ppt
L 3 - Management goals and objectives.ppt
JeremiahLukwesa
 
Extending business performance within the organisation - The role of Finance
Extending business performance within the organisation - The role of FinanceExtending business performance within the organisation - The role of Finance
Extending business performance within the organisation - The role of Finance
Mehdi J. Alaoui
 
Topic for Organization and Management 'Planning'
Topic for Organization and Management 'Planning'Topic for Organization and Management 'Planning'
Topic for Organization and Management 'Planning'
Polytechnic University of the Philippines
 
Balanced Scorecard, A Comprehensive Guide
Balanced Scorecard, A Comprehensive Guide Balanced Scorecard, A Comprehensive Guide
Balanced Scorecard, A Comprehensive Guide
Upendra K
 
planninvbjkifvnnfhjiihbvfffjjhvvg by ken.pptx
planninvbjkifvnnfhjiihbvfffjjhvvg by ken.pptxplanninvbjkifvnnfhjiihbvfffjjhvvg by ken.pptx
planninvbjkifvnnfhjiihbvfffjjhvvg by ken.pptx
vamshi kanuganti
 
Principle of Management Unit 2.pptx
Principle of Management Unit 2.pptxPrinciple of Management Unit 2.pptx
Principle of Management Unit 2.pptx
NgN Menakan
 
Steps in Planning Process
Steps in Planning ProcessSteps in Planning Process
Steps in Planning Process
Pranab Choudhary
 
Strategic Alignment of Projects
Strategic Alignment of ProjectsStrategic Alignment of Projects
Strategic Alignment of Projects
Tuan Yang
 
Measuring Performance: Linking Money To Mission
Measuring Performance: Linking Money To MissionMeasuring Performance: Linking Money To Mission
Measuring Performance: Linking Money To Mission
4Good.org
 
Strategic Management: The Ultimate Goal of Strategic Planning
Strategic Management: The Ultimate Goal of Strategic Planning Strategic Management: The Ultimate Goal of Strategic Planning
Strategic Management: The Ultimate Goal of Strategic Planning
Kathy Brandt
 
Planning Process Considerations
Planning Process ConsiderationsPlanning Process Considerations
Planning Process Considerations
finitsolutions
 
Marketing Busuness Art 2012
Marketing Busuness Art 2012Marketing Busuness Art 2012
Marketing Busuness Art 2012
Arif Mahmood
 
5 strategic and operational planning
5  strategic and operational planning5  strategic and operational planning
5 strategic and operational planning
Beulah Heights University
 
Constructing a Strategic Plan: Essential Processes and Components
Constructing a Strategic Plan: Essential Processes and ComponentsConstructing a Strategic Plan: Essential Processes and Components
Constructing a Strategic Plan: Essential Processes and Components
Hamilton Public Library
 
Strategic planning in agribusiness lecture1
Strategic planning in agribusiness lecture1Strategic planning in agribusiness lecture1
Strategic planning in agribusiness lecture1
CSIR-CRI (crop research instituete)
 
Strategic intent
Strategic intentStrategic intent
Strategic intent
Jaswinder Singh
 
Sales and Operations Planning
Sales and Operations Planning Sales and Operations Planning
Sales and Operations Planning
Karim Refaat Shabana
 

Similar to Planning & MBO.ppt (20)

Integrated Business Planning Process
Integrated Business Planning ProcessIntegrated Business Planning Process
Integrated Business Planning Process
 
Planning And Mission.pptx
Planning And Mission.pptxPlanning And Mission.pptx
Planning And Mission.pptx
 
Fp&a operating model
Fp&a operating modelFp&a operating model
Fp&a operating model
 
L 3 - Management goals and objectives.ppt
L 3 - Management goals and objectives.pptL 3 - Management goals and objectives.ppt
L 3 - Management goals and objectives.ppt
 
Extending business performance within the organisation - The role of Finance
Extending business performance within the organisation - The role of FinanceExtending business performance within the organisation - The role of Finance
Extending business performance within the organisation - The role of Finance
 
Topic for Organization and Management 'Planning'
Topic for Organization and Management 'Planning'Topic for Organization and Management 'Planning'
Topic for Organization and Management 'Planning'
 
Balanced Scorecard, A Comprehensive Guide
Balanced Scorecard, A Comprehensive Guide Balanced Scorecard, A Comprehensive Guide
Balanced Scorecard, A Comprehensive Guide
 
planninvbjkifvnnfhjiihbvfffjjhvvg by ken.pptx
planninvbjkifvnnfhjiihbvfffjjhvvg by ken.pptxplanninvbjkifvnnfhjiihbvfffjjhvvg by ken.pptx
planninvbjkifvnnfhjiihbvfffjjhvvg by ken.pptx
 
Principle of Management Unit 2.pptx
Principle of Management Unit 2.pptxPrinciple of Management Unit 2.pptx
Principle of Management Unit 2.pptx
 
Steps in Planning Process
Steps in Planning ProcessSteps in Planning Process
Steps in Planning Process
 
Strategic Alignment of Projects
Strategic Alignment of ProjectsStrategic Alignment of Projects
Strategic Alignment of Projects
 
Measuring Performance: Linking Money To Mission
Measuring Performance: Linking Money To MissionMeasuring Performance: Linking Money To Mission
Measuring Performance: Linking Money To Mission
 
Strategic Management: The Ultimate Goal of Strategic Planning
Strategic Management: The Ultimate Goal of Strategic Planning Strategic Management: The Ultimate Goal of Strategic Planning
Strategic Management: The Ultimate Goal of Strategic Planning
 
Planning Process Considerations
Planning Process ConsiderationsPlanning Process Considerations
Planning Process Considerations
 
Marketing Busuness Art 2012
Marketing Busuness Art 2012Marketing Busuness Art 2012
Marketing Busuness Art 2012
 
5 strategic and operational planning
5  strategic and operational planning5  strategic and operational planning
5 strategic and operational planning
 
Constructing a Strategic Plan: Essential Processes and Components
Constructing a Strategic Plan: Essential Processes and ComponentsConstructing a Strategic Plan: Essential Processes and Components
Constructing a Strategic Plan: Essential Processes and Components
 
Strategic planning in agribusiness lecture1
Strategic planning in agribusiness lecture1Strategic planning in agribusiness lecture1
Strategic planning in agribusiness lecture1
 
Strategic intent
Strategic intentStrategic intent
Strategic intent
 
Sales and Operations Planning
Sales and Operations Planning Sales and Operations Planning
Sales and Operations Planning
 

More from priyanka pandey

Change Mngt 1.pptx
Change Mngt 1.pptxChange Mngt 1.pptx
Change Mngt 1.pptx
priyanka pandey
 
L2.pptx
L2.pptxL2.pptx
T & D
T & DT & D
case writing workshop.pptx
case writing workshop.pptxcase writing workshop.pptx
case writing workshop.pptx
priyanka pandey
 
EPF Act.pptx
EPF Act.pptxEPF Act.pptx
EPF Act.pptx
priyanka pandey
 
comp structure.pptx
comp structure.pptxcomp structure.pptx
comp structure.pptx
priyanka pandey
 
Attitude.pptx
Attitude.pptxAttitude.pptx
Attitude.pptx
priyanka pandey
 
Industrial revoultion.pptx
Industrial revoultion.pptxIndustrial revoultion.pptx
Industrial revoultion.pptx
priyanka pandey
 
Group behaviour.ppt
Group behaviour.pptGroup behaviour.ppt
Group behaviour.ppt
priyanka pandey
 
Identity & Difference.pptx
Identity & Difference.pptxIdentity & Difference.pptx
Identity & Difference.pptx
priyanka pandey
 
Discrimination Lawsuits.pptx
Discrimination Lawsuits.pptxDiscrimination Lawsuits.pptx
Discrimination Lawsuits.pptx
priyanka pandey
 
Conflict Management.ppt
Conflict Management.pptConflict Management.ppt
Conflict Management.ppt
priyanka pandey
 
learning_theories_reinforcement.pptx
learning_theories_reinforcement.pptxlearning_theories_reinforcement.pptx
learning_theories_reinforcement.pptx
priyanka pandey
 
Group behaviour.ppt
Group behaviour.pptGroup behaviour.ppt
Group behaviour.ppt
priyanka pandey
 
competency building.pptx
competency building.pptxcompetency building.pptx
competency building.pptx
priyanka pandey
 
2. Evolution of management thought.pptx
2. Evolution of management thought.pptx2. Evolution of management thought.pptx
2. Evolution of management thought.pptx
priyanka pandey
 
1. management_overview.ppt
1. management_overview.ppt1. management_overview.ppt
1. management_overview.ppt
priyanka pandey
 

More from priyanka pandey (17)

Change Mngt 1.pptx
Change Mngt 1.pptxChange Mngt 1.pptx
Change Mngt 1.pptx
 
L2.pptx
L2.pptxL2.pptx
L2.pptx
 
T & D
T & DT & D
T & D
 
case writing workshop.pptx
case writing workshop.pptxcase writing workshop.pptx
case writing workshop.pptx
 
EPF Act.pptx
EPF Act.pptxEPF Act.pptx
EPF Act.pptx
 
comp structure.pptx
comp structure.pptxcomp structure.pptx
comp structure.pptx
 
Attitude.pptx
Attitude.pptxAttitude.pptx
Attitude.pptx
 
Industrial revoultion.pptx
Industrial revoultion.pptxIndustrial revoultion.pptx
Industrial revoultion.pptx
 
Group behaviour.ppt
Group behaviour.pptGroup behaviour.ppt
Group behaviour.ppt
 
Identity & Difference.pptx
Identity & Difference.pptxIdentity & Difference.pptx
Identity & Difference.pptx
 
Discrimination Lawsuits.pptx
Discrimination Lawsuits.pptxDiscrimination Lawsuits.pptx
Discrimination Lawsuits.pptx
 
Conflict Management.ppt
Conflict Management.pptConflict Management.ppt
Conflict Management.ppt
 
learning_theories_reinforcement.pptx
learning_theories_reinforcement.pptxlearning_theories_reinforcement.pptx
learning_theories_reinforcement.pptx
 
Group behaviour.ppt
Group behaviour.pptGroup behaviour.ppt
Group behaviour.ppt
 
competency building.pptx
competency building.pptxcompetency building.pptx
competency building.pptx
 
2. Evolution of management thought.pptx
2. Evolution of management thought.pptx2. Evolution of management thought.pptx
2. Evolution of management thought.pptx
 
1. management_overview.ppt
1. management_overview.ppt1. management_overview.ppt
1. management_overview.ppt
 

Recently uploaded

Science Around Us Module 2 Matter Around Us
Science Around Us Module 2 Matter Around UsScience Around Us Module 2 Matter Around Us
Science Around Us Module 2 Matter Around Us
PennapaKeavsiri
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
Adnet Communications
 
The latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from NewentideThe latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from Newentide
JoeYangGreatMachiner
 
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Kalyan Satta Matka Guessing Matka Result Main Bazar chart
 
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...
Niswey
 
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
BBPMedia1
 
Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women Magazine
Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women MagazineEllen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women Magazine
Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women Magazine
CIOWomenMagazine
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
Operational Excellence Consulting
 
IMG_20240615_091110.pdf dpboss guessing
IMG_20240615_091110.pdf dpboss  guessingIMG_20240615_091110.pdf dpboss  guessing
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium PresentationKirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip
 
Prescriptive analytics BA4206 Anna University PPT
Prescriptive analytics BA4206 Anna University PPTPrescriptive analytics BA4206 Anna University PPT
Prescriptive analytics BA4206 Anna University PPT
Freelance
 
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
APCO
 
CULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for dukeCULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for duke
ZevinAttisha
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
dpbossdpboss69
 
Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Stone Art Hub
 
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
IPLTech Electric
 
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
Registered-Establishment-List-in-Uttarakhand-pdf.pdfRegistered-Establishment-List-in-Uttarakhand-pdf.pdf
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
dazzjoker
 

Recently uploaded (20)

Science Around Us Module 2 Matter Around Us
Science Around Us Module 2 Matter Around UsScience Around Us Module 2 Matter Around Us
Science Around Us Module 2 Matter Around Us
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
 
The latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from NewentideThe latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from Newentide
 
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
 
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...
 
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
 
Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women Magazine
Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women MagazineEllen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women Magazine
Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women Magazine
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
 
IMG_20240615_091110.pdf dpboss guessing
IMG_20240615_091110.pdf dpboss  guessingIMG_20240615_091110.pdf dpboss  guessing
IMG_20240615_091110.pdf dpboss guessing
 
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium PresentationKirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
 
Prescriptive analytics BA4206 Anna University PPT
Prescriptive analytics BA4206 Anna University PPTPrescriptive analytics BA4206 Anna University PPT
Prescriptive analytics BA4206 Anna University PPT
 
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
 
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
 
CULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for dukeCULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for duke
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
 
Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Best Competitive Marble Pricing in Dubai - ☎ 9928909666
 
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
 
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
Registered-Establishment-List-in-Uttarakhand-pdf.pdfRegistered-Establishment-List-in-Uttarakhand-pdf.pdf
Registered-Establishment-List-in-Uttarakhand-pdf.pdf
 

Planning & MBO.ppt

  • 2. How to Bake a Cake?
  • 3. Develop a business plan for..... • A retail store in a mall • Selling used clothes • House cleaning service • Pet sitting • Shopping service for seniors • Child care • Lemonade and Hot dog stand • Travel services
  • 4. BUSINESS PLAN QUESTIONS •How can you describe the business...in only one paragraph please? •What is your product, or service? •Who will buy it? •Where should you locate the business? •How can you attract customers? •What is your competition? •How much should you charge for the products or service? •What advice do you need and who can provide it? •How will you organize the managers and/or workers of the business? •How will you split the profits? Who is responsible for the losses? •What should you consider to be able to produce the product and get it to the customer?
  • 5. •How much money is needed to get the business started? •How many customers will you have per month and how much will they buy per month? •How much does it cost to make the product or provide the service? •What are your operating costs? (Include your own salary) •How much money will your business earn each month by selling your product or service? •How much investment will you need to keep the business going until you make a profit? •What is your potential profit per year for Year I, Year II, and Year III? •How much money do you need to borrow to start this business? •How will you make the business grow in the future?
  • 6. What Is Planning? – involves defining the organization’s goals, establishing an overall strategy, and developing a comprehensive set of plans to integrate and coordinate organizational work – Planning is an intellectual process, the conscious determination of courses of action, the basing of decisions on purpose, acts and considered estimates – informal planning - nothing is written down • little or no sharing of goals • general and lacking in continuity – formal planning - written • defines specific goals • specific action programs exist to achieve goals © Prentice Hall, 2002
  • 7. Reduce the Impact of Change Provide Direction Minimize Waste / Redundancy Set Control Standards Reasons for Planning Growing complexities Growth of trade union Rapid socio- Economic changes Need for R&D activity
  • 8. Benefits of planning • Reduces uncertainty • Encourage innovation & creativity • Improves motivation • Achieve better coordination • Facilitates control • Planning leads to success • Focuses attention
  • 9. Arguments Against Strategic Planning Rigid Assumptions of Stability Intuition and Creativity Environmental Turbulence Focus on Today’s Competition Preoccupation with Current Success
  • 10. Does Planning Improve Performance? • Financial results • Environmental concerns • Quality and implementation
  • 11. Hierarchy of Plans (cont..) Plans can be classified as (1) mission or purposes, (2) objectives or goals, (3) strategies, (4) policies, (5) procedures, (6) rules, (7) programs, and (8) budgets
  • 12. Hierarchy of Plans (cont..) • The mission, or purpose, identifies the basic purpose or function or tasks of an enterprise or agency or any part of it • Objectives, or goals, are the ends toward which activity is aimed • Strategy is the determination of the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals • Policies are general statements or understandings that guide or channel thinking in decision making • Procedures are plans that establish a required method of handling future activities
  • 13. Hierarchy of Plans – cont. • Rules spell out specific required actions or non actions, allowing no discretion • Programs are a complex of goals, policies, procedures, rules, task assignments, steps to be taken, resources to be employed, and other elements necessary to carry out a given course of action • A budget is a statement of expected results expressed in numerical terms
  • 15. STEPS IN PLANNING • Being aware of opportunity :In light of Market, Competition Customer desire, Our strengths Our weaknesses • Setting objectives or goals: Where we want to be& what we want to accomplish & when • Considering planning premises: In what environment will our plans operate • Identifying alternatives: What are the most promising alternatives to accomplishing our objectives • Comparing alternatives in light of goals sought Which alternative meets our goals at lowest cost &at highest profit • Choosing an alternative Selecting the course of action • Formulating derivative plans such plans as to :- Buy equipment Buy materials, Hire& train workers, • Budgets: Develop such budgets as Volume & price of sales, operating expenses necessary for plans, Capital expenditure
  • 16. Types Of Plans Breadth Strategic Operational Specificity Directional Specific Frequency of Use Single use Standing Time Frame Long term Short term © Prentice Hall, 2002
  • 17. Specific Versus Directional Plans © Prentice Hall, 2002
  • 18. Planning In The Hierarchy Of Organizations Strategic Planning Operational Planning Top Executives Middle-Level Managers First-Level Managers © Prentice Hall, 2002
  • 19. Contemporary Issues In Planning (cont.) • Effective Planning in Dynamic Environments – develop plans that are specific, but flexible – recognize that planning is an ongoing process – change directions if environmental conditions warrant – stay alert to environmental changes © Prentice Hall, 2002
  • 20. Barriers to effective planning • Difficulty of accurate premising • Problems of rapid change • Internal inflexibilities policy & procedural inflexibility capital investment • External inflexibility political climate trade unions technology changes • Time & cost factors • Failure of people in planning
  • 21. How Do Managers Plan? • Traditional Objective Setting • Management by objectives (MBO) - specific performance goals are jointly determined by employees and their managers – progress toward accomplishing these goals is periodically reviewed – rewards are allocated on the basis of this progress – MBO consists of four elements » goal specificity » participative decision making » explicit time period » performance feedback © Prentice Hall, 2002 7-21
  • 22. Traditional Objective Setting Individual Employee’s Objective Top Management’s Objective Department Manager’s Objective Division Manager’s Objective “Increase profits, regardless of the means” “I want to see a significant improvement in this division’s profits” “We need to improve the company’s performance” “Don’t worry about quality: just work fast”
  • 24. Establishing Goals (cont.) • Management by objectives (cont.) – increases employee performance and organizational productivity » depends on support of top managers for MBO » problems with MBO - can be useless in times of dynamic change -overemphasis on personal rather than organizational goals -may be viewed simply as an annual exercise in paperwork © Prentice Hall, 2002
  • 26. Principles of Goal-Setting  Set SMART goals—make them specific, measurable, attainable, relevant, and timely. Choose areas (sales revenue, costs, and so forth) that are relevant and complete.  Assign specific goals.  Assign measurable goals.  Assign doable but challenging goals.  Encourage participation.  Use executive assignment action plans, or management by objectives.