Planning involves deciding in advance what needs to be done, when, how, and by whom to achieve organizational objectives. It bridges the gap between the present and desired future state. The planning process involves setting objectives, developing alternatives to meet objectives, choosing the best alternative, and implementing plans. Types of plans include vision, mission, strategies, objectives, policies, procedures, rules, and budgets. Planning occurs at different levels from corporate to operational. Management by objectives involves collaborative goal setting and performance assessment. Decision making is choosing the best alternative to solve problems based on feasibility, effectiveness, and costs through identifying issues, developing options, evaluating alternatives, selecting an option, implementing it, and reviewing feedback.

1. PlanningPlanning
andand
Decision MakingDecision Making
Unit 2Unit 2

2. What is Planning?What is Planning?
It is an intellectual process which is concerned withIt is an intellectual process which is concerned with
deciding in advance WHAT, WHEN, WHY, HOW,deciding in advance WHAT, WHEN, WHY, HOW,
and WHO shall do the work.and WHO shall do the work.
According to Koontz and O’Donell: “PlanningAccording to Koontz and O’Donell: “Planning
bridges the gap between from WHERE WER ARE tobridges the gap between from WHERE WER ARE to
WHERE WE WANT TO GO.”WHERE WE WANT TO GO.”

3. Steps in Planning ProcessSteps in Planning Process
1. State Organizational Objectives – what the company1. State Organizational Objectives – what the company
wants to achieve in the future.wants to achieve in the future.
2. List alternative ways of reaching objectives – how the2. List alternative ways of reaching objectives – how the
company will achieve the objectives.company will achieve the objectives.
3. Develop premises on which to base each alternatives3. Develop premises on which to base each alternatives
– resources available to the company to achieve the– resources available to the company to achieve the
objectives.objectives.
4. Choose the best alternative for reaching objectives –4. Choose the best alternative for reaching objectives –
select which one will be suitable for the company.select which one will be suitable for the company.
5. Develop plans to pursue the closer alternative –5. Develop plans to pursue the closer alternative –
develop options on how to carry it out.develop options on how to carry it out.
6. Put the plans to action – implementation will be6. Put the plans to action – implementation will be
done.done.

4. Types of PlansTypes of Plans
1. Vision1. Vision

Future-oriented declaration of the organization’sFuture-oriented declaration of the organization’s
purpose and aspirations.purpose and aspirations.

This is what the company wants to become.This is what the company wants to become.

Vision of Ibra College of Technology:
“We will be a leading technological institution,
providing high quality teaching and learning to
prepare and empower the Omani professionals of
the future to contribute to national socio-
economic development.”

5. Types of PlansTypes of Plans
2. Mission2. Mission

A written document developed by theA written document developed by the
mangement.mangement.

This is what the company does and clearly statesThis is what the company does and clearly states
why the company esixts.why the company esixts.

Mission of Ibra College of Technology:
“To deliver high quality student-centered
education that produces competitive graduates
who enter the labor market with confidence,
strong technological and personal skills, prepared
for a life of contribution and success.”

6. Types of PlansTypes of Plans
3. Strategy3. Strategy

Company’s desired image, direction, andCompany’s desired image, direction, and
destinationdestination what it wants to bewhat it wants to be,, what it wants towhat it wants to
dodo, and, and where it wants to gowhere it wants to go..

SWOT Analysis, Business Portfolio Analysis,SWOT Analysis, Business Portfolio Analysis,
Porter’s Model for Industry Analysis.Porter’s Model for Industry Analysis.

Strategy involves answering many questions, such
as: How do you plan to do it? What resources do
you have? When do you need to do it?

7. Types of PlansTypes of Plans
4. Objectives4. Objectives

It forms the basis for the action plans.It forms the basis for the action plans.

Sometimes referred to as “performance goals.Sometimes referred to as “performance goals.

TypesTypes:: short-termshort-term,, intermediate-termintermediate-term andand long-long-
termterm..

Objectives of ICTObjectives of ICT::

Working towards the application of technical and administrative
knowledge in technological and administrative fields in line with the
requirements of the labor market.

Meeting the students' needs by creating opportunities for individual,
social, academic, technological and vocational development.

Bringing up a generation of highly competent technicians through
the provisions of accredited, high quality technological programs.

8. Types of PlansTypes of Plans
5. Policies, Procedures, Rules, and Budget5. Policies, Procedures, Rules, and Budget

PoliciesPolicies – guidelines in decision making. Example:– guidelines in decision making. Example:
Management strongly discourages any employeeManagement strongly discourages any employee
from bringing weapon to work.from bringing weapon to work.

RuleRule – does not allow discretion. Examples: No– does not allow discretion. Examples: No
Smoking; No Vandalism.Smoking; No Vandalism.

ProcedureProcedure – required method of handling activities;– required method of handling activities;
guides to action. Examples: Registration Procedure,guides to action. Examples: Registration Procedure,
Training Procedure, Accounting Procedure.Training Procedure, Accounting Procedure.

BudgetBudget – quantified plans for actions; expressed in– quantified plans for actions; expressed in
numbers. Examples: Financial Budget, Sales Budgetnumbers. Examples: Financial Budget, Sales Budget

9. Levels of PlansLevels of Plans
1. Corporate or Strategic Plan1. Corporate or Strategic Plan

Prepared by top management.Prepared by top management.

To achieve long-term objectives of the company.To achieve long-term objectives of the company.
2. Tactical or Division Plan2. Tactical or Division Plan

Prepared by middle level management.Prepared by middle level management.

Consistent with corporate plan.Consistent with corporate plan.

10. Levels of PlansLevels of Plans
3. Operational or Unit Plan3. Operational or Unit Plan

Prepared by lower level management.Prepared by lower level management.

Consistent with tactical plan.Consistent with tactical plan.

Prepares the schedule of activities of each andPrepares the schedule of activities of each and
every department.every department.
4. Contingency Plan4. Contingency Plan

Plan devised for a specific situation when thingsPlan devised for a specific situation when things
could go wrongcould go wrong

Also known as “Back-up Plan”; “Worst-CaseAlso known as “Back-up Plan”; “Worst-Case
Scenario Plan”; “Plan B”.Scenario Plan”; “Plan B”.

11. Management by ObjectivesManagement by Objectives
(MBO)(MBO)
First described by Peter DruckerFirst described by Peter Drucker
It is a process through which specificIt is a process through which specific
goals are set collaboratively for thegoals are set collaboratively for the
organization as a whole and everyorganization as a whole and every
unit and individual within it.unit and individual within it.
Basis forBasis for planningplanning,, managingmanaging
organizational activitiesorganizational activities, and, and
assessing and rewardingassessing and rewarding
contributionscontributions..

12. MBO ProcessMBO Process
Organizational goals are set basedOrganizational goals are set based
on the mission.on the mission.
Specific goals are established forSpecific goals are established for
departments, subunits, anddepartments, subunits, and
individuals.individuals.
Actions plans are formulated. (what,Actions plans are formulated. (what,
how, when, where, and by whom?)how, when, where, and by whom?)
Individuals are given theIndividuals are given the
responsibility.responsibility.
Performance is appraised andPerformance is appraised and
rewards are given.rewards are given.

13. Decision MakingDecision Making

14. What is Decision Making?What is Decision Making?
It is a process of choosing theIt is a process of choosing the
best alternative for reachingbest alternative for reaching
objectives.objectives.
DECISIONDECISION is a choice madeis a choice made
between two or morebetween two or more
available alternativesavailable alternatives

15. Decision Making ProcessDecision Making Process
1. Identification of an Existing Problem1. Identification of an Existing Problem

Where, when, who was involved, who was affectedWhere, when, who was involved, who was affected
and how current activities are affected.and how current activities are affected.
2. Develop potential alternatives2. Develop potential alternatives

Manager determines available courses of action to beManager determines available courses of action to be
used to solve the problem.used to solve the problem.
3. Evaluation of alternatives3. Evaluation of alternatives

Merits and demerits of various alternatives should beMerits and demerits of various alternatives should be
compared through a judgment criteria.compared through a judgment criteria.

16. Decision Making ProcessDecision Making Process
4. Select the best alternative4. Select the best alternative

Selection is based uponSelection is based upon feasibilityfeasibility,, effectivenesseffectiveness, and, and
carries the lowest costscarries the lowest costs..
5. Implementing the chosen alternative5. Implementing the chosen alternative

Devise programs, procedures, rules, or policies.Devise programs, procedures, rules, or policies.
6. Gathering problem-related feedback6. Gathering problem-related feedback

Managers need to figure out what went wrong andManagers need to figure out what went wrong and
ask different questions.ask different questions.