Formation of PlanningFormation of Planning

Presentation by

Anlia Yasmin M. Naeem Ashraf

Formation of PlanningFormation of Planning

Content1.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.

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.

Formal planningFormal planningIn 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.

Why do manager plan?Why do manager plan?At least four reasons exist behind

planning.1. Provide direction2. Reduces uncertainty3. Establishing goals use in planning4. Planning minimizing waste and

redundancy

Provide DirectionProvide DirectionPlanning 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.

Reduce uncertaintyReduce uncertaintyWhen 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.

Planning minimizing waste and Planning minimizing waste and redundancy redundancy When work activities are coordinated

around plans, inefficiencies became obvious and can be corrected or eliminated.

Relationship between planning and Relationship 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.

Goals Goals Goals are desired outcomes that guide

management decisions and described as essential elements of planning.

Characteristics of goalsCharacteristics of goalsWritten in terms of outcomes rather

than actions.Measureable and quantifiable.Clear as to a time frame.Challenging but attainable.Written downCommunicated to all necessary

organizational member.

Steps in goals settingSteps in goals setting

Three steps in goals settings1. Review of organizational mission2. Evaluate available resources3. Determine the goals individually

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 resourcesAn 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.

3-Determine the goals individually 3-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.

Types of goalsTypes of goals

There are four types of goals1. Financial goals2. Strategic goals3. Stated goals4. Real goals

1-Financial goals 1-Financial goals Financial goals are related to the financial

performance of the organization.

2-Strategic goalsStrategic goals are related to all other area

of an organization.

3-Stated goalsStated 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.

4-Real goals4-Real goalsReal goals are those which an

organization actually pursues .Observe what organizational members

are doing.Action define priorities.

Goals settings approachesGoals settings approaches

1. Traditional approach2. MBO(Management by objectives)

approach

1-Traditional approach1-Traditional approachIn 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.

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.

Steps in MBO(Management by Steps in MBO(Management by objectives) approachobjectives) approach1. 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.

Steps in MBO(Management by Steps in MBO(Management by objectives) approachobjectives) approach1. 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

Plans Plans

Plans are documents that outline how goals are going to met.

Types of planningTypes of planning

1-Breadth planningStrategic plansOperational plans2-Time frame of planningLong term plansShort term plansIntermediate plans

Types of planningTypes of planning

3-Specificity of planningSpecific plansDirectional plans4-Frequency of use planningSingle use plansStanding plans

1-Breadth planning(a)Strategic plansStrategic plans are apply to entire

organization and establish organizational overall goals

(b)Operational plansOperational plans encompass a

particular operational area of organization. These are not broad like strategic plans but narrow.

2-Time frame of planning(a)Long term planLong term plans are those with a time

frame beyond seven years.(b)Short term planShort term plans are those that cover

year or less.(c)Intermediate plansAny time period between long term and

short term plan.

3-Specificity of planning(a)Specific plansSpecific 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 plansDirectional plans are flexible that setout

general guidelines to deal with high uncertainty and ambiguity.

4-Frequency of use planning(a)Single use plansSingle use plans is one time plans

specifically designed to meet the need of a unique situation.

(b)Standing plansStanding plans are on gonging plans that

provides guidance for activities performed repeated.

Its include policies, rules and producers.

Contingency factors in process of Contingency factors in process of developing plansdeveloping plansOrganizational levelDegree of environmental uncertaintyLength of future commitments

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.

Degree of environmental Degree of environmental uncertaintyuncertainty

Degree of environmental uncertainty factor shows in high uncertainty, plan should be specific but flexible.

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.