8/4/2019 Session 2 Planning)

1/15

Fundamentals of

Planning

BY

Hassan D Aslam

8/4/2019 Session 2 Planning)

2/15

Planning is defining the organizationsobjectives or goals, establishing anoverall strategy for achieving those

goals. It is concerned with the ends (what is to

be achieved) as well as means(How isto be achieved)

Informal Planning (In someone head)

Formal Planning (Documented)

8/4/2019 Session 2 Planning)

3/15

1) It provides direction

2) Reduces the impact of change meansit reduces the uncertainty, managersforesight and clarify the consequences.

3) Minimize the waste

4) Set the standards for controlling

8/4/2019 Session 2 Planning)

4/15

Planning may create rigidity means itcan lock the organization in specificgoals. Assuming that environment wouldnot be changed during the time period.

Plans cant be made for dynamicenvironment

Planning focuses managers attention

on todays competition not ontomorrow survival. Formal planning reinforce success

which may lead to failure means it

generates more confidence than theydeserve.

8/4/2019 Session 2 Planning)

5/15

Breath (strategic versus tactical)

Time Frame (long term versus shortterm)

Specificity (directional versus specific)

Frequency (single use versus standing)

8/4/2019 Session 2 Planning)

6/15

Strategic plans are the plans that areorganization wide establish overallobjectives, and position an organization

in terms of its environment. Plans thatapply to the entire organization.

Tactical Plans often called operationalplans specify the details of how the

overall objectives are to be achieved.

8/4/2019 Session 2 Planning)

7/15

STRATEGIC PLANS TACTICAL PLANS

Strategic plans are oflonger period.

Deal with broaderconcepts.

Focus onformulations ofobjectives

Tactical Plans are ofshorter period.

Deals with shortmatters routineproblems

Tactical plans focuson existence ofobjectives.

8/4/2019 Session 2 Planning)

8/15

Short term plan covers less than one

year. Long term plans extend beyond five

years.

8/4/2019 Session 2 Planning)

9/15

Specific Plans that have clearly definedobjectives and leave no room formisinterpretation.

Directional Plans that set out generalguidelines.

8/4/2019 Session 2 Planning)

10/15

SPECIFIC PLANS DIRECTIONAL PLAN

Have clear definedobjectives having no

misunderstanding orambiguity. But theyare not well inuncertain

circumstances.

Directional plansidentify general

guidelines. Theyprovide focus but donot lock managersinto specific

objectives or specificcourse of action.

8/4/2019 Session 2 Planning)

11/15

Single use plan is used to meet theneeds of a particular or unique situation.

Standing Plan is ongoing and provides

guidance for repeatedly performedactions in an organization.

8/4/2019 Session 2 Planning)

12/15

A system in which specific performanceobjectives are jointly determined bysubordinates and their supervisors,

progress toward objectives is periodicallyreviewed, and rewards are allocated onthe basis of that progress.

8/4/2019 Session 2 Planning)

13/15

MBO makes objectives operational as itcascade down the process.

Overallorganizational

Objectives

DivisionalObjectives

DepartmentalObjectives

Individual

Objectives

8/4/2019 Session 2 Planning)

14/15

Goal Specificity

Participative Decision Making

Explicit time period

Performance Period

8/4/2019 Session 2 Planning)

15/15

Identify an employee key job task

Establish specific and challenging goals

Allow the employee to actively

participate Prioritize goals

Build in feedback mechanisms to assess

goals Links rewards to goal attainment