TOPIC 2 PLANNING
DEFINITION• The processes of determining in
advance what should be accomplished and how it should be realized (MONDY)
• A process that begins with objectives, defined strategies, policies & detailed plan in order to achieve them
• The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.
OBJECTIVE OF PLANNING
• To provide sense of direction• To encourage innovation &
creativity• To guide decision making• To facilitate control
THE IMPORTANCE OF PLANNING IN ORGNIZATION
• Enables us to identify the course of action by setting objectives
• Through plans, resources are efficiently & effectively utilized thus resulting in saving
• Planning helps to determine what opportunities there are to exploit
TYPES OF PLANS
GOAL
STRATEGIC PLANS
OPERATIONAL PLANS
STRATEGIC PLANS
• Strategic plans are long-term planning done by the top management to determine the overall organizational purposes & objectives & how they are to be achieved.
STRATEGIC PLANS
STRATEGIC PLANS
CORPORATE STRATEGY
BUSINESS STRATEGY
FUNCTIONAL STRATEGY
STRATEGIC PLANSLEVEL SPECIFY PARTICIPANTS TIME HORIZON
CORPORATE STRATEGY
BROAD • BOARD OF DIRECTORS•TOP LEVEL EXECUTIVES
5- 10 YEARS
BUSINESS STRATEGY MORE SPECIFIC THAN THE CORPORATE STRATEGY
• TOP LEVEL EXECUTIVES • MANAGERS WITHIN THE BUSINESS UNIT
1- 5 YEARS
FUNCTIONAL STRATEGY
VERY SPECIFIC • MIDDLE LEVEL MANAGERS• LOWER LEVEL MANAGERS
< 1 YEARS
OPERATIONAL PLANS
• Done at all levels & involves directing the organization’s day-to-day operation to achieve overall strategic objectives
OPERATIONAL PLANS
OPERATIONAL PLANS
SINGLE USE PLANS
PROGRAMS
PROJECT
BUDGET
STANDING PLANS
POLICIES
PROCEDURE
RULES
BARRIERS TO EFFECTIVE PLANNING
• Lack of commitment to planning• Lack of meaningful objectives of
goals• Failure to see the scope of plans• Rely too much on experience• Lack of top management support• Lack of clear delegation of
authority
OVERCOMING BARRIERS
• Planning must not be left to chance
• Planning must be organized• Planning must be clear & definite• Managers must participate in
planning
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