MANAGEMENT FUNCTIONS: PLANNING

process of defining an organization’s direction, setting goals and outlining strategies to achieve them

What is Organizational Planning?

• Improve future performance

• Minimizes risk and uncertainty

• Facilitates the coordination of activities

• Provides direction for action Identifies future opportunities and threats

• Set out standards for controlling

Importance of Planning

Strategic Planning → Tactical Planning → operational planning → contingency planning

What are the Types of Organizational Planning?

Strategic Planning

• Setting of broad, long-range goals by TOP MANAGERS

• long term, systematic process by which an organization defines its direction, sets priorities and allocated resources to achieve its mission

Vision

• Describes the organization’s aspiration for the future

• Play the role of the strategic “north star”, providing focus

  and long term alignment.

Core Values

Guiding principles and beliefs that shape the organization’s culture, behavior and decision making

1. Communicate the purpose of the organization to the stakeholders

2. They inform the strategy development

3. They develop a measurable goals and objectives to

   gauge the success of the organization’s strategy

Mission and vision statements play three critical roles:

Time horizon	Measurability	Unique Approach
A specific date in the future by which the entity will determine if it has achieved the strategy and the vision. Typical time horizons range from 3-5 years (can also be 10 years ahead).	A single or small set of measurable goals that can be objectively assessed for achievement.	A succinct statement of how the entity will effectively deliver its services, meet the needs of its clients, and achieve the vision

Dimensions / Key parts of a Vision

Tactical Planning

• The identification of specific, short-range objectives

• Responsibility of Middle/Lower level managers to set and oversee tactical strategies

Operational Planning

(Types of Organizational Planning) The setting of work standards and schedules

Contingency planning

(Types of Organizational Planning) Backup plans in case primary plans fail

1. Develop a strategic plan

2. translate into tactical plan

3. Create an operational plan

4. Execute plans

5. Monitor progress and adjust

5 Process Steps of Organizational Planning

• Essentials for organizing tasks, used to guide the planning process

• Gantt Chart

• PERT (Program Evaluation Review Technique)

• Balanced Scorecard

• Logic model

• SWOT analysis

MODELS OF PLANNING TOOLS

Gantt Chart

PERT Chart Diagram Tasks

Balance Score Card

preliminary

SWOT analysis is designed to be used in the ______ stages of decision making

1. Strength

   • internal characteristic that contributes substantially to the realization of the organization’s mission

2. Weaknesses

   • Internal characteristic that threatens the function of the organization

Internal Analysis Components of SWOT

1. Opportunity

   • external fact or development that, if taken advantage of, can substantially contribute to the realization of the organization’s mission

2. Threat

   • external fact or development that has or can have a substantial negative effect on an organization’s performance

External Analysis Components of SWOT