[PT10118] [1T1S] [2] Managerial Function: Planning

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

Organization Planning

Four major functions of managers (Lamond, 2004)

1. Plan

2. Organize

3. Lead

4. Control

MAJOR FUNCTIONS OF MANAGERS

• Vision and mission

• Strategizing

• Goals and objective

Plan

MAJOR FUNCTIONS OF MANAGERS

• Organizational design

• Culture

• Social networks

Organize

MAJOR FUNCTIONS OF MANAGERS

• Leadership

• Decision-making

• Communication

• Groups/teams

• Motivation

Lead

MAJOR FUNCTIONS OF MANAGERS

• Systems/processes

• Strategic human resources

Control

• Deciding in advance what is to be done, when, where, how, and by whom it is to be done

• Bridges the gap from where we are to where we want to be

Planning

Why is planning important? (6)

1. Improve future performance

2. Minimizes risk and uncertainty

3. Facilitates the coordination of activities

4. Provides direction for action

5. Identifies future opportunities and threats

6. Set out standards for controlling

Four types of organization planning

1. Strategic planning

2. Tactical planning

3. Operational planning

4. Contingency planning

TYPES OF ORGANIZATIONAL PLANNING

• Setting of broad, long-range goals by top managers

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

Strategic planning

TYPES OF ORGANIZATIONAL PLANNING

• The identification of specific, short-range objectives

• Responsibility of middle/lower level managers to set and oversee tactical strategies

• How the company will implement its strategic plan

Tactical planning

TYPES OF ORGANIZATIONAL PLANNING

• The setting of work standards and schedules

• What happens in each day to execute the tactical plan

Operational planning

TYPES OF ORGANIZATIONAL PLANNING

• Backup plans in case primary plans fail

• Covers a range of possible scenarios and appropriate responses for these scenarios to prepare in advance

Contingency planning

STRATEGIC PLANNING

• This communicates the organization’s reason for being, and how it aims to serve its key stakeholders

• It also includes a summation of the firm’s values

Mission

STRATEGIC PLANNING

• Describes the organization’s aspiration for the future

Vision

STRATEGIC PLANNING

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

Core values

STRATEGIC PLANNING

What are the three criteria needed in a vision statement?

1. Time horizon

2. Measurability

3. Unique appropriation

STRATEGIC PLANNING

What criterion of a vision statement is described below:

• Specific date in the future by which the entity will determine if it has achieved the strategy and when the vision will be achieved

Time horizon

STRATEGIC PLANNING

What criterion of a vision statement is described below:

• A single or small set of measurable goals that can be objectively assessed for achievement

• Can be quantitative or qualitative

Measurability

STRATEGIC PLANNING

What criterion of a vision statement is described below:

• A succinct statement of how the entity will effectively deliver his services, meet the needs of its client, and achieve the vision

Unique appropriation

What are examples of operational plans? (6)

1. Schedules

2. Policies

3. Rules and regulations

4. Specific task assignments

5. Protocol

6. Documenting and tardiness

Five process steps of organizational planning

1. Develop a strategic plan

2. Translate into tactical plan

3. Create an operational plan

4. Execute plans

5. Monitor progress and adjust

FIVE PROCESS STEPS OF ORGANIZATIONAL PLANNING

What step is described below:

• Set big picture goals that are aligned with the company’s mission, vision, and values

• Know the company profile

Develop a strategic plan

FIVE PROCESS STEPS OF ORGANIZATIONAL PLANNING

What step is described below:

• Set measurable, time sensitive goals for each team

Translate into a tactical plan

FIVE PROCESS STEPS OF ORGANIZATIONAL PLANNING

What step is described below:

• Establish a process for the department and employees that outline the work they deliver that includes their roles, tasks, job description, policies and procedures, etc.

Create an operational plan

FIVE PROCESS STEPS OF ORGANIZATIONAL PLANNING

What step is described below:

• Put that operational plan into action, incorporating tactical and strategic plans

Execute plans

FIVE PROCESS STEPS OF ORGANIZATIONAL PLANNING

What step is described below:

• Run reports and analyze whether the operational plans are meeting the tactical plans

• Modern monitoring, providing results and creating revisions (strategy) in order to achieve the goals of the company

Monitor progress and adjust

These are essentials for organizing tasks, used to guide the planning process

Models of planning tools

Five models of planning tools

1. Gantt Chart

2. PERT (Program Evaluation Review Technique)

3. Balanced Scorecard (BSC)

4. Logic Model

5. SWOT Analysis

What model of planning tool is shown on the picture?

Gantt Chart

What model of planning tool is shown on the picture?

PERT (Program Evaluation Review Technique)

What model of planning tool is shown on the picture?

Balance Score Card

What model of planning tool is shown on the picture?

Logic Model

What model of planning tool is shown on the picture?

SWOT Analysis

• Designed to be used in the preliminary stages of decision-making

• Common tool in performance analysis and in evaluation studies

• Focus in the identification of strong and weak points within an organization and the analysis of opportunities for and threats to, further development

SWOT Analysis

SWOT ANALYSIS

What component is described below:

• What does your organization do better than your competition?

Strengths

SWOT ANALYSIS

What component is described below:

• What does your organization need to improve upon?

Weaknesses

SWOT ANALYSIS

What component is described below:

• What market trends could lead to increased sales?

Opportunities

SWOT ANALYSIS

What component is described below:

• What are the advantages competitors have over your organization?

Threats

SWOT ANALYSIS

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

Strength

SWOT ANALYSIS

An internal characteristic that threatens the function of the organization

Weakness

SWOT ANALYSIS

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

Opportunity

SWOT ANALYSIS

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

Threat