Planning

Plan

• It is the output of planning, providing a

methodical way of achieving desired results.

• In the implementation of activities, the plan

serves as a useful guide.

• may be tailored to a specific project , or they may

be established as a standing plan for any future

actions

Importance of Nature & Planning

1. The need for planning becomes more obvious as persons and organizations develop an awareness of the precise nature of their objectives.

2. Plans from the view of the top levels of an organization may be overall and broad or they may be the day - to- day type, important to the individual employee.

3. Planning includes mentally searching for possibilities of future problems that might appear.

4. The modern manager must anticipate changes that will require discarding old ways and adopting new ones. Thus, the need for planning results from various changes in environment

Aspects of This Changing Environment

• Technology

• Government Policy

• Overall Economic Activity

• Nature of Competition

• Social Norms & Attitudes

Planning according to Nickels and others

The management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.

Planning according to Aldag and Stearns

The selection and sequential ordering of tasks required to achieve an organization goal.

Planning according to Cole and Hamilton

Deciding what will be done, who will do it, where, when, and how it will be done and the standards to which it will be done

Setting Organizational, Divisional, or Unit Goals.

Provides a sense of direction to the firm, division, or unit.

Strategy

A course of action aimed at ensuring that the organization will achieve its objectives.

Tactics

Short - term action taken by management to adjust to negative internal or external influences.

Determining Resources Needed.

Determine the human and non human resources required by strategies or tactics.

Setting Standards

Standards for measuring performance may be set at the planning stage

Strategic Planning

Refers to the process of determining the major goals of the organization, the policies, and the strategies for obtaining and using resources to achieve those goals

Intermediate Planning

The process determines the contributions that subunits can make with allocated resources

Operational Planning

The process of determining how a specific task can best be accomplished on time with available resources

Useful Generalizations of Planning

• A plan should be directed toward well - defined objectives.

• Plans made by different specialists should be coordinated through adequate communication among specialists.

• Planning is a prerequisite to other functions of management.

• Planning pervades the hierarchy of an organization.

• A manager should relate the degree of commitment of his resources to the need of definite plans.

• Plans should retain flexibility

Functional Area Plans

Plans may be prepared according to the needs of the different functional areas.

Marketing Plan

Written document or blueprint for implementing and controlling an organization’s marketing activities.

Financial Plan

A document that summarizes the current financial situation of the firm

Production Plan

States the quantity of output of a company must be produced in broad terms and by product family.

Human Resource Management Plan

Indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements

Plans With Time Horizon

• Short-range plan

• Long-range plan

Short-range plan

Time span of less than one year. First - line supervisors are mostly concerned with these plans

Long-range plan

Time span of more than one year. These are mostly undertaken by middle and top management

Plans According to Frequency of Use

• Standing Plans

• Single-Use Plan

Standing Plans

• plans used again and again

Standing plans may be further classified as follows:

1. Policies - They are broad guidelines

2. Procedures - describe the exact series of actions to be taken in a given situation.

3. Rules - they are statements that either require or forbid a certain action

Single-Use Plan

These plans that are relatively unique and are unlikely to be repeated.

Single - use plans may be further classified as follows:

1. Budgets - “A plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from.”

2. Program - Designed to coordinate a large set of activities.

3. Project - Usually more limited in scope than a program and is sometimes prepared to support a program

Parts of the Various Functional Area Plans

• Contents of Marketing Plan

• Contents of Production Plan

• Content of Financial Plan

• Contents of Human Resources Plan

• Parts of the Strategic plan

Making Planning Effective

Planning is done so that some desired results may be achieved. At times, however failure in planning occurs. Planning may be successful if:

1. Recognize Planning Barriers

2. Use of aids to planning

Planning Barriers According to Plunkett and Attner

1. Managers inability to plan

2.Improper planning process

3.Lack of commitment to the planning process

4.Improper information

5.Focusing on the present at the expense of the future

6.Too much reliance on the planning department

7.Concentrating on only the controllable variables

Aids to Planning that can be used

1. Gather as much information as possible

2. Develop multiple sources of information

3. Involve others in the planning Process