Planning

What is Planning?

Planning:

A primary managerial activity that involves:

Defining the organizations goals Establishing an overall strategy for achieving those goals Developing plans for organizational work activities.

What is Planning?

Types of Planning:

Informal: not written down, short-term focus; specific to an organizational unit. Formal: written, specific, and long-term focus, involves shared goals for the organization.

Why Do Managers Plan?

Purposes of Planning:

Provides direction Reduces uncertainty Minimizes waste and redundancy Sets the standards for controlling

Why Do Managers Plan?

Criticisms

of Planning:

Planning may create rigidity. Formal planning can't replace intuition and creativity. Planning focuses manager attention on today's competition not on tomorrow survival.

How Do Managers Plan?

Elements of Planning:

Goals (also Objectives)

A target or future that organizations strive to achieve. Provide direction and evaluation performance criteria.

Plans

Plan means pursuing goals and achieves the desired results.

A comprehensive strategy which organization chose for achieve their targets.

Goals

Definition:

A Target or future state that an organization strives to achieve or A process of ongoing improvement

Level of Goals

Strategic Goals:

Strategic goals also known as corporate level goals or official goals

Strategic goals are set by top level managers

Broadly define overall targets for the organization. Broadly defined target for the organizations overall future results.

Level of Goals

Tactical Goals:

Tactical goals also known as business level goals.

Tactical goals are set by top level and middle level managers. These targets achieved by the division or unit of the organization.

Level of Goals

Operational Goals:

Operational goals also known as functional level goals. Operational goals are set by middle level and firstline managers. These targets achieved by departments and individuals. Targets to be achieved by departments and individuals. Its short term result needed to support the organization's tactical and strategic goals.

Types of Goals

Short term goals:

Set less than one year.

Long term goals:

Set more than three years.

Inter matrix goals:

Set one year to three years.

Characteristics of effective goals

Attainable goals Measurable goals Challenging Goals Time defined goals Relevant goals

Characteristics of effective goals

Attainable goals:

Goals should be realistic and attainable with the resources available. These goals are set with the managerial capabilities.

Characteristics of effective goals

Measurable goals:

Goals must be specific and measurable.

Many goals are quantitative and can be expressed and measured numerically. Others are qualitative and require subjective judgment regarding performance.

Characteristics of effective goals

Challenging Goals:

These goals are present an interesting and demanding challenges. These goals are present to developing and improving their own managerial skills.

Characteristics of effective goals

Time defined goals:

These goals achieve with in specific time.

This helps focus to coordinate organizational activities during the appropriate period.

Characteristics of effective goals

Relevant goals:

These goals are directly relevant to the mission and to higher level goals. These goals must be relevant as per your qualification, experience and skills.

Level of Plans

Strategic Plans:

Apply to the entire organization. Establish the organizations overall goals.

Seek to position the organization in terms of its environment.

Cover extended periods of time.

Level of Plans

Operational Plans:

Specify the details of how the overall goals are to be achieved. Cover short time period.

Types of Plans

Single-Use Plans

A one-time plan specifically designed to meet the need of a unique situation.

Ongoing plans that provide guidance for activities performed repeatedly. Cover those situation which is occur suddenly is called contingency Plan.

Standing Plans

Contingency Plans

MANAGEMENT BY OBJECTIVE (MBO)

Definition

A collaborative process in which managers and employees set mutually agreeable goals, assign the responsibilities for results and evaluating individual and group performance.

The Management Process

Setting Goals

Planning Action
Implementing Plans Reviewing Performance

The Management Process

Setting Goals:

In the first step, top managers formulate the overall organizational goals and plans and then work with middle managers to develop goals for the organizational division or units. In turn, middle managers work with first-line managers to set goals for their department. In the second step, managers determine exactly how their individual and group goals will be accomplished. During action planning, managers decide on the who, what, when, where, and how details needed to achieve each objective. Managers also prepare a schedule for the plan to ensure that goals are achieved on time.

Planning Action:

The Management Process

Implementing Plans:

Once managers have made a commitment to achieve specific goals and have received approval for their plan, the third step is implementation. In the last step, managers review the performance of the employees and evaluate how well results are achieved. During review, managers identify any obstacles to performance.

Reviewing Performance:

The Downside of Goal Setting.

Benefits of the MBO Programs

MBO evaluates the individual and group activities and performance. MBO motivates the individuals and groups for achieving organization goals. MBO develops coordinating and teamwork system throughout the organization.

Benefits of the MBO Programs

MBO focuses managers & employee attention toward achieving organization goals. MBO provides systematic way to measure the contribution of managers and employees.

MBO develop personal and professional skill of managers by implementing their action plans.

Limitations of the MBO Programs

MBO can ineffective without consistent involvement and commitment from top management. MBO can ineffective if short level goals overemphasize and ignore long term organizational goals.

MBO can ineffective if the capabilities of the managers and employees are not properly considered.
MBO can ineffective if goals are too difficult, managers and employee can become frustrated and discouraged.