Planning and Decision

Making
Part THREE

Basic Elements of Planning

and Decision Making
Chapter 07

City University of Science and Information

Technology

Faisal Ghani

Decision Making and the Planning

Process
The Environmental Context
The Organizations Mission
Purpose

Chapter 07

Premises

Values

Directions

Strategic Goals

Strategic Plan

Tactical Goals

Tactical Plans

Operational Goals

Operational Plans

The Planning Process

Basic Element of Planning

City University of Science and Information

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Faisal Ghani

Organizational Goals

1.
2.
3.
4.

Purposes of the Goals

Goals serve four important purposes
Provide guidance and unified direction for
the people in the organization.
Goal-setting practice affect planning.
Goals can serve as a source of motivation
to employees of the organization.
Goals provide an effective mechanism for
evaluation and control.

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Basic Element of Planning

City University of Science and Information

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Faisal Ghani

Organizational Goals
Kinds of Goals
Mission is a statement of
organizations fundamental, unique
propose that sets a business apart
from other firms of its type and
identifies the scope of the businesss
operations in product and market
term.

Chapter 07

Basic Element of Planning

City University of Science and Information

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Faisal Ghani

Organizational Goals
Kinds of Goals
Strategic Goals are set by and for top
management of the organization.
Tactical Goals are set by the middle
management and it focuses on how best
to achieve strategic goals.
Operational Goals are set by and for
lower-level managers and associated with
the tactical goals.
Chapter 07

Basic Element of Planning

City University of Science and Information

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Faisal Ghani

Organizational Goals
Responsibilities for Goals
Managing Multiple Goals
Optimizing: Balancing and reconciling
possible conflicts among goals.

Chapter 07

Basic Element of Planning

City University of Science and Information

Technology

Faisal Ghani

Organizational Planning
Kinds of Organizational Plans
Strategic Plans is a general plan outlining
decisions of resource allocation, priorities
and action steps necessary to reach
strategic goals.
Tactical Plans are aimed at achieving
tactical goals and its developed to
implement part of strategic plan.
Operational Plans focus on carrying out
tactical plans to achieve operational goals.
Chapter 07

Basic Element of Planning

City University of Science and Information

Technology

Faisal Ghani

Organizational Planning
Time Frames for Planning
Long Range Plans (5-10 years) GM Card
Models for 2015
Intermediate Range Plans (1-5 years) Phillip
Morris bought General Food Corporation
Short-Range Plans (0-1 year)
Action Plan (operationalize other kinds of
plans)
Reaction Plan (to react on unforeseen
occasions)
Chapter 07

Basic Element of Planning

City University of Science and Information

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Faisal Ghani

Organizational Planning
Contingency Planning and Crises
Management
Contingency Planning: The determination
of alternative courses of action to be taken if
an intended plan is unexpectedly disrupted
or rendered inappropriate.
Crises Management: The set of
procedures the organization uses in the
event of a disaster or other unexpected
calamity.
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Basic Element of Planning

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City University of Science and Information

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Faisal Ghani

Organizational Planning
Contingency Planning
Ongoing Planning Process
Action Point 1 Action Point 2 Action Point 3
Action Point 4
Develop plan,
Implementing planSpecify indicators forSuccessfully
the contingency
considering
and formally
complete plan
events and develop
contingency eventsidentify
or contingency
contingency plans
contingency events.
plan.
for each possible event.

Monitor contingency event indicator

implement contingency plan if neces

Chapter 07

Basic Element of Planning

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City University of Science and Information

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Faisal Ghani

Tactical Planning
Tactical Planning
A plan aimed at achieving tactical goals
and developed to implement specific parts
of a strategic plan.

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Basic Element of Planning

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City University of Science and Information

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Faisal Ghani

Tactical Planning
Developing and Executing Tactical Plans
Developing Tactical PlansExecuting Tactical Plans
Recognize and understandEvaluate each course of
overarching strategic plan action in light of its goals
Obtain and distribute
and tactical goals.
Specify relevant resource information and resources.
Monitor horizontal and
and time issues.
Recognize and identify
vertical communication
human resource
and integration of activities.
Monitor ongoing activities
commitments.
for goal achievement.

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Basic Element of Planning

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City University of Science and Information

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Faisal Ghani

Operational Planning
Operational Planning
Single Use Plans
Developed to carry out a course of action
not likely to be repeated in the future
Programs
Single-use plan for a large set of activities
Projects
Single-use plan of less scope and
complexity than a program
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Basic Element of Planning

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City University of Science and Information

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Faisal Ghani

Operational Planning
Operational Planning
Standing Plans
Developed for activities that recur regularly over
a period of time

Policy
Standing plan specifying the organizations general
response to a designated problem or situation
Standard Operating Procedures (SOP)
Standing plan outlining steps to be followed in particular
circumstances
Rules and Regulations
Standing plans describing exactly how specific activities
are to be carried out

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Basic Element of Planning

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City University of Science and Information

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Faisal Ghani

Managing Goal-Setting and Planning

Processes
Barriers to Goals Setting and Planning and
Overcoming the Barriers
Barriers to
Planning

Overcoming
Barriers

Inappropriate Goals

Understand Purpose

Improper Reward System

Communication

Dynamic Environment

Participation

Reluctance to Set Goals

Consistency

Resistance to Change

Revision and Updating

Constraints

Effective Reward System

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Basic Element of Planning

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City University of Science and Information

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Faisal Ghani

Managing Goal-Setting and Planning

Processes
Using Goals to Implement Plans
Management by Objectives (MBO)
The formal goal-setting process
involving collaboration between
managers and subordinates; the extent
to which the goals are accomplished is
a major factor in evaluating and
rewarding the subordinates
performance.
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Basic Element of Planning

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City University of Science and Information

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Faisal Ghani

Managing Goal-Setting and

Planning Processes
Using Goals to Implement Plans
The Formal Goal-Setting Process

Starting the Establishment

Communicating
Collaborative
formal goal
of
organizational
goal setting
setting
organizational
goals and
and planning
program goals and plans
plans

Periodic
review

Evaluation

Meeting
Verifiable
goals
and clear
plans
Counseling
Resources
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