Professional Documents
Culture Documents
Chapter No. 07
TOPICS TO BE COVERED.
What is Planning? What are types of Planning? Purpose of Planning Planning Performance Relationship Elements of Planning Types of Goals Level/Nature of Goals Types of Plans
TOPICS TO BE COVERED.
WHAT IS PLANNING
Planning
A
PURPOSE OF PLANNING
Provides direction Reduces uncertainty Minimizes waste and redundancy Sets the standards for controlling
The quality of planning and implementation affects performance more than the extent of planning. The external environment can reduce the impact of planning on performance, Formal planning must be used for several years before planning begins to affect performance.
ELEMENTS OF PLANNING
Desired outcomes for individuals, groups, or entire organizations Provide direction and evaluation performance criteria We may say that objectives are present part of long term goals
Way or mean to do certain action. Predefined course of action to achieve organizational goals. Documents that outline how goals are to be accomplished Describe how resources are to be allocated and establish activity schedules
Plans
TYPES OF GOALS
official statements of the organization (intended for public consumption) that may be irrelevant to its real goals (what actually goes on in the organization).
(McDonalds Corporation) Execute strategic roadmapPlan to Win. Grow the business profitably. Identify and develop diverse talent. Promote balanced, active lifestyles.
LEVEL/NATURE OF GOALS
1.
Strategic decisions deal with the big picture of your business. The focus of strategic decisions is typically external to the business and usually future oriented. Strategic decision-making creates the forward thrust in the business. It includes decisions about: What business are you in? What is your vision for the business? What's your business' identity? What do you stand for? Which direction is the business headed? How will the business compete? Corporations often capture their overall business strategy in a "Statement of Intent" and it's an excellent term for describing what strategic decision-making is. Too often people confuse strategic decisions with tactical decisions and fail to really examine the big picture. It can lead to stagnation in the business and an inability to move forward.
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Operational decisions determine how activities actually get done. They are the 'grass roots' decisions about who is going to do what and when. It includes: How will we spend our money this month? How will we service that client? What is our procedure for delivering an order? Who will be doing quality control? SOPs If you are making decisions involving processes and procedures they are usually operational decisions. Operational decisions are often made in 'real time' and are the result of needing to make quick adjustments or change to achieve the desired outcome.
TYPES 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.
Operational Plans
Specify the details of how the overall goals are to be achieved. Cover short time period.
Long-Term Plans
Short-Term Plans
Specific Plans
Directional Plans
Single-Use Plan
A
one-time plan specifically designed to meet the need of a unique situation. plans that provide guidance for activities performed repeatedly.
Standing Plans
Ongoing
The acronym SMART stands for specific, measurable, attainable, relevant and timely. Using SMART creates a clear-cut path to preset goals. With a defined timeline to achieve the SMART standards, businesses are able to plan their future by examining the past. Through planning and organization.
S M
Specific
Smart goals are specific enough to suggest action. You need to know when youve achieved your goal, or how close you are. Goals which aren't measurable, like "I'd like to have more money," are much harder to achieve and you don't even know when you get there. The steps toward reaching your goal need to be reasonable and possible. The goal needs to make common sense. You don't want to struggle or work toward a goal that doesn't fit your need. Set a definite target date.
Save enough money to get a refrigerator, not just save money. A refrigerator costs $600, and you have $300 already saved.
Measurable
A R
Attainable
I know I can save enough money each week to arrive at my goal within one year. You don't need to save money for 18 pairs of shoes.
Relevant
Time Bound
The repairman says my refrigerator won't last another year. I need a new fridge in the next six months.
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CONCEPT OF MBO
Management By Objectives (MBO) Specific performance goals are jointly determined by employees and managers. Progress toward accomplishing goals is periodically reviewed. Rewards are allocated on the basis of progress towards the goals. Key elements of MBO:
Goal
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6. 7. 8.
The organizations overall objectives and strategies are formulated. Major objectives are allocated among divisional and departmental units. Unit managers collaboratively set specific objectives for their units with their managers. Specific objectives are collaboratively set with all department members. Action plans, defining how objectives are to be achieved, are specified and agreed upon by managers and employees. The action plans are implemented. Progress toward objectives is periodically reviewed, and feedback is provided. Successful achievement of objectives is reinforced by performancebased rewards.