Planning: Group 1 Report

PLANNING
GROUP 1 REPORT
OVERVIEW
Why plan?
Functional plan
Planning Horizons
Objectives
Management by Objective
Vision, Mission, Values, Strategy
Planning Tools and Approach
7 Principles for Strong Planning
WHY
PLAN?
Planning is necessary to perform
management functions.
When there is no planning there will

be constant reorganization
Helps commit the organization

commit to "making it happen"
WHY PLAN?
Provides means for actively involving personnel throughout the organization
-input from throughout the organization
-can minimize the friction department sections
-helps create a positive attitude in the organization
Has positive effect on managerial performance.

-employees who plans their work will have high performance ratings from supervisors
Planning is the mental exercise required to develop a plan.

-the experience and knowledge gained throughout the development force managers to think in a
future
FORMAL PLANNING - a written documented plan developed through an identifiable process.
FACTORS THAT AFFECT PLANS
ENVIRONMENT SIZE TYPE OF

BUSINESS
FUNCTIONAL PLAN TYPES:
Sales and marketing plans

This understanding of how the -Developing new products or services
business is currently
functioning can be clarified, ProductionThisplans
understanding of how the
shared and refined through -Deals with producing the desired
business products
is currently
documentation. functioning can be clarified,
Financial plans
shared and refined through
-Meeting the financial commitments
documentation.
Personnel plans
-Human resource of the organization
WHY
PLANNINGPLAN?
HORIZONS
the amount of time an organization will look into the future when preparing a strategic plan
Planning horizon in manufacturing is also a future time period during which departments that support
production will plan production work and determine material requirements.
SHORT RANGE
usually involves process that show results within a
year
INTERMEDIATE RANGE
most companies aim for this which show results that take several years
to achieve
LONG RANGE
include the overall goals of the company set 4 or 5 years in the future and are usually based
on reaching the intermediate range targets
STRATEGIC PLANNING
Equivalent to top level, long range planning
It is the planning process applied at the highest level of the organization covering a
relatively long period and affecting many parts of the organization
Strategic planning is done primarily by the top level managers

OPERATIONAL/TACTICAL PLANNING
Is short range planning and concentrates on the formulation of functional plans.

Production schedules and day to day plans are examples of operational plans.
Operational planning is done by managers at all levels in the organization and

especially by middle and lower managers.
CONTINGENCY PLANNING
Contingency planning addresses the what –ifs of the manager’s job.
Contingency planning gets the managers in the habit of being prepared and
knowing what to do if something does go wrong.
It is the most needed in this rapidly changing environments

OBJECTIVES
Are statements outlining what you are trying to

achieve.
Specific steps
Milestones, which enable you to accomplish a goal.

LONG-RANGE SHORT-RANGE
OBJECTIVES OBJECTIVES
Performance goals of an organization, A smaller, intermediate milestone to

intended to be achieved over a period achieve when moving toward an
This understanding of how the
of five years or more. important goal.
business is currently
functioning can be clarified,
Must support and not conflict with the Should be derived from an in-depth
shared and refined through
organizational mission. evaluation of long-range objectives.
documentation.
LONG RANGE SHORT RANGE
- Targets to be achieved 3 to 5 - Target to be achieved soon
years
- Milestones or stairs steps for
- Prompt actions now that will reaching long-range performance
permit reaching targeted long-
range performance later.
AREAS FOR ESTABLISHING OBJECTIVES
1. Profitability 8. Organization Structure
- the degree to which a business or activity yields - is a system used to define a hierarchy within
financial gain.
2. Markets an organization.
- the sum total of all the buyers and sellers in the area 9. Human Resources
or region under consideration. - are the people who make up the
3. Productivity workforce of an organization, business sector,
4. Product or economy.
5. Financial Resources 10. Social Responsibility
6. Physical Facilities -is an ethical framework and suggests that an entity, be
- expressed in terms of square feet of office or plant it an organization or individual, has an obligation to act
space. for the benefit of society at large.
7. Research and Innovation
- reflects the research development, or innovation
aspiration of the firm.
MANAGEMENT BY OBJECTIVE
A personnel management technique where managers and employees work together to set, record and monitor
goals for a specific period of time.
CONCEPT
AND
Management by objectives at its core is
FRAME- the process of employers/supervisors
attempting to manage their subordinates
WORK by introducing a set of specific goals
that both the employee and the company
strive to achieve in the near future, and
working to meet those goals accordingly
IMPLEMENTATION
STEPS Incentives
Feedback on distribution
Measure perfor-mance
progress of and training
Link objectives
with incentives perfor-mance
Establish-ment
Definition of of objectives
Firm’s overall per employee
goals
ADVANTAGES DISADVANTAGES
• Helps to Focus on Goals • Neglect of important matters

Achievement • Corrosion of internal culture
• Evaluates Performance • Too Bureaucratic
• Highlights needs for improvement • Difficult to Define goals
• Assess if on the right track • Temptation to unethical behaviors
• Increase motivation • Focused only on outcomes
• All in the same page
CONDITIONS FOR A SUCCESSFUL MBO
• Goals should be challenging yet attainable

• Goals should be clear and simple
• Goals should be smart
• Top management should be committed to MBO
• Goals should be re-established frequently
VISION MISSION VALUES STRATEGY
What the organization The fundamental purpose of Beliefs shared among the Combination of the ends
wants to be. an organization. Describes members of an organization. (goals) for which the firm is
why it exists and what it striving and the means
A long-term view and does to achieve its vision. Provide a framework in (policies) by which it is
concentrates on the future. which decisions are made. seeking to get there.
“Providing jobs for the
“A world without poverty” homeless and unemployed.” “Knowledge and skills are the The Roadmap. the path
keys to success,” chosen to move towards
the end vision
TOOLS AND APPROACHES
Situation-Target-Proposal Draw-See-Think-Plan
• Draw - What is the ideal image or the desired

• Situation – Evaluate the current end state?
situation and how it came about. • See – What is today’s situation? What is the
• Target – Define goals and/or gap from ideal and why?
objectives. • Think – What specific actions must be taken to
• Path/Proposal – Map a possible close the gap?
route to the goals/objectives. • Plan – What resources are required to execute
the activities?
S.W.O.T. ANALYSIS
INTERNAL STRENGTHS WEAKNESSES

Positive attributes of the Things that need to be
organization. improved on for progress.
OPPORTUNITIES THREATS
EXTERNAL
Factors likely to contribute to Negative factors you have

your success. less or no control over.
BENEFICIAL HARMFUL
SEVEN PRINCIPLES FOR
STRONG PLANNING
Basic principles that have been devised in order to guide the managers
when they are engaged in the process of planning.
Passion - Gives planning the energy and focus it needs.
Creativity – Tackle the harder, more difficult dilemmas.
Influence – Value the people and earn their support.
Priorities – Find your purpose and run at your own pace.
Flexibility – Be prepared if plans go off-course.
Timing – Make decisions from a clear view at the peak.
Teamwork – Fill in each other’s gaps to achieve more.

“Begin with the end
in mind”
-Stephen Covey, The 7 Habits of Highly Effective People

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PLANNING

When there is no planning there will

Helps commit the organization

Has positive effect on managerial performance.

Planning is the mental exercise required to develop a plan.

FACTORS THAT AFFECT PLANS

ENVIRONMENT SIZE TYPE OF

Sales and marketing plans

Equivalent to top level, long range planning

Strategic planning is done primarily by the top level managers

Is short range planning and concentrates on the formulation of functional plans.

Operational planning is done by managers at all levels in the organization and

Contingency planning addresses the what –ifs of the manager’s job.

It is the most needed in this rapidly changing environments

Are statements outlining what you are trying to

Milestones, which enable you to accomplish a goal.

Performance goals of an organization, A smaller, intermediate milestone to

• Helps to Focus on Goals • Neglect of important matters

• Goals should be challenging yet attainable

• Draw - What is the ideal image or the desired

INTERNAL STRENGTHS WEAKNESSES

Factors likely to contribute to Negative factors you have

Creativity – Tackle the harder, more difficult dilemmas.

Influence – Value the people and earn their support.

Priorities – Find your purpose and run at your own pace.

Flexibility – Be prepared if plans go off-course.

Timing – Make decisions from a clear view at the peak.

Teamwork – Fill in each other’s gaps to achieve more.

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