Module 3: Objectives
You will be able to…
Module 3: Objectives
You will be able to…
• Discuss the First Function of
Management: Planning
Module 3: Objectives
You will be able to…
• Discuss the First Function of
Management: Planning
• Describe the hierarchy of planning
Module 3: Objectives
You will be able to…
• Discuss the First Function of
Management: Planning
• Describe the hierarchy of planning
• Use the SMART goal setting technique
Module 3: Objectives
You will be able to…
• Discuss the First Function of
Management: Planning
• Describe the hierarchy of planning
• Use the SMART goal setting technique
• Use a powerful website for planning
Organizational Planning
• The first Function of Management
• Aligns to organizational goals
• Develops an intended course of action to achieve
organizational objectives/goals
• Communicates a vision, provides clear direction,
and is a roadmap for achieving the objective/goal
• Helps managers achieve goals by answering the
six questions
Planning answers 6 questions:
What
How
When
much
How Where
Who
Planning
Mission
Defines the reason for being: What is our
business? What do we want to be? Who we
are? and Who do we serve? It provides the
framework, guiding principles, and direction
of the organization
Planning
Vision
Clear verbal description of what we need to
do in a defined period of time to fulfill the
mission.
Planning
Strategic Plan
A systematic process, set by the Board of
Directors and top executive mangers, for
making competitive decisions, setting
priorities, allocating resources, and defining
direction on how to achieve strategic goals.
Planning
Tactical Plan
A measureable detailed process, developed
by middle managers, that focuses on what
activities, resources, and budgets will be
used over the mid-term to achieve the
strategic goals.
Planning
Operational Plan
Developed by first level managers to
achieve short-term operational goals, by
narrowly focusing on specific parts of the
organization’s activities on how to use
people and resources to produce goods and
services.
Hierarchy of Planning
Board of
Mission
Directors and Vision
Executive Strategic Plan
Management
Senior and
Middle Tactical Plan
Management
Operational
First Level
Management
Plan
Planning from the Top Down
Four types of Plans
Board of Directors and Top Executive Management
[Link] Planning
A planning process that answers key
questions like who, what, when, where, how,
and how much to achieve strategic goals set
by top management. Strategic plans focus
on long term changes desired in key areas.
Senior and Middle Management
[Link] Planning
A documented process, focused on the mid-
term, set by middle managers, that defines the
ordered interaction of organizational parts,
stakeholders, priorities, resources, and
timelines to achieve the goals of the strategic
plan.
First Level Management
[Link] Planning
A narrowly focused, short term, plan of
action, set by lower level managers, that
directs the behaviors, actions, and priorities
to manufacture, service, or deliver the
required output to achieve the goals of the
tactical plan.
First Level Management
[Link] Planning
There are two types of operational plans.
[Link] Use Plans – a course of specific
action designed for a unique one-time use
[Link] Plans – a static course of action
developed to handle on-going problems or
situations
Any Level Management
4. Contingency Planning
• An alternate course of action to be taken if
the primary plan is interrupted or deemed
undesirable - Plan B
• A Just-in-Case plan designed to respond to
an emergency
Managers’ Responsibilities in Planning
1. Develop the mission and vision
2. Conduct research
3. Identify/analyze options that align with the vision
4. Establish goals/objectives
5. Develop a plan
6. Determine resources
7. Eliminate non-value added activities
8. Collaborate and gain commitment from stakeholders
9. Execute the plan
10. Monitor and make adjustments
11. Establish controls to ensure alignment to goals/objectives
12. Analyze results
Planning Components: A Student Example
Mission
To be a life long learner
Vision
Live my commitment to lifelong learning and
use my education to secure a rewarding career.
Strategic Goal
To earn a BS degree in 4 years
Tactical Goal
To take 15 hours of credit courses each quarter
Operational Goal
To take the Essentials of Management class