Chapter (3)
Planning
It refers to the process that managers use to identify & select appropriate
goals and courses of actions in an organization, where it involves (1)defining and
selecting specific organizational goals covering a specific time period,
(2)establishing strategies for achieving those goals, and (3)developing plans to
Planning
integrate and coordinate work activities.
It is concerned with ends (what) and means (how).
It is considered the primary management function because it establishes the
basis for all the other things managers do as they organize, lead, and control.
Planning Reasons:
1) Provides Direction to Managers & Non-Managers, where when employees know what
the organization is trying to accomplish, they can coordinate their activities and cooperate
with each other to accomplish those goals, which improves focus and flexibility. [N.B.:
Without planning, departments and individuals might work at cross purposes and prevent the
organization from efficiently achieving its goals].
2) Reduces Uncertainty by forcing managers to look ahead, anticipate change, consider the
impact of change, and develop appropriate responses. [N.B.: Planning won’t eliminate
uncertainty. However, managers plan so they can respond effectively].
3) Minimizes Waste and Redundancy, where when work activities are coordinated around
plans, inefficiencies become obvious and can be corrected or eliminated.
4) Sets the Standards for Controlling, where when managers plan, they develop goals and
plans. When they control, they see whether the plans have been carried out and the goals
met. Without planning, there would be no goals against which to measure work effort.
5) Improves Action Orientation
Planning Process:
1) Define Objectives (Where you want to go), which involves identifying the desired
outcomes in specific ways.
2) Determine Current Situation (Where you stand), which involves evaluating the current
accomplishments and knowing what strengths and weaknesses exist.
3) Develop Premises regarding Future Conditions, which involves anticipating future
events and generating alternative "scenarios" for what may happen.
4) Analyze Alternatives and Make a Plan, which involves listing and evaluating possible
actions, choosing the alternative most likely to accomplish your objectives.
5) Implement the Plan and Evaluate Results, which involves taking action and carefully
measure your progress toward objectives.
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Goals and Plans
It refers to the written and shared documents that outline how goals are to be
Plans
met.
It refers to the desired future outcomes / targets that an organization tries to achieve.
It is set for the following purposes:
a) Provides guidance and unified direction for people in the organization
b) Affects other aspects of planning.
Goals c) Source of motivation for employees, where employees work harder if attainment is
likely to result in reward.
d) Mechanism for evaluation and control, where it forms the criterion against which
work results are measured.
N.B.: A goal must be SMART (Specific – Measurable – Attainable – Realistic – Timeliness).
N.B.: Plans and Goals are often described as the essential elements of planning.
Types of Plans
Strategic It refers to the broader plans that apply to the entire organization and
Plans establish the organization’s overall goals.
It refers to the plans that involve an organized sequence of steps designed to
execute strategic plans through the use of the organizational human resources.
N.B.: Tactics must specify resources and time frames.
To properly execute a tactical plan, the manager must:
Tactical a) Evaluate every possible course of action needed to reach the goals.
Plans b) Make sure that each decision maker has the information and resources
necessary to get the job done
c) Make sure vertical & horizontal communication and integration of activities
are present to minimize conflict and inconsistent activities.
d) Monitor ongoing activities to assure they are achieving the desired results.
It refers to the narrowly-focused plans derived from tactical plans aimed at
achieving operational goals that encompass a particular operational area of
Operational the organization
Plans It has relatively short time horizons, and involves lower-level (First-Line /
Functional / Oeprational) managers.
N.B.: It involves both Single-Use and Standing Plans.
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It refers to the one-time plan specifically designed to meet the needs of a
unique situation not likely to be repeated in the future. It involves:
It is a single-use plan for a large set of activities, such as
Single Program mergers, acquisitions, integration of multiple components, …
Use
etc.
Plans
It is a single-use plan of less scope and complexity than a
Project program, such as introducing a new product in a product line up
or new benefit to a salary package.
It refers to the ongoing plans that provide guidance for activities performed
repeatedly. It involves:
It is a standing plan that specifies the
organization’s general response to a designated
Policy
Standing problem or situation, such as granting admission to
Plans a university based on GPA.
Standard Operating It is a standard plan that outlines the steps to
Procedures (SOP) be followed in particular circumstances
Rules & It describes exactly how specific activities are to
Regulations be carried out
Long-Term It refers to the plans with a time frame beyond three years.
Plans
Short-Term It refers to the plans with a time frame one year or less.
Plans
Specific It refers to the plans that are clearly defined and leave no room for
Plans interpretation
Directional It refers to the plans that are flexible and set out general guidelines
Plans
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Contingency Planning and Crisis Management
It involves the determination of alternative courses of action to be taken if
an intended plan is unexpectedly disrupted or rendered inappropriate.
Contingency
Planning
Crisis It involves determining the set of procedures the organization uses in the
Management event of a disaster or other unexpected calamity / disaster.
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SWOT:
It refers to a skill or capability that enables an organization to create and
implement its strategies.
Organizational
Distinctive Competence:
Strengths
It refers to a strength possessed by only a small number of
competing firms, which if exploit properly enables the firms to obtain a
competitive advantage and attain above-normal economic performance.
It refers to a skill or capability that does not enable an organization to
Organizational
choose and implement strategies that support its mission.
Weaknesses
N.B.: Organizational members are reluctant to focus on weaknesses.
Organizational It refers to an area in the environment that, if exploited, may generate
Opportunities higher performance.
Organizational It refers to an area that increases the difficulty of an organization
Threats performing at a high level.
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