Module II.
Planning
Processes ,Techniques
and Designing
Organizational Structure .
INTRODUCTION
As organizations grow, multiple employees might be
grouped based on the type of activity where value is created for
the company. To achieve a good design of organizational
structure is very important since it identifies the relationships
among departments and personnel and indicates the lines of
communication and decision making. Managers make conscious
decisions on how to group employees that serve a similar need
for the company.
The board and senior leaders are the group responsible in
determining the type of organizational structure that would
greatly support the internal operations, how work activities are
executed and the chain-of-command.
As you journey on this lesson, you are expected to:
Learning Outcome: Familiarize the students about Planning Processes,
Techniques and Designing Organizational Structure.
Learning Objectives: • To describe the steps in the decision-making
process;
• To identify the ways managers, make decision;
• To classify decisions & decision-making
conditions;
• To describe the different decision-making styles
and how biases affect decision making;
• Identify effective decision-making techniques;
and
• Describe the 5 key elements in organizational
design;
Steps in the decision-making process
Planning
The process of setting objectives and
determining how to best accomplish them.
Involves defining the organization’s goals,
establishing strategies for achieving those
goals, and developing plans to integrate and
coordinate work activities. It’s concerned with
both ends (what) and means (how).
Steps in the planning process:
Define your objectives
Determine where you stand vis-à-vis
objectives
Develop premises regarding future conditions
Analyze alternatives and make a plan
Implement the plan and evaluate results
Managers making
decision
1. Planning provides direction to managers and
Why Do Managers
nonmanagers alike. Plan?
2. Planning reduces uncertainty by forcing managers
to look ahead, anticipate change, consider the
impact of change, and develop appropriate
responses.
3. Planning minimizes waste and redundancy.
4. Planning establishes the goals or standards used in
controlling improves control.
Benefits of planning:
1. Improves focus and flexibility
2. Improves action orientation
3. Improves coordination
4. Improves time management
5. Improves control
Personal time management
tips:
DO say “no” to requests that distract from what you should
be doing.
DON’T get bogged down in details that can be addressed
later.
DO screen telephone calls, emails, and meeting requests.
More personal time management
tips:
DON’T let drop-in visitors instant messaging use up
your time
DO prioritize your important and urgent work
DON’T become calendar bound by letting others
control your schedule
DO follow priorities; do most important and urgent
work first
Two important aspects of
planning:
1. Goals (Objectives)
Identify the specific results or desired
outcomes that one intends to achieve
2. Plan
A statement of action steps to be taken in
order to accomplish the objectives. Plans
are documents that outline how goals are
going to be met.
Types of Goals
1. Financial goals are related
to the financial performance of
the organization.
Ex. Sales and revenue growth;
ROI
2. Strategic goals are related
to all other areas of an
organization.
Types of plans do manager use:
1. Strategic plans — set broad,
comprehensive, and longer-term action
directions for the entire organization
2. Vision
– clarifies purpose of the
organization and what it hopes to be in
the future
3. Tactical
plan – helps to implement all
or parts of the strategic plan
Types of plans do manager use:
Functional plans – indicate how different
operations within the organization will help
accomplish the overall strategy
Production plans
Financial plans
Facilities plans
Marketing plans
Human resource plans
Logistics plans
Types of plans do manager use:
Operational plans — identify short-term
activities to implement strategic plans
1. Policies
are standing plans the communicate
guidelines for decisions
2. Procedures are rules that describe actions to
be taken in specific situations
3. Budgets are plans the commit resources to
projects or activities
Zero based budgets allocate resources as if
each budget were brand new
Duration of plans
1. Long-term plans look three or more
years into the future
2. Short-term plans typically cover
one year or less
Useful planning tools and techniques:
1. Forecasting
Making assumptions about what will happen in the
future
Qualitative forecasting uses expert opinions
Quantitative forecasting uses mathematical and
statistical analysis
2. Contingency planning
Identifying alternative courses of action that can be
implemented to meet the needs of changing
circumstances
Contingency plans anticipate changing conditions
Contingency plans contain trigger points
3. Scenario planning
1. A long-term version of contingency planning
2. Identifying alternative future scenarios
3. Plans made for each future scenario
4. Increases organization’s flexibility and
preparation for future shocks
4. Benchmarking
1. Use of external comparisons to better evaluate
current performance and identify possible actions
for the future
2. Adopting best practices of other organizations
that achieve superior performance
3. In traditional goal setting, goals set by top
managers flow down through the organization and
become subgoals for each organizational area.