MNGT 1 - Module 2 (Midterm)
MNGT 1 - Module 2 (Midterm)
MNGT 1 - Module 2 (Midterm)
WHAT IS PLANNING?
PLANNING is the process of determining objectives and organizational
goals, establishing strategies and integrating coordinated activities in the
organization to achieve the goals and objectives.
Planning sets a direction for an organization in achieving its goals. A
manager must know that planning is one of the tasks that they need to
perform effectively. Planning plays an important part in the success of
meeting organizational objectives. It is like a map that outlines how an
organization will meet or accomplish a goal. It involves making decisions,
choosing alternative courses of actions and developing strategies for the
organization to help them get to where they want to go.
Planning is the first and most important function of management. It is
needed at every level of management. In the absence of planning all the
business activities of the organization will become meaningless. The
importance of planning has increased all the more in view of the increasing
size of organizations and their complexities.
TYPES OF PLANNING
Figure 1
SINGLE USE PLANS
It is a set of activities designed for a specific goal that.is unlikely. to be
repeated the future. Most of the time a single use plan is used for a particular
time period; it is developed for a one-time project or event.
Single use plan is used Once to meet the needs of well-defined
situations in a timely manner. Budgets are single-use plans that commit
resources to activities, projects, or programs (Schermerhorn, 1999).
Example: University of Santo Tomas prepares a plan for its upcoming
400 years’ celebration. These plans involve the activities that will be used
during the celebration like the parades, fireworks and concerts.
Purpose or Mission:
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The mission or purpose identifies the basic function or task of an
enterprise. Every organization has or should have a purpose so that its
working becomes meaningful. The purpose or mission is assigned to every
organization by the society. The purpose of a business is to produce and
distribute goods or services, the purpose of public works department is to
construct and maintain roads, the purpose of courts is to interpret and apply
laws and so on. The purpose is a standing plan in a business organization
which defines its basic purpose in the light of which other actions are
designed.
An organization’s purpose consists of a long term vision of what it seeks to do
and the reasons why it exists. The organization’s mission indicates exactly
what activities the organization intends to engage in now and in future.
STANDING PLANS
It is an ongoing plan designed without a determined time period. It is
often created to achieve a continuing set of goals. Standing plans are usually
policies, rules, procedures and program developed to serve as guidelines or
methods to be followed in accomplishing particular objectives. Example:
Schools have a standing plan for students who failed in a particular course
subject. The school will offer a remedial class or a summer class for the
concerned students.
In some instances, standing plans can be modified or changed to
adapt to situations or to suit the business needs as required. Example: Many
businesses have a policy which states "The customer is always right". Often
times, this policy is altered due to several reasons. Sometimes it overlaps
other policies particularly the time-period policy in returning an item to a store.
Standing plans in the form of organizational policies and procedures
are designed to be used over and over again. They set guidelines that, direct
behavior in uniform directions for certain types of situations regardless of
where or when they occur in an organization. (Schermerhorn, 1999).
Purpose or Mission:
ADVERTISEMENTS:
The mission or purpose identifies the basic function or task of an
enterprise. Every organization has or should have a purpose so that its
working becomes meaningful. The purpose or mission is assigned to every
organization by the society. The purpose of a business is to produce and
distribute goods or services, the purpose of public works department is to
construct and maintain roads, the purpose of courts is to interpret and apply
laws and so on. The purpose is a standing plan in a business organization
which defines its basic purpose in the light of which other actions are
designed.
An organization’s purpose consists of a long term vision of what it
seeks to do and the reasons why it exists. The organization’s mission
indicates exactly what activities the organization intends to engage in now
and in future.
CONTINGENCY PLANS
Managers must able to detect changes before they happen. It is about
thinking ahead and preparing for the worst-case scenario. Since the future
cannot be predicted with a high degree of certainty, contingency plans need
to be prepared (Koontz & Weihrich, 2004). It involves identifying an
alternative course of action to be taken and implemented if the initial plans do
not work
Example: Contingency plans are important for most common situations
especially when an unexpected problem occurs like a machine stops working
in the middle of the production process. Managers need to come up with a
back-up plan.
BENEFITS OF PLANNING
Planning reduces uncertainty. Managers cannot accurately predict the
demand of the products and services in advance given this scenario. A
manager should be able to plan and anticipate by looking ahead the needs of
the organization including the costs or the budget in order to handle the future
demand.
Planning create goals that is used in controlling. Every time a manager tries
to control his subordinates without any plan is pointless. They need to know
where they are headed and will the efforts of the subordinates' leads in
achieving the goal of the organization.
Planning gives direction. All managers should take a preliminary look
at possible future opportunities and see them clearly and completely, know
where they stand in light of their strengths and weaknesses, understand
problems they wish to solve and why and know what they expect to gain
(Koontz & Weihrich, 2004).
Planning improves performance of the people within an organization
(managers and employees) because planning provides a sense of direction.
It also shows advantages in anticipating opportunities which can lead to
quality output and higher profit.
Planning improves coordination of work. It helps synchronizing the
process or activities which reduces overlapping activities (redundancies),
Poor planning of activities can lead to greater expenses that directly affect the
budget and the efficiency of the organization.
LEVELS OF PLANNING
Table 1
LEVELS OF TIME HORIZON
MANAGEMENT
STRATEGIC TOP 3-7 years
PLANNING
TACTICAL PLANNING MIDDLE 1-3 years
OPERATIONAL FRONLINE Less than 1 year
PLANING
STRATEGIC PLANNING
Strategic Planning involves analyzing and determining objectives and
deciding what actions are needed to be taken to achieve them. Developing
strategy is a never ending job of crafting the story line for success. Each big
acquisition or divestiture on a big Research and Development investment,
changes the company's position and the possibilities for the future (Lauer,
2008). The to level managers are responsible for the development of the
plan. The length of the planning horizon will cover 3-7 years that is why
strategic planning is also called long range planning.
TACTICAL PLANNING
Tactical Planning is a set of procedures for translating broad strategic
goals and plans into specific goals and plans that is relevant to a distinct
portion of the organization, such as a functional area like marketing (Bateman
& Snell, 2008): The length of the planning horizon will cover 1-3 years or less.
The creation of the Tactical plans is the responsibility of the middle
managers. 'It is important that a tactical planning is aligned with the strategic
planning.
OPERATIONAL PLANNING
It deals with limited scope and focus on specific areas. It processes of
setting b, short-range objectives and determining in advance how they will be
accomplished. (Lussier, 2006) It is used to identify the procedures and
resources needed by the lower level managers. Frontline or operational
managers are the one responsible in developing this plan. The length of the
planning horizon usually covers less than one year. Operational planning
must be updated time to time to address the changing needs of the
organization.
The following facts show the advantages of planning and its importance for a
business organization:
(1) Planning Provides Direction:
Under the process of planning the objectives of the organization are
defined in simple and clear words. The obvious outcome of this is that all the
employees get a direction and all their efforts are focused towards a
particular end. In this way, planning has an important role in the attainment of
the objectives of the organization.
For example, suppose a company fixes a sales target under the
process of planning. Now all the departments, e.g., purchase, personnel,
finance, etc., will decide their objectives in view of the sales target.
In this way, the attention of all the managers will get focused on the
attainment of their objectives. This will make the achievement of sales target
a certainty. Thus, in the absence of objectives an organization gets disabled
and the objectives are laid down under planning.
Figure 8
Once you have planned your project, turn your attention to developing
several goals that will enable you to be successful. Goals should be SMART -
specific, measurable, agreed upon, realistic and time-based.
Characteristics of Goal
completion
Types Goals
Long Term Goal is a type of goal that deals in the future because it
need to be achieve over a longer period of time and typically not achievable in
one simple step. Often times goals set in this period is more meaningful but
achieving this goal requires greater effort and focus that is why it is important
to manage and maintain a positive attitude and outlook.
Figure 9
What Is Decision Making?
Decision Making is a process of choosing and selecting best possible
alternatives; A decision is useless unless they are not acted on or
implemented. All managers in different level perform different functions and
possess various skills; one of the important skills all managers need to
acquire is the conceptual and decisional skills. This is one basic
qualification of effective managers and one major criterion needed for
success in management.
Decision making is important to achieve the organizational
goals/objective within given time and budget. It searches the best
alternative, utilizes the resources properly and satisfies the employees at the
workplace. As a result, organizational goals or objectives can be achieved
as per the desired result.
Types of Decision
Programmed Decision
A programmed decision is a type of decision that is highly structured
wherein procedures in a decision are provided with predetermined decision
rules. A type of decision that have been encountered before which 'involves
established procedures, policies and rules. Programmed Decisions are
made in response to repetitive situation.
The first stage in the decision making process is the identification of the
problem. It involves the assessment of the situation. A manager should be able to
identify the difference between the current and desired state of affairs. A problem
can be an opportunity; in this case the manager should continually search and.
scan the environment for the greater advantage that the organization may gain.
After evaluating the alternatives, the next step is to choose the best alternative.
This is the most crucial stage of the Decision Making Process. A manager needs to
realize the best possible alternative also known as maximizing and not just choosing
an • alternative that is acceptable enough that meets the minimal requirements but
not necessarily the perfect one which is commonly known as satisfying. If possible
the manager. may still use additional criteria and obtain more information in making a
choice. A manager often includes others in making a final decision.
6. Implement an alternative
Once a manager has already made a decision, it is time tb put things in action.
The Implementation will be the next Step. For an implementation to be able to
succeed, commitment and proper motivation from the manager and other people who
are involved in a decision process is needed. In this stage proper use of good
management skills is needed because a manager need to presume that during
implementation period problem may still arise or occur that is the reason why
managers still need to develop a contingency plan.
7. Evaluate the decision
The evaluation is the final step of the decision making process. In this final step, a
manager needs to examine the consequences of the decision both positive and
negative. Evaluation stage will be made easier if the solution involves are clear.
objectives that include measurable targets and timetables (Schermerhorn, 1999), An
evaluation system should provide feedback especially if the desired state was not
achieved. A corrective action 'is necessary.
Mission Statement
When preparing a mission statement keep in mind these five basic criteria:
It should be clear and easily to be understood
If possible, keep it shod the idea/ mission statements tend to have three to four
sentences.
It should describe what your company does, who does it for, how you do it and
why
It should include the core competencies, values, moral and ethical positions that
are expressed in your business.It should be able to withstand the changes and
aim for the substances by putting your mission statement at work.
LESSON 6: ORGANIZING
What Is Organizing?
Types of Departmentalization
Job Design – is the process of laying out the job responsibilities and duties. It also
includes the description on how these are performed (Dubrin, 2012 p.230).
Job specification – refers to the list of the knowledge, skills, abilities, and other
characteristics (KSAOs) that an individual must have to perform a particular job (Noe,
et. al 2007 p. 111).
According to Dubrin (2012), dimensions refer to what an incumbent actually does on
the job. Understanding these dimensions leads to an understanding of the nature of the
work. There are four dimensions with sub-dimensions of job design; these are task
characteristics, knowledge characteristics, social characteristics and contextual
characteristics.
Task Characteristics refers to the focus on how the work itself is accomplished, the
range and nature of the tasks associated with a particular job. It can be expressed in
four sub-dimensions:
1. Autonomy, in general, refers to how much freedom and independence the
incumbent has to carry out in his or her work assignment. The freedom aspect
includes (a) work scheduling, (b) decision making, and (c) work methods.
2. Task Variety refers to the degree to which the job requires the worker to use a wide
range of tasks. Task significance indicates the extent to which a job influences the
lives or work of others, whether it is inside or outside the organization.
3. Task Identity reflects the extent to which a job involves a whole piece of work that
can readily be identified.
4. Feedback from job refers to the extent to which the job provides direct and clear
information about task performance. The focus is on feedback directly from the job
itself, as opposed to feedback from others (Dubrin, 2012 pp.231-232).
1. Job complexity refers to the degree of the job tasks are. Th is measure the
complexity and difficulty the job is to perform. Wo rk that involves complex tasks
requires high-level skills and is mentally demanding and challenging.
2. formation processing refers to the degree a job requires attending to and processing
of data and information. Dubrin emphasizes that information is the result of making
data useful, such as making sense of a survey about customer satisfaction.
3. Problem solving refers to the degree a job requires unique ideas or solutions, It also
involves diagnosing and solving non-routine problems and either preventing or
fixing errors.
4. Skill variety refers to the extent a job requires the incumbent to use a variety of skills
to perform the work. Skill variety and task variety are not the same thing. The use
of multiple skills is different from the performance of multiple tasks.
Advantages
1. When employees perform the same task repeatedly, they become highly
knowledgeable and highly skilled
2. Many employees derived status and self-esteem from being experts at some task.
3. Specialize jobs at lower occupational require less training time and Jess learning
ability.
Disadvantages
1. Coordinating the work force can be difficult when several employees do small pads
of one job.
2. Somebody must take responsibility for pulling together the small pieces of the total
task.
3. They become bored by performing a narrow range of tasks.
Job description is a written statement of the key features of a job along with the
activities required to perform effectively by the job holder (Dubrin, 2012 p. 236).
This explains how sometimes a job description is required to be modified to fit the job. It
can be done depending on the current task needed for a particular job.
Job enrichment is an approach in including more challenges and responsibilities in
jobs to make them more appealing to employees.