Chapter 2 - Planning

TOPIC 2: PLANNING
LEARNING OBJECTIVES
Define
planning and plans

Explain the importance of planning
Describe various types of plans
Differentiate between strategic plans and
operational plans
Describe common barriers to effective
planning and explain ways to reduce
these barriers.
DEFINITION
A Plan:
A blueprint for action. It prescribes the activities

necessary for the organization to realize its goals
Planning:
The process of setting goals and defining the

actions necessary to achieve those goals (Lewis,
2007)
The process begins with objectives, defined
strategies, policies and detailed plans in order to
achieve them
PURPOSE AND BENEFITS OF

PLANNING
Purpose:
To ensure that the organization is both effective and efficient in its activities
Benefits:
A Road Map
sense of direction
Better Coordination
Planning provides a much needed foundation for the coordination of a
broad range of organizational activities
Focus on Forward Thinking
Forces managers to think ahead and consider resource needs &
potential opportunities or threats that the organization may face in the
future
More Effective Control System
A plan provides a foundation for control of the processes and
progress of the company
IMPORTANCE OF PLANNING
1.
2.
3.
4.
5.
Helps to determine what are companys opportunities

Planning enables company to identify the course of
action
Without planning much will be left out
Through plan, resources are efficiently and effectively
utilized, resulting in saving resources
When we plan we know what are we really expected
and becoming more meaningful
IMPORTANCE OF PLANNING
1.
2.
3.
4.
It helps to achieve goals and reduces overlapping

activities
Planning can provide effective utilization of available
facilities
Planning helps managers to become confident and
aggressive leader and can cope with all the
problems.
Planning guides management thinking to future
desirable activities and what must be done to attain
goals.
TYPES OF PLANNING
Strategic
Planning
Focuses on enhancing the competitive position and

overall performance of the organization in the long
term
It defines the markets in which the organization
competes, what the customers in those markets
want, and how the organization will deliver products
and services to satisfy what customers want.
Purpose: To move the organization from where it is
to where it wants to be.
Levels of Strategic Planning

Time
Horizon
Focus
Specificity
Participants
Corporate
strategy
To develop a mix of
business units that meets
the companys long-term
growth and profitability
goals
Broad
Board of directors
Top-level executives
510 years
Business
strategy
To develop and maintain

a distinctive competitive
advantage that will ensure
long-term profitability
More specific
than the
corporate
strategy
Top-level executives
Managers within the
business unit
15 years
Functional
strategy
To develop action plans

that ensure that corporate
and business strategies
are implemented
Very specific
Middle-level managers 12 years

Lower-level managers
Source: Management, Challenges for Tomorrows Leaders, International

Student Edition, 2007, pp.108.
Operation Planning
The
process of determining the day-today activities that are necessary to

achieve the long-term goals of the
organization
Operational plans outline the tactical
activities that must occur to support the
ongoing operations of the organization.
Types: Single use plan and Standing
plan
Standing Plan
Standing
Plans are designed to deal with

organizational issues or problems that
recur frequently. Types of standing plan
includes:
Policies A guideline for decision making
within the organization
Procedures An instruction how to complete
recurring tasks
Rules provide detailed and specific
guidelines for actions
Single Use Plan

Single-use
plan are developed to

address a specific organizational
situation. They include:
Programs A single-use plan that governs a
comprehensive set of activities designed to
accomplish a particular set of goals
Projects Direct the efforts of individuals or
work groups towards the achievements of a
specific goal
Budget A plan that specifies how financial
resources should be allocated.
MISSION STATEMENT
A broad
declaration of an organizations
purpose identifies organizations
products and customers and
distinguishes the organization from its
competitors
MISSION STATEMENT (contd)

Developing
Define
Mission Statement
its business
Who are the customers?

What customers needs are being satisfied?
How are we satisfying customer needs?
Establish
a set of primary goals/objectives
Sense of direction or purpose for organization

Should be realistic and within a reasonable time
period
Barriers to Effective Planning

Demands
on the managers time

Ambiguous and uncertain operating
environments
Resistance to change
Overcoming the Barriers to

Planning
Involve
Input from all levels of a firm is essential for

successful planning.
Take
Employees in Decision Making
Advantage of a Diversity of Views
Diverse views lead to a broader assessment of

organizational problems and opportunities.
Encourage
Strategic Thinking
Effective strategic thinking can be developed

through training and practice.

Chapter 2 - Planning

Uploaded by

Copyright:

Available Formats

Chapter 2 - Planning

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 2 - Planning

Uploaded by

Copyright:

Available Formats

What are the different types of planning discussed?

What are the different types of planning discussed?

What are some benefits of planning?

What are some benefits of planning?

TOPIC 2: PLANNING

planning and plans

A blueprint for action. It prescribes the activities

The process of setting goals and defining the

PURPOSE AND BENEFITS OF

Helps to determine what are companys opportunities

It helps to achieve goals and reduces overlapping

Focuses on enhancing the competitive position and

Levels of Strategic Planning

To develop and maintain

To develop action plans

Middle-level managers 12 years

Source: Management, Challenges for Tomorrows Leaders, International

process of determining the day-today activities that are necessary to

Plans are designed to deal with

Single Use Plan

plan are developed to

MISSION STATEMENT (contd)

Who are the customers?

a set of primary goals/objectives

Sense of direction or purpose for organization

Barriers to Effective Planning

on the managers time

Overcoming the Barriers to

Input from all levels of a firm is essential for

Employees in Decision Making

Advantage of a Diversity of Views

Diverse views lead to a broader assessment of

Effective strategic thinking can be developed

You might also like