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LECTURE 2

PLANNING

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PlanningSetting

performance

Objectives &decidingHow to achieve

them

OrganizingArranging tasks,

people,& other resourcesTo accomplish the

work

Controlling

Measuringperformance

& taking action toEnsure desired

results

LeadingInspiring people

toWork hard to

achieve

High performance

TheManagement

Process

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THE OVERALL PLANNINGPROCESS

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Vision

Goals

Plans

Operations

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Vision

This is the true joy in life, the beingused for a purpose you consider amighty one, the being a force of

nature rather than a feverish, selfishcold of ailments and grievances,complaining that the world will not

devote itself to making you happy.(Bernard Shaw)

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Vision

Just as Socrates felt that it wasnecessary to create tension in themind, so that individuals could rise

from the bondage of myths and halftruths so must we create thekind of tension in society that will

help men rise from the dark depthsof prejudice and racism. (MartinLuther King Jr.)

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Creative Tension

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Seeing clearlywhere we want tobe, our vision,

and telling thetruth about wherewe are, our

current reality.(Fritz 1989)

The gap betweenthe two generatesa natural tension.

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Creative Tension

Creative tension can be resolved intwo ways: by raising current realitytoward the vision, or by lowering the

vision toward the current reality. Individuals, groups and organizations

who learn how to work with creative

tension learn how to use the energyit generates to move reality morereliably toward their visions.

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VISION

"Good business leaders create avision, articulate the vision,passionately own the vision, and

relentlessly drive it to completion." Jack Welch, Chairman, General Electric

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VISION

Essentially, the planning process builds onthe visionof the organization, theorganizations purpose or fundamental

reason for existence. Organizational Vision is broad declaration

of the basic, unique purpose and scope ofoperations that distinguish the

organization from others of its type.

Develop a vision statement -define thefirms values, purpose and direction.

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GOALS AND PLANS

A goal is a future end result that anorganization wants to achieve.

A plan, normally a written document, isthe means devised for attempting toreach a goal.

Some use the term goalinterchangeably with objective.Others consider goal to be a broaderterm, encompassing a longer termhorizon, and use objective to refer to1010

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Operational

Tactical

Strategic

1 year

5+ years

1 to 5 years

ShortRange

Intermediate

LongRange

LEVELSOF GOALS

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APPROACHES TO PLANNING

Bottom-up planning

Individual business units are given considerable freedom

to develop their own objectives and strategies, with

corporate management requiring only that the target sets

are then achieved.

Top-down planning

Corporate management sets the objectives and maintains

a close involvement with both the development and the

implementation of strategy and tactics.

Goals down/Plans up

Corporate management establishes the broad planning

parameters in terms of targets and then allows thebusiness units to decide how these will be achieved.1212

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VISION

The organizations vision sets out theground rules to its approach to doingbusiness, & good vision statement

focuses on:

The shared beliefs and values

A definition of business: which covers the targetcustomers, their specific needs that are going tobeing satisfied, and mode for satisfying the needs

Attitudes to growth, innovation, quality etc..

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VISION

Most vision/mission statements (oftenspecified in annual reports), documentsome or all, of the following:

Target Customers & Markets.

Principal Products or Services.

Location. Where does the organizationcompete?

Core Technologies.

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VISION

Basic Philosophy. What are the basic beliefs,

values, aspirations, and philosophical priorities of

the organization?

Self-concept. What does the organization think

of itself? In terms of its major strengths and

competitive advantages?

Concern for Public image. What does the

organization want the public to think of it? What

are the organizations public responsibilities, &

what public image is desired?

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Examples

ASME will be recognized as apremier global organizationdemonstrating an inclusive culture

and environment for developinghighly effective and successfulleaders.

"To be a leading entity to providetraining, knowledge and consultingservices all over the world in the

fields of self development and1616

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Examples

To be at the heart of nextgeneration electronic products

Ensure capacity creation throughimprovement of the state ofinnovation, intellectualism andempowermentof human capital.

Teleca will be the software solutionspartner of choice for companieswhose products and services use

mobile or wireless technology.1717

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TASKS ASSIGNMENT 1:

PREPARE A BRIEF INTRODUCTORYPROFILE OF THE COMPANY. THIS PROFILE

SHOULD STATE

COMPANY NAME

MAJOR PRODUCTS / SERVICES

NUMBER OF EMPLOYEES

VISION / MISSION / GOALS / FUTURE PLANS

IF THE COMPANY DOES NOT HAVE A VISION

OR MISSION.!? 1818