2.Planning

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PLANNING

Dr.R.Gayathri

DOMS,NIT


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One Night 4 college students were playing till late nightand could not study for the test which was scheduledfor the next day.

In the morning they thought of a plan. They madethemselves look as dirty with grease and dirt. Theythen went up to the Dean and said that they had goneout to a wedding last night and on their return the tire

of their car burst and they had to push the car all theway back and that they were in no condition to appearfor the test.

o the Dean said they could have the re!test after "

days. They thanked him and said they would be readyby that time. On the third day they appeared before theDean.. The Dean said that as this was a pecial#ondition Test$ all four were re%uired to sit in separateclassrooms for the test... They all agreed as they had

prepared well in the last " days.&


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The Test consisted of & %uestions

with a total of '(( )arks.

*.'. +our Name............................,& )-/0

*.&. 1hich tire burst2 ,3 )-/0a0 5ront 6eft

b0 5ront ightc0 7ack 6eftd0 7ack ight.....888

"


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6earning Outcomes

The 1hat -nd 1hy Of 9lanning

De:ne planning.

Describe the purposes of planning.

;xplain what studies have shown about therelationship between planning and performance.

erent types of plans.

4


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6earning Outcomes

etting ect planning.

Describe the approaches to planning.

#ontemporary Issues in 9lanning

;xplain the criticisms of planning.

Describe how managers can e>ectively plan intoday?s dynamic environment.

@


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1hat Is 9lanning2

9lanning

- primary managerial activity that involvesA De:ning the organi=ation?s goals

;stablishing an overall strategy for achieving

those goals

Developing plans for organi=ational workactivities

5ormal planning peci:c goals covering a speci:c time period

1ritten and shared with organi=ational members

B


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1hy Do )anagers9lan2

9urposes of9lanning

9rovides direction

educes uncertainty

)inimi=es waste andredundancy

ets the standardsfor controlling

C


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9lanning and 9erformance

The elationship 7etween 9lanning and9erformance

5ormal planning is associated withA

igher pro:ts and returns on assets.

9ositive :nancial results.

The %uality of planning and implementationa>ects performance more than the extent ofplanning.

The external environment can reduce the impactof planning on performance.

5ormal planning must be used for several yearsbefore planning begins to a>ect performance.


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ow Do )anagers 9lan2

;lements of 9lanning


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Types of


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Types of 9lans

''


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Types of 9lans

trategic 9lans

-pply to the entire organi=ation.

;stablish the organi=ation?s overall goals.

eek to position the organi=ation in termsof its environment.

#over extended periods of time.

Operational 9lans

pecify the details of how the overallgoals are to be achieved.

#over a short time period.

'&


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Types of 9lans

6ong!Term 9lans 9lans with time frames extending beyond three

years

hort!Term 9lans

9lans with time frames of one year or less

peci:c 9lans

9lans that are clearly de:ned and leave noroom for interpretation

Directional 9lans 5lexible plans that set out general guidelines

and provide focus$ yet allow discretion inimplementation

'"


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Types of 9lans

ingle!Gse 9lan - one!time plan speci:cally designed

to meet the need of a uni%ue

situation.tanding 9lans

Ongoing plans that provide guidancefor activities performed repeatedly.

'4


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The Downside of Traditional


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teps in the 9lanning 9rocess

'B


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7asic #onceptsPlanning

Clearly setting out the goals for the organization and the strategy by which

these are to be achieved

SWOT Analysis

A management technique used to assess a business in terms of it's strengths,

weaknesses, opportunities and threats.

Mission statements

Short but precise one or two sentence statements used by companies to

explain 'who we are., what we do, and where we're going'

A strategic plan Refers to the long term plan for the whole business

Tactical plan

Breaks the general strategic plan into shorter, more specific and manageable

steps, usually of one-year periods'


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7asic #oncepts

Management by Objectie!

The term used to describe the process of breaking strategic plans downinto shorter$ more detailed obEectives$ or steps to be achieved by each

department$ work team$ and individual

"#ntingency $%an!

are pecial plans prepared to cope with emergencies or unexpectedcircumstances

A &'ncti#na% !tr'ct'redivides the business into di>erent departments according to the

management functions of marketing$ operations$ human resources and:nance

A $r#('ct !tr'ct're

Divides the organi=ation on the basis of products produced

A ge#gra$hic !tr'ct're

Divides the organi=ation according to the geographical markets it servesMatri) !tr'ct're!

- type of organi=ation structure where sta> are brought together into teamsto achieve clearly stated team goals '3


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Discuss1hat makes them uni%ue2

&(


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etting


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)aintaining the ierarchy of


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&"


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etting


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teps in a Typical )7O 9rogram

&@

*. The #rgani+ati#n! overall objectives and strategies

are rm'%ate(.

-. Maj#r #bjectie! are a%%#cate( am#ng divisional anddepartmental units.

. Unit manager! collaboratively set specifcobjectivesr their 'nit! /ith their manager!.

0. S$eci1c #bjectie! are c#%%ab#ratie%y !et /ith alldepartment members.

5. Action plans, (e1ning h#/ #bjectie! are t# beachiee(, are !$eci1e( an( agree( '$#n bymanager! an( em$%#yee!.

2. The acti#n $%an! are implemented.3. Pr#gre!! t#/ar( #bjectie! i!periodically reviewed,

an( eedbacki! $r#i(e(.

4. S'cce!!&'% achieement #& #bjectie! i! reinrce(byperormance-based rewards.


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Does )7O 1ork2

eason for )7O uccessTop management commitment and

involvement

9otential 9roblems with )7O 9rograms Not as e>ective in dynamic environments

that re%uire constant resetting of goals.

Overemphasis on individual accomplishment

may create problems with teamwork. -llowing the )7O program to become an

annual paperwork shuLe.

&B


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1ell!1ritten


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teps in


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Developing 9lans

#ontingency 5actors in a )anager?s9lanning

)anager?s level in the organi=ation

trategic plans at higher levels

Operational plans at lower levels

Degree of environmental uncertainty

table environmentA speci:c plans

Dynamic environmentA speci:c but Mexible plans

6ength of future commitments

"#mmitment "#nce$t:current plans a>ectingfuture commitments must be suFciently long!termto meet those commitments.

&3


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9lanning in the ierarchy ofOrgani=ations

"(


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-pproaches to 9lanning

;stablishing a formal planning department - group of planning specialists who help

managers write organi=ational plans.

9lanning is a function of management it should

never become the sole responsibility of planners.

Involving organi=ational members in theprocess

9lans are developed by members oforgani=ational units at various levels and thencoordinated with other units across theorgani=ation.

"'


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#ontemporary Issues in9lanning

#riticisms of 9lanning 9lanning may create rigidity.

9lans cannot be developed for dynamicenvironments.

5ormal plans cannot replace intuition andcreativity.

9lanning focuses managers? attention on

today?s competition not tomorrow?s survival. 5ormal planning reinforces today?s success$

which may lead to tomorrow?s failure.

ust planning isn?t enough.

"&


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#ontemporary Issues in9lanning ,cont?d0;>ective 9lanning in Dynamic

;nvironments

Develop plans that are speci:c but Mexible.

Gnderstand that planning is an ongoingprocess.

#hange plans when conditions warrant.

9ersistence in planning eventually pay o>.

5latten the organi=ational hierarchy to fosterthe development of planning skills at allorgani=ational levels.

""


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