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MANAGING THE PLANNING PROCESS
MANA 3319
A Pandey
PLANNINGA management function that:
assesses the management environment to set future objectives; and
maps out activities necessary to achieve those objectives.
Planned actions require careful resource allocation.
Plans must be accompanied by implementation guidelines.
ELEMENTS OF PLANNINGActions: what to do?
Resources: with what?
Implementation: how to?
BENEFITS OF PLANNINGAssessment of external forces
Develop a sense of direction and purposeIdentifying the factors that affect the organization
Encouraging participationCoordination of effortsEstablishment of prioritiesFocusing attention on different time horizons
BENEFITS OF PLANNING (CONTINUED)
Understanding circumstances contributing to past success or failureEnsuring the availability of adequate resourcesEstablishing performance standards
Supporting organizational control systemsDeveloping “what if” scenariosManagement development
THE PITFALLS OF PLANNINGPoor forecasts of future conditions
Plans imposed from above
Planning as a self-contained activity
Extensive bureaucratization
Inflexible adherence to objectives and processes
HOW TO PLAN SUCCESSFULLYDecentralizing the planning powers
Using both numerical and judgmental methods
Viewing planning as continuous and capable of adapting to changeAvoiding paralysis of the analysisConcentrating on a manageable set of issues
GOOD AND BAD PLANNINGGOODDecentralize planning
processUse numerical and
judgmental methodsAssess external forcesDevelop a sense of
direction and purpose Identify factors that
affect the organization Encourage participationCoordinate effortsEstablish priorities
BADPoor forecast of future
conditionsPlans imposed from
poor forecastsPlanning as self-
contained activity
FORMAL PLANNING AND OPPORTUNISTIC PLANNINGFormal planning Identify objectives
Structure the major tasks of the organization to accomplish them.
Opportunistic planning triggered by unforeseen
circumstances.
can coexist with formal planning and help the formal plan function more smoothly.
THE FORMAL PLANNING PROCESS INVOLVES
Setting objectives
Charting a course of action to meet the objectives
Implementation
OBJECTIVES Specific Measurable Achievable Realistic Timely
More general at the top and more specific at the lower level
Reflect its mission Should be prioritized
CHARTING A COURSE OF ACTION
Strategic Action PlansProactive, congruent, synergistic
Tactical Action PlansDivision of labor, budgeting
Operational Action PlansInputprocessoutput cycle
TO BE EFFECTIVE, A STRATEGIC ACTION PLAN SHOULD MEET THE FOLLOWING CRITERIA:
Proactivity – The degree to which the strategic action plan takes a long-term view of the future.
Congruency – The extent to which the strategic action plan fits with organizational characteristics and the external environment.
Synergy – The integration of the efforts of various organizational subunits to better accomplish corporate-wide business objectives
TACTICAL ACTION PLANS MUST INCLUDE:
Division of Labor – The formal assignment of authority and responsibility to job holders.
Helps ensure that tasks of jobholders are appropriate for accomplishing the department’s tactical action plan, which in turn should support the organization’s strategic action plan.
Budgeting – Controlling and allocating funds.
Variable budgeting
Moving budgeting
A TYPICAL OPERATING SYSTEM
Feedback Loop
Control
Inputs Transformation Outcome
OPERATIONAL PLANS MUST INCLUDE
Opportunity to use feedback for continued incremental learning.
Ability to visualize alternative types of operations – that is, alternative ways to use resources to create a product or service.
Ability to predict the effects of modifications in operations on the efficiency of operations.
Ability to evaluate the effectiveness of operations.
IMPLEMENTATION
Means of implementation:AuthorityPersuasionPolicyFeedback mechanism
A SIX-STAGE APPROACH TO FACILITATE ORGANIZATIONAL PROBLEM SOLVING
1. Identify performance gaps.2. Identify tasks and work processes.3. Check for organizational congruence.4. Align in-congruencies or
inconsistencies to effectively implement the plan.
5. Execute the plan.6. Learn from the consequences.