8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 1/18
Management and
Organisation
Organisational Planning
Steps in PlanningLevels of Planning Time Horizons in Planning
Types of PlansGathering InformationImplementing PlansEvaluating Plans
Importance of Planning
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 2/18
Steps in Planning Gather Information
etermine Organisational Mission and
Goals !ormulate Strategy " ho# to achieve
Mission and Goals
Implement Strategy $llocate resources% including sta&
responsi'ilities to achieve desiredstrategy
Evaluate results
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 3/18
Planning Levels (orporate Level
)usiness or ivision Level
epartment or !unctional Level
(orporate Level
Top management decisions as tothe mission and overall corporatestrategy% ie #hich industriesand national mar*ets the
organisation intends to compete
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 4/18
Planning Levels )usiness or ivisional Level
Provides long term goals to ena'le the
division to meet corporate goals Provides 'usiness level strategy%
indicating the methods to 'e used tocompete in the relevant industry
epartmental or !unctional Level States the goals proposed to
allo# the department to assistin the process of )usiness LevelGoal achievement
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 5/18
Time Horizons +ital that planning is consistent
throughout the various levels
Time Horizons " Long Term Medium Term Short Term
Long Term ,sually - years or more% produced on a
rolling 'asis% involving corporate and.or'usiness level goals
/olling 'asis infers annual updatesto any long term plan% in order tore0ect changing conditions1
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 6/18
Time Horizons Medium Term
,sually 23- years% involving all levels
of planning
Short Tem ,sually 2 year or less% involving
functional level goals
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 7/18
Types of Plan )usiness Plan " re4uired for
e5ternal and internal purposes Sets out the mar*ets the 'usiness
unit #ill operate in
etails ho# the 'usiness unit #ill
operate Provides 6nancial details
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 8/18
Types of Plan Speci6c Plan
(learly de6ned " eg1 (ut costs 'y -7 over 8 months" usually 4uantitative
,nam'iguous and easily measura'le i9cult to achieve #here environmental conditions
are unpredicta'le
irectional Plan Provide some focus 'ut provides less guidance
than a speci6c plan More di9cult to measure Provides 0e5i'ility " useful #here conditions
are unpredicta'le
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 9/18
Types of Plan Special Purpose
Plans for speci6c pro:ects " eg a
speci6c change programme Standing Plans
!or routine recurring issues "
eg customer complaints
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 10/18
Gathering Information $ny plan depends on information
Information can 'e gathered froma variety of sources " Informal ;soft information<
!ormal $nalyses
anger of information overloadand need to focus on the mostimportant relevant issues
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 11/18
Gathering Information !ormal $nalyses "
Government statistics
Industry surveys Mar*et research Internal analysis S=OT analysis
(ritical Success !actors $nalysis !orecasting Sensitivity $nalysis Scenario Planning
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 12/18
Implementing Plans Particularly challenging part of the
process
Organisations and people are slo#er tochange than plans are to prepare
Successful implementation re4uires " Managerial e5perience Organisational 0uidity (lear plan% #ell communicated Timely access to re4uired resources
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 13/18
Evaluating Plans Important to monitor progress%
evaluate and revisit planned
o':ectives and goals +arious tools used "
Overvie# (hart
/eporting Systems
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 14/18
Evaluating Plans Overvie# (hart
Sho#s progress to date compared to thate5pected
Main events planned Interdependences E5pected (ompletion ates
/eporting System /egular reports " often #ee*ly "
providing details of the currentprogress
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 15/18
Importance of Planning $llo#s managers to have a vie# as to
#here the organisation is at present
$llo#s managers to have a vie# as to#here the organisation should 'e in thefuture
$llo#s managers to assess ho# to move
the organisation for#ard Planning is made comple5 due to an
uncertain e5ternal environment andincomplete information provided to
managers
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 16/18
Importance of Planning Planning instigates managers toparticipate in decision ma*ing a'outorganisational goals and strategies
Planning provides the organisation andits employees #ith a sense of direction "in the a'sence of planning% goal con0ict
#ould 'e more prevalent Planning promotes improved
team#or*
Planning provides a controlmechanism and greater motivation
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 17/18
Importance of Planning Promotes e9cient use of resources
Good Planning should 3 Possess unity )e continuous
Involve accuracy
)e 0e5i'le
Lac* of planning or poor planning " (an lead to poor morale
=aste of resources
8/9/2019 Management and Organisation Planning
http://slidepdf.com/reader/full/management-and-organisation-planning 18/18
Summary Planning carried out in a num'er of iterative steps Planning involves multiple levels% #hich correlate 'roadly
to multiple time horizons +ariety of types of plans " eg )usiness> Speci6c>
irectional> Standing Planning re4uires information gathering " informal and
particularly formal " eg industry survey> S=OT>!orecasting
Implementation is particularly challenging Important to evaluate and *eep trac* of plan
implementation Planning provides a clearer organisational direction
and improves team#or* and motivation Good planning should 'e coherent% continuous%
0e5i'le and 'e 'ased on accurate information