mgt162 chapter2

Planning CHAPTER 2

Chapter Outline

2.1 Definition and importance of planning 2.2 Types of planning and goals

2.3 Strategic Planning 2.4 Mission Statement

2.5 Types of organizational plan/ operational plan

• Planning

• The process of outlining the activities that are necessary to achieve the goals of the organization.

• A Plan

• A blueprint for action: it prescribes the activities necessary for an organization to realize their goals.

Planning Defined: 2.1 Definition and importance of

planning

MGT162/UiTMJOHOR/2013

• The purpose of planning is simple - to ensure that the organization is both effective and efficient in its activities.

Purpose Of Planning:

Importance Of Planning: • Foundation

• Effective & Efficient

• Appopriate

• Guidance & Direction


Better Coordination

Focus on Forward Thinking

Participatory Work Environment

More Effective Control System

Benefits Of Planning:


Steps in the Planning Proess:


Organizational Objectives/Goals

Individual Objectives/Goals

2.2 Types of planning and goals

Types of Objectives/Goals :

Importance of Organizational

Objectives/Goals : 1. Guides For Decision Making

2. Guides For Organizational Efficiency

3.Guides For Organizational Consistency

4. Guides For Organizational Evaluation


In general, most organizations engage in both:

Strategic planning

Operational/Organizational Planning

Types of Planning :


Definition

Mission

Vision

Strategy

Mission Statement

2.3 Strategic Planning


Developing mission statement

Written document

Mission statement; develop

Mission statement; importance Increase the probability

Focus on human effort in a common direction. The mission makes explicit the major targets the organization is trying

to reach. Helps managers keep these targets in mind as they make decisions.

Serves as a sound rationale for allocating resources Guidelines

Help management define broad but important job areas within an organization and critical job that must be accomplish.

2.4 Mission Statement


• Organizational Objectives is defined as the targets toward which the open management system is directed.

• Organizational objectives reflect and flow naturally from the purpose of

the organization.

• The organization's purpose is expressed in its mission statement.

• Useful organizational objectives must reflect and flow naturally from an organizational mission.

The relationship between mission statement & objectives

The purpose of strategic planning To move the organization from where it is to where it wants to be.


“How do we implement our corporate and business strategies?” Functional

“How do we compete in our existing lines of business?” Business

“What business should we be in?” Corporate

PLANNING FOCUS

Levels of strategic planning

PARTICIPANTS

SCOPE & TIME HORIZONS

“Board of directors and top-level executives

Top-level executives and managers within the business unit

Mid-level managers and lower-level managers

Corporate

Business

Business

Corporate

Functional

Functional

Broad strategies5 to 10 year time horizon

More specific strategies1 to 5 year time horizon

Very specific strategies1 to 2 year time horizon


Functional strategy specifies activities necessary to implement the organization's corporate and business strategies.

Operations

R&D

Financial

Human resource management

Marketing

Functional strategic planning


In general, a successful planning process must fit the organization's focus on creating value for its customers and its shareholders.

In other words, it must be customized for the organization based on its specific and unique needs.

Customizing startegic planning process

Types of Planning :

In general, most organizations engage in both:

Strategic planning Operational/Organizational Planning

2.5 Types of organizational plan/ operational plan


Operational planning focuses on the day-to-day activities that are necessary to achieve the long-term goals of the

organization.

Operational plans can be categorized as:

• Standing, or

• Single-use plans

Operational planning:


Standing Plans are designed to deal with organizational issues or problems that recur frequently. They include:

Policies

Procedures

Rules

Standing plan:

Single-use plan: Single-use plans are developed to address a specific

organizational situation. They include: Programs Projects Budgets


1. Managers resistance to plan :

• fear of failure

• Lack of knowledge

• Insufficient knowledge of environment

• Lack of confidence

Barriers to goal setting & planning:

2. Employees resistance to change : uncertainty about the causes and

effect uncertainty about the job


Managers :

Develop and improved communication system

Develop program that enable them to establish

Contact with the various department.

Training and managers’ development program

Increase knowledge and skills.

Recognition and reward

Provide support

Overcoming barriers to planning:

Employees : Allow employees involved in planning process

Give detailed information Guaranty


Leadership & Management

mgt162 chapter2