Planing & descion making

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Group Member’s 1.Sara Jemal 2.Shimelis Birhanu 3.Setegn Addisu4.Selamawit Wolde5.Solomon T/Markos 6.Sisay Tufa

Course Instructor Course Instructor Bonson A. (ass. Bonson A. (ass.

professorprofessor)JAN.15.2017Addis Ababa/

Ethiopia

Presentation Out Line Definition of planning

Planning Terminologies

History of planning Types of planning

Planning Skills Features of Good planning

SWOT & SMART Approach

Barriers & Limitation of planning ?

Why planning fails?

Practical Experience Sharing

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Presentation Objectives

1. Provide an overview of an organizational planning &

Decision Making activities & process.

2. Describe the purpose & future of planning

3. Identify basic required skills to develop planning

4. Identify common barriers and limitations of planning.

5. To illustrate real organizational planning practice

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INTRODUCTION

Basic Managerial Function

PESC MBA Program Organizational Planning Assignment By G1 Members

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1.1 Definition of planning

‘’If you fail to plan, you are planning to fail” B.Franklin

“If you don’t know where you are going, you’ll end up someplace else.” Yogi Berra

“Without the activities determined by planning, there would be nothing to organize, no one to activate and no need to control”. George R. Terry

A goal without a plan is just a wish. Antoine de Saint-Exupéry

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1.1 What Is planning ???

Planning is deciding in advance what is to be done in

future, when, where and by whom it is to be done.

A blueprint specifying the resource allocation,

schedules, and other actions necessary for attaining

goals.

Planning is preparation for action & its a means to an end

It is a process of thinking before doing.

1.2 PLANINING TERMINOLOGIES Mission Reason of Existence Vision A desired future state Values A philosophical priorities Goal A desired future attempts

to realize Objectives The ends toward which

activity is directed8

Strategies A program to attain Object. Policies A framework for making

decisions Plan Specifying & organizing the

resource for meeting goals Planning: Determining org.’s goals & the

means for achieving them

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1.3 PLANING HISTORY

•entered to the public and semi-public sectors during the mid-1980s

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1.3 PLANING HISTORY In Ethiopia CONT…

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1.3 PLANING HISTORY In Ethiopia & History of Planning Institution CONT…


Name of Government Institution Period

Empire Haile Selassie Regime

Planning Board 1952/53 -1973/74

During Dergue Period Central Planning National Committee Office

1974/75-1990

During the Transition Period

Ministry of Planning and Economic Development

1990/91-1994/1995

After the Transition (FDRE)

Ministry of Economic Development and corporation

1995/96-2000/01

Ministry of Finance and Economic Development

2001/02-2012/13

National Planning Commission 2013/2014

1.4 Types Of Planning

1.4 Types Of Planning Cont.…


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Levels of Goals/Plans Managerial Planning Involvement

1.5 Why We Need Planning ???

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Merit Demerit

1. Reduces uncertainty

2. Ensures economical

operations

3. Facilitates control

4. Improves motivation

5. Gives competitive edge

6. Avoids duplication of efforts

1. Limitations of forecasts

2. Rigidity in administration

3. Time consuming process

4. Costly affair

5. Influence of external factors

6. Psychological factors

1.5 Why We Need Planning Cont. …. ???

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A. Organization succeed

B. Efficient utilization of resource

C. Cooperative & coordination effort

D. Direction and sense of purpose

E. Reduce uncertainty

F. Anticipated the future

G. Source of Motivation & Commitment

A. It used a Guides to Action

B. It serves as Standard of Performance

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1.6 PLANNING PROCESS


1.7 FEATURES OF GOOD PLANNING

It is Based on Clearly Defined Objectives

It is Simple It is Flexible It is Comprehensive It is Time-Bound Unity and Continuous It is Balanced, Practicable

and Suitable According to the Size and form of the Business

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It uses Available Resources to

the Utmost before Creating New

Authorities and New Resources

Participation by Subordinates

Pervasive as all the levels of

management plan

It Provides for a Proper Analysis

and Classification of Action

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1.8 SKILLS REQUIRED FOR PLANNING

1.8 SKILLS REQUIRED FOR PLANNING Cont.….

Forecasting techniques

1.8 SKILLS REQUIRED FOR PLANNING Cont.…

2.2 Steps In Decision Making 1. Ascertain the need for a

decision

2. Establish decision criteria

3. Allocate weights to criteria

4. Develop Alternatives

5. Evaluate Alternatives

6. Select the Best Alternative

7. Putting Decision Into Action

8. Following up Decisions

Decision Making Process

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2.3 Types of in Decision Making

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2.4 Decision making situations

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1.9 DECISION-MAKING CONDITIONS


Plan Developed

By:

Advantages Disadvantages

Full Board of Directors

Ownership by leadership Board becomes more

informed about programs and activities

Time availability may be limited and scheduling difficult

May not achieve staff ownership

Staff Clear understanding of operation

Time flexibility

Limited board involvement and subsequent ownership

May detract from other staff responsibilities

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1.9 DECISION-MAKING CONDITIONS Cont.…


Plan Developed

By:

Advantages Disadvantages

Committee Manageable size Can include a variety of

perspectives (such as board, staff, partners, constituents, etc.)

Full board may not feel sense of ownership of plan details

Board perspectives may be excluded

Consultant Good understanding of planning process

Should produce timely and professional-looking plan

Limited board and staff participation may lead to limited sense of ownership of plan details

Limited board leadership development

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1.10 SWOT ANALYSIS IN PLANNING


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1.10 SWOT ANALYSIS IN PLANNING CONT….


Acronym Description Basic Parameter

S Strength

It Could be:

a)Adequate Technical expertise

b)Adequate financial resources?

c)Good competitive skills & Cost advantages?

d)Good Will by customers?

e)Product/service innovation abilities?

f)Proven management? & Acknowledged market leader

W WEAKNESS

It is something that a company lacks.

a)Less competent staff & Insufficient funds?

b)Lack of goodwill in the market & Poor profitability?

c)Obsolete plant and machinery & small portfolio ranges

d)No clear strategic direction?

e)Lack of managerial depth or talent?

f)Absence of key skills or competencies?

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1.10 SWOT ANALYSIS IN PLANNING CONT….


Acronym Description Basic Parameter O OPPORTUNITIES It Could be:

a)To enter in a new product line b)To expand the company’s existing product lines c)To enter into the foreign markets d)To acquire the rival firms e)To create new alliances to increase competitive strength. f)To use latest technologies in the business.

T THREATS on any undertaking: A) New competitors may enter the field B) Customers purchasing substitute products C) New technology making products obsoleteD) Slow down in the market leading to slump.E) Change in government policies F) Shift in buyers needs and tastes

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1.11 SMART APPROACH


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1.11 SMART APPROACH


Acronym Description Developing SMART Goals

S Specific . A specific goal will usually answer the five "W" questions:What: What do I want to accomplish?Why: Specific reasons, purpose or benefits of accomplishing the goal.Who: Who is involved?Where: Identify a location.Which: Identify requirements and constraints.

M Measureable A measurable goal will usually answer questions such as:

• How much?• How many?• How will I know when it is accomplished?

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1.11 SMART APPROACH CONT…


Acronym Description Developing SMART Goals

A Attainable An attainable goal will usually answer the question:

•How: How can the goal be accomplished?R Relevant A relevant goal will usually answer the question:

Does this seem worthwhile?T Time Bound A timely goal will usually answer the question:

When?What can I do 6 months from now?What can I do 6 weeks from now?What can I do today?

R Reevaluate

Reward

Reevaluate each goal to make sure they are still relevant and attainable.

Once goals have been accomplished, celebrate in their accomplishment and start developing new SMART goals.

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1.12 BARRIERS TO EFFECTIVE STRATEGIC PLANNING Cont.…

S/N Barriers to Strategy

Formulation

Barriers to Strategy Implementation

How to Remove Barriers?

1 Identical procedures Lack of accountability Clear Communications

2 Strict limitations Lack of commitment Manage the Change Process

3 People Inadequate instructions

to employees

Participation of employees

in planning process

4 Emphasized

ceremonial work

Power & Influence: Regular checks

5 Limited discussion Culture Accountability

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1.13 LIMITATIONS TO EFFECTIVE PLANING

1.14 WHY PLANNING FAIL ???

1. Lack of top management’s commitment

2. Lack of control Mechanism

3. Entrenched self-interests

4. Corporate culture.

5. Fear

6. Ignorance

7. Failing to periodically alter the plan

8. Deviation from actual objectives

9. Lack of confidence about success

11. Lack of understanding of the role in the execution process

12. Deviation from planned objective

13. Changes in responsibilities of employees were not clear

14. People are not fully rewarded for the execution of plans

15. Inadequate directions given by departmental mangers

16. Information system used for implementation is inadequate

17. Overall goals are not understood by employees

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1.14 WHY PLANNING FAIL In Ethiopia???

1. Hiwote Abate Research Lack of awareness in the

organization vision Lack participation in formulation of

SP Don’t carried out effective SWOT

Analysis Don’t annually reviewed SWOT

Analysis Don’t considered dynamic business

environment No KPI for the evaluation of SP lack of employee’s motivation and

reward systems strategies design No subsequent evaluation strategies 37

2. Assefa Beyene Research Minimal and ineffective communication

There was also lack of adequate

monitoring, follow up and feedback

systems.

Decisions were made without aligning

SP document.

Lack of adequately share their

institution’s vision

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REFERENCE

1. Marx, T. G. (1991). "Removing the obstacles to effective strategic planning." Long

Range Planning24 (4): 21-28.

2. Butler, J. E., B. Brown, et al. (2000). "Guanxi and the dynamics of overseas Chinese

entrepreneurial behavior in Southeast Asia." Management and Organizations in the

Chinese Context, Macmillan, Basingstoke: 245-268.

3. Cascella, V. (2002). "Effective strategic planning." Quality progress35(11): 62-67.

4. Al-Ghamdi, S. M. (1998). "Obstacles to successful implementation of strategic

decisions: the British experience." European Business Review98(6): 322-327.

5. International Institute for Educational Planning. (2010). Strategic planning: Concept

and rationale.PESC MBA Program Organizational Planning Assignment By G1 Members

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REFERENCE CONT ….

6. Caillods, F. 1989. ‘The prospects for educational planning’. A workshop organized by IIEP

on the

7. occasion of its 25th anniversary. Paris: IIEP–UNESCO.Kaufman, R.; Herman, J. 1991.

Strategic Planning in Education: Rethinking, restructuring, revitalizing. Lancaster, PA :

Technomic Publishing Company.

8.Williams, J.H.; Cummings, W.K. 2005. Policy-making for Education Reform in Developing

Countries:Contexts and processes, Vol. 1. Lanhan, MD: Rowman and Littlefi eld Publishing

Group.

9. Hiwot Abate(2016), Assessment on formulation and execution of strategic plan: in the case

of moha soft drinks industry s.co. Unpublished master’s thesis, Saint Mary’s University.

10. Team FM (2013. SWOT Analysis Strategy skills: www.free-management e-book.com

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REFERENCE CONT ….

11. Assefa Beyene Bassa. The Practice of Strategic Planning and Strategy Implementation in Public

Universities of Ethiopia Educational Planning 17 Vol. 22, No. 2

12. Management, Tenth Edition: Richard L. Daft, & Patricia G. Lane , Vanderbilt University

13. This is the book Management Principles (v. 1.0):-nc-sa 3.0 (

http://creativecommons.org/licenses/by-nc-sa/ 3.0/)14. Shane P. Desselle/David P/2009/Second edition: Pharmacy Management, Esential for all practice seting15.The Federal Democratic Republic of Ethiopia, The Second Growth and Transformation Plan (GTP II), (2015/16-2019/20)(Draft), National Planning Commission, September 2015, Addis Ababa16. The Ethiopian New,Institutional, Framework,Habtamu Getachew17-18 Nov 2015,Incheon, South Korea17. Tesfaye Asfaw,The Ethiopian Economy: Structure, Problems and Policy Issues, AN OVERVIEW OF ETHIOPIA'S PLANNING EXPERIENCE

http://creativecommons.org/licenses/by-nc-sa/

“If you don’t know where you are going, you’ll end up someplace else.” Yogi Berra,

THE END!!! THANK YOU!!!

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Leadership & Management

Planing & descion making