OM - Planning

• Effective planning enables us to address business situations and improve the way we conduct our personal lives.
• Planning is the primary management function that determines and outlines the system to be followed by the business.
• A system is composed of frameworks that define the operations tasks, and relationships within a business.
• Inputs in a system are raw materials, money, technology and people.
• Outputs in a system are the tangible results of business processes such as products or services.
• Processes in a system are the activities that transform inputs into outputs.
• Outcomes in a system are the impacts brought about by outputs.
• Outcomes include benefits to consumers, workers’ remuneration and environmental and social impacts.
• NATURE OF PLANNING

  • Planning is a primary management function. 
  • Planning is significant.
  • Planning is by nature an intellectual exercise. 
  • Planning is also a continuous process.
• Level of Managements conduct planning:

  • Top Management the goals comes up with general plans, which are given to Lower Management.
  • Lower Managers - conduct their own planning to implement the general plans and come up with concrete means to achieve the goals of top management.
• VISION STATEMENT

  • describes what the company wants to achieve and where it wants to go in the future. 
  • determines the course and direction of the company.
  • identifies which markets, technologies, products or customers to focus on.
• MISSION STATEMENT

  • Describes a company’s reason for its existence. It answers the question why the company exist. 
• Graphic vision projects to the market the kind of company that the management wants to create and kind of the company that it aspires to be.
• Directional vision describes the path where the company wants to go and presents specific plans to move forward in the future.
• Focused vision is very specific so managers are properly guided on what to do in terms of resources and strategies.
• Flexible vision allows room for managers to change based on market situations, technological advancements, and customer preference.
• Feasible vision is achievable and realistic.
• Goals 

  • specific accomplishments or actions plans that are usually attained after a long period. 
  • broader in scope because the intentions are more general and involve outputs that are intangible and non-measurabl
• Desirable vision is clear on why the path is practically sensible and serves the interest of members in the long run.
• Easy to communicate vision is easy to understand, articulated, and can be simplified into a powerful slogan.
• Objective 

  • to action plans that involves shorter periods and more measurable outputs. These tend to be more specific and result in tangible outcomes.
• TYPES OF PLANNING

  1. STRATEGIC PLANS by the top management

  • broad plans based on the company’s vision, mission, and values that address the company as a whole.
  • used to create more specific plans that will boost the company’s well-being.

  2. TACTICAL PLANS 

  • focuses on creating plans for specific areas of the company. 
  • translate broader plans into functional goals for each department.

  3. OPERATIONAL PLANS 

  by frontline / low-level managers

  • marketing campaigns, campus recruitment.
  • formulation of ongoing plans that define specific operations of the organization.
• Policy is a set of principles that guide managers in addressing a particular issue.
• Rule is a regulation which describes and regulates the functions of an organization.
• Procedure is a step-by-step process in accomplishing a task or achieving an organization.
• Contingency plans are created to manage all possible risks that may arise from the original plan.
• Crisis management plan is a plan made for any kind of crisis such as industrial disasters or natural disasters.
• Scenario planning involves plans for both positive and negative scenarios that may arise from implementation of plans.
• PLANNING PROCESS

  first : Formulate the goals and objectives 

  V

  second: Identify the courses of actions 

  V

  third: Assign responsibilities 

  V

  fourth: Document the plan and distribute to people concerned 

  V

  fifth: Review the plan and adjust accordingly
• Corporate strategy is usually conceptualized by the chief executive offices and other members of the top management.
• General business strategy is concerned with building a competitive advantage for a single business unit of a diversified company.
• Functional strategy determines a particular function or process and is formulated by middle management officers or managers on the department.
• Operational strategy is a narrower and more focused strategy formulated by low-level managers or frontline supervisors.
• Financial Resources refer to the capital or investment that a company needs to start and sustain the business.
• Human Resources are the company’s primary assets and are composed of employees who possess the skills and competencies needed for specific tasks and operations.
• Physical Resources include production facilities, distribution channels, and information technology systems that enable the execution of strategies.
• Brainstorming is a common technique that stimulates thinking and allows the group to work together in generating ideas.
• Brainstorming has no restrictions to the flow of ideas and encourages every member to contribute their thoughts on the plan.
• Brainstorming is a more informal and unstructured technique.
• Nominal Group Technique is a highly structured technique that allows members to contribute their own inputs based on the agenda.