Cptr 2

• Planning


  A primary managerial activity that involves: Defining the organization's goals, Establishing an overall strategy for achieving those goals, Developing plans for organizational work activities
• Formal planning


  • Specific goals covering a specific time period.
  • Written, well planned, and shared with organizational members.
  • It is a structured plan.
  • It has procedure to follow.
  • Eg. Five years plan for a country.
• Informal planning


  • Occurs on the spot and sudden plans take place.
  • It is unstructured plan.
  • It does not have procedure to follow.
  • No record is maintained for future purpose.
• Purposes of Planning


  • Provides direction
  • Reduces uncertainty
  • Minimizes waste and redundancy
  • Sets the standards for controlling
• Formal planning and performance

  
  

  • Higher profits and returns on assets.
  • Positive financial results.
  • The quality of planning and implementation affects performance more than the extent of planning.
  • The external environment can reduce the impact of planning on performance.
• Goals (also Objectives)


  • Desired outcomes for individuals, groups, or entire organizations.
  • Provide direction and evaluation performance criteria.
• Plans


  • Documents that outline how goals are to be accomplished.
  • Describe how resources are to be allocated and establish activity schedules.
• Types of Goals


  • Financial Goals - related to the expected internal financial performance of the organization.
  • Strategic Goals - related to the performance of the firm relative to factors in its external environment (e.g., competitors).
• Examples of financial goals


  • Paying off debt
  • Saving for retirement
  • Building an emergency fund
  • Buying a home
  • Saving for a vacation
  • Starting a business
  • Feeling financially secure
• Examples of strategic goals for business processes


  • Increase web traffic
  • Number of publications
  • Vendor performance
  • Restructure organization
  • Implement software project
  • Grow through acquisition
  • Increase value of projects and manage growth
• Strategic Plans


  • Establish the organization's overall goals.
  • Seek to position the organization in terms of its environment.
  • Cover extended periods of time (long term).
• Operational Plans


  • Specify the details of how the overall goals are to be achieved.
  • Cover a short time period.
• Business Objectives


  • To expand the business aggressively and offer above-average returns to shareholders
  • To become the leading, innovative systems company within the xx market segments
• Strategic Planning


  • Accelerate product launches by strengthening R and D team
  • Raise additional venture capital
  • Strengthen human resources function and introduce share options for staff
  • Seek new market segments/applications for products
• Long-Term Plans


  Time frames extending beyond three years
• Short-Term Plans


  Time frames of one year or less
• Specific Plans


  Plans that are clearly defined and leave no room for interpretation
• Directional Plans


  Flexible plans that set out general guidelines and provide focus, yet allow discretion in implementation
• Single-Use Plan


  A one-time plan specifically designed to meet the need of a unique situation
• Standing Plans


  Ongoing plans that provide guidance for activities performed repeatedly
• Types of Goals


  • Stated goals
  • Real goals
• Stated goals


  The goals that are make known to outsiders, Stated in the official statement, Official statements of what an organization says-and what it wants its stakeholders to believe
• Real goals


  Actually been targeted by the organization, Actively pursued and reflected by the actions of the members of organization
• Traditional Goal Setting


  • Broad goals are set at the top of the organization
  • Goals are then broken into sub-goals for each organizational level
  • Goals are intended to direct, guide, and constrain from above
  • Goals lose clarity and focus as lower-level managers attempt to interpret and define the goals for their areas of responsibility
• Means-Ends Chain


  The integrated network of goals that results from establishing a clearly-defined hierarchy of organizational goals, Achievement of lower-level goals is the means by which to reach higher-level goals (ends)
• Management By Objectives (MBO)

  Specific performance goals are jointly determined by employees and managers, Progress toward accomplishing goals is periodically reviewed, Rewards are allocated on the basis of progress towards the goals
• Key elements of MBO


  • Goal specificity
  • Participative decision making
  • An explicit performance/evaluation period (time period)
  • Feedback
• Reasons for MBO Success: Top management commitment and involvement
• Potential Problems with MBO Programs: Are less effective in dynamic environments that require constant resetting of goals, Overemphasis on individual accomplishment may create problems with teamwork, Allowing the MBO program to become an annual paperwork shuffle
• Steps in Goal Setting: 1. Review the organization's mission statement, 2. Evaluate available resources, 3. Determine goals individually or with others, 4. Write down the goals and communicate them, 5. Review results and whether goals are being met
• Example SMART goal


  • I will obtain a job as a high school math teacher within three months after graduating with my Bachelor of Science in Education
• Contingency Factors in Planning: Manager's level in the organization, Degree of environmental uncertainty
• Appropriate degree


  The degree that is relevant for the job
• Relevant


  The goal setter is planning to get a job in the education industry after getting an education degree
• Time-based


  The goal setter has set a deadline to achieve their objective within the three months following graduation
• Steps in Goal Setting

  1. Write down the goals and communicate them

  2. Review results and whether goals are being met
• Is everybody on the same page?


  Checking if everyone understands the goals
• What changes are needed in mission, resources, or goals?

  Evaluating if changes are required after reviewing the results
• Contingency Factors in Planning


  • Manager's level in the organization
  • Degree of environmental uncertainty
  • Length of future commitments
• Strategic plans


  Plans at higher levels of the organization