Planning

• PLANNING:

  • gives direction
  • forces mangers to be future-oriented
  • enables organisation to deal with changes in the business environment
• BENEFITS OF PLANNING:

  • ensure cohesion: enables the top management to see the organisation as a total system
  • promotes coordination
  • provides direction in the organisation in the form of goals and plans
  • reduces the impact of change from the environment
• COSTS OF PLANNING

  • may create rigidity
  • consumes management time
  • can delay decision making
  • formal plans can replace intuition and creativity
• IMPORTANCE OF GOALS:

  • goals can INSPIRE AND MOTIVATE EMPLOYEES
  • goals can PROVIDE GUIDANCE AND AGRREMENT
  • EFFECTIVE GOAL SETTING PLAYS AN IMPORTANT ROLE IN THE SUCCESS OF ORGANISATIONS
  • FACILITATE EFFECTIVE PLANNING [in terms of resource deployment]
  • PROVIDE A BASIS FOR EFFECTIVE EVALUATION
• CRITERIA FOR EFFECTIVE GOALS: [S.M.A.R.T framework]

  GOALS SHOULD BE

  • SPECIFIC
  • TIME BOUND
  • ATTAINABLE
  • RELEVANT
  • MEASURABLE
• Planning is the FIRST step in the management process
• Planning provides direction

  managers ensure that the organisation attains EFFECTIVENESS [providing products and services required as human wants] and EFFICIENCY [products and services are sold at a suitable low cost possible]
• main questions unto setting goals and plans

  1. WHERE do we want this organisation to be at a specific future date?
  2. HOW will the organisation achieve its goals?
• 2 components of planning

  • GOALS
  • PLANS
• NATURE OF GOALS:

  • goals may be publicly stated or not
  • goals are the starting point of the planning process
  • the focus of goals differs because different goals pertain for different aspects of the organisation
  • goals may be short, intermediate or long-term
• • Official goals: are formally and publicly declared
  • Operative goals: they represent the private goals of an organization
• MBO GOAL-SETTING TECHNIQUE:

  1. manager and employee discuss employee's job description
  2. employee establishes performance targets
  3. manager and employee mutually establish checkpoints
  4. evaluation of degree of goal-attainment
• MBO management by objectives:

  • management by objectives is a system where mangers and employees define goals for every department,project and person, use them to monitor subsequent performance
• MBO ADVANTAGES: - Employees are more motivated - Employees are more productive - Employees are more satisfied
• MBO ADVANTAGES:

  • managers and employees at all levels focus their efforts on the attainment of goals
  • if goals are implemented correctly, it can have a motivational effect on employee performance
  • if technique is reduced to an annual process of filling in forms, which are then filed and forgotten, this has a negative effect on employee motivation

  DISADVANTAGES:

  • if technique is reduced to an annual process of filling in forms, getting filed and forgotten, this demotivates employee and causes poor employee performance
• THE NATURE OF PLANS:

  • a plan is a blueprint for goal achievement
  • managers consider alternative plans in order to choose the best plan
  • external factors, strengths and weaknesses, and costs affect the chosen plan