Module 4 - PLANNING

ORGANIZATION FUNCTIONS:
PLANNING
Outlines:
• Basic Elements Of Planning
• Organizational planning
• Management goal setting and
planning
• Levels and Types of Plans
• Planning Process
6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 1
cont
WHAT IS PLANNING?
Simply defined, Planning is the
process which determines what
needs to be done, who will do it, what
resources will be needed, within what
time scale and how it is to be done.
In an organizational context, this
involves decisions by management
about:
Cont…
 What objectives organization wants to
achieves?
 What actions to be taken to achieve them
(How?).
 When should actions be taken to achieve
them?
 What organizational position (who) is
assigned to do them, and
 Who will be responsible for actions
needed?
Some importance of Planning
Focuses attention on objectives and
results.
Reduce uncertainty and risk.
Provide sense of direction.
Encourages innovation and creativity.
Helps in coordination.
Guides decision making
Provides a basis for decentralization.
Facilitates control etc.
KEY CONCEPTS IN
OGANIZATION PLANNING
Mission
Vision
Goal
Plans

MISSION
 An organization’s mission is its overall
purpose. It answers the question: What’s
the organization supposed to do?
 A mission statement is a document that
sets the organization’s purpose into
words and defines the organization’s
scope of operation’s allowing for
everyone to channel energies in the same
direction.

cont
MISSION AND VISION

A mission should not be confused
with a vision, which is a distant
dream-a management’s view of
the organization’s future state.
 A mission is designed to help the

cont
The organization’s raise

vision.
A vision is more of a goal
while a mission is the
means by which the vision
is achieved.
GOALS/OBJECTIVES
Although some people use the two

terms by synonymously, there is a
difference between the two
(Ramadhan, D.J,et.al. 1985).
A goal is a broad, long –range target
of the organization.
An objective is a specific short –range
target to be synonymous.
Types of Goals
Tactical goal (also called business-
level goals ) are set by top and middle
managers and are targets for future
results to be achieved by specific
division or functional units of the
organizational.
Operational goals(also called
functional level goals) are set by
middle managers and first line
cont
managers as specific targets to be

achieved by departments and
individuals the functional units or the
business divisions. When applied to
functional units these goals cover
particular short-term results needed to
support the organization’s tactical and
strategic goals.

CHARACTERISTICS OF EFFECTIVE
GOALS/OBJECTIVE
Managers should be sure that the goals they
set are SMART, that is:
 Specific
 Measurable (SMARTER)
 Attainable
 Relevant
 Time-defined.
 Evaluate
 Review
cont
Specific-i.e. clear and precise, so that

managers understand exactly what is
expected
Measurable- i.e. capable of being
assessed so that progress can be
evaluated.
Attainable-i.e. realistic and capable of
being achieved with the resources
available.
cont
Relevant-to the mission and to the

higher level goals as well as
appropriate to the managers scope of
responsibility and skills also
challenging in order to motivate
managers to achieve results while
developing and improving their own
managerial skills.

cont
Time-bound-i.e. given a time frame

to enable the measurability of goals a
well as facilitate coordination of
organizational activities during the
appropriate period and provide a
deadline for performance.

Cont…
Evaluate - to ensure that your goals are

evaluated. By evaluating your goals every
single day, you’ll be much more likely to
achieve them. Why is that? Well, long-term
goals (and also goals that are 3 months or
6 months out), can easily be ignored if they
aren’t evaluated every single day.

Cont…
Re-adjust - to re-adjust your approach. If,
for example, you find yourself pursuing a
goal but continuously hitting a brick wall,
readjust your method and techniques. For
example, when a plane has a goal of flying
from LAX to MIA, it has to constantly
evaluate its progress and readjust its
approach to ensure that it reaches its
target. The plane constantly evaluates and
readjusts until it arrives in MIA. You should
be doing the same for your goals.
BENEFITS OF SMART
GOALS/OBJECTIVES
Setting SMART goals
Increases employee motivation
Provides standards by which
individuals and group performance
can be measured;
Guide employee activity; and
Clarifies management’s expectation.

LEVELS OF PLANS
To achieve ends represented

by organizational goals,
managers prepare a plans to
identify the means by which
goals are pursued.

Strategic plans
Strategic plans-are actions designed
to accomplish strategic goals, usually
defined for periods of two to five
years. The generally cover resources
allocations and define a broad scope
of longer-term organizational actions
designed to attain strategic goals.
They are developed by top
managers,who consult with board
Tactical plans
Members and middle managers.
Tactical plans- are actions

designed to achieve the
organization’s tactical goals and
to support strategic plans, usually
defined for shorter periods than
strategic plans.
cont
They consists of specific ations to be

taken by business divisions or
individuals groups and are therefore
narrower in scope than strategic
plans.
They are developed by middle
managers, who consult with first line
managers before committing to top
management.
Operational plans
 Operational plans are actions
designed to achieve the
organization’s operational goals.
 They support the implementation of
tactical plans, and they specifically
define necessary decisions and
actions to be taken by divisions or
functional department.

Types of plans
To achieve desired results, managers
seek to match the type of plan they
use to the situation they face.
Generally ,plans are needed to
handle three types of situations: one-
time situations not likely to recur,
situation that recur regularly and
situation less likely to occur.

1. Single use plans
Programme
Project
Strategy
Budget
Schedule
Procedure

2. Standing Plans
These are plans used in a situation
that recur regularly and situation less
likely to occur (Ready made
solutions). These include;
Laws
Rules
Regulations
Policies etc.

3. Contingency Plans
o Contingency plans are
alternative courses of action to be
followed in the event of influential
environmental shifts that were not
considered in the original plan.
o Contingency planning covers less
likely events.

Why contingency planning?
Rarely do situations unfold exactly as

managers have planned.
At times ,unexpected environmental
shifts such as economic recession
and severs weather conditions can
cause serious problems that require
managerial response if goals are to
be achieved.

PLANNING TIME FRAME
Organizational planning covers

three types of planning
frame(Bovee,1993)
Long –range planning
Short-range planning.
Intermediate-range planning and

cont
Long –range planning

This encompasses strategic goals and
plans that may extend more than 5
years into the future, although the
exact time horizon varies from
organization to organization.

cont
Intermediate range planning

This generally covers time spars from
1-5 years and involves tactical goals
and planning. Again, the exact time
from depends on the circumstance of
each organization.

cont
Short –range planning

This covers operational goals
and plans and to manage
activities for the periods of 1
year or less.

THE ORGANIZATIONAL
PLANNING PROCESS
The organizational planning process
includes according to Bovee,(1993)
four distinct stages;
o Developing the organization mission
o Setting organizational
objectives/goals
o Developing organizational plans
o Implementation.
MANAGEMENT BY OBJECTIVE
MBO has been define by

Bovee,(1993) as “the collaborative
process by which managers and
employees jointly set mutually
agreeable goals, define the
responsibility for achieving these
goals, and determine the means of
evaluating individual and group
performance.
THE MBO PROCESS
The MBO process is an ongoing cycle

of four steps (Bovee,1993):
 Setting goals
 Planning action
 Implementation plans, and
 Reviewing performance.

Setting Goals
This is the first step, whereby top

managers formulate the overall
organizational goals and plans and
then work with middle managers to
develop goals for the organizational
divisions or units they manage.
In turn middle managers work with
first line managers to set goals for
their department or groups.
cont
During this process ,managers and

employees at all levels, in
collaboration with their supervisors,
also set individual goals for
performance.
Planning action
In the second step, managers
cont
Determine exactly how their individual

and group goals will be accomplished.
During action planning ,managers
decide on the “who, what, when,
where, and how” details needed to
achieve each objectives.
Managers also prepare a schedule for
the action plan to ensure that goals
are reached on time.
Implementing plans
• Once managers have made a
commitment to achieve specific goals
and have received approval for their
plans, the third step is
implementation.
• This involves carrying out the actions
plan devised in step two by getting
the right person perform designated
activities within the framework and
resources.
Reviewing performance
In the last step of the MBO, Process,

managers periodically review the
performance of the people they
supervise and evaluate how well the
plans are working in achieving group
and individual goals.
During review, managers and their
personnel:

cont
Identify any obstacles to performance

Discuss how these obstacles can be
overcome and
Discuss any corrective action
necessary to put the plan back on
track.

6/14/2020
Thanks
Facilitator: Dr. Bangi, Y ybangi67@gmail.com 42

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ORGANIZATION FUNCTIONS:

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 5

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MISSION AND VISION

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The organization’s raise

Although some people use the two

managers as specific targets to be

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 11

Specific-i.e. clear and precise, so that

Relevant-to the mission and to the

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 14

Time-bound-i.e. given a time frame

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 15

Evaluate - to ensure that your goals are

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 16

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 18

To achieve ends represented

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Tactical plans- are actions

They consists of specific ations to be

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6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 24

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 25

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 26

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 27

Rarely do situations unfold exactly as

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 28

Organizational planning covers

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 29

Long –range planning

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 30

Intermediate range planning

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 31

Short –range planning

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 32

MBO has been define by

The MBO process is an ongoing cycle

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This is the first step, whereby top

During this process ,managers and

Determine exactly how their individual

In the last step of the MBO, Process,

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 40

Identify any obstacles to performance

6/14/2020 Facilitator: Dr. Bangi, Y ybangi67@gmail.com 41

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