Professional Documents
Culture Documents
AS A FUNCTION OF MANAGEMENT
PLANNING
It is the first and the most critical functin
Planning is a activity of management.
fundamental
the managerial functions because
to many planning is the mnost basic of all
of manager. According
staffing and controlling Planning makes an
a .
all other functions, including leading, organising, need of an organisation. It aims towards
future by assessing the current
organisations ready for the
the goal.
various strategies required towards achieving
for all sorts of things that may or will occur
The managers spend much of their time planning
will create a plan that is aimed at accomplishing some
in the organisation. Typically, a manager
sales or improving customer service. However, it is important
organisational goal such as increasing
to note that planning is an ongoing step
that can be highly specialised based on an organisation's
and team goals. It is upto the manager to recognise what
goals, division goals, departmental goals
individual area.
goals need to be planned within their
For example, let's say Erin the enrollment manager has noticed a steady
decline in the amount
enrollments in that
of students enrolling in the business program, so she creates a goal to increase
area. Erin must irst spend time mapping out the necessary steps she and her team of enrollment
advisors need to take to increase the enrollment numbers of undergraduate business students. These
steps might include things like increasing online advertisements on business-related sites, creating
a new advertisement for television or radio, asking current business students to talk to their friends
and family about enrolling in the program or going out to local high schools or community colleges
to speak directly with students who may be enrolling at the university in the next semester. The
sieps are then organised into a logical pattern so that Erin and her team can follow it.
Here are some of the
why it is a good idea for managers to plan:
reasons
Managers canexamine critical issues facing the organisation instead of waiting for them
to blow up in their face. Allowing uncertainty, high risk and doubt to rule in an organis*
1s never a good idea. Planning allows a manager to determine nd
define a means of organisational goals a
achieving them.
38
PLANNING 39
(d) Moreover objectives focus the attention ofmanagers on the end results to be achiev
() As a matter of fact, objectives provide nucleus to the planning process. Therefor
hieved.
objectives should be stated in a clear, precise and unambiguous language. Other
the activities undertaken are bound to be ineffective. wiSe
(d) This enables the management to correct deviations modify the plan.
or
function.
(e) This step establishes a link between planning and controlling
so that in the light
(1) The follow up must go side by side the implementation of plans
of observations made, future plans can be made more realistic.
CHARACTERISTICS OF PLANNING
1. Planning is goal-oriented.
made to achieve desired objective of business.
(a) Planning is
otherwise individual efforts & energies
(b) The goals established should general acceptance
will go misguided and misdirected.
identifies the action that would lead to desired goals quickly economically.
&
(c) Planning
to various activities. E.g., Maruti Udhyog is trying to
(d) It provides sense of direction
Car Market by launching diesel models.
capture once again Indian
2. Planning is looking ahead.
future.
(a) Planning is done for
it and predicting it.
(6) It requires peeping in future, analysing
(c) Thus, planning is based on forecasting.
(d) A plan is a synthesis of forecast.
in future.
(e) It is a mental predisposition for things happen
to
42
PERSPECTIVE MANAGEMENT
weinra
express goals.
.Goals should cover key result areas: Because goals cannot be set for every aspect of
employee or organisational performance, managers should identify a few key result areas.
These key areas are those activities that contribute most to company performance- for
example, customer relations or sales.
Goals should be challenging but not to0 difficult: When goals are unrealistic, they set
employees up for failure and lead to low employee morale. However, if goals are too
casy, employees may not feel motivated. Managers must be sure that goals are determined
based on existing resources and are not beyond the team's time, equipment, and financial
resources.
PERSPECTIVE MANAGEMENT
Goals should specify the time period over whlch they wll be achieved: Deadlites
toward and help ensure continued progress AL
give team members something to work
the same time, managers should set short term dendlines along the way so that thei
subordinates are not overwhelmed by one big, seemingly unaccomplishable gosl It woul
be more appropriate to provide a short term goal such as, "Establish a customer datatase
by June 30."
Goals should be linked to rewards: People who attain goals should be rewarded with
and related to the goal. will employecs feel that their
Not only
something meaningful
efforts are valued, but they will also have something tangible to motivate them in the
future.
All the different levels of management should have plans that work together to acconplish
the organisation's purpose. The plans of the top, middle, and first level managers of an organisation
should work together to achieve the main goal
All managers plan basically the same way, but the kinds of plans they develop and the amount
of time they spend on planning vary. Here are some examples:
Top level managers are concerned with longer time periods and with plans for larger
organisational units. Their planning includes developing the mission for the organisational
units, the organisational objective, and major policy areas. These goals are called strategic
goals
or objectives.
Middle level managers' planning responsibilities center on translating broad objectives
of top level management into more
specifie goals for work units. These goals are
called factical goals or objectives.
First level managers are involved in
day to day plans, such as scheduling work hours,
deciding what work will be done and by whom, and
developing structures to reach these
goals. These goals are called operational goals
or
objectives.
Ifa first level manager develops a set of
plans that contradicts that of a middle level manager,
conflicts will result. Therefore, all
managers must work together when
and the activities of others. planning their activities
TYPES OF PLANS
Plans commit individuals,
actions for the future. departments, organisations, and the resources of cach to
Effectively specificC
achievement of goals at low levelsdesigned organisational goals fit into a hierarchy s0 that the
called a means ends chain because low permits the attainment of high level
level goals lead to goals. This process is
Three major types of accomplishment of high level goal
plans can help managers achieve their
tactical, and operational. Operational
lead to the attainment plans lead to the achievement organisation's goals:strategic
of tactical plans, which in
also develop a
of strategic plans. In addition to these three turn
types of plans, managers
contingency plan case their original plans fail.
in
shou
PLANNING 45
Operational Plans
The specific results expected from departments, work groups, and individuals are the operational
goals.These goals are preciseand measurable. "Process 150 sales applications each week" or
the middie manager's reuponsibility to take the broad strategie plan and identify specific tacto
actions.
ctical
Strategical Plans
A strategie plan is an outline of steps designed with the goals of the entire organisation as,
as a
whole in mind, rather than with the goals of specific divisions or departments. strategic planniny
begins with an organisation's mission.
Strategic plans look ahead over the next two, three, five, or even more years to move
the
organisation from where it currently is, to where it wants to be. Requiring muitilevel involvement
thexe plans demand harmony among all levels of management within the organisalion. Top levei
management develops the directional objectives for the entire organisatiOn, while lower levels of
managcment develop compatible objectives and plans to achieve them. Top management's strategic
plan for the entire organisation becomes the framework and sets dimensions for the lower leyel
planning.
Contingency Plans
Intelligent and successful management depends upon a constant pursuit of adaptation, flexibility,
and mastery of changing conditions. Strong
management requires a "keeping all options open"
approach at all timesthat's where contingency planning comes in.
Contingency planning involves identifying alternative courses of action that can be implemented
if and when the original
plan proves inadequate because of changing circumstances.
Kecp in mind that events beyond a manager's control may cause even the most
prepared alternative future scenarios to go awry. Unexpected carefully
When they do, managers may need to problems and events frequently occur
change their plans. Anticipating change during the planning
process is best in case things don't go as
the existing plan and ready them for use whenexpected. Management can then develop alternatives to
and if circumstances make these
alternatives appropriate
BARRIERS TO PLANNING
Various barriers can inhibit successful
yicld the desired results, managers must planning. In order for plans to be effective and to
them. The common barriers that identify any potential barriers and work to
inhibit successful overcome
planning are as follows:
Inability to plan or inadequate planning:
plan. Some managers are not successful Managers are not born with the
and/or ability. Others planners because they lack the ability
may have never been
taught how to plan. When background, education.
managers take the time to plan, these two types o
they may not know how to
Lack of commitment to the conduct planning
it is much easier planning process: The development a
as a
proces
for a of plan is hard wo
manager to claim that he or she
through the required planning
process than to actually
doesn't have the time to wo
plan. (The latter, of devote
reason for lack of course, would save them more time in the
the time to
commitment can be fear of
developing
to do little or long run!) Another P sible
nothing to hclp in the failure. As a result,
planning process. managers may
PLANNING 47
.Inferior information: Facts that are out of date, of poor quality, or of insufficient quantity
can be major barriers to planning. No matter how well managers plan, if they are basing
their planning on inferior information, their plans will probably fail.
Focusing of on the present at the expense of the future: Failure to consider the long term
effects a plan because of emphasis on short term problems may lead to trouble in
the future.
preparing formind Managers should try to keep the big picture- their long term
goals-in when developing their plans.
.Too much reliance on the organisation's planning department: Many companies nav
a planning department or a planning and development team. These departments conduct
studies,do research, build models, and project probable results, but they do not implement
plans. Planning department results are aids in planning and should be used only as such.
Formulating the plan is still the manager's responsibility.
Concentrating on controllable variables: Managers can find themselves concentrating
on the things and events that they can control, such as new product development, but
then fail to consider outside factors, such as a poor economy. One reason may be that
managers demonstrate a decided pre ference for the known and an aversion to the unknown.
The good news about these barriers is that they can all be overcome. To plan successfully,
managers need to use effective communication, acquire quality information, and solicit the involvement
of others.
An effective management goes a long way in extracting the best out of employees and make
them work as a single unit towards a common goal.
Employees in their own way contribute to the achievement of the goals and objectiva
the organisation. Every eployee has his own role at the workplace. Each one feels indisnen
for the organisation and eventually develops a feeling of loyalty towards the organiele
They tend to stick to the organisation for a longer span of time and contribute effectivo
8.
"Barriers can be a deterrent to successful planning. In order to make the plans
effective and
generate the desired and expected results, managers must recognise any potential barriers and
to
must have plans to overcome them." Do you agrec? Justify your answer.
9. Define MBO. Also highlight the characteristics of MBO.
CASESTUDY S
GLOBAL TECH LED: GOOGLE ANALYTICS INSTANT ACTIVATION OF REMARKETING
Headquartered in Bonita Springs, Florida, Global Tech LED is a LED lighting design and
supplier to U.S. and international markets, specialising in LED retrofit kits and fixtures for commerca
spaces.
Value Proposition:
O Remarketing campaigns triggered by Smart Lists drove 5 times more clicks than all other
display campaigns.
O The click-through rate of Global Tech LED's remarketing campaigns was more than two
times the remarketing average of other campaigns.
O Traffic to the company's website grew by more than 100%, and was able to re-engage
users in markets in which it was trying to make a dent, including South Asia, Latin America,
and Western Europe.
O Use of the Conversion Optimiser allowed Global Tech LED to better allocate marketing
costs based on bid potential.
Coca-Cola Amatil is the largest bottler and distributor of non-alcoholic, bottled beverages in
the Asia Pacific, and one of the largest bottlers of Coca-Cola products in the region.
conversations.
O Coca-Cola Amatil sales reps used Trax
Retail Execution image-based technology to take
with their mobile devices, these images were sent to the Trax
pictures of stores shelves
50 PERSPECTIVE MANAGEMENT
www.ww.
Cloud and analysed, returning actionable reports within minutes to sales representatives
providing more detailed online assessments to management,
Value Proposition
Real-time images of stock allowed sales representatives to quickly identify performatc
gaps and apply corrective actions in store. Reports on shelf share and competitive insight
also allowed representatives to strategise on opportunities in store and over the phone