Planning

prepared by: Liu Ching Ching OUM PT Academic

1. Define planning;
2. State the four strengths and five
weaknesses of planning;
3. Explain the five types of planning for
organisational activities;
4. Define management by objectives;
5. Explain the nine steps of the strategic
framework;
6. Explain what SWOT analysis is; and
7. Explain why quality is used as a strategy.
prepared by: Liu Ching Ching OUM PT Academic
 defining organisational objectives and
goals
 Formulating overall strategies to achieve
objectives
 outlining comprehensive levels of
planning to be integrated and
coordinated

prepared by: Liu Ching Ching OUM PT Academic

1. Planning encourages coordination of
activities
2. Planning reduces uncertainty
3. Planning also prevents work duplication
and wastage
4. Planning will help to set objectives and
standards

prepared by: Liu Ching Ching OUM PT Academic

1. planning results in inflexibility and rigidity
2. planning cannot be done in a dynamic
environment
3. planning restricts intuition (gut feeling)
and creativity
4. planning makes managers focus on
current competition and not future
challenges

prepared by: Liu Ching Ching OUM PT Academic

5. planning gives an impetus for bogus
successes, which may lead to failure
 A “successful” plan may be the basis of
misleading guarantees of success
 Planning should allow subsequent
changes if needed i.e. change in
government policy, entry of new
competitors, introduction of new
technology
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• Strategic Planning
• involves the entire organisation
• outlines the overall objectives of the
organisation
 positioning of the organisation
 foundation for the creation of tactical
plans

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 Also known as operational planning
 outlines in detail steps for achieving
overall objectives
 3 differences compares to strategic
planing:
1. Shorter term ( less than a year)
2. Specific time frame (daily, weekly,
monthly)
3. Use as needed (routine)

prepared by: Liu Ching Ching OUM PT Academic

 Short term means less than one year
 Long term means more than five years
 Time based planning depends on future
commitments and degree of change
faced by organization
 More fluid environment requires shorter
term planning, to allow flexibility for
change

prepared by: Liu Ching Ching OUM PT Academic

 Specific planning has clearly defined
objectives
 Weaknesses: clear and detailed
information must exist to make plans
 When uncertainty is high, the
management must make allowances for
flexibility to face unexpected changes

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 Directional planning identifies general
guidelines
 It provides focus but not detailed
objectives and achievement measures
 For example, a specific plan will aim to
reduce costs by 20 per cent and
increase profits by 18 per cent within 6
months, but directional plan will aim to
increase profits by 15 to 20 per cent
within a period of 6 months.
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 single-use plan is used for a specific or
unique situation
 for programmes, projects and budgets
 plan may not be repeated in the same
way in the future
 For instance plan for land acquisition to
establish a tea plantation uniquely
designed to cater for the location, cost,
workforce readiness, local legislation.
prepared by: Liu Ching Ching OUM PT Academic
 A standing plan comprises plans that are
already available, which have guidelines
for repetitive steps or processes.
 For example, for registration in universities,
the dates may differ but the processing
steps remain the same every semester.
 Standing plans include policies,
procedures and rules.

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 MBO operationalizes objectives by
cascading them to the entire
organisation
 MBO has a two-way function, i.e. from
bottom-up and from top-down
 The result is a hierarchy which links
objectives at one level to the next level
 For workers, MBO represents a personal
performance objective
prepared by: Liu Ching Ching OUM PT Academic
prepared by: Liu Ching Ching OUM PT Academic
Element Description
Specific purposes Clear objectives with its expected
outcomes
Participative Management and employees
decision making jointly determine the goals and
methods to achieve them
Explicit time-frame Each objective has its own
duration for achievement
Performance Continuous feedback on the
feedback achievement of goals; evaluation
meeting over a formal time period
completes this process

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 9-step process which includes planning,
implementation and evaluation of
strategies
 Step 1 to 7 involves planning, step 8 for
implementation and step 9 for
evaluation

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 Step 1: Identifying Mission, Objectives
and Current Strategies
 Step 2: Analysing the Environment
 competitors, new legislation which
influence organisations, customer needs
and other relevant factors
 Step 3: Identifying Opportunities and
Threats
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 Step 4: Analysing the Organisational
Resources
 Step 5: Identifying Strengths and
Weaknesses
 Step 6: Re-evaluation of Mission and
Objectives of the Organisation
 Step 7: Strategy Formulation
 Growth Strategy- “the bigger the better”
 Stability Strategy- stable and unchanging
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 Retrenchment Strategy-technological
advancement and globalisation,
changing environment; migration to
online sales and reduction of bricks and
mortars
 Combination Strategy- any combination
of the above 3 strategy

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 Step 8: Implementation of Strategy
 Strong leadership from top management
plus motivated middle and first line
management
 Step 9: Evaluation of Strategy
 How effective is the strategy that has
been implemented?
 Is this strategy really necessary?

prepared by: Liu Ching Ching OUM PT Academic

 Nike, Adidas, Gucci, BMW and Porsche –
reminds us of one thing, QUALITY
 ability of an organisation to satisfy
customer needs based on quality allows
it to differentiate itself from its
competitors
 Attract and retain customers
 Practise benchmarking and ISO 9000,
ISO 14000 (environmental) series
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 Thank You!

prepared by: Liu Ching Ching OUM PT Academic