Professional Documents
Culture Documents
Planning
We must plan for the future, because people who stay in the present will remain in the past.
Abraham Lincoln
What is Planning?
Planning is a search problem that requires to find an efficient sequence of actions that transform a system from a given starting state to the goal state Planning is the starting point of the management process Predetermines what the business proposes to accomplish and how it intends realizing its goals
What Is Planning?
A primary managerial activity that involves:
Defining the organizations goals Establishing an overall strategy for achieving those goals
Types of planning
Informal: not written down, short-term focus; specific to an organizational unit. Formal: written, specific, and long-term focus, involves shared goals for the organization.
Definition of Planning
Planning is an intellectual process, the conscious determination of course of action, the base of decisions on purpose, facts and considered estimates - Koontz and ODonnel Planning is continuous process of making present entrepreneurial decisions (risk taking) systematically and with best possible knowledge of their futurity, organising systematically the efforts needed to carry out these decisions and measuring the results of these decisions against the expectations through an organised systematic feedback - Peter Drucker
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, Formal planning must be used for several years before planning begins to affect performance.
For supervisors the planning period is usually a week, day, or shift ( to deal with daily work).
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Purpose of Planning
Provide direction
Elements Of Planning
Plan
A method for doing or making something, consisting of at least one goal and a predefined course of action for achieving that goal.
Goal
A specific result to be achieved; the end result of a plan.
Objectives
Specific results toward which effort is directed.
Hierarchy of Goals
Large firms:
Traditional:
A central corporate planning group works with top management and each division to challenge, and refine the companys plan.
Current:
Planning is decentralized and includes the firms product and divisional managers, aided by small headquarters advisory groups.
Organizational Mission
A clear, formally written, and publicized statement that guides the organization by
defining the organization for key stakeholders. creating an inspiring vision of the organization.
Types of Planning
Strategic planning: determining how to pursue long-term goals with available resources.
Intermediate planning: determining subunits contribution with allocated resources. Operational planning: determining how to accomplish specific tasks with available resources.
Missions or Purposes
Essential purpose of the organization, concerning particularly why is it in existence , the nature of the businesses it is in and the customers it seeks to serve and satisfy
MCDONALDS MISSION TO OFFER THE FAST FOOD PREPARED IN THE SAME QUALITY WORLD WIDE WITHIN REASONABLE PERIOD
Strategies
Determination of basic long term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals
Policies
They are general statements or understanding that guide or channel thinking in decision making They define an area within which a decision is to be made and ensure that the decision will be consistent with and contribute to an objective Recruitment Policy of TCS is an equal-opportunity employer Personnel policy of ABB India states that each employee would understand his role, take responsibility, and develop him according to the changing needs of job profile and organization.
Procedures
It is chronological sequence of steps to be undertaken to achieve an objective. They are guides to action that specify in details the manner in which activities are to be performed
Rules
Spell out specific action or non action leaving no discretion
They regulate the day to day conduct of affairs by providing detailed instructions
Eg No smoking zone in aircrafts or offices, restaurants
Budgets
A statement of expected results of given future period expressed in numerical terms It indicates the financial resources necessary for supporting the various activities included in the program
Goals
Goals denote what an organization hopes to accomplish in future period of time. A broad category of financial and non financial issues are addressed by goals that firm sets for itself Objectives are the ends that state specifically how goals shall be achieved.