Plan and Planning

Planning
It is the process of determining in advance what should be accomplished, when, by whom, how, and at what cost. process of determining organizational aims, developing premises about the current environment, selecting the course of action, initiating activities required to transform plans into action, and evaluating the outcome.

Plans
Documents that outline how goals are to be accomplished
Describe how resources are to be allocated and establish activity schedules

Types of Plans

Types of Plans
Strategic Plans
Apply to the entire organization. Establish the organizations overall goals. Seek to position the organization in terms of its environment. Cover extended periods of time.

Operational Plans
Specify the details of how the overall goals are to be achieved. Cover short time period.

Types of Plans (contd)

Long-Term Plans
Plans with time frames extending beyond three years

Short-Term Plans
Plans with time frames on one year or less

Specific Plans
Plans that are clearly defined and leave no room for interpretation

Directional Plans
Flexible plans that set out general guidelines, provide focus, yet allow discretion in implementation.

Specific Versus Directional Plans

Types of Plans (contd)

Single-Use Plan
A one-time plan specifically designed to meet the need of a unique situation.

Standing Plans
Ongoing plans that provide guidance for activities performed repeatedly.

Strategic Intents
Integrative Vision Few

Mission & Values

Specific

Objectives and Goals

Many

Vision
Refers to inspirational picture of future Fundamental reason for existence Unchanging core values Huge and audacious but achievable aspiration

Clarity
Brevity- (the quality of using few words when speaking or writing) Reachability Shared vision: shared sense of purpose

Vision Statements
Bharat Electronics Ltd.
To be a world -class enterprise in professional electronics.

Infosys technologies ltd.

To be a globally respected corporation that provides best of breed business solutions. Leveraging technology delivered by best in class people.

Punjab National Bank

To evolve and position the bank as a world class progressive, cost effective and customer friendly institution providing comprehensive financial and related services; integrating frontiers of technology and serving various segments of society especially the weaker sections; committed to excellence in serving the public and also excelling in corporate values.

Mission
Enduring statement of purpose of existence of the organisation
What is it? What it wants to do? Whom it want to serve?

Reference point Educative value Motivating force Expression of vision, values, beliefs and philosophy

Basic components: customers, product, market, technology, concern for growth, employees, public image

Mission
Unlike vision statement mission statement may undergo changes The entrepreneurial challenge lies in knowing when to modify the mission statement
To avoid stagnation To trap opportunities

Mission Statements
Intel
To do a great job for our customers, employees and stockholders by being the preeminent building block supplier to the worldwide Internet economy. Values Customer Orientation Discipline Risk-Taking Results Orientation Quality Great Place to Work Our values are timeless and do not depend on business conditions.
Andy Grove, Intel Chairman

Mission Statements
Bharat Electronics Ltd.
To be a customer focused, globally competitive company in defense electronics and in other chosen areas of professional electronics, through quality, technology and innovation.
Values - Putting customers first. - Working with transparency, honesty & integrity. - Trusting and respecting individuals. - Fostering team work. - Striving to achieve high employee satisfaction. - Encouraging flexibility & innovation. - Endeavoring to fulfill social responsibilities. - Proud of being a part of the organization.

Mission Statements
Infosys
To achieve our objective in an environment of fairness, honesty and artery towards our clients, employees, vendors & society. Values Customer delight Leadership by example Integrity and transparency Fairness Pursuit of the excellence

Mission Statements
Punjab National Bank
To provide excellent professional services and improve its position as a leader in the field of financial and related services; build and maintain a team of motivated and committed workforce with high work ethos; use latest technology aimed at customer satisfaction and act as an effective catalyst for socioeconomic development.

Objectives and Goals

What organisations aim for and try to reach
Results the organisation wants to achieve Towards which the behaviour is directed.

Form a hierarchy: over the levels Form a network: interdependent and interlocking Multiplicity: many objectives coexist at the same time

Hierarchy of Objectives
Strategic Objectives Corporate Strategic Measures

Business Process Objectives Individual Objectives

SBUs Critical processes

Business Process Measures

KRAs & Performance Measures

Departments/individual managers Performance Appraisal Rewards & Consequences

Objectives
Strategic Objectives
Corporate objectives Evolve directly from mission statement Long term Benchmark for judging performance

Business Process Objectives

Functional objectives: financial, marketing, product/ sales, operations, HR

Key Result Areas (KRA)

Operational objectives Normally short term objectives with a time horizon of 1-2 years

Objectives
Bharat Electronics Limited

To be a customer focused company providing state-of-the-art products & solutions at competitive prices, meeting the demands of quality, delivery & service. To generate internal resources for profitable growth. To attain technological leadership in defense electronics through in - house R&D, partnership with defense/research laboratories & academic institutions. To give thrust to exports. To create a facilitating environment for people to realize their full potential through continuous learning and team work. To give value for money to customers and create wealth for shareholders. To constantly benchmark companys performance with best- in -class internationally. To raise marketing abilities to global standards. To strive for self- reliance through indigenization.

Objectives
Intel
The interpretation of our mission, objectives and values means that Intel must supply products that are performance and price competitive, of high quality, and when the customer wants the; offer competitive compensation and opportunities for continuous professional development; deliver a good return on stockholders investments and work hard, as a global citizen, to achieve the goals of the triple bottom line.

 MISSION: A concise internally focused statement of the reason for the Organizations existence, basic purpose, values that guide employee activities. Mission should also describe how the organization expects to compete & deliver value to customers. VISION: A concise statement that defines the mid to long term goals of the organization. Vision is external & market oriented and should express-often in colorful or visionary terms-how the organization wants to be perceived by the world.

Establishing Goals and Developing Plans (contd)

Management By Objectives (MBO)
Specific performance goals are jointly determined by employees and managers. Progress toward accomplishing goals is periodically reviewed. Rewards are allocated on the basis of progress towards the goals. Key elements of MBO:
Goal specificity, participative decision making, an explicit performance/evaluation period, feedback

Steps in a Typical MBO Program 1. The organizations overall objectives and strategies are formulated. 2. Major objectives are allocated among divisional and departmental units. 3. Unit managers collaboratively set specific objectives for their units with their managers. 4. Specific objectives are collaboratively set with all department members. 5. Action plans, defining how objectives are to be achieved, are specified and agreed upon by managers and employees.

6. The action plans are implemented.

7. Progress toward objectives is periodically reviewed, and feedback is provided. 8. Successful achievement of objectives is reinforced by performance-based rewards.

Does MBO Work?

Reason for MBO Success
Top management commitment and involvement

Potential Problems with MBO Programs

Not as effective in dynamic environments that require constant resetting of goals. Overemphasis on individual accomplishment may create problems with teamwork.

Allowing the MBO program to become an annual paperwork shuffle.

2007 Prentice Hall, Inc. All rights reserved. 725

Management by Objectives (MBO)

A comprehensive system of management that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organisational and individual objectives. An overall philosophy, which concentrates on measurable goals, performance and results.
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Management by Objectives (MBO)

MBO is an appraisal system

A planning and control device

Planning by objectives Participative goal setting

A motivational technique
Compatibility of individual and organisational goals People perform better when they know what is expected of them and correlate their personal goals to the organisational goals.
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MBO Process
Enterprise objectives Planning Premises Key Result Areas

Responsibilities
Superiors Objectives Feedback and monitoring Superordinate goals Subordinates Objectives Performance Corrective Measures Periodic Review Final Performance

Final Review and Appraisal

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Management by Objectives (MBO)

Major elements:
Participative decision making Tangible goals Explicit time period Performance feedback Corrective measures

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MBO
Merits
Improved management More efficient structure Personal commitment Motivational force Effective control

Demerits
Difficulty in setting tangible goals Danger of inflexibility Non quantifiable goals may get ignored

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