PLANNING

DEFINITION…

+ Planning  the function of management that involves setting

objectives and determining a course of action for achieving
those objectives.
PLANNING WITHIN
ORGANIZATIONS…
+ Organizational planning  the process of defining a
company’s reason for existing, setting goals aimed at realizing
full potential and creating increasing discrete tasks to meet their
goals.
TYPES & CLASSIFICATION OF
PLANS…
+ There are 4 types of planning:
Strategic planning
Operational planning
Tactical planning
Contingency planning
STRATEGIC PLANNING
STRATEGIC PLANNING
[strəˈtiːdʒɪk ˈplanɪŋ]

 an organization’s process of defining its strategy or direction

and making decisions on allocating its resources to attain strategic
goals.
TYPES OF STRATEGIC PLANNING…
+ SWOT analysis: a study undertaken by an organization to recognize its internal strengths
and weaknesses, as well as its external opportunities and threats.
+ PEST model: a type of analysis used to measure external factors (political, economical,
social and technological) that may affect a company’s profitability.
+ VRIO Framework: a criteria used to evaluate an organization’s resources and capabilities,
focusing on the value, rarity, imitability , and organization of a business.
+ Gap planning: a concept used to clarify the extent of revenue or profits gap that might
emerge if current strategies are left unchanged.
+ Blue Ocean Strategy: a term that describes a new market with little competition or barriers
in the way of innovators, referring to the vast “empty ocean” of market options and
opportunities that occur when a new or unknown industry or innovation appears.
IMPORTANCE OF STRATEGIC
PLANNING…
+ It helps to determine the direction of your organization.
+ In public, organizations assist local governments in realizing
their long-term visions while setting up goals and objectives that
align with that vision.
+ It helps to increase productivity and operational efficiency.
+ It helps to minimize risk.
DISADVANTAGES OF STRATEGIC
PLANNING…
+ Hinders innovation
+ Time consuming
+ Leads to a lack of reliable data
+ Costly process
+ It is the resistance to change
OPERATIONS PLANNING
OPERATIONS PLANNING…
[ˌɒpəˈreɪʃnz ˈplanɪŋ]

 focuses on practical concerns such as staffing levels or

inventory levels. Planning at the operational levcel includes more
specific objectives with definite due dates and task assignments.
TACTICAL PLANNING
TACTICAL PLANNING
[ˈtaktɪkl ˈplanɪŋ]

 used to accomplish the objectives outlined by strategic and

operational planning. Short-term goals and tasks that are intended
to produce specified results in a constrained amount of time and are
included in tactical planning. Tactical plans often consist of
operational level plans and facilitate the formulation of
contingency level plans.
CONTINGENCY-LEVEL
PLANNING
CONTINGENCY-LEVEL PLANNING
[kənˈtɪn(d)ʒ(ə)nsi-ˈlɛvl ˈplanɪŋ]

 comprises more specific action items with predetermined respon

ses for unforeseen situations or emergencies, such as natural catastr
ophes or severe weather that affects corporate operations.
PLANNING PROCESS
PLANNING PROCESS
[ˈplanɪŋ ˈprəʊsɛs]

 The process used to develop objectives, develop tasks to meet

objectives, determine the resources needed, create a timeline, and
distribute the plan to the team.
STEPS INVOLVED IN THE PLANNING
PROCESS…
+ Developing of objectives
+ Developing tasks that are required to meet those objectives
+ Determining resources needed to implement
SIGNIFICANCE OF PLANNING…

+ Planning enables a manager to look forward and take appropriate

steps to deal with future uncertainties and changes.
+ Planning improves full utilization of resources in order to reduce idle
resources.
+ Planning allows flexibility.
+ It provides guidelines for decision-making.
+ Planning encourages innovation.