planning prince dudhatra 9724949948

8/7/2019 Planning Prince Dudhatra 9724949948

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PLANNING

How To Best Meet Your Mission

We must plan for the future,

because people who stay in thepresent will remain in the past.Abraham Lincoln

prince dudhatra-9724949948


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W hat is Planning?

Planning is a search problem that requires tofind an efficient sequence of actions that

transform a system from a given starting state tothe goal statePlanning is the starting point of the managementprocessPredetermines what the business proposes toaccomplish and how it intends realizing its goals



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Proper planning accomplishes the following

1. Managing Uncertainty

2. Better Focus3. Improves Coordination

4. Basis for Control

5. Improves Effectiveness



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Planning is PervasiveC orporation LevelS trategic Business Unit ( S BU) LevelF unctional or Department LevelT eam or work group levelIndividual level



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Corporation Headquarters

SBU 1

FinHRMIS MktOps

SBU 2

FinHRMIS MktOps



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O rganizational MissionThe Mission states the organization svalues, aspirations, and reason forexistence.The Mission Statement is the basis forall following goals and plans.

Without a clear mission, goals and plansmay be developed haphazardly causingthe organization to fail.



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Goals and PlansG oals: specify future ends. Desired

future state.

P lans: specify the means to future ends. T he blueprint for goal achievementspecifies the necessary resourceallocations, schedules, tasks



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Strategic Goals and PlansStrategic Goals pertain to the entireorganization (not specific divisions anddepartments).Strategic Plans define the action stepsthe company will use to attain strategicgoals.



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STRATEGIC GO ALS ANDPLANS



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Tactical Goals and PlansTactical Goals apply to middlemanagement and describe what majorsubunits must do to to enable theorganization to meet its strategic goals.Tactical Plans:

Help execute major Strategic Plans.Cover a shorter period of time.



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O perational Goals and PlansO perational Goals: the specific resultsexpected of small units, workgroups,and individuals.O perational Plans: developed at thelower levels of an organization tospecify actions required to achieveoperational goals and to support tacticalplans.



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Goal CharacteristicsBe specific and measurable

Quantitive Terms

Cover key result areasContribute most to company performance

Be challenging but realisticBe for a defined time period.Be linked to rewards.



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Types of PlansSingle-use plans are developed to achieveobjectives that are not likely to be repeated inthe future. Single-use plans includeprograms, budgets and projects.

Standing plans are used to provide guidancefor tasks performed repeatedly within theorganization. The primary standing plans areorganizational policies, rules, and procedures



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SINGLE-USE



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STANDING PLAN



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O ther Types O f Plans

Long term & Short termFormal & Informal PlansProactive & Reactive Plans

Strategic &O

perational Plans



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The Planning Proc e ss

Planning may be seen as the identificationand formulation of the objectives of abusiness (Goal Setting)Determining Planning PremisesAnalyzing the data (IdentifyingAlternatives)Evaluation & SelectionImplementation & Review



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The Planning Proc e ssGOAL SETTING

Identification and formulation of objectives

DEVELOPING PLANSChoices between alternative plans

IMPLEMENTATIONExecution of the plan

ReactivePlanning

Revision

of goalsandplans



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Successful Planning Process

Everyone participatesBoard and staff educated about planningBoard and staff explore new ideasBoard takes advantages of opportunitiesNecessary resources available



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Making Planning Effective

Linked to Long term objectivesConsistencyEveryone participatesFeasibleFlexibleSimpleTop Management Support



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MANAGEMENT BY O BJECTIVES



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What Is an O bjective?

objective are goals, aims or purposesthat organisation wish over varyingperiods of time



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Management ByO

bjectives (MBO

)A method whereby managersand employees defineobjectives for everydepartment, project, and

person and use them tomonitor subsequent performance.



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THE NATURE & PURPO

SEO

F MBO

THE NATURE & PURPO

SEO

F MBO

M BO is concerned with goal setting andplanning for individual managers and their units.T he essence of M BO is a process of j oint goalsetting between a supervisor and a subordinate.M anagers work with their subordinates toestablish performance goals that are consistentwith higher organizational objectives .M BO helps clarify the hierarchy of objectives asa series of well-defined means-ends chains.



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Essential Steps for MB OSet Goals

The most difficult step.

Develop Action PlanFor both workgroups and individuals.

Review Progress/ Take corrective action

Periodic during the year.Appraise O verall Performance.

Review Annual Goals.



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Ess e ntial St ep s for MBO

S et GoalsThe most difficult step .ConcreteS pecific target and timeframeAssign responsibility

D evelop Action PlanCourse of actionFor both workgroups andindividuals

R eview ProgressPeriodicity?

Course corrections

Appraise Overall Performance.H ow are we doing?D o we need to restate our goals?



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MAKING MBO

PRO

CESS EFFECTIVEIf MBO is to be successful, it mus t s tart at th e top of th e organization

Employees must be educated about what MBO is and what their role in it will be .

Managers must implement MB O in a way that is consistent with overall organizational goals.



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M anagers tell their subordinates what

organizational and unit goals and plans topmanagement has established.

M anagers meet with their subordinates on aone-to-one basis to arrive at a set of goals for each subordinate that both develop and towhich both are committed.

Goals are refined to be as verifiable as possibleand achievable within a specified period of time.



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Goals must be written and very clearly stated.

M anagers must play the role of counselors inthe goal-setting and planning meeting.

T he meeting should specify the resources thathe subordinate will need

C onducting periodic reviews

T he employee is rewarded on goal attainment.



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THE EFFECTIVENESSO F MBO

- STRENGTHSO rganizations create a powerful motivationalsystem for their employees by adopting MB O .

Through the process of discussion andcollaboration, communication is greatlyenhanced.

With MBO performance appraisal may bedone more objectively.



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THE EFFECTIVENESSO F MBO

- STRENGTHSMBO helps identify superior managerial talent for future promotion.

MBO provides a systematic management philosophy

MBO

facilitates control through the periodicdevelopment and subsequent evaluation of individual goals and plans.



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THE EFFECTIVENESSO F MBO -

WEAKNESSESThe major reason for MB O failure is l ack of top m anag e m e nt su pport

goals and plans cascading throughout theorganization may not be those of top management.Some firms may ov e r e m p h as ize qu ant itat ive goa l s

Some managers will not or cannot sit downand work out goals with their subordinates


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