Professional Documents
Culture Documents
If group effort is to be effective, people must know what they are expected to
accomplish this is the function of planning.
Planning - involves selecting missions and objectives, and the action to achieve
them.
= It requires making decisions, that is choosing from among alternative
future courses of action.
= It bridge the gap from where we are to where we want to go.
Types of Plans/Hierarchy of Plans:
1) Mission - identifies the basic functions or task of an enterprise or agency or
of any part of it.
2) Objectives or goals are the ends toward which activity is aimed they
are the results to be achieved. They represent not only the end point of
planning but the end toward which organizing, staffing, le4ading and
controlling are aimed.
3) Strategies - means grand plans made in the light of what it is between an
adversary might of not do.
Definitions of Strategies:
a)
General programs of action and deployment of resources to attain
comprehensive objectives.
b)
The program of objectives of an organization and their
changes,
resources used to attain these objectives.
c)
the determination of the basic long-term objectives.
The purposes of strategies then is to determine and communicate, through a
system of major objectives and policies, as picture of the kind of enterprise that is
envisioned.
4) Policies - are plans in that they are general statements or understandings
which guide or channel thinking in decision making.
- Define an area within which a decision is to be made and occurs that the
decision will be consistent with, and contribute to an objectives.
- It help to decide an issues before they become a problems.
- Make it unnecessary to analyze the same situation every time it comes up,
and unify plans.
5) Procedures are plans that establish a required method of handling future
activities. They are guides to action, rather than to thinking, and to detail the exact
manner in which certain activities must be accomplished.
6) Rules spell out specific actions or non-actions, allowing no discretion.
- They are usually the simplest type of plan. People frequently confuse with
rules with policies or procedures.
- Rules are unlike procedures in that they guide action without specifying a
time sequence.
7) Programs are complex of goals, policies, procedures, rules, task, assignment,
steps to be taken, resources to be employed and other elements necessary to carry
out the given courses of action.
- They are ordinarily supported by budgets.
8) Budget is a statement of expected results expressed in numerical terms.
- It may be referred to as numberized program.
- It may be expressed either in financial terms or in terms of labor hours,
units of product, machine hours, or any other numerically measurable term.
Steps in Planning
1) Being aware of the opportunity/identification of opportunities and
threats in the light of:
the market our weaknesses
competitor opportunities
what customer wants threats
our strength
2) Establishing Objectives / Setting of Objectives or Goals
The second step it to establish objectives for the entire enterprise and
then for each subordinate or work unit. This is to be done for the long term as well
as for the short term.
- Where we want to be and what we want to accomplish and when?
3) Developing Premises / Considering Planning Premises
The third step in planning is to establish, circulate and obtain
agreement to utilize critical planning premises such as forecast, applicable basic
policies, and existing company plans.
- In what environment internal or external will our plans operate?
Principles of Planning Premises - The more thoroughly individuals charge
with planning, , understand and agree to utilize consistent planning premises th3e
more coordinated enterprise planning will be.
Forecasting is important in premising. What kinds of markets will there
be? What volume of sales? What prices? What products? What technical
developments? What to do? What rates?
4)Determining Alternative Courses / Identifying Alternatives
What are the most promising alternatives to accomplishing our
objectives?
5)Evaluating Alternative Courses / Comparing Alternatives in Light of
Goals Sought
After seeking out alternative courses and examining their strong and
weak points, the next step is evaluating the alternatives by weighting them in the
light of premises and goals.
- Which alternatives will give us the best choice of meeting our goals
at the lowest cost and highest profit?
6) Selecting a Course / Choosing an Alternatives
This is the point at which the plan is adopted the real point of
decision making.
- Selecting the course of action we will pursue?
7)Formulating Derivative Plans / Formulating Supporting Plans
Derivative plans are almost invariably require to support the basic plan. Such
as plans to:
- buy equipment
- buy materials
- hire and train workers
- develop a new product
8)Numberizing Plans by Budgeting
After decision are made and plans are sets, the final steps in giving
them meaning, as was indicated. Develop such budgets as:
- volumes price of sales
- operating expenses necessary for plans
- expenditures for capital equipments
OBJECTIVES
Objectives - defined as the important ends towards which organizational and
individual activities are directed or aimed.
Verifiable Objectives - that is at the end of a period it should be possible to
determine whether or not the objectives has been achieved.
The Hierarchy of Objectives / Relationship of Objectives and the
Organizational Hierarchy
1)Socio-economic purpose the zenith/height of the hierarchy in the purpose,
which has two dimensions:
a)
There is the purpose of society such as requiring the organization to
contribute to the welfare of the people by providing goods and services at a
reasonable cost.
b)
There is the purpose of the business, which might be to
furnish
convenient, low cost transportation for the
average people.
2)Mission
3)Over-all Objectives of the Organization (long-range strategies)
4)More specific over-all objectives (e.g., in key result areas)
These are the areas in which performance is essential for the success
of the enterprise.
Key result areas although there is no complete agreement
in which the
key result areas of a business should be
and they may differ for various
enterprise Peter Drucker suggested the following:
1. market standing
2. innovation
3. productivity
4. physical and financial resources
5. profitability
6. manager performance and development
7. worker performance and attitude
8. public responsibility
5)Division Objectives
6)Department and Unit Objectives
7) Individual Objectives - Performance
- Personal development objectives
The Process of Setting Objectives and the Organizational Hierarchy
Managers at different levels in the organizational hierarchy are
concerned with different kinds of objectives:
1)Board of Directors & Top Managers are very much involve in determining
the purpose, the missi9on and the over-all objectives of the firm, as well as the
more specific over-all objectives in the key results area.
2)Middle-level Managers (the vice-president or managers) - they are involved in
setting key result area objectives, division objectives, and department objectives.
3)Lower-level managers setting objectives of department and units as well as
of their subordinates.
Top-down approach - upper level managers determine the objectives for
subordinates.
Bottom-up approach - subordinates initiate the setting of objectives for their
positions and present them to their superior.
A Network of Objectives
Both objectives and planning programs form a network of desired
results and events. If goals are not interconnected and if they do not support one
another, people very often pursue paths that may seem good for their own
department but may be detrimental to the company as a whole.
Management by Objectives - is a comprehensive managerial system that
integrates many key managerial activities in a systematic manner and that is
consciously directed toward the effective and efficient achievement of
organizational and individual objectives.