Planning Notes PDF

TOPIC 2: PLanni ng Contents of This ModuLe At the end of this module, you should b e able to: 1. Define the nature a n d purposes of planning. 2. Classify the types of goals organizations might have and the plans they use. 3. C o m p are a n d contrast approaches to goal- set...

TOPIC 2: PLanni ng Contents of This ModuLe At the end of this module, you should b e able to: 1. Define the nature a n d purposes of planning. 2. Classify the types of goals organizations might have and the plans they use. 3. C o m p are a n d contrast approaches to goal- setting and planning. 4. Discuss contemporary issues in planning. TabLe of Contents Setting GoaLs What and andDeveLopi Why PLanni of ngPLa ng ns Contempor GoaLs and Issues ary in PLans PLanning  01 WHAT AND WHY OF PLANNING Failing to plan is planning to fail. —Benjamin FrankLin PLanni ng It is management function that involves setting goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities  Why do ManagersPLa n? Provides direction Reduces uncertainty Minimizes waste and redundancy Establishes the goals and standards for controlling PLanning and Performan ce What is the Moreov Link? er, External factors can Formal planning is reduce the impact of associated with positive financial planning on performan results Quality ce Planning- of planning/implementation performance relationship seems more important than the to be influenced by the extent of it planningtime  02 GOALS AND PLANS GoaLs and PLa ns Goa PLa L ns that documents or(objectives): outline howgoing to goals are desired outcomes or be met targets  Types of GoaLs FinanciaL GoaLs Stated GoaLs related to the official statements of what financial an organization says, performance of and what it the organization wants its various stakeholders to believe, its goals are Strategic GoaLs ReaL GoaLs related to all other goals that an areas of organization actually an pursues, as defined Types of PLans Types of PLa ns Strategic OperationaL PLans plans that apply to the PLans plans that encompass a entire organization and particular operational area of establish the overall organization’s the organizati goals on Types of PLa ns Long Term Short-Term PLans plans with a time frame PLans plans covering one year beyond three or less years Types of PLa ns Specific DirectionaL plansPLans that are clearly plansPLans that are flexible and defined leave noand room for set outgeneral interpretation guidelines Types of PLa ns SingLe Use Standing aPLans one-time plan PLans ongoing plans that specifically designed to meet the providefor activities guidance needs of a unique performedrepeated situation ly  03 SETTING GOALS AND DEVELOPING PLANS Approach es to GoaL Setti ng  TraditionaL GoaL Setti ng An approach to setting goals in which top managers set goals then flow down through the organization and become subgoals for each organizational area Downside of TraditionaL GoaL Setting  Means-end Chain and MB Means-ends chain: an integrated network of goals in which the accomplishment of goals at one level serves O as the means for achieving the goals, or ends, at the next level. : a value-based, cognitive model that facilitates the better understanding of decision- making and consumer behavior. Management by objectives (MBO): a process of setting mutually agreed upon goals and using those goals to evaluate employee performance. : A management system that measures  Steps in MBO Step 1: The organization’s overall objectives and strategies are formulated. Step 2: Major objectives are allocated among divisional and departmental units. Step 3: Unit managers collaboratively set specific objectives for their units with Step 5: their plans, Action managers. Step how defining 4: Specific objectives objectives are to are collaboratively be achieved, set are specified and agreed upon by managers and employees. with all Step department 6: The members. action plans are implemented. Step 7: Progress toward objectives is periodically reviewed, and feedback is provided. Step 8: Successful achievement of objectives is reinforced by performance-based rewards.  Characteristic s of WeLL-Written GoaLs Written in terms of outcomes rather than actions Measurable and quantifiable Clear as to a time frame Challenging yet attainable Written down Communicated to all necessary organizational members DeveLopi ng PLans  Contingency Factors in PLanni ng Organizational level Degree of environmental uncertainty Length of future commitments  PLanning and OrganizationaL LeveL  Environmen taL Uncertainty When uncertainty is high, plans should be specific, but flexible.  Length of Future Commitments Commitment concept: plans should extend far enough to meet those commitments made when the plans were developed  PLanning Approaches Developing plans is also influenced by the planning approach followed.  In the traditional approach, planning is done entirely by top-level managers who often are assisted by a formal planning department, a group of planning specialists whose sole responsibility is to help write the various organizational plans.  Another approach to planning is to involve more organizational members in the process. In this approach, plans aren’t handed down from one level to the next, but instead are developed by organizational members at the various levels and in the various  04 Contempor ary Issues in PLanning  Contempory Issues in PLanni  ng One contemporary planning issue is planning in dynamic environments, which usually means developing plans that are specific but flexible.  Also, it’s important to continue planning, even when the environment is highly uncertain.  Finally, because there’s little time in a dynamic environment for goals and plans to flow down from the top, lower organizational levels should be allowed to set goals and develop plans.  Contempory Issues in PLanni  ng Another contemporary planning issue involves using environmental scanning to help do a better analysis of the external environment.  One form of environmental scanning, competitive intelligence, can be especially helpful in finding out what competitors are doing. Organizations can gather business intelligence using a variety of digital tools to collect and analyze quantitative and qualitative data to support decision making.  DigitaL TooLs Business intelligence: data that managers can use to make more effective strategic decisions Digital tools: technology, systems, or software that allow the user to collect, visualize, understand, or analyze data  DigitaL TooLs Data visualization tools Cloud computing: refers to storing and accessing data on the Internet rather than on a computer’s hard drive or a company’s network Internet of things (IoT): allows everyday “things” to generate and store and share data across the Internet Group Activity 2 Make a video. 5 minutes or more. Interview one (1) Supervisor/Head/Director/Officer/Dean (with any supervisory position inside the PSU Lingayen Campus) in different departments. Different person per group. 1. Ask them about the planning they do to fulfill their role inside their Units. 2. Ask them for suggestions on how you could be a better planner. Make a conclusion on what the group understand about