Planning Chapter 7 PDF

Planning Chapter 7 Learning Outcomes On completion of this chapter, you should be able to: explain the nature of planning by referring to its characteristics describe the importance of planning as a management function indicate how planning can be facilitated in the organisation describe t...

Planning Chapter 7 Learning Outcomes On completion of this chapter, you should be able to: explain the nature of planning by referring to its characteristics describe the importance of planning as a management function indicate how planning can be facilitated in the organisation describe the planning process identify the different types of planning that can be used in an organisation differentiate between the different plans that can be used for strategic, tactical and operational planning explain the importance of contingency planning. Introduction Th e first key task of management is planning Planning involves looking ahead and chalking out a future course of action to be taken Not all plans are the same Characteristics of planning Involves An Goal Looks choice and intellectual orientated ahead decision process making The primary A Designed function of All continuous for manageme pervasive process efficiency nt Flexible The importance of planning It is To offset uncertainty and change important for To focus on organisational activity as required for a managers specific objective and To provide a coordinated, systematic road map for leaders to future activities formulate To increase economic efficiency plans for a variety To facilitate control be establishing a standard for future of activities. reasons: Advantages of planning facilitates management by objectives minimises uncertainties by anticipating the future Planni facilitates co-ordination around organisational goals improves employee’s morale ng helps in achieving economies facilitates control provides a competitive edge encourages innovation Disadvantages of planning Rigidity Pl Misdirected planning Time consuming an Probability in planning False sense of security ni Expensive ng Facilitating planning in the organisation Develop an organisational climate which encourages planning (lead from the top). Top level management should support lower or operational-level management’s planning activities. Top management should encourage planning by serving as role models through their own planning activities. Many employees might not know how to do proper planning. By providing access to training, they can work on their planning skills and gain confidence. Create a reward system that encourages planning and supports planning activities. It is important that such a system avoids punishment for failing to achieve newly-set goals. Avoid planning for the sake of planning. Use plans once they have been established.  Formulate Awareness supportive of current plans state The planning process Determine the course Establish outcomes of action and goals required Premising The types of planning S Specific M Measurable A Attainable Goals R Relevant T Time-bound Strategic planning Time frame 1-5 years Level of Top management management Extent of coverage External environment and internal environment Purpose & goal Establish mission and long-term goals Breadth of content Broad and general Accuracy & High degree of uncertainty predictability Tactical planning Time frame Less than 1 year Level of Middle management management Extent of coverage Strategic business units Purpose & goal Establish midrange goals for implementation Breadth of content More specific Accuracy & Moderate degree of certainty predictability Operational plans Time frame Current Level of Supervisory management management Extent of coverage Geographic and functional divisions Purpose & goal Implement and activate specific objectives Breadth of content Specific and concrete Accuracy & Reasonable degree of certainty predictability Contingency plans When an event occurs or it is required for Time frame a situation Level of Top and middle management management External environment and entire Extent of coverage organisation Meet unforeseen challenges and Purpose & goal opportunities Both broad and detailed Breadth of content Accuracy & Reasonable degree of certainty once predictability event occurs Summary Planning is generally considered the first management task and forms the basis from which all other management tasks flow. Planning starts with the formulation of goals and involves the development of plans to achieve those goals. The successful implementation of plans will depend on the other three tasks of management: organising, leading and control. These tasks will be discussed in the next chapters.