Module 2 -Planning Function

8/3/2019 Module 2 -Planning Function

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Module 2

1/18/2012 1Introduction to Management


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What is Planning?

Planning is the process of determining the

organization's goals and objectives and making theprovisions for their achievement. It involves choosing acourse of action from available alternatives.

1/18/2012 Introduction to Management 2


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"If you don't know where you aregoing, then you won't know whenyou have arrived!

Well planned is half done.



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Purpose of PlanningFive concrete reasons for the paramount importance of

the planning function are as follows:

y Minimizes risk and uncertainty.y Leads to success.

y Focuses attention on the organizations goals.

y Facilitates control.

y Trains executives.



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Why Plan?Aneeds assessment may initiate a need for

developing a plan.

Managers should engage in planning for atleast four reasons. Planning providesdirection, reduces the impact of change,

minimizes waste and redundancy and setsthe standards to facilitate control.



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Planning & Organizational Level

Strategic

Planning


OperationalPlanning

TopManagement

Middle-levelManagement

First-level

Management


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Types of Planning.

y Strategic planning - involves determiningorganizational goals and how to achieve them. Thisusually occurs at the top management level.

y Tactical planning - is concerned with implementing

the strategic plans and involves middle and lowermanagement.



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y Contingency planning - anticipates possibleproblems or changes that may occur in the future andprepares to deal with them effectively as they arise(Marshall, 1992).

y Managerial planning - is usually considered asmicro-level planning. It helps in combining resources

to fulfill the overall objectives of the extensionorganization.



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Planning Process.

NeedsAssessment

Establishing Mission,Goals, & Objectives

Analyze Needs interms of Mission,

Goals,& Objectives

Develop action plansto reach the goals

and objectives.Develop budgets.

Implement the plans.

Control the plans.



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Defining the mission statement.

Amission statement is a brief description of acompany's fundamental purpose.Amission statementanswers the question, "Why do we exist?" .The mission

statement articulates the company's purpose both forthose in the organization and for the public.

The mission of Infosys is To achieve our objectives in an

environment of fairness, honesty, and courtesy towardour clients, employees, vendors and society atlarge.These statements provide clues to what theseorganizations see as their purpose.



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Mission Vs Vision.

The difference between a mission statement andavision statement is that a mission statement focuseson a companys present state while a vision statementfocuses on a companys future.



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What should a mission statement include?

y Customer: Who are the firms customers?yMarkets: Where does the firm compete geographically?

y Concern for survival, growth, and profitability: Is thefirm committed to growth and financial stability?

y Philosophy: What are the firms basic belief, values, andethical priorities?

yConcern of public image: How responsive is the firm tosocietal and environmental concerns?

y Products or services: What are the firms major productsor services?

y Technology: Is the firm technologically current?ySelf- concept: What are the firms major competitiveadvantage and core competencies?

y Concern for employees: Are employees a valuable asset ofthe firm?



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Developing corporate goals and objectives

The type of the goal selected will depend on a number offactors: the basic mission of the organization, thevalues its managers hold, and the actual and potentialabilities of the organization.

y Why dowe need to identify goals andobjectives?

Plans and actions based on clear goals and objectives aremore likely to succeed in meeting the organizationsmission and vision.



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What are goals and objectives?

y Goals are general guidelines that explain what theorganization wants to achieve in the business world.They are usually long-term and represent globalvisions such as increased productivity, profit margin.

y Objectives define strategies or implementation stepsto attain the identified goals. Unlike goals, objectives

are specific, measurable, and have a definedcompletion date. They are more specific and outlinethe who, what, when, where, and how of reachingthe goals.



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S.W.O.T ANALYSIS

Analyze the strength, weaknessesand identify opportunities and

threats of the organization.SWOT analysis is used as the basisfor future improvements.



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Develop a strategy

Information collected from theenvironmental scan is used to:

yMatch strengths with opportunities andaddress weaknesses while trying tominimize threats to its existence.

yMake superior profits by getting acompetitive advantage over competitors.



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Implementation of strategy

Strategy is implemented by developing

programs, budgets and procedures. Itinvolves organizing the firm's resourcesand motivating staff to achieve the

firm's objectives.



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Types of plans.

There are many types of plans and are likely to vary from organization toorganization. However, one useful way of classifying them is tocategorize into breadth, timeframe, specificity, and frequency of use.

y Strategic planning involves deciding what major goals of entireorganization will be and what policies will guide the organization in itspursuit of these goals.

y Tactical planning involves deciding specifically how the resources ofthe organization will be used to help the organization to achieve itsstrategic goals.

y Short term plans covers less than one year.y Long term plans are those extended over five years.y Specific plans are clearly defined and leave no room for

interpretation.y Directional plans are flexible plans that set out general guidelines.y Single use plan is a onetime plan specifically designed to meet the

needs of a unique situation.y Standing plans are ongoing plans that provide guidance for activities

performed repeatedly.1/18/2012 Introduction to Management 18


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Some Planning Tools

y S.W.O.T analysis- Strength , Weakness, Opportunity,and Threats.

y Scheduling Alisting of necessary activities, theirorder of accomplishment, who is to doeach, and time needed to complete them.

y Gantt Chart Agraphic bar chart that shows therelationship between work planned and

completed on one axis and time elapsedon the other.



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y PERT analysis Program Evaluation and ReviewTechnique (PERT) is a technique forscheduling complicated projectscomprising many activities, some of

which are interdependent.

y Break-even analysis Atechnique for identifying thepoint at which total revenue is

just sufficient to cover total costs.



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y Queuing theory Atechnique that balances the costof having a waiting line against the

cost of service to maintain that line.

y Linear programming-Amathematical technique that

solves resource allocationproblems.



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Evaluating /monitoring and controly Defining parameters to be measured.

y Defining the target values of those parameters.

y Performing measurement.y Comparing measured results to predefined

standards.

y

Making necessary changes.



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Any Questions?

Thank you


Module 2 -Planning Function

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