Organazational planing & descion making process
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Transcript of Organazational planing & descion making process
ORGANIZATIONAL
PLANNING
& DECISION
MAKING PROCESS
PESC MBA Program Organizational Planning Assignment by G1 Members 1
By Group 1 Members A Group Assignment to be Presented for management Theory & Practice Course Instructor
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Group I members
1. Sara Jemal
2. Shimelis Birhanu
3. Setegn
4. Selamawit Wolde
5. Solomon T/Markos
6. Sisay
PESC MBA Program Organizational Planning Assignment By G1 Members
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Presentation Out Line
Definition of planning
Planning Terminologies
History of planning
Types of planning
Planning Skills
Features of Good planning
SWOT & SMART Approach
Barriers & Limitation
of planning ?
Why planning fails?
Practical Experience
Sharing
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Presentation Objectives
1. Provide an overview of an organizational planning &
Decision Making activities & process.
2. Describe the purpose & future of planning
3. Identify basic required skills to develop planning
4. Identify common barriers and limitations of planning.
5. To illustrate real organizational planning practice
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1.1 DEFINATION OF PLANING
A) Basic Managerial Function
PESC MBA Program Organizational Planning Assignment By G1 Members
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1.1 Definition of planning Cont.…
If you fail to plan, you are planning to fail”
“If you don’t know where you are going, you’ll end up
someplace else.” Yogi Berra,
“Without the activities determined by planning, there would be
nothing to organize, no one to activate and no need to control”.
George R. Terry
PESC MBA Program Organizational Planning Assignment By G1 Members
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1.1 What Is planning ???
Planning is deciding in advance what is to be done in
future, when, where and by whom it is to be done.
A blueprint specifying the resource allocation,
schedules, and other actions necessary for attaining
goals.
Planning is preparation for action & its a means to an end
It is a process of thinking before doing.
1.2 PLANINING TERMINOLOGIES
Mission
Reason of Existence
Vision
A desired future state
Values
A philosophical priorities
Goal
A desired future attempts to realize
Objectives
The ends toward which activity is directed
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Strategies
A program to attain Object.
Policies
A framework for making decisions
Plan
Specifying & organizing the resource for meeting goals
Planning:
Determining org.’s goals & the means for achieving them
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1.3 PLANING HISTORY
A. Military origin
SP has its origin in warfare.
The word strategy‘ is from Greek word
strategos = stratos(army) and agein(conduct)
The word tactic also derived from Greek
Tactica = the art of disposing & maneuvering
forces in combat
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1.3 PLANING HISTORY CONT…
B. Adoption in the business world
SP introduced in 1950s
During the 1960s & 1970s it has been very famous
SP periods in business divided into three periods:
Product-orientation - 1820
Market-orientation- 1900 and
Post-industrial orientation – 1950
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1.3 PLANING HISTORY CONT…
C. Transfer to the public sector
SP entered the public and semi-public sectors during
the mid-1980s
D. Use in the education sector
SP at the central education in 1990s
PESC MBA Program Organizational Planning Assignment By G1 Members
1.4 Types Of Planning
1. Based on Organizational level
A. Corporate planning
B. Divisional planning
C. Sectional planning
2. Based on Focus/scope or breadth of activates
A. Strategic planning
B. Operational planning
C. Tactical planning 12
3. Based on Time period/ Duration /Time dimension
A. Long range planning
B. Medium range planning
C. Short range planning
4. Based on Dimension /Frequency of Use
A. Single Use Plans
B. Standing plans
1.4 Types Of Planning Cont.…
5. Based on the Nature of the Plan
A.Informal planning
B. Formal planning
6. Based on Area of Coverage / Objectives
A. Developmental planning
B. Economic planning
C. Administrative planning
D. Financial planning
E. Marketing plan
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7. Based on the Specificity
of the Plan
A. Directional Planning
B. Specific Planning
8. Based on Contingent Nature of the Plans
A. Crisis management plan
B. Scenario planning
1.5 Why We Need Planning ???
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Merit Demerit
1. Reduces uncertainty
2. Ensures economical
operations
3. Facilitates control
4. Improves motivation
5. Gives competitive edge
6. Avoids duplication of efforts
1. Limitations of forecasts
2. Rigidity in administration
3. Time consuming process
4. Costly affair
5. Influence of external factors
6. Psychological factors
1.5 Why We Need Planning Cont. …. ???
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A. Organization succeed
B. Efficient utilization of resource
C. Cooperative & coordination
effort
D. Direction and sense of purpose
E. Reduce uncertainty
F. Anticipated the future
G. Source of Motivation &
Commitment
A. It used a Guides to Action
B. It serves as Standard of
Performance
1.7 FUTURES OF GOOD PLANNING
It is Based on Clearly Defined Objectives
It is Simple
It is Flexible
It is Comprehensive
It is Time-Bound
Unity and Continuous
It is Balanced, Practicable and Suitable According to the Size and form of the Business
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It uses Available Resources to
the Utmost before Creating
New Authorities and New
Resources
Participation by Subordinates
Pervasive as all the levels of
management plan
It Provides for a Proper
Analysis and Classification of
Action
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1.8 SKILLS REQUIRED FOR PLANNING
2 Basic skills are required for effective planning
1. Forecasting
2. Decision Making
1. Forecasting:
It is the attempt to predict outcomes and future trends
Internal & External factors affects forecasting process?
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1.8 SKILLS REQUIRED FOR PLANNING Cont.….
Forecasting techniques
1. Quantitative forecasting
Applying a set of mathematical rules.
2. Qualitative forecasting
Using expert judgments and opinions
3.Collaborative Planning, Forecasting, and Replenishment (CPFR) Software
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1.8 SKILLS REQUIRED FOR PLANNING Cont.…
2. 1 Decision Making Definition
“Making decisions is selecting one alternative from different alternatives”
It involves choice making
1.8 SKILLS REQUIRED FOR PLANNING Cont.…
2.2 Steps In Decision Making
1. Ascertain the need for a decision
2. Establish decision criteria
3. Allocate weights to criteria
4. Develop Alternatives
5. Evaluate Alternatives
6. Select the Best Alternative
7. Putting Decision Into Action
8. Following up Decisions
Decision Making Process
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1.8 SKILLS REQUIRED FOR PLANNING Cont.…
2.3 Types of in Decision Making
A. Programmed decisions:
Decision for situation faced again and again
B. Non programmed Decisions:
are used to solve nonrecurring problem.
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1.8 SKILLS REQUIRED FOR PLANNING Cont.…
2.4 Decision making situations
A. Decisions under certainty
Ready made information
B. Decisions under risk:
Expected outcomes Probabilities assigned to each alternative
C. Decisions under uncertainty:
neither there is complete data nor probabilities
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1.9 DECISION-MAKING
CONDITIONS
PESC MBA Program Organizational Planning Assignment By G1 Members
Plan
Developed
By:
Advantages Disadvantages
Full Board
of
Directors
Ownership by leadership
Board becomes more
informed about programs
and activities
Time availability may be
limited and scheduling
difficult
May not achieve staff
ownership
Staff Clear understanding of
operation
Time flexibility
Limited board involvement
and subsequent ownership
May detract from other staff
responsibilities
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1.9 DECISION-MAKING CONDITIONS Cont.…
PESC MBA Program Organizational Planning Assignment By G1 Members
Plan
Developed
By:
Advantages Disadvantages
Committee Manageable size
Can include a variety of
perspectives (such as board,
staff, partners, constituents,
etc.)
Full board may not feel sense
of ownership of plan details
Board perspectives may be
excluded
Consultant Good understanding of
planning process
Should produce timely and
professional-looking plan
Limited board and staff
participation may lead to
limited sense of ownership
of plan details
Limited board leadership
development
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1.10 SMART APPROACH
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Developing SMART Goals
S Specific . A specific goal will usually answer the five "W" questions:
What: What do I want to accomplish?
Why: Specific reasons, purpose or benefits of accomplishing
the goal.
Who: Who is involved?
Where: Identify a location.
Which: Identify requirements and constraints.
M Measureable A measurable goal will usually answer questions such as:
• How much?
• How many?
• How will I know when it is accomplished?
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1.10 SMART APPROACH CONT…
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Developing SMART Goals
A Attainable An attainable goal will usually answer the question:
•How: How can the goal be accomplished?
R Relevant A relevant goal will usually answer the question:
Does this seem worthwhile?
T Time Bound A timely goal will usually answer the question:
When?
What can I do 6 months from now?
What can I do 6 weeks from now?
What can I do today?
R Reevaluate
Reward
Reevaluate each goal to make sure they are still relevant
and attainable.
Once goals have been accomplished, celebrate in their
accomplishment and start developing new SMART goals.
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1.11 SWOT ANALYSIS IN PLANNING CONT….
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Basic Parameter
S Strength It Could be:
a)Technical expertise
b)Efficient human resources
c)Possession of latest physical assets
d)Strong research and development department
e)Joint venture with a Multi National Company
W WEAKNESS It is something that a company lacks.
a)Less competent staff
b)Lack of goodwill in the market
c)Obsolete plant and machinery
d)Underutilized plant capacity
e)Ineffective marketing strategies
f)Narrow product line
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1.11 SWOT ANALYSIS IN PLANNING CONT….
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Basic Parameter
O OPPORTUNITIES It Could be:
a)To enter in a new product line
b)To expand the company’s existing product lines
c)To enter into the foreign markets
d)To acquire the rival firms
e)To create new alliances to increase competitive strength.
f)To use latest technologies in the business.
T THREATS on any undertaking:
A) New competitors may enter the field
B) Customers purchasing substitute products
C) New technology making products obsolete
D) Slow down in the market leading to slump.
E) Change in government policies
F) Shift in buyers needs and tastes
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1.12 BARRIERS TO EFFECTIVE
STRATEGIC PLANNING Cont.…
S/N Barriers to
Strategy
Formulation
Barriers to Strategy
Implementation
How to Remove
Barriers?
1 Identical procedures Lack of accountability Clear Communications
2 Strict limitations Lack of commitment Manage the Change Process
3 People Inadequate instructions
to employees
Participation of employees
in planning process
4 Emphasized
ceremonial work
Power & Influence: Regular checks
5 Limited discussion Culture Accountability
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1.13 LIMITATIONS
TO EFFECTIVE PLANING
Risky
It ends up with difference
Success and failure
Uncertainties in the future
Absence of accurate and adequate data
Complicated task
Requires patience
Requires commitment
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1.13 LIMITATIONS
TO EFFECTIVE PLANING Cont.…
Expensive and time consuming
Financial
Physical
Human
External factors
External impositions
Government intervention
Important Export policy
Taxation & labor law
1.14 WHY PLANNING FAIL ???
1. Lack of top management’s commitment
2. Staff control
3. Entrenched self-interests
4. Corporate culture.
5. Fear
6. Cynicism
7. Ignorance
8. Failing to periodically alter the plan
9. Deviation from actual objectives
10. Lack of confidence about success
11. Lack of understanding of the role in the execution process
12. Deviation from planned objective
13. Changes in responsibilities of employees were not clear
14. People are not fully rewarded for the execution of plans
15. Inadequate directions given by departmental mangers
16. Information system used for implementation is inadequate
17. Overall gals are not understood by employees
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REFERENCE
1. Marx, T. G. (1991). "Removing the obstacles to effective strategic planning." Long
Range Planning24 (4): 21-28.
2. Butler, J. E., B. Brown, et al. (2000). "Guanxi and the dynamics of overseas Chinese
entrepreneurial behavior in Southeast Asia." Management and Organizations in the
Chinese Context, Macmillan, Basingstoke: 245-268.
3. Cascella, V. (2002). "Effective strategic planning." Quality progress35(11): 62-67.
4. Al-Ghamdi, S. M. (1998). "Obstacles to successful implementation of strategic
decisions: the British experience." European Business Review98(6): 322-327.
PESC MBA Program Organizational Planning Assignment By G1 Members