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Foundations of planning ppt @ bec doms bagalkot mba
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Foundations of Planning
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PLANNING Definition:
Planning encompasses defining the organization’s objectives or goals, establishing an overall strategy for achieving those goals and developing a comprehensive hierarchy of plans to integrate and coordinate activities .”
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PLANNING The Purpose of Planning:
Gives direction Establishes coordination Reduces uncertainty Reduces overlapping / wasteful action Establishes objectives or standards
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Criticisms of Formal Planning
Planning may create rigidity. Plans cannot be developed for a
dynamic environment. Formal plans cannot replace
intuition and creativity. Planning focuses managers’
attention on today’s competition, not on tomorrow’s survival
Formal planning reinforces success, which may lead to failure
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Planning Increases Performance
Generally produces positive financial results
Quality of the planning process and the implementation efforts are more important than the extent of planning
Environmental change can strongly affect the impact of planning
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Types of Plans
Strategic Long-term Directional Single use
Tactical Short-term Specific Standing
FREQUENCYBREADTH TIME FRAME SPECIFICITY OF USE
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Types of Plans
Strategic -- organization wide, overall objectives, position firm in environment
Tactical -- specify the details of how overall objectives are to be met
Short term -- less than a year long term -- beyond five years
BIMTECH FOUNDATION COURSE : PPM JUNE 2010
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Types of Plans
Specific -- clearly defined objectives
Directional -- flexible plans setting out general guidelines
Single use -- meets the needs of a unique situation
Standing -- provides guidance for repeatedly performed actions
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Specific Plans
Directional Plans
Clear
General
Low
High
Flex
ibilityO
bje
ctiv
es
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Managerial Levels and Plans
TopExecutives
Middle-levelManagers
OperationalPlanning
StrategicPlanning
First-levelManagers
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Management By Objectives (MBO)
What is MBO ?A system in which specific performance objectives are jointly determined by subordinates and their superiors, progress toward objectives is periodically reviewed and rewards are allocated on the basis of that progress.
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Management By Objectives
Common MBO elements Identify key job tasks Set specific and challenging goals Encourage active participation Prioritize goals Build in feedback Link rewards to goal attainment
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Management By Objectives
OverallOrganizational Objectives
OverallOrganizational Objectives
DivisionalObjectives
DivisionalObjectives
DepartmentalObjectives
DepartmentalObjectives
IndividualObjectives
IndividualObjectives
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MBO Downside Overly focussed on what is being
measured rather than final result (quantity over quality)
Individual rather than team focus Objectives become ceilings rather
than floors -- decreases further motivation
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The Strategic
ManagementProcess
Identify Current MissionIdentify Current Mission
Analyze the Environment
Analyze the Environment
Formulate StrategiesFormulate Strategies
Evaluate ResultsEvaluate Results
Reassess Organization’s MissionReassess Organization’s Mission
Implement StrategiesImplement Strategies
AnalyzeResources
AnalyzeResources
Opportunities & Threats
Opportunities & Threats
Strengths &Weaknesses
Strengths &Weaknesses
1.1.
2.2.4.4.
3.3.5.5.
6.6.
7.7.
8.8.
9.9.
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The Strategic Management Process
Identify the current mission and goals Analyze the Environment Environmental Opportunities – Threats Analyze the firm’s Resources and Skills Firm’s Strengths and weaknesses Reassess the mission and objectives Strategy Formulation Implement strategies Evaluation
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Mission The fundamental purpose of
an organization -- the definition of success
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SWOT: Identifying Organizational Opportunities
Organization’sResources
Opportunitiesin the
Environment
Organization’sOpportunities
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Competitive Strategies
Cost-leadership Differentiation Focus
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Comparison: Entrepreneurs and Traditional Managers
AcceptanceAvoidanceView toward mistakes
ModerateLowRisk tendency
Direct involvementDelegationActivity
5-10 year growth of business
Short-term goalsTime orientation
IndependenceCorporate rewards Primary motivation
EntrepreneurTraditional
Manager
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Project Management and Process
Contemporary planning tool Is a process of quality control to ensure a
project’s activities are done on time, within budget, and according to specification
Project is a one-time-only set of activities that has a definite beginning and ending point in time
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