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Essentials of Planning

Topics
Different concepts or types of planning. Steps in Planning process. How to set goals. Creativity, innovation and Brainstorming

PLANNING
planning is deciding in advance what to do, how to

do , when to do it and who is to do it.

What to do focus on task itself . How to do focus on way of doing.

when to do mean time of doing. who is to do mean the person who will do it.

PLANNING
Planning involves setting goals and deciding how best to achieve them. Planning is a brainstorming process which needs a lot of time.

It requires decision making, choosing a future course


of action.

It bridges the gap between from where we are,


where we want to go.

Relationship of Planning and Controlling

planning

Implementation of plan

Controlling The plan

Types of Plans
Plans can be classified as ..
Mission or Purpose Objectives or Goals Strategies Procedures Rules Programs Budgets

Mission or Purpose
The mission identifies the basic purpose or function of an enterprise. Every organization should have mission or purpose.

Mission or purpose of (business) generally is the


production and distribution of goods and services.
providing education services to community.

The mission of a university is teaching, research and

building and operation of a system of state highways.


and their applications.

The mission of state highway department is the design,

The purpose of the courts is the interpretation of laws

Goals and Objectives


Goals are the targets towards which activity is aimed. They represent the end point of planning, organizing, staffing, leading and controlling.

Difference between Objectives and goals

Objective: small target.


Completing each semester is objective for student.

Goal: large target.


Getting job is a goal for every student.

Levels of Goals
Top management

strategic goals

Middle management

Ttactical Goals
ghg

Ooperational Goals
Low level Mgt

Strategy
Strategy is a course of action by which a
firm can achieve its targets(goals).

Strategy is something which is concerned


with competitiveness ,that is, taking competitive advantage over your opponent. Example: Company wants to increase its sales through (improving the quality) of its products.

Policies
Policies are guidelines that are established to support efforts to achieve the goals. policies are established at high level and applied to the entire organization.

Example:
The policy of hiring MBA qualified candidates. The policy of hiring young employees.

PROCEDURES
Procedures are guides to actions and they detail the exact manner in which certain activities must be accomplished. They are chronological sequence of required actions.

Example:
Conducting performance appraisals, the procedure is. 1: Setting performance standards 2: Comparing original performance with standards. 3: Performance discussion.

Rules
Rules are usually the simplest types of plans, allowing no discussion. They are without any discretion.

Example:
NO SMOKING is the rules in the organization.

Program
Programs are the combination of goals, policies, procedures, rules, resources to be allocated etc. They are ordinarily supported by budgets.

Example:
Five year program of an organization to improve the status and quality of its thousands supervisors

Budget
A budget is a statement of expected results expressed in numerical terms. A budget may be expressed in financial terms.

Example:
A budget may include Expenses Revenues

Steps in planning

Being aware of opportunities

Establishing objectives

Determining alternative courses

Evaluating alternative courses

Selecting a course

Quantifying plans by budgeting

Steps in Planning

How to set goals

Steps in setting goals


1: Specify the goal to be reached or tasks to be done. What do you want to accomplish? Do you want to increase the sales? Reduce cost? Improve quality? Boost customer service?

steps in setting goals


2:Specify how performance will be measured. Performance can be measured according to these two criteria's. Physical unit: number of errors, quantity of production, quality. Time: Meeting deadlines, completing a projects, punctuality.

steps in setting goals


3: Specify the standards or targets to be reached. In this stage the required performance are specified. Example: The target may be to produce 40 units per hour, completing the project by 15 December.

steps in setting goals


4:Specify the time span to be involved. To have positive impact on performance, goals must have time span within which they are to be completed. Example: Your goal for the semester may involve few months.

steps in setting goals


5: Priorities the goals: When multiple goals are present, they need to be priorities. Otherwise efforts can be focused poorly. Example: If you want to obtain grade A. Examination counts 70%, assignment 20%, class contribution 10%. priorities examination assignment class contribution.

steps in setting goals


6: Coordination. It is important to know that whether goals depends on other individuals, if so, coordination and cooperation with them may be needed.

Creativity
Creativity: usually refers to the ability and power to develop new ideas or Cognitive process of developing new ideas, concepts , commodity etc. Innovation: The use of new ideas in products or services. Brainstorming: The technique of encouraging group members to generate as many ideas as they can on a given topic and then selecting the best idea.