module: PLANNING Flashcards
a logical and systematic
approach of formulating the objectives,
programs, policies, procedures, budget,
rules and regulations, and other types of
plans.
PLANNING
- Planning requires analytical and conceptual abilities. Not all managers have these rare qualities. In addition , planning needs a lot of training and experience to acquire competence , although some individuals are born planners.
Incompetence
To make a plan requires hard work . Moreover, it entails a great responsibility in case the plan fails. Thus, many hesitate to commit themselves to planning
.Lack of dedication
Complete and accurate information is a vital input in planning . Otherwise , the results are different which may be expensive in terms of costs, time, and materials. For example , ignorance of new government business policies and major developments in the economy can easily ruin a business plan.
Incomplete and inaccurate information.
A planning department conducts research
and builds planning models. But they do not implement the plans. It is the line managers
. Dependence on the planning department.
. Japanese businessman are more concerned with long range
planning. This makes them enjoy a competitive advantage in global business. When
planning is focused only on short term problems, it fails to consider the needs of the future.
Thus, the business enterprise is not prepared to face the future, and cannot survive future
problems.
Short-sightedness
These plans are designed for a specific purpose or period. The plan ceases to exist when the goals are achieved. One common single use plan is the budget. A plan to set up a warehouse is another example of single use
plan.
Single-use plans
These plans serve as guidelines to managerial action.
Managerial efficiency is enhanced because once the decision is made, it stands
without the necessity of deliberation each time a similar situation arises. These
plans bring consistency to the operations.
Standing plans
These are the strategic plans of the organization. Under this
plan, assumptions must be made out uncontrollable and controllable variables.
Technological change is an uncontrollable variable, over which a manager may
not have any control because it takes place in the external environment
Long-range plans
These plans follow once the long-range plans are formulated. To become a leader in its industry( the long range plan an
organization may plan set up regional sales offices). Intermediate plans are
made for the realization of long-range goals. These plans usually cover a one to
three year period.
Intermediate plans
These plans provide the guidelines for day to day actions in the organization. These plan may cover up to a year
Short-range plans
– The common objectives of marketing plans are to increase
their present market share and develop new products. The objectives are
converted into operational plans.
Marketing plans
– These focus on producing the desired amount of goods demanded at the market place. Production planning involves routing , scheduling , and dispatching processes. Routing determines the path for the flow of production.
Production plans
– It provide a quantitative basic for decision making and control.
The financial data tells managers how well they are doing, the need for working
capital, the need for expansion and the sources of funds.
Financial plans
– These involve a systematic way of determining the types of
personnel needed in the long and short range for an organization. Personnel of
various qualities and quantities must be recruited and made available at
appropriate times. To achieve this, forecasts are necessary as the demand and supply of labor.
Manpower plans
- It deals with the determination of the short term- specific utilization of the resources of the organization in achieving its strategic goals. The reliance for these plans is on past performance and as to how an organization previously allocated its resources.
Tactical plans
Plans are often classified by function or use. The most frequently encountered types of functional plan are sales and marketing plans, production plans, financial plans and personnel plans.
Functional plan
TYPES OF PLANS
Standing plans
Single-use plans
Long-range plans
Intermediate plans
Short-range plan
Marketing plans
Production plans
Financial plans
Manpower plans
Tactical plans
Functional plan
Essentials of Planning
Statement of the Objective
Statement of the Problem
Designation of planning authority
Collection and interpretation of data
Formulation and testing of tentative plan
Statement of final plan
Procedure to Formal Planning
-Select the Goals.
-Analyze the environment
-Establish measurable goals-
-Sub- units develop their own plans-
-Compare lower-level plans with strategic plans
-Close the gap
Factors Affecting Planning
- Condition
- Time Factor
- Resource Available
- Skills and attitudes of management
- Political, social, and environmental conditions
- Physical facilities
- Collection and analysis of data
Overcoming the Barriers
- Start at the top
- Recognizing the limits of planning
- Communication
- Participation
- Revision and updating
- Contingency planning
Goals are the start and end of planning process. We start planning by setting the organization’s goal and ends up attaining that goals. Setting goals is the most critical step in the planning process. It takes much of the organization’s resources and
governs the activities for considerable length of time.
Select the Goals.
In setting goals, managers must consider the problems and
opportunities presented by the environment. This is important because whatever the
goals may be, they will in some way be affected by the factors outside the organization
Analyze the environment
Planning to be effective, goals selected must be spelled out in precise, measurable terms. Specific goals are better motivators of people than general goals. It is easier to accomplish a goal which is precise and measurable.
Establish measurable goals
- Once upper –level management tentatively selects and states its basic, long term goals, lower level managers in turn must decide what is best to help meet goals. It is necessary for lower level management to be able to produce detailed plans for all sub units.
Sub- units develop their own plans
After the formulation of lower-level
plans these are sent up the organizational hierarchy to middle and upper- level managers for evaluation and approval. Plans for sub units are integrated and made part of an overall plan.
Compare lower-level plans with strategic plans
If there is a gap between the goals of the overall strategic plan and those of the organization ‘s sub- units, new changes in the strategic plan must be made. The managers usually have to develop several new alternatives to make the original plan workable.
Close the gap
