Management Process Planning

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MASINDE MULIRO UNIVERSITY OF SCIENCE AND TECHNOLOGY

MANAGEMENT PRACTICE 802
MANAGEMENT PROCESS
PLANNING
BY:
KEYA Moses Reg. No. MBA/G/31/12
&
KIILU Joseph Mutisya Reg. No. MBA/G/28/12

MANAGEMENT PROCESS
PLANNING
Definition and nature of planning
Schermerhorn, 2010 defines planning as the process of setting objectives and determining how to accomplish them. This involves setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. It also includes the measures that will be used to determine whether expectations and goals are being met. Management process is described as planning, organizing, staffing, leading and controlling the use of resources to achieve performance objectives. Planning being the first of these functions sets the stage for others by providing sense of direction. Planning may be broadly defined as a concept of executive action that embodies the skill of anticipating, influencing, and controlling the nature and direction of change. – McFarland (hubpages 2012) According to Daft et al, 2010 the purpose of planning is to achieve high performance in various aspects i.e. overall performance, production, sales and marketing, customer satisfaction etc. He says that planning has been changing to be more in tune with today’s environment and shifting attitudes of employees. Planning has been evolving from the early traditional approach to the most recent high performance approach, which fits in the current state of highly dynamic organization environments. Traditional approaches to planning

Traditionally, corporate planning has been done entirely by executives, by consulting firms and by central planning departments (a group of planning specialists who report directly to the CEO or president). This approach was popular in 1970s. Planning specialists were hired to gather data and develop detailed strategic plans for the corporation as a whole. He says this approach was top down as goals were assigned to major divisions from planning department after approval. Although this approach is still popular, it’s being criticized in the sense that it may be out of touch with changing realities faced by front-line managers and employees in fast paced environments. It’s said to leave people struggling to follow a plan that no longer fits environment and customer needs. It also can inhibit employee’s innovation and learning. High performance approaches to planning

Daft et al (2010) describes this as a fresh approach to planning, which involves everyone in the organization and outside the stakeholders. This evolution began with a shift to decentralized planning (planning experts work with managers in major divisions or departments to develop their own goals and plans). Managers come up with their own creative solutions and hence have the commitment to implementation. At more volatile environment top executives employ the use of experts to work directly with line managers and frontline employees to develop dynamic plans that meet fast-changing needs. Importance of planning (hubpages)

* Planning provides directions
* Planning reduces the risks of uncertainty
* Planning reduces overlapping and wasteful activities
* Planning promotes innovative ideas
* Planning facilitates decision making
* Planning establishes standards for controlling
Features of planning (hubpages)
* Planning focuses on achieving objectives
* Planning is a primary function of management
* Planning is pervasive
* Planning is continuous
* Planning is futuristic
* Planning involves decision making
* Planning is a mental exercise
Planning process
Generally the planning process will involve the following:
Setting objectives: Objectives may be set for the entire organization and each department or unit within the organization. Developing premises: Planning is concerned with the future which is uncertain and every...
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