MGMT1001 – Principles
At the end of this session, students should be able to:
Assess the nature and importance of the planning
Identify and describe different types of goals and plans
set in organisations.
Identify the major rules governing the planning
Assess the contingency factors and
associated with planning.
The Planning Function
Lecturer: Dwayne Devonish
“involves defining the organization’s goals
establishing an overall strategy for achieving
those goals, and developing plans for
organisational work activities” (Robbins and
Coulter, 2007, p.184)
Considered to be the most fundamental
managerial function in organisations.
Goals are defined, and plans are set in place to
achieve these goals.
What is a Plan?
“A blueprint for goal achievement and specifies
the necessary resource allocations, schedules,
tasks, and other actions” (Daft and Marcic,
Plans specify the current means of achieving
Goals are what we want, plans are how we will
What is a Goal?
A goal is a desired outcome that the organisation
wants to achieve or reach in order to fulfil their
purpose or mission:
To obtain first class honours.
To increase sales by 30% by year end.
To increase road tax, gas prices, and everything
else but salaries.
Goals specify the ends.
Importance of Planning
Is considered to be the main (premier) managerial
function; it precedes all other functions.
Provides direction to managers and non-managers.
Facilitates and complements other management
Reduces uncertainty as managers are forced to look
ahead, anticipate changes, and respond appropriately.
Minimises waste and redundancy; planning early allows
managers to be aware of those resources that will be
sufficient for achieving organisational outcomes –
efficiency is maintained.
Occurs at all levels of management:
First line management
Planning complements and supports each managerial
Types of Plans I
Specific plans – clearly defined plans set by the
organisation that leave no room for
interpretation (no ambiguity) – however, are not
effective in uncertain environments – plans are
Directional plans – these are flexible and
general (adequate for uncertain environments
where flexibility is needed); not set deadlines or
course of action.
Types of Plans III
Long-term plans - Plans with time
frames extending beyond three years
Short-term plans - Plans with time
frames on one year or less
Types of Goals
Goals can also exist as:
Stated Goals – Written (official) statements of
organisational goals – included in annual reports,
mission statements, etc.
Real Goals - Actual goals pursued by the
organization (observed actions of the members
of the organisation – stated goals may be too
vague or unrealistic)
Types of Plans II
SingleSingle-use plans – A one-time plan specifically
onedesigned to meet the needs of a particular situation;
used to achieve one-time goals. Shorter time
horizon. E.g. setting a plan for a programme for a a
specific project (one-time).
Standing plans – Ongoing plans that provide
guidance for activities performed repeatedly. E.g...