Chap 3

Topics: Management, Strategic management, Strategic planning Pages: 17 (3273 words) Published: February 25, 2015
MAKING PLANNING EFFECTIVE

“Ano man ang gawa’t pag dinali-dali, Ay hindi iigi ang pagkakayari”

Planning and the Management Process
Planning is the basic process we use to select our goals and determine how to achieve them.
Planning is deciding in advance what to do, how to do it, when to do it, who is to do it and how to measure performance (Hick and Gullet, 1976).
Peter Drucker’s distinction between effectiveness – doing the right things—and efficiency—doing things right.
Before managers can organize, lead or control, they must make the plans that gives purpose and direction to the organization.

Plans and Decision Making
Managers who develop plans but do not commit themselves to action are simply wasting time. Ideas that are not accompanied by definite ways to utilize them have no practical effect. “Replanning” can sometimes be the key factor leading to ultimate success.

An important aspect of planning is decision making, the process of developing and selecting a course of action to solve a specific problem.

The Four Basic Steps in Planning
Planning is quite straightforward and be can condensed into four basic steps. These four planning steps can be adapted to all planning activities at all organizational levels. 1. Establish a goal or set of goals3. Identify the aids and barriers to the goals 2. Define the present situation4. Develop a plan or set of actions for reaching the goal (s)

Operational Plans
Within an organization, plans are arranged in a hierarchy that parallels the organization’s structure. At each level, plans serve two functions: (1) they provide the objectives to be met by plans at the lower level; and (2) they in turn provide the means for achieving the objectives set in the plans of the next higher level.

Types of Plan:
Strategic plans – designed to meet the broad objectives of the organization – to implement the mission that provides the unique reason for the organization’s existence. Operational plans – providing the details of how the strategic plans will be accomplished. 1. Single-use plans – developed to achieve specific purposes and dissolved when these have been accomplished. a. Programs – a program covers a relatively large set of activities. b. Projects – projects are smaller and separate portions of programs. c. Budgets – budgets are statements of financial resources set aside for specific activities in given period of time. 2. Standing plans – standardized approaches for handling recurrent and predictable situations. This allows managers to conserve time used for planning and decision making because similar situations are handled in a predetermined, consistent manner. a. Policies – a policy is a general guideline for decision making, e.g. requiring strict sanitary conditions where food or drugs are produced or packaged. b. Standard procedures – provides a detailed set of instructions for performing sequence of actions that occurs often or regularly. c. Rules – are statements that a specific action must or must be taken in a given action. They are the most explicit of standing plans are not guides to thinking or decision making. Rather, they are substitutes for them.

The Link between Planning and Controlling
We have described planning as an analytic and decision-making process that ends when a specific plan is developed. It is at this action-taking stage that planning moves into another management function, controlling.

Controlling can simply be defined as the process of ensuring that actions conform to plans. Controlling cannot take place unless a plan exists, and a plan has a little chance of success unless some efforts are made to monitor its progress.

Types of Control
Budgeting is the most common link between planning and controlling. A budget is almost always a key part of the planning process because it guides decisions about allocating resources toward the attainment of goals.

In some organizations,...

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