PLANNING IN MANAGEMENT

Topics: Subsidiary, Strategic planning, Management Pages: 7 (4128 words) Published: October 20, 2014

MANAGEMENT FUNCTION
PLANNING
A plan is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks and other actions. Planning means identifying goals for future organizational performance and deciding on the task and use of resources needed to attain them. In other words, managerial planning defines where the organization wants to be in the future and how to get there. There are four level of goals and plans, namely mission statement, strategic goals and plans, tactical goals and plans as well as operational goals and plans. The planning process starts with a formal mission that defines the basic purpose of the organization. The mission is the basic for strategic (company) level of goals and plans, which in turn shapes the tactical (division) level and the operational (departmental) level. Top managers are responsible for establishing the strategic goals and plans that reflect commitment to both organizational efficiency and effectiveness. Middle managers such as the heads of major division or functional units are responsible for making the tactical goals and plans. A division manager will formulate tactical plans that focus on the major actions the division must take to fulfill its part in the strategic plan set by the top management. Lastly, Operational plans identify the specific procedures and processes needed at lower levels of organization, such as individual department and employees. Front-line managers and supervisors develop operational plans that focus on specific tasks and processes and that help meet tactical and strategic goals. The organizational planning process begins at the company level when managers develop the overall plan for the organization by clearly defining mission. A mission describes the organization’s values, aspirations and reason for being and the formal mission statement is a broadly stated definition of purpose that distinguishes the organization from others of a similar type. Moving down to the second level of the goal hierarchy is the strategic goals and plans. Although they are at second level, they are still company level goals and plans which are responsible by the top level managers. Strategic goals, sometimes called official goals, are broad statement describing where the organization wants to be in the future whereas strategic plans define the action steps by which the company intends to attain strategic goals. The third level of the goal hierarchy is a divisional level of planning which involves setting of tactical goals and plans responsible by the middle level managers in the organizations. In this level, managers are to translate the plan into action, which includes defining tactical plans and objectives, developing a strategy map to align goals, formulating contingency and scenario plans and identifying intelligence teams to analyze major division and department within the organization intend to achieve while tactical plans are designed to help execute the major strategic plans and to accomplish a specific part of the company’s strategy. At the same level of Planning, managers should also develop a strategy map to align goals. Strategy map is a visual representation which shows how specific goals and plans in each area are linked and provides a powerful way for managers to see the cause-and effect relationships among goals and plans. A strategy map is shown as below :Accomplish Mission : Create Optimal Value

Financial Performance Goals :-
Increase revenues in existing markets
Increase productivity and efficiency
Increase revenues in new markets and products
Customer Service Goals :-
Build and maintain good customer relationships
Be the leader in quality and reliability
Provide innovative solutions to customer needs
Internal Business Process Goals :-
Build good relationship with suppliers and partners
Improve cost, quality and flexibility of operations
Excel at innovative product development and next-generation market...

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