Foundations of Planning in Management

Foundations of Planning
Facilitator: S. Ali Jafari

CASE

Understanding Powerful Role of Your Experience in Finetuning Your Judgment Contd… • Those who cannot remember past are fated to repeat it. -George Santayana -George • Bad judgment can come form bad memory. -L. William Seidman -L. • Only thing new in world is history you don’t know. don’t -Harry S. Truman -Harry • Farther backward you can look farther forward you are likely to see. -Winston Churchill -Winston Contd… Contd…

Understanding Powerful Role of Your Experience in FineFinetuning Your Judgment Contd… Contd… • There is nothing new except what has been forgotten. - Marie Antoinette • If I have seen further, it is by standing on shoulders of giants. -Isaac Newton -Isaac • Anyone who closes his eyes on past is blind to present. -Richard von Weizacker -Richard

• What many managers fail to recognize is that effective planning is good investment & is less costly to organization than no planning at all.

Nature & Importance of Managerial Planning

• Who all should be involved in planning in an organization? • All managers must plan. •All • Planning is an intellectual activity & a major component of managerial task.

Nature & Importance of Managerial Planning • Where does planning belong in terms of time •Where & why? • Planning is a futuristic activity directed •Planning toward anticipating, predicting, & dealing with change. • Because only certain thing is change – •Because essence of planning - it is vital managerial function.

What is the Essence of Planning Functions?

• A set of related steps by which management determines
– what is to be done – how it will be done

Planning
• So where do we start? • By Defining
– Organizational objectives or goals

• Then what? – Establish overall strategy for achieving these goals. And then what? – Develop a comprehensive hierarchy of plans to integrate & coordinate activities

Can we safely say that Planning is a Process or at least should preferably be a Process Or Alternatively: it is inspirational and intuitive?

Why?
Irwin/McGraw-Hill

• “It has to be a process by which managers should be able to:

• anticipate future developments & • identify courses of action necessary to achieve organizational & divisional objectives”

What is the Focus of Planning?
• Planning focuses on future, “What” is to be accomplished and “How”? • What means: – Objectives for future

• How means:
– Appropriate means & strategies for achieving these objectives.

Outcome
• Outcome of planning function is a plan, which is • A written document that specifies courses of action that the firm will take with available resources

Efficiency of Plans
• Its Contribution to “Purpose & “Purpose Objectives, offset by costs & other factors required to formulate & operate it”. it”. • When is a Plan efficient? • If it achieves its purpose at a reasonable cost, • How is cost measured? • Not only in terms of time & money or production but also in degree of individual or group satisfaction.

Purpose & Importance of Planning

• Specific Benefits of Planning:
– Coordinating efforts – Preparing for change – Developing performance standards – Developing managers

The Importance of Planning
Why is Planning So Important? Important?

To coordinate efforts

To prepare for change

To develop managers

To develop performance standards

Considerations Required When Managers Initiate Planning
Determine the priority of objectives Establish time frames for objectives Resolve conflicts among objectives Create measurements for objectives

Managers Must:

The Manager’s Means of Implementing Plans Manager’s

Manager’s Manager’s Authority

+

Manager’s Manager’s Persuasion

+

Organizational Policies

=

Implementation of Plans

Planning Process

Step 1-Setting Objectives
• Setting objectives: Addresses issue of what one hopes to achieve. • May be set in performance area, i.e....