Planning

Planning

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job.

Planning is a detailed programme regarding future courses of action. It is rightly said “Well plan is half done”. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources.

SO, PLANNING IS THE FIRST MANAGEMENT FUNCTION AND WHEN WE PLAN WE SHOULD CONSIDER NOT ONLY THE GOAL/GOALS OF OUR COMPANY BUT ALSO THE RESOURCES THAT CAN CONTRIBUTE IN ORDER FOR US TO BE SUCCESSFUL

Planning in the Organization

The successful organization is one that has a clear plan. The plan clarifies to both employees working in the organization and to those dealing with the organization, what it is that the company is doing and where they are headed.

Planning Emcompasses:• Defining the organization’s objectives or goals.

• Establishing an overall strategy for achieving those goals.

• Developing a comprehensive hierarchy of plans to integrate and coordinate activities.

Advantages of Planning

• It gives direction to managers and nonmanagers alike.

• Planning can reduce the impact of change. • It minimize waste and redundancy.

• Planning establishes objectives or standards that

facilitate control.

Disadvantages of Planning

• Planning may create rigidity. • Plans can’t be developed for a dynamic environment. • Formal plans can’t replace intuition and creativity.• Planning focuses managers’ attention on today’s

competition, not on tomorrow’s survival.• Formal planning reinforces success, which may lead

to failure. ALL IN ALL IT CAN GIVE THE

ORGANIZATION A SMOOTH PROCESS TO ACHIEVE ITS MISSION BUT WE MUST

CONSIDER CHANGES THAT COULD AFFECT OUR PLANS FOR TOMORROW’S SURVIVAL.

Exhibit 4-1 Types of Plans

Breadth Time Frame SpecificityFrequency

of Use

Strategic Long Term Directional Singular Use

Tactical Short Term Specific Standing

Strategic and Tactical Plans

• Strategic plans are plans that apply to the entire organization, establish the organization’s overall objectives, and seek to position the organization in terms of its environment.

• Tactical plans (sometimes referred to as operational plans) specify the details of how the overall objectives are to be achieved.

• Strategic and tactical plans differ in three primary ways—their time frame, scope, and whether they include a known set of organizational objectives.

SO STRATEGIC PLANS IS MORE GENERAL IN TERMS OF ESTABLISHING OVERALL OBJECTIVES WHILE TACTICAL PLANS IS MORE SPECIFIC ON

HOW TO ACHIEVE THOSE OBJECTIVES. 

Short-term and Long-term Plans

• Short-term plans are plans that cover less than one year.

• Long-term plans are plans that extend beyond five years.

• Their differences lie in the length of future commitments and the degree of variability organizations face.

FOR EXAMPLE YOUR LONG TERM PLAN IS TO HAVE AN EXTENSION BRANCHES ALL OVER THE COUNTRY SO YOUR SHORT PLAN FOR EXAMPLE IS

TO GAIN AWARENESS TO THE PEOPLE SO THAT YOU CAN EARN ENOUGH MONEY/PROFIT TO ACHIEVE YOUR LONG TERM PLAN.

 

Specific and Directional Plans

• Specific plans have clearly defined objectives and leave no room for misinterpretation.

• Directional plans are flexible plans that set out general guidelines.

Single-use and Standing Plans

• Single-use plans are used to meet the needs of particular or unique situation.

• Standing plans are ongoing, and provide guidance for repeatedly performed actions in an organization.

STRATEGIC MANAGEMENT

What’s Strategy?• Strategy is management’s overall plan and actions

for deploying resources and skills taking into consideration opportunities and threats in the environment– to achieve it’s mission, vision and objectives– to establish a favorable competitive position.

• Strategy involves:– An organization’s goals– A series of related decisions & actions– Takes into account key internal strengths & weaknesses

and external opportunities threats– Analysis, communication, coordination, & action

What is Strategic Management?

• Focuses on how managers formulate and implement, and evaluate strategies aimed at developing and maintaining competitive advantage:– the reason some firms enjoy higher levels of

performance than their rivals or competitors.

FOR EXAMPLE ONE COMPANY IS VERY GOOD

WHEN IT COMES TO STRATEGIC MANAGEMENT SO THEIR OVER ALL

PERFORMANCE IS HIGHER THAN OTHER COMPETITORS.

Importance of Strategic Management

• Gives every employee a role to play in making the firm successful

• Makes a difference in performance levels

• Provides systematic approach to uncertainties that organizations face

• Coordinates and focuses employees to achieve organization’s goals

ALL IN ALL IT GIVES EMPLOYESS OR STAFFS A SPECIFIC ROLE TO ACHIEVE THE GOAL AND TO PREVENT DOUBTS WITHIN THE

ORGANIZATION.

Strategic Management Process

• Establishing a mission, vision and objectives• Environmental Analysis

– analyzing the environment– identifyng opportunities & threats

• Internal Analysis– analyzing organization's resources– identifying strength & weaknesses

• Strategy Formulation• Strategy Implementation• Strategic Control and Performance Evaluation

Identify the organization’s current mission, vision,objectives, and strategies

Analyze theenvironment

Identify opportunities and threats

Analyze the organization’s resources

Identify strengths andweaknesses

Reassess the organization’s mission and objectives

Formulate strategies

Implementstrategies

Evaluate results

The Strategic Management Process

1.

2.

3.

4.

5.

6.

7. 8. 9.

1st Strategic Management Process

Identify the organization’s current mission,

vision,objectives, and strategies

Mission , Vision & Goals & Objectives

• Mission relates to doing, so mission statements are about your day-to-day operations. Your mission statement outlines the practical things you will do to achieve your vision statement. This allows the organization to outline the basic purpose or reason for its existence.

• Vision relates to seeing and looking, so vision statements are about looking ahead. Your vision statement outlines your business goals and where you're headed.

• Goals establish where you intend to go and tell you when you get there

• Objectives yardsticks for tracking a company’s performance or end result.

How to formulate Mission & Vision Statement

• Mission Statement:

1. Evaluate what your company really do.2. Include the 4 Key Elements : Value, inspiration,

plausibility, and specificity. 3. Keep It Short and Sweet Remember4. Consider Long-Term vs. Short-Term 5. Test It If you're revamping your statement6. Revisit It Often

How to formulate Mission & Vision StatementExample: (Dep ED Mission Statement)

"TO PROTECT AND PROMOTE THE RIGHT OF EVERY FILIPINO TO QUALITY, EQUITABLE CULTURE-BASED AND COMPLETE BASIC EDUCATION WHERE:

How to formulate Mission & Vision Statement

• Vision Statement:

1. Examine your mission statement.2. Dare to Dream 3. Shape your vision statement; apply the formula.4. Commit to your vision statement. 5. Follow the 7 "Be"

How to formulate Mission & Vision StatementExample: (Dep ED Vision Statement)

We dream of Filipinos

who passionately love their country

and whose values and competencies

enable them to realize their full potential

and contribute meaningfully to building the nation.

As a learner-centered public institution,

the Department of Education

continuously improves itself

to better serve its stakeholders.

IN THE MISSION STATEMENT OF

DEPED WE CONSIDER THE FUTURE STATE OF THE GOV’T

INSTITUTION, IT IS IN SYNCH

WITH THE MISSION

STATEMENT TO PROVIDE CULTURE

BASED EDUCATION TO ALL AND IT IS ALIGN WITH

GOAL.

How to formulate Goals & Objectives

1. Tie your goals and objectives to your mission.

- This approach is to know and review your company or institution mission statement.

2. Use goal setting using the acronym A.C.E.S.

A - CHIEVE; What do you want to attain in the future?

C - ONSERVE; What do you want to hang on to?

E - LIMINATE; What do you want to get rid of?

S - TEER CLEAR; What do you want to avoid?

A-PUT MORE BRANCHES OF YOUR COMPANY AROUNG THE COUNTRYC- MOTIVATED AND EXPERRIENCED EMPLOYEES

E- COMPETITION AMONG STAFFS TO PREVENT MISCOMMUNICATIONS- LOSING VALUED CLIENTS AND STAFFS

How to formulate Goals & Objectives

3. Make final choices in formulating goals and objectives:

Keep each goal clear and simple.

Be specific.

Be realistic

Don’t be afraid to push yourself and think big.

Make sure your goals are in sync with your mission.

How to formulate Goals & Objectives

Example: Goals & Objectives of Dep ED

GOAL: "TO PROVIDE QUALITY, EQUITABLE CULTURE-BASED AND COMPLETE BASIC EDUCATION"

OBJECTIVES:

Students learn in a child-friendly, gender-sensitive, safe and motivating environment.

Teachers facilitate learning and constantly nurture every learner.

Administrators and staff, as stewards of the institution, ensure an enabling and supportive for effective learning to happen.

Family, community and other stakeholders are actively engaged and share responsibility for developing lifelong learners.

OUR GOAL CAME FROM THE MISSION STATEMENT I HAVE

READ EARLIER

THE OBJECTIVES IS MORE DETAIL ON HOW WE CAN ACHIEVE OUR GOALSO WE MUST REVIEW VERY WELL OUR MISSION STATEMENT IN ORDER TO COME

UP WITH GOALS AND OBJECTIVES.

2nd Strategic Management Process

Environmental Analysis-refers to screening large amounts of information to detect emerging trends and create a set of scenarios. All external influences that impact a company’s decision and performance.

Environment of firm classified by proximity into:

The macro-environment consists of- The international/national economy; changes in demographic

structures; social and political trends; technology; and the natural environment.

The micro-environment consists of- The industry environment such as competitors, suppliers, customers;

unions and employees; owners and shareholders, etc.

IT INVOLVES EXTERNAL FACTORS THAT AFFECT COMPANYS PERFORMANCE. THEN MACRO ENVIRONMENT ARE THE PROCESSES OCCURING OUTSIDE THE COMPANY WHILE MICRO ENVIRONMENT OCCURING WITHIN THE COMPANY.

3rd Strategic Management Process

Internal Analysis- Involves the evaluation of the inventory of the firm’s resources and capabilities.

• Resources/Capabilities can be classified as:- Tangible resources: Financial or physical assets- Intangible resources: brand name, reputation (product & firm), organizational culture, etc.- Capabilities or competencies: managerial ability, specialized skill & knowledge base of employees, etc.

Organization’sresources

Opportunitiesin the

environment

Organization’s opportunities

4th Strategic Management Process

Strategy Formulation- involves designing a course of action for addressing strategic issues facing the firm after going through the external and internal evaluation processes

• Actual strategy of a company involves:- Planned or Intended Actions (Deliberate & purposeful actions).- Reactive or Emergent Actions (As-need reactions to unanticipated events in firm’s micro and macro environments).

• Strategy formulation is concerned with the following parts of a company:

• Corporate -- Corporate strategies: Deals with businesses company wants to be in & how to manage those businesses

• Businesses -- Competitive strategies: How to compete in specific business or industry

• Functional areas -- Functional strategies: short goal-directed decisions & actions of an organization’s various functional departments.

STRATEGIC FORMULATION TAKES PLACE WHEREIN IT IS IN SYNCH WITH YOUR GOALS AND YOU CONSIDER DIFFERENT AREAS IN THE COMPANY

5th Strategic Management Process

Strategy Implementation- is the process of putting a company’s various strategies into action development of programs, policies, budgets & procedures.

• It can take several months to years to complete.• Most difficult part of the strategy process.• The job of implementing strategy involves managers at

all levels

6th Strategic Management Process

Strategic Control and Performance Evaluation

- Process by which desired outcomes (mission, vision, & objectives) are compared with realized outcomes to determine if there are gaps.- Initiate corrective actions by monitoring changes in environment - competitor actions, new market opportunities, customer needs & expectations.

AFTER YOU FORMULATE AND IMPLEMENT, YOU EVALUATE IF YOUR STRATEGIC PERFORMANCE IS SUCCESSFUL, IF NOT

WHAT ARE THE CAUSES

,

SWOT Analysis

SWOT Analysis

• Opportunities are positive external environmental factors, and threats are negative ones.

• Strengths are internal resources that are available or things that the organization does well.

• Weaknesses are those resources that an organization lacks or activities that it does not do well.

Inside the organization Outside the Organization

Strengths Opportunities

Weaknesses Threats

Once the SWOT is concluded, there are 4 strategies to choose from in order to guide future directions:

1.The growth strategy A strategy in which an organization attempts too increase the

level of its operates; can take the form of increasing sales revenue, number of employees, or market share.

2.The stability strategy A strategy that is characterized by an absence of significant

change. 3.Retrenchment strategy A strategy is reducing its size, usually in an environment of

decline.4.Combination strategy A strategy that is the simultaneous pursuit by an organization of

two or more of growth, stability, and retrenchment strategies.

Grand Strategies

Strategic Planning Diagram

Internal Factors

ExternalFactors

GrandStrategy

• Strengths and Weaknesses•These points are factors that exist within the company. So, for instance, if the company is really good at research and devl'tyou would list it as a streght. if they aren't very good at negotiating land contract, you'd list that as a weaknesses.

Threats & Opportunities- Examining facts that have a bearing on the company. These exist outside of the organization.- You must think of factors of the external nvironment and demographic to apply in this section.

There are only 4:1. Growth2. Stability3. Retrenchment4. Combination