PLANNING : AN INTRODUCTION Selecting the best course of action in anticipation of future trends so that the desired result may be achieved. It must be stressed that the desired result takes first priority and the course of action chosen is the means to realize the goal. The process of determining objectives and selecting a future course of action to accomplish them. It is considered as the most basic of all managerial functions. PROVIDES SPECIFIC ANSWER TO SIX BASIC QUESTIONS IN REGARD TO ANY INTENDED ACTIVITY: WHAT identifies the specific goals to be accomplished. WHEN answers questions of timing; each long-term goal may have a series of short-term objectives that must be achieved before the long-term goal can be reached. WHERE concerns the place or places where the plan will be executed. WHO identifies the specific people who will perform specific tasks essential to plans implementation. HOW involves specific actions to be taken to reach the goals. HOW MUCH is concerned with the expenditure of resources needed to reach the goals- both short and long term. WHEN PLANNING, MANAGERS SHOULD POSSESS THESE RESPONSIBILITIES: Construct, review and rewrite their organizations mission. Identify and analyze their opportunities. Establish the goals they wish to achieve. Identify, analyze and select the course/courses of action required to reach their goals. Determine the resources they will need to achieve their goals. MAJOR ASPECTS OF PLANNING Contribution to purpose and objectives. Planning as the basic function. Planning is a major function of all managers. WHY MANAGERS RESIST PLANNING? Managers have many functions. Managers prefer to act on many problems by providing instant feedback. Good planning is hardwork. Plan can be used to measure results. Planning often involves serious thinking and extensive paperwork. Planning takes time. IMPORTANCE OF PLANNING It sets the stage for resource acquisition and the focus of energy for the entire organization. It provides DIRECTION and a common sense of PURPOSE for the organization. Generate goals and sets the foundation for organizing of resources and activities to achieve the goals. Organizations ability to adjust. Planning increases the possibility of survival in business by minimizing the risks inherent in the future. Unified framework of plans. The result of the planning process should provide for a unified for the accomplishment of the organizations purpose. Plans for each level from top to bottom should fit into each other. Planning reduces Overlapping and wasteful activities. Planning promotes innovative ideas. Planning facilitates decision making. Planning establishes standards for controlling.Relationship between Goals and Plans in the organizational Planning Process

CLASSES AND TYPES OF PLANSAccrd toNATURE AND SCOPEI. Strategic Plans contain the answers to who, what, when, where how and how much for achieving strategic goals---long-term, companywide goals established by top management. concerned with the entire organizations direction and purpose---how it intense to grow, compete and meet its customers needsover the next few yearsII. Tactical Plans develop by middle managers, this plan are more detailed, have shorter time frames, and narrower scopes than a strategic plan; are accomplished within 1 year or less. Concerned with:1. What each of the major organizational subsystems must do?2. How they must do it?3. When things must be done?4. Where activities will be performed?5. What resources are to be utilized?6. Who will have the authority needed to perform each task?

Tactical ObjectivesShort-term goals set by middle managers that must be achieved in order to reach top managements strategic goals and the short- and long-term goals of middle managers.

Functional Area Plans1. Marketing Plan- considered as game plan or master plan of the company.2. Production Plan-plans the schedule of production activities with the aim of achieving production efficiency.3. Financial Plan- states the acquisition and use of financial resources4. Human resource management Plan-indicates human resource needs

III. Operational Plansthe first-line managers tool for executing daily, weekly, and monthly activities Operational ObjectivesThe specific results expected from first-level managers, work groups and individuals.

Key DifferencesStrategic PlanTactical PlanOperational Plan

ImpactHave the potential to dramatically impact both positively and negatively the fortunes and survival of the organizationCan affect specific business but generally not the fortunes of survivability of the entire organization

InterdependenceHigh interdependence; must take into account the resources and capabilities of the entire organization and its externalModerate interdependence; must take into account the resources and capabilities of several units within a businessLow interdependence; the plan may be linked to higher level tactical and strategic plans but is less interdependence with them

Time HorizonTypically 3-5 yearsOften focused on 1-2 years in the futureUsually focused on the next 12 months or less

ScopeBroadest; originating with a focus on the entire organizationRarely broader than a strategic business unitNarrowest; usually centered on departments or smaller units of the organization

ComplexityThe most complex and general because of the different industries and businessSomewhat complex but more specific because of the more limited domain of applicationThe least complex because they usually focus on small homogenous units

Plans as to FREQUENCY OF USEI. Standing PlanIt is used again and again; specifies how to handle continuing or recurring activities such as hiring, granting credit and maintaining equipment.Types:a. Policy - A broad guide for organizational members to follow them dealing with important and recurring areas of decision making. They set limits and boundaries for decision makers.

b. Procedure- A set of step-by-step directions for carrying out activities or tasks.

c. Rule - An ongoing, specific guide for human behavior and conduct at work. Rules are usually do or do not statements established to promote employee safety, ensure the uniform treatment of employees, and regulate civil behavior.

II. Single PlansIt is developed to achieve specific purposes and to be dissolved when these have been accomplished.Types:a. Budget a. formal quantitative statements of the resources allocated to specific programs or projects for a given period.b. use for predicting sources and amounts of income and how it is to be used.c. aims to control the use of financial resources b. Program a. major undertaking that may take several years to completeb. refer to larger activity unitsc. typically involve several different departments or units of the organizationd. are composed of several different projectsc. Projects a. smaller in scope and complexity than a program with a shorter time horizon.b. often part of a larger program

Summary of Standing and Single PlansTypeDefinition

Standing Plans1. Policy2. Procedure3. RuleA general statement that guides decision making.A series of related steps that are to be followed in an established order to achieve a given purpose.A statement that prescribes or prohibits action by specifying what a person may or may not do in a specific situation.

Single-use Plans1. Budget2. Programs3. ProjectsA plan that deals with the future allocations and utilizations of various resources to different activities over a given time.A plan typically intended to accomplish a specific objective within a fixed time.A subset or component part of a specific program.

Plans as to TIME HORIZONI. Short range- plans covering the span of less than one year.II. Long range- plans covering a span of more than one year.

Strategic Management Art and science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives

Stages of Strategic Management The strategic management process attempts to organize quantitative and qualitative information under conditions of uncertainty

1. Formulating Developing a vision and mission statement, Identifying an organizations external opportunities and threats Determining internal strengths and weaknesses, Establishing long-term objectives, Generating alternative strategies Choosing strategies to pursue.2. Implementation Establish annual objectives, devise policies, motivate employees, and allocate resources so formulated strategies can be executed. 3. Evaluation Final stage, includes 3 fundamental activitiesi. Reviewing external and internal factors as bases for current strategiesii. Measuring performanceiii. Taking corrective actions

A Comprehensive Strategic Management Model

Strategic Planning An organizations process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. The big picture of what your company is doing and where it is going Helps determine where your organization is going over the next year or more. Why is this important? Takes you outside the day-to-day activities of your organization or project and helps give you clarity about what you actually want to achieve and how to go about achieving it rather than a plan of action for day-to-day operations.

Strategic Planning Models Goals-Based Works with the agency vision, mission, and the agency goals to work toward achieving the mission Issues-Based Starts with examining issues that the organization is facing Organic Focus is primarily on vision and values Scenario- What could possibly happen in the futureComponents of a Strategic Plan Vision Developing a clear understanding of what is your preferred future Mission Developing a sound statement about why you exist Core Values and Beliefs Describes behaviors and ideas that are important to your organization Strategic Issues The issues that create a gap between the ideal and reality Operational Plans How are you going to achieve your vision?Steps of a Strategic Plan Where is your agency in its development RIGHT now? Assess the Internal and External Environments SWOT Analysis Regardless of whether your organization is future planning for specific products, work, personal or any other area, the SWOT analysis process is the same.

Step 1 In the here and now List all strengths that exist now. Then in turn, list all weaknesses that exist now. Be realistic but avoid modesty! Step 2 What might be List all opportunities that exist in the future. Opportunities are potential future strengths. Then in turn, list all threats that exist in the future. Threats are potential future weaknesses. Step 3 Plan of action Review your SWOT matrix with a view to creating an action plan to address each of the four areas. Step 4 Develop Operational Plans, Monitor Actions, Evaluate Progress, and Revise the Plan! Other Steps in Strategic Plan Create a Vision Define core beliefs and values of your agency Identify your agencys mission Identify critical strategic issues Sometimes referred to as barriers Develop goals and detailed action plans for each strategic issue How can you maximize the forces in favor and minimize forces against? Monitor Action Plans your agency has developed in response to the critical issues Evaluate progress of achieving the outcomes Revise the plan as necessary

Tools and Approaches SWOT analysis, which addresses internal strengths and weaknesses relative to the external opportunities and threats; PEST analysis, which covers the remote external environment elements such as political, economic, social and technological (PESTLE adds legal/regulatory and ecological/environmental); Scenario planning, which was originally used in the military and recently used by large corporations to analyze future scenarios; Porter five forces analysis, which addresses industry attractiveness and rivalry through the bargaining power of buyers and suppliers and the threat of substitute products and new market entrants; Growth-share matrix, which involves portfolio decisions about which businesses to retain or divest; and Balanced Scorecardsandstrategy maps, which creates a systematic framework for measuring and controlling strategy. The Nine Steps to Success - The Balanced Scorecard Institute's framework for Strategic Planning and Management.Planning Process1. Analyzing the environment An organizations success is influenced by its external environment, the major forces outside the organization that have the potential of significantly impacting on the likely success of products or services.Type of External Environment:1. General, or mega or macro environment1. Task or micro environment

Mega Environment- is the segment of the external environment that reflects the broad condition and trends in the societies within an organization operates.

It consists of the following:

Technological environment Demographic environment Economic environment Legal-political environment Socio-cultural element International environment

Task Environment - is specific outside element with which organization interfaces in the courses of conducting its business.

It includes the following:

1. Customers and clients1. Competitors1. Suppliers1. Labor supply

2. Setting Objectives This second element in the planning process which is setting objectives or desired outcomes for the entire organization, a specific unit, or even an individual.

Objective or Goal - a future target or end that an organization wishes to achieve.Consideration must be given the following:1. Priorities and multiple objectives- very large number of options to consider1. Measurement of objectives - who, what, by when, and to-what-degreeMajor Benefits of Goals/Objectives

1. Goals can increase performance.1. Helps clarify expectations.1. Facilitates the controlling function.1. Increase in motivation

Levels of Goals or Objectives:

1. Strategic Goals - broadly defined targets or future end results set by the top management. 1. Tactical Goals - are targets or future end results usually set by the middles management for specific departments or units. They are stated in more measurable terms. 1. Operational Goals - are targets or future end results set by lower management that address specific, measurable outcomes required from lower levels. Components of Goals 1. Goal Content/Characteristics 0. Specific target a specific area for improvement.0. Measurable quantify or at least suggest an indicator of progress.0. Assignable specify who will do it.0. Realistic state what results can realistically be achieved, given available resources.0. Time-related specify when the result(s) can be achieved.0. Challenging0. Attainable- An achievable goal will usually answer the question How? How can the goal be accomplished? How realistic is the goal based on other constraints?

1. Goal Commitment

Major factors affecting commitment:

1. Supervisory authority1. Peer and group pressure1. Public Display1. Expectation of Success1. Incentives and reward1. Participation

1. Work Behavior Four work behavior factors:

2. Direction- instructions2. Effort2. Persistence2. Planning

1. Job Knowledge and Ability 3. are likely to affect an individuals work behavior and prospects for reaching goals even here is strong commitment. 1. Knowledge of Results 4. feedback about progress toward goal is particularly important aspects of using goals effectively in organization 1. Complexity of the Task 5. affect the degree to which goal directed work behaviours' influence performance. 1. Situational Constraints 6. constitutes another element that influences the impact of goals on performance.

Methods of Approaches to Establishing Objectives1. Entrepreneurial Approach - objectives are set by, the entrepreneur / owner of the enterprise.2. The Consensual Method - objectives are set by the general consent of those concerned. enterprise in setting objectives and conflict estimated by identifying common or consensual goals. relating to or involving3. Coalition Method objectives are established as a result of a continuous bargaining between groups or coalition to ensure that their interests are represented. Alliance may be temporary or a matter of convenience.3. Determining Requirements Usually addresses the question, what will it take to get from here to there? the there is what you to become while the here requires an assessment or knowledge of where the organization is today. 4. Assessing Resources this assessment of the required resources and the resources available to the organization or manager. Questions that managers must ask when assessing: Do we have needed human talent to meet the requirement? Even if we have the needed talent, are they available? Can we take people of what they are currently working on in order to put them on this new project? If we dont have necessary talent, can we develop or acquire it within the needed time frame? Do we have the financial resources available? Can we get additional funding from the debt or equity markets? Do we have the required technology or can we gain access to it at a cost-effective price? 5. Developing Action Plan Action Plan - are essentially the marching orders that everyone uses to accomplish the established tasks.Elements of an Effective Plan:1. Sequence and timing most common tool is the Gannt Chart. For example, the manager may be given monthly earning quotas to stay on track for the goal of increasing sales by 25 percent.1. Accountability specialization of who is accountable for each action. 6. Implementing Plans plans often fail in the implementation stage because of inadequate assessment of resources both those required and available "What happens when we do?" Implementation is the stage where all the planned activities are put into action. monitor implementation - One way to do this is through requesting a monthly progress report from department heads. Communicate with your staff, Make adjustments, Seek expert advice time adjustment The participation and cooperation of subordinates is necessary for successful implementation of plans. Established plans should be reviewed periodically so as to modify and change them whenever necessary.

7. Monitor Outcomes Monitoring is important to ensure that the project is implemented as per the schedule.

It is necessary to know: Are the land-use activities being carried out as planned? Are the effects as predicted? Are the costs as predicted? Have the assumptions on which the plan was based proved to be correct? Are the goals still valid? How far are the goals being achieved?Making Planning Effective Planning is done so that some desired results may be achieved. At times, however, failure in planning occurs. Planning may be made successful if the following are observed:1. Recognizing the planning barriers1. Using the aids to planning

The planning barriers consist of the following: the managers inability to plan improper planning process lack of commitment to the planning process improper information focusing on the present at the expense of the future too much reliance on the planning department concentrating on only the controllable variables

Among the aids to planning that may be used are: gathering as much information as possible developing multiple sources of information involving others in the planning process

Indications of Good Planning Workers know how their jobs fit into the total pattern Jobs are turned out on time Good relationships with other departments. Equipment is in good shape. Materials are available. Wastes are kept to minimum. Machines doing their proper role. People using their highest skills.

Indications of Poor Planning Skilled workers doing unskilled work. Men fumbling on jobs for which they are not trained. Some men are overworked, others are underworked. Some machines doing jobs which could be done by smaller ones. Quarrelling, bickering, buck-passing and confusion may arise. Wasted materials. Delivery dates are no met. Machines are idle.

Decision making the study of identifying and choosing alternatives based on the values and preferences of the decision maker. Decision-making is one of the central activities of management and is a huge part of any process of implementation. can be regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities. Every decision-making process produces a final choice that may or may not prompt action. Using a step-by-step decision-making process helps us to make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. This approach enables us to better insure the chances of choosing the most satisfied alternative possible. Approaches to Decision Making Avoiding One decision-making option is to make no choice at all. There are several reasons why the decision maker might do this: There is insufficient information to make a reasoned choice between alternatives. The potential negative consequences of selecting any alternative outweigh the benefits of selecting one. No pressing need for a choice exists and the status quo can continue without harm. The person considering the alternatives does not have the authority to make a decision. Problem Solving Most decisions consists of problem-solving activities that end when a satisfactory solution is reached. In psychology, problem solving refers to the desire to reach a definite goal from a present condition. Problem solving requires problem definition, information analysis and evaluation, and alternative selection. Problem Seeking On occasion, the process of problem solving brings the focus or scope of the problem itself into question. It may be found to be poorly defined, of too large or small a scope, or missing a key dimension. Decision makers must then step back and reconsider the information and analysis they have brought to bear so far. We can regard this activity as problem seeking because decision makers must return to the starting point and respecify the issue or problem they want to address.

Decision Making Approaches - Which Approach Characterizes Your Individual Decision Making? The majority of the decisions we make, we make as individuals. In the quest for making more effective decisions, it is appropriate to look at the approaches we pursue in our individual decision making. Since decision outcomes are not certain, to improve decision quality, it is important to focus on how a decision is made.

Three decision making approaches to consider1. Rational or Analytical approach - Exemplified by step by step decision making, this approach defines success factors upfront, seeks information and logically looks at how each alternative meets each success factor. Decision making is planned, and choices are made under the premise desired solutions can be achieved except for large unforeseeable or unknowable events. With this approach, consequences of the final choice are taken into consideration.1. Intuitive Decision Making Approach- Relying on emotions and feelings characterizes this approach. Careful planning is not possible or not desired. People will point to a "gut feeling" or "hunch" as the cause for a choice, reflecting that explanation is not accessible through conscious thought.1. Chance, or Luck Approach - In this approach a decision is made on impulse, without thought. Flipping a coin or using a "decision wheel" would be representative of employing this approach. It is sometimes considered a dependent style because this approach can promote denial of responsibility.

SEVEN-STEP DECISION MAKING PROCESS1. Identify a problem or opportunity- to recognize a problem or to see opportunities that may be worthwhile2. Gather information- What is relevant and what is not relevant to the decision?- What do you need to know before you can make a decision, or that will help you make the right one?3. Analyze the situation-What alternative courses of action may be available to you?- What different interpretations of the data may be possible?4. Develop options- Generate several possible options.- Be creative and positive.- Ask what if questions.- How would you like your situation to be?5. Evaluate alternatives- Which alternative will best achieve your objectives?6. Select a preferred alternative- Explore the provisional preferred alternative for future possible adverse consequences.- What problems might it create?7. Act on the decision- Put a plan in place to implement the decision.- Have you allocated resources to implement?-Is the decision accepted and supported by colleagues?

TRUST IN THE LORD WITH ALL YOUR HEART AND LEAN NOT ON YOUR OWN UNDERSTANDING; IN ALL YOUR WAYS ACKNOWLEDGE HIM AND HE WILL MAKE YOUR PATHS STRAIGHTProverbs 3:5-6

S StrengthsInternal Environment

WWeaknesses

OOpportunitiesExternal Environment

TThreats