Planning

Planning Decide in advance What? When? Who? How? To Do

Nature of Planning Contribute to the purpose and objectives – Facilitate the accomplishment Primacy of planning – Precedes the execution of all managerial function (e.g) organizing, directing…etc Popularity of planning – varies with authority and nature of supervisor plan Efficiency of plans – measured by contribution to objectives (e.g) cost

Types of Plans Standing Plans Single-use Plans good Used over a period of time Single-use Plans Used for only specific periods good Based on facts, well-balanced, minimum procedures and up-to-date

Steps in Planning Identifying Alternatives Being Aware of Opportunity In light of: Market, Competition, Customers, Strength and weakness. Setting Objectives In light of: Where the company wants to be and what it wants to accomplish and when Considering Planning Premises In what environment Internal or external will the plan operates Identifying Alternatives What are the most promising alternatives for accomplishing the objectives Comparing Alternatives In light of goals sought: Which alternative will provide the best chance of meeting the goals at the lowest cost and highest profit Choosing Alternative Selecting the course of action to be pursued Formulating Supporting Plan Such as plans to: Buy equipment Buy material Hire and train workers Develop a new product Quantifying Plans by Making Budget Develop such budgeting as: Volume and price of sales

Limitations of Planning Lack of accurate information Problem of change ( Technology/Customer taste) Failure of people (not qualified) Internal inflexibility External inflexibility Rigidity in planning Time and cost factor

Planning Premises It is a framework anticipated environment in which plans are expected to operate include assumptions forecast of the future and known condition.

Important of Forecasting Help in effective planning by providing scientific and reliable basis for anticipating future operation Reducing area of uncertainty Managers think ahead and search for best decision Managerial control

Forecasting Methods Quantitative Techniques Qualitative Techniques Opinion Polls Brainstorming Delphi Method Quantitative Techniques Input-output analysis Curve fitting Time Series

Corporate Planning Definition Kind of Plans Process of determining the major objectives of an organization and it policies and strategies Vision: inspired picture of future Mission = Purpose CEO: Chief Executive Officer Comparison Strategy Operational Time Horizon Several years One year Scope Wide range of activities Narrow and limited scope Degree of detail Simplistic generic Finer detail

Organizing

Definition Organizing refers to the formal grouping people and activities to achieve firm objective.

Relationship of Objectives and Organizational Levels Social –Economics Purpose Mission Overall Objectives Specific Objectives Division Goals Department and unit Objectives Individual Objectives Board of Directors Organization Hierarchy Top-Level Managers Middle Managers Lower-Level Managers

Organizational Theory Organization Theory is the study of structure, functioning and performance of organizations and behavior of groups.

Principle of Organization The success of an organization can be ensured better if the following basic principle are observed Unity of objectives Efficiency Span of management Division of work – Proper Departmentalization Functional definition – Duties are defined Scalar Principle (Chain of Command) - Line of Authority (Subordinate and Supervisor) Unity of Command Authority and responsibility Balance Facilitation and Continuity

Span of Management The number of subordinates in an organization who are required to report to each manager Wide span - many subordinates report to a manager - typical of flat organizations Narrow span - few subordinates report to a manager - typical of tall organizations

Span of Management Tall hierarchy Flat hierarchy CEO Relatively narrow Relatively wide span of management

3 Levels Span of Management=45 Naill Ahmed Fahad Momen Sliman Jean Saed Khaled Adam Ben Thuria Hasna Said Faris Zaid Anas Salim

3 Span of Management=15 Naill Ahmed Saif Adam Ben Zain Salim Yazan Rami

Types of Organization Military of line system – from top to the lower vertically Functional Organization – separate departments but interrelated jobs Line and staff system Matrix system – individual may have any number of supervisors and projects. Hybrid – employs functional and divisional departmentalization management

Provide specialization on the basis of overall function Departmentation Functional Provide specialization on the basis of overall function Divisional Product Customer Location

Centralization and Decentralization Decision – making authority is retained at the top of the managerial hierarchy Decision – making authority is pushed downward to the lower management levels Effective and easily achieved, clear control and no conflict Acted quickly and innovative, and easy to control

Mistakes in Organization Failure to plan properly Failure to clarify relationship Failure to delegate and balance authority Lack of responsibility and authority Staff personnel doing unauthorized tasks Multiple subordination Over organizing

How to Delegate Authority Work to each person's strengths Avoid bad relationship assignments Make sure the person you are tapping on the shoulder can handle their new assignments Avoid favoritism or singling out individuals Delegate with care