1. What Is Planning? According to Koontz & O’Donell,
“Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur”.

2. What Is Planning? Planning Managerial function that involves:
Defining the organization’s goals
Establishing an overall strategy for achieving those goals
Developing a comprehensive set of plans to integrate and coordinate organizational work
Answer all W’s and one H.
Types of planning
Informal: not written down, short-term focus; specific to an organizational unit
Formal: written, specific, and long-term focus, involves shared goals for the organization

3. PLANNING- THE PRIMARY MANAGEMENT FUNCTION
Planning lays foundation for other functions of management.
All the functions of management are performed within the framework of plans laid out.
It serves as a guide for other management functions.
Planning for Planning
Planning for organizing
Planning for Leading
Planning for Controlling

4. Purposes of Planning
Provides direction ( coherent Pic of Organization)
Reduces uncertainty (Considering Future)
Minimizes waste and reduces overlapping activities
Sets the standards for controlling ( Budgeting)

5. Planning and Performance
The Relationship Between Planning and Performance
Formal planning is associated with:
Higher profits
Other positive financial results
The quality of planning and implementation affects performance more than the extent of planning
The external environment can reduce the impact of planning on performance
Formal planning must be used for several years (4Years)before planning begins to affect performance

6. How Do Managers Plan? Elements of Planning Goals (also objectives)
Desired outcomes for individuals, groups, or entire organizations
Provide direction for all management decisions
Represent the performance evaluation criteria against which actual work accomplishments can be measured.
Plans
Documents that outline how goals are going to be met
Describe how resources are to be allocated and establish activity schedules

7. Types of goals
All organizations have multiple objectives. No single measure can evaluate weather an organization is successful or not.
Financial Goals
Relate to financial performance
Strategic Goals
Relate to other areas of performance

8. Types of goals Stated goals
Official statements of what an organization says, and what it wants its various stakeholders to believe, its goals are.
Real goals
Goals that an organization actually pursues , as defined by the actions of its members.

9. Types of Plans

10. Types of Plans Apply to the entire organization
BREADTH
Strategic Plans
Apply to the entire organization
Establish the organization’s overall goals
Seek to position the organization in terms of its environment
Cover extended periods of time
Operational Plans
Specify the details of how the overall goals are to be achieved
Cover short time period

11. Types of Plans (cont’d)
TIME FRAME
Long-Term Plans
Time frames extending beyond three years
Short-Term Plans
Time frames of one year or less
SPECIFICITY
Specific Plans
Clearly defined and leave no room for interpretation
E.g. 3% reduction in cost & Increase revenues by 9% in next six months.
Directional Plans
Flexible plans that set out general guidelines, provide focus, yet allow discretion in implementation
E.g. 5 to 10% Improvement

12. Types of Plans (cont’d)
FREQUENCY OF USE
Single-use Plan
A one-time plan specifically designed to meet the needs of a unique situation
Standing Plans
Ongoing plans that provide guidance for activities performed repeatedly
E.g. Examination policy

13. The planning process
‘Setting goals and developing plans that leads to goal attainment and ultimately, to organizational efficiency and effectiveness.’

14. Goal Attainment(org. efficiency and effectiveness
The planning process
Mission
Goals
Plans
Goal Attainment(org. efficiency and effectiveness

15. Characteristics of Well-Designed Goals
Goals Should be:
Written in terms of outcomes rather than actions
Measurable and quantifiable(Quality)
Clear as to time frame
Challenging yet attainable
Written down
Communicated to all organizational members who needs to know the goals

16. Setting goals S.M.A.R.T Specific Measurable Attainable Realistic
Timely

17. Setting smart goals

18. Steps in Goal Setting Review the organization’s mission statement
Do goals reflect the mission?
Evaluate available resources
Are resources sufficient to accomplish the mission?
Determine goals individually or with others
Are goals specific, measurable, and timely?
Write down the goals and communicate them
Is everybody on the same page?
Review results and whether goals are being met
What changes are needed in mission, resources, or goals?

19. Approaches to Establishing Goals
Traditional Goal Setting
Broad goals are set at the top of the organization
Goals are then broken into subgoals for each organizational level
Goals are intended to direct, guide, and constrain from above
Goals lose clarity and focus as lower-level managers attempt to interpret and define the goals for their areas of responsibility

20. Traditional goal Setting”
We need to improve the
company ’
s performance. ” ”
I want to see a
significant improvement
Top
in this division ’
s profits. ”
Management ’ s
Objective ”
Increase profits
Division
regardless of the means. ”
Manager ’
s Objective ”
Don ’
t worry about
quality; just work fast. ”
Department
Manager ’
s Objective
Individual
Employee ’
s Objective

21. Developing Plans Contingency Factors in Planning
Manager’s level in the organization
Strategic plans at higher levels
Operational plans at lower levels
Degree of environmental uncertainty
Stable environment: specific plans
Dynamic environment: specific but flexible plans
Length of future commitments
Current plans affecting future commitments must be sufficiently long-term to meet the commitments

22. Planning in the Hierarchy of Organizations

23. Enough for today. . .