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Presentation on theme: "FOUNDATION OF PLANNING"— Presentation transcript:


2 What Is Planning? A primary functional managerial activity 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. 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 Why Do Managers Plan? Provides direction Reduces uncertainty
Minimizes waste and redundancy Sets the standards for controlling

4 How Do Managers Plan? Elements of Planning Goals (also Objectives)
Desired outcomes for individuals, groups, or entire organizations Provide direction and evaluation performance criteria Plans Documents that outline how goals are to be accomplished Describe how resources are to be allocated and establish activity schedules

5 Characteristics of Well-Designed Goals
Written in terms of outcomes, not actions Focuses on the ends, not the means. Measurable and quantifiable Specifically defines how the outcome is to be measured and how much is expected. Clear as to time frame How long before measuring accomplishment. Challenging yet attainable Low goals do not motivate. High goals motivate if they can be achieved. Written down Focuses, defines, and makes goal visible. Communicated to all Puts everybody “on the same page.”

6 Example of Company’s Goals
Example 1: Company’s goals for 2015 Become internationally recognized Improve product quality Increase revenue and profit Improve customer’s satisfaction Example 2: A production team Improve quality Improve productivity Ensure high safety level

7 Procter & Gamble’s OGSM Technique
What needs to be done Objectives written statement of compelling business needs Goals numerical target and scorecard to track progress toward meeting objectives

8 Procter & Gamble’s OGSM Technique (cont.)
How we will achieve our objectives Strategies written statement of specific actions that must be taken to meet objectives Measures numerical measures to track progress on executing specific actions

9 Balanced Goals from Different Perspectives
Financial Perspective Profitability, Return on Investment Customer Perspective Satisfaction, market share, repeated customers Internal Perspective System, operation, capability Learning Perspective New technology, management, ideas,

10 Characteristics of Good Plan
Prediction of environmental trends Scenarios Goals SMART: specific, measurable, attainable, realistic, and time Resources Feasible but stretching Actions Specific, clear, integrated, fit with goals Changes: flexible and creative

11 Example: A Business Plan
Business objectives Functional objectives: Finance, marketing, HR, production, R&D, ... Resources Finance, HR, management, IT, ... Actions

12 Case: Bookstore From Management and Planning perspective, explain:
Why the Bookstore succeeded in early days? Why did it fail later? What do you learn?

13 Team Project: Your Team’s Goals and Plans


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