Planning process Lecture 3
Planning and goals Planning is a generic activity. Planning process includes setting goals, developing plans and related activities. Goal is a state or condition to be achieved. Plan is the means by which goals are achieved.
Organizational planning process Planning in any organization starts with definition of the mission. The mission outlines the organization’s purpose, premises, values and direction. Once the mission is defined, the next step in planning process is setting strategic goals. These goals determine the strategic plans. Next step is setting tactical goals and plans.
Group task Develop strategical, tactical and operational goals for the restaurant with Bulgarian cuisine in Varna.
Purposes of organizational goals Goals provide guidance and direction for people in organization. They facilitate planning. They are source of motivation and inspiration for the employees of the organization. They provide mechanism for evaluation and control.
Kind of goals By level: -Mission; The mission of any organization is a statement of its fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of business operations in product and market terms; -Strategic goals. They are developed by the top management - Tactical goals. They are set up by middle managers. Their focus is to operationalize actions necessary to fulfill the strategic goals. - Operational goals. They are set by first line managers. They are short term focused.
Goals by Peter Drucker Market standing. It is measured by the market share desired by the company. Innovation. Recognition of the need to produce new products or develop new services. Productivity. It is measured by the resources used to general output. Physical and financial resources. Profitability. Managerial performance and development Worker performance and attitude. Public responsibility. A consideration on company’s impact on the society.
Making goals effective Understand the purpose of goals. Goals should be properly stated. The goals should be specific. They should be precise. They should be time-related. Goals should be horizontally and vertically consistent. People in organizations hould accept and be committed to work toward organizational goals. The goal stetting process should be integrated with the reward system.
Time frames for planning Long range planning. It takes form of strategic plans Intermediate planning.It takes form of tactical plans Short range planning.It takes the form of: - Action plan. It is used to operationalize any other kind of plan. - Reaction plan. They are designed so that the company reacts to an unforeseen circumstances.
Responsibilities of planning Planning staff. The reasons to have it are: - Planning takes time; - Planning takes coordination; - It takes expertise; - It takes objectivity. Factors that influence planning staff: - Degree of centralization. - Nature of the environment; - Personality and leadership styles of the management.
Planning task force It comprises line managers with special interests ot involvement in any relevant area of planning. It is created in special circumstances. Board of directors. This is a group of people elected by the company stockholders to represent their interests. The board is establishing company’s mission and strategy. Chief executive officer. Executive committee. Top executives working in group together. Line management Individual planner.