1. Planning Work Activities
Chapter 8
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2. Learning Objectives
8.1 Define the nature and purposes of planning. 8.2 Classify the types of goals organizations might have and the plans they use. 8.3 Compare and contrast approaches to goal-setting and planning. Know how to set goals personally and create a useful, functional to-do list Develop your skill at helping your employees set goals 8.4 Discuss contemporary issues in planning.

3. Contemporary Issues in Planning
L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter.
Contemporary Issues in Planning
Explain the criticisms of planning and whether or not they’re valid.
Describe how managers can effectively plan in today’s dynamic environment.
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4. Planning 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.
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5. plan Objective: improve business market share by 20%.
Strategy: method or tool to achieve the gool.
- improve product quality.
Improving skills of staff.
Reduce the price
Promotion
3. Activities which is part of action plan
prof. Dr. Majed ElFarra

6. 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.
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7. Purposes of Planning Why Do Managers Plan? Provides direction
Reduces uncertainty
Minimizes waste and redundancy
Sets the standards for controlling
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8. Planning and Performance
The Relationship Between Planning And Performance
Formal planning is associated with:
Higher profits and returns of assets.
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 before planning begins to affect performance. It takes at least 4 years before performance is impacted
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9. 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
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10. Types of Goals Financial Goals Strategic Goals
Are related to the expected internal financial performance of the organization.
Strategic Goals
Are related to the performance of the firm relative to factors in its external environment (e.g., competitors).
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11. Stated Objectives from Large U.S. Companies
Financial Objectives
Faster revenue growth
Faster earnings growth
Higher dividends
Wider profit margins
Higher returns on invested capital
Stronger bond and credit ratings
Bigger cash flows
A rising stock price
Recognition as a “blue chip” company
A more diversified revenue base
Stable earnings during recessionary periods
Strategic Objectives
A bigger market share
A higher more secure industry rank
Higher product quality
Lower costs relative to key competitors
Broader or more attractive product line
A stronger reputation with customers
Superior customer service
Recognition as a leader in technology and/or product innovation
Increased ability to compete in international markets
Expanded growth opportunities
Source: A.A. Thompson Jr. and A.J. Strickland III. Strategic Management 12th ed. (New York: McGraw-Hill/Irwin, 2001), p. 43.
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Exhibit 7.1

12. Types of Plans
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Exhibit 7.2

13. Stated Goals versus Real Goals
Broadly-worded official statements of the organization (intended for public consumption) that may be irrelevant to its real goals (what actually goes on in the organization).
Ex. Growing our customer base, building market leadership, increasing profitability. These quite irrelevant and vague.
real goals - those goals that an organization actually pursues. Ex. Limiting class size. Increase size of products’ amounts by 20%.
Increase size of sales by 20%.
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14. How Do Managers Plan? (cont.)
The Role of Goals and Plans in Planning (cont.)
Types of Plans (cont.)
First: by time frame:
long-term plans - time frame beyond three years. Definition of long term has changed with increasingly uncertain organizational environments.
short-term plans - cover one year or less.
Second: by specificity:
specific plans - clearly defined with little room for interpretation. Required clarity and predictability often do not exist, because of environment dynamic. Ex. (setting a plan with specific objective, procedures, budgets and time frame.
directional plans - flexible plans that set out general guidelines
provide focus without limiting courses of action. It is flexible to respond to unexpected change.
prof. Dr. Majed ElFarra
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15. Specific Versus Directional Plans
prof. Dr. Majed ElFarra
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16. How Do Managers Plan? (cont.)
The Role of Goals and Plans in Planning (cont.)
Types of Plans (cont.)
Third: by frequency of use:
single-use plans - one-time plans specifically designed to meet the needs of a unique situation. Ex. Setting a plan to introduce a new service, or open new branch.
standing plans - ongoing plans that provide guidance for activities performed repeatedly
include policies, procedures, and rules. E.g., students registration plan at IUG.
prof. Dr. Majed ElFarra
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17. Types of Plans Fourth: by Breadth: Strategic Plans Operational 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
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18. Approaches to Establishing Goals
Traditional Goal Setting: no participation.
Broad goals are set at the top of the organization.
Goals are then broken into sub-goals for each organizational level.
Assumes that top management knows best because they can see the “big picture.”
Goals are intended to direct, guide, and constrain from above.
Negatives: Goals lose clarity and focus as lower-level managers attempt to interpret and define the goals for their areas of responsibility.
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19. Traditional Objective Setting
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Exhibit 7.4

20. Approaches to Establishing Goals (cont’d)
Maintaining the Hierarchy of Goals
Means–Ends Chain
The integrated network of goals that results from establishing a clearly-defined hierarchy of organizational goals.
Achievement of lower-level goals is the means by which to reach higher-level goals (ends). (see the previous hierarchy)
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21. Approaches to Establishing Goals (cont’d)
Management By Objectives (MBO)
Specific performance goals are jointly determined by employees and managers.
Progress toward accomplishing goals is periodically reviewed.
Rewards are allocated on the basis of progress towards the goals.
Key elements of MBO:
Goal specificity, participative decision making, an explicit performance/evaluation period, feedback
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22. Steps in a Typical MBO Program
The organization’s overall objectives and strategies are formulated.
Major objectives are allocated among divisional and departmental units.
Unit managers collaboratively set specific objectives for their units with their managers.
Specific objectives are collaboratively set with all department members.
Action plans, defining how objectives are to be achieved, are specified and agreed upon by managers and employees.
The action plans are implemented.
Progress toward objectives is periodically reviewed, and feedback is provided.
Successful achievement of objectives is reinforced by performance-based rewards.
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Exhibit 7.5

23. Does MBO Work? Reason for MBO Success
Top management commitment and involvement
High employees morals.
More realistic goals and strategies.
Better clarity.
Potential Problems with MBO Programs
Not as effective in dynamic environments that require constant/ regular resetting of goals.
Overemphasis on individual accomplishment may create problems with teamwork.
Allowing the MBO program to become an annual paperwork shuffle.
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24. 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.”
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Exhibit 7.6

25. Characteristics of Well-Designed Goals
SMART
Specific= precise
Measurable= quantifiable
Attainable= possible
Realistic = practical
Timely= time pounded
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26. 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?
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27. جمعية اصدقاء الطالب رسالة الجمعية:
جمعيتنا أهلية فلسطينية رائدة تعمل بتميز على تقديم المساعدات وتنمية القدرات والإبداعات للطلبة الفلسطينيين في إطار من الشفافية للمساهمة في بناء جيل ريادي متميز.
الأهداف العامة للجمعية:
تقديم المساعدات النقدية والعينية للطلاب وذويهم.
تقديم العون الاجتماعي والنفسي للطلاب.
تقديم الدعم والمساعدة للطلاب ذوي الاحتياجات الخاصة.
تطوير قدرات الطلاب وتنمية إبداعاتهم وتشجيع البحث العلمي.
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28. جمعية اصدقاء الطالب
الهدف العام الأول: تقديم المساعدات النقدية والعينية للطلاب وذويهم.
الهدف الخاص الأول: المساهمة في دفع الرسوم الجامعية للطلبة المحتاجين.
الاستراتيجيات:
1) تقديم المنح والهبات،
2) تقديم القرض الحسن.
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29. Developing Plans Contingency Factors in A Manager’s 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.
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30. Planning in the Hierarchy of Organizations
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Exhibit 7.7

31. Approaches to Planning
Establishing a formal planning department
A group of planning specialists who help managers write organizational plans.
Planning is a function of management; it should never become the sole responsibility of planners.
Involving organizational members in the process
Plans are developed by members of organizational units at various levels and then coordinated with other units across the organization.
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32. Contemporary Issues in Planning
Criticisms of Planning
Planning may create rigidity/inflexability.
Plans cannot be developed for dynamic environments.
Formal plans cannot replace intuition and creativity.
Planning focuses managers’ attention on today’s competition not tomorrow’s survival.
Formal planning reinforces today’s success, which may lead to tomorrow’s failure.
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33. Contemporary Issues in Planning (cont’d)
Effective Planning in Dynamic Environments
Develop plans that are specific but flexible.
Understand that planning is an ongoing process.
Change plans when conditions warrant/deserve.
Persistence/determination in planning eventually pay off.
Flatten the organizational hierarchy to foster the development of planning skills at all organizational levels.
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34. Case study
In 2003 it was announced that British Airways (BA) would install 190 IBM self service kiosks at Heathrow Airport and all British Airways destination airports across Europe. The Kiosks are designed to make check in faster and more convenient, whilst optimizing space at airports. Customers can use the touch sensitive screens to check in, select seats and ask for upgrades without having to queue at desks. The new system was expected to reduce check in queues, providing a major boost to the volume of passengers that BA could handle at peak times. This was part of transportation strategy that BA could handle at peak times. The new strategy will change how customers do business with the Airline. BA expected to achieve 50% self service check in by the new service would improve customer service and high efficiency.
1- Write the objectives that BA may have had in its transportation strategy?
2- what are the strategies used by BA?
prof. Dr. Majed ElFarra

35. Digital Tools
Business intelligence: data that managers can use to make more effective strategic decisions
Digital tools: technology, systems, or software that allow the user to collect, visualize, understand, or analyze data
Increasingly, we’re finding that companies are making strategic changes based on data, as distinct from day-to-day decisions. These leaders understand the importance of business intelligence in their planning process. Sources of business intelligence are company records, industry trends, and competitors’ financial (for example, profits) or market (for example, market penetration) data.
How do managers make sense of vast amounts of data? Managers can use digital tools to make sense of business intelligence data. Digital tools refer to technology, systems, or software that allow the user to collect, visualize, understand, or analyze data. Specific examples of digital tools include software such as Microsoft Excel, online services such as Google Analytics, or networks that connect computers and people, such as social media.

36. Three Prevalent Digital Tools
Data visualization tools
Cloud computing: refers to storing and accessing data on the Internet rather than on a computer’s hard drive or a company’s network
Internet of things (IoT): allows everyday “things” to generate and store and share data across the Internet
Tableau is an example of a company that provides software tools and interactive dashboards that allow users to generate useful business insights through the analysis and visualization of data.
The cloud is just a metaphor for the Internet.
In the Future Vision feature in Chapter 7, we described the Internet of Things (IoT), which allows everyday “things” to generate and store data about their own performance and share that information across the Internet.

37. Review Learning Objective 8.1
Define the nature and purposes of planning.
Planning involves defining the organization’s goals, establishing an overall strategy for achieving those goals, and developing plans for organizational work activities.
The four purposes of planning include providing direction, reducing uncertainty, minimizing waste and redundancy, and establishing the goals or standards used in controlling.
Planning involves defining the organization’s goals, establishing an overall strategy for achieving those goals, and developing plans for organizational work activities. The four purposes of planning include providing direction, reducing uncertainty, minimizing waste and redundancy, and establishing the goals or standards used in controlling. Studies of the planning-performance relationship have concluded that formal planning is associated with positive financial performance, for the most part; it’s more important to do a good job of planning and implementing the plans than doing more extensive planning; the external environment is usually the reason why companies that plan don’t achieve high levels of performance; and the planning–performance relationship seems to be influenced by the planning time frame.

38. Review Learning Objective 8.2
Classify the types of goals organizations might have and the plans they use.
Goals are desired outcomes. Plans are documents that outline how goals will be met.
Strategic/financial
Stated/real
Long-term/short-term
Specific/directional
Single-use/standing
Goals might be strategic or financial, and they might be stated or real. Strategic plans apply to the entire organization, while operational plans encompass a particular functional area. Long-term plans are those with a time frame beyond three years. Short-term plans cover one year or less. Specific plans are clearly defined and leave no room for interpretation. Directional plans are flexible and set out general guidelines. A single-use plan is a one-time plan designed to meet the needs of a unique situation. Standing plans are ongoing plans that provide guidance for activities performed repeatedly.

39. Review Learning Objective 8.3
Compare and contrast approaches to goal-setting and planning.
Traditional goal-setting and MBO
Six characteristics of well-written goals
Five steps of goal-setting
Contingency factors
In traditional goal-setting, goals are set at the top of the organization and then become subgoals for each organizational area. MBO (management by objectives) is a process of setting mutually agreed-upon goals and using those goals to evaluate employee performance. Well-written goals have six characteristics: They are (1) written in terms of outcomes, (2) measurable and quantifiable, (3) clear as to time frame, (4) challenging but attainable, (5) written down, and (6) communicated to all organizational members who need to know them.
Goal-setting involves these steps: review the organization’s mission; evaluate available resources; determine the goals individually or with input from others; write down the goals and communicate them to all who need to know them; and review results and change goals as needed.
The contingency factors that affect planning include the manager’s level in the organization, the degree of environmental uncertainty, and the length of future commitments. The two main approaches to planning include the traditional approach, which has plans developed by top managers that ow down through other organizational levels and which may use a formal planning department. The other approach is to involve more organizational members in the planning process.

40. Review Learning Objective 8.4
Discuss contemporary issues in planning.
Planning in dynamic environments
Environmental scanning
Competitive intelligence
Digital tools
One contemporary planning issue is planning in dynamic environments, which usually means developing plans that are specific but flexible. Also, it’s important to continue planning, even when the environment is highly uncertain. Finally, because there’s little time in a dynamic environment for goals and plans to ow down from the top, lower organizational levels should be allowed to set goals and develop plans. Another contemporary planning issue involves using environmental scanning to help do a better analysis of the external environment. One form of environmental scanning, competitive intelligence, can be especially helpful in finding out what competitors are doing. Organizations can gather business intelligence using a variety of digital tools to collect and analyze quantitative and qualitative data to support decision-making.

41. Review
Will planning become more or less important to managers in the future? Why?
Planning helps managers cope with the uncertainties by forcing managers to look ahead, anticipate change, consider the impact of the change, and develop appropriate responses.
prof. Dr. Majed ElFarra

42. Review
If planning is so crucial, why do some managers choose not to do it? What would you tell these managers?
prof. Dr. Majed ElFarra

43. Review
Explain how planning involves decisions today that will have an impact later.
prof. Dr. Majed ElFarra