1. M ANAGING THE P LANNING P ROCESS MANA 3319 A Pandey

2. P LANNING A management function that:  assesses the management environment to set future objectives ; and  maps out activities necessary to achieve those objectives. Planned actions require careful resource allocation. Plans must be accompanied by implementation guidelines.

3. E LEMENTS OF P LANNING Objectives: what?Actions: what to do?Resources: with what?Implementation: how to?

4. B ENEFITS OF P LANNING Assessment of external forces Develop a sense of direction and purpose Identifying the factors that affect the organization Encouraging participation Coordination of efforts Establishment of priorities Focusing attention on different time horizons

5. B ENEFITS OF PLANNING ( CONTINUED ) Understanding circumstances contributing to past success or failure Ensuring the availability of adequate resources Establishing performance standards Supporting organizational control systems Developing “what if” scenarios Management development

6. T HE P ITFALLS OF P LANNING Poor forecasts of future conditions Plans imposed from above Planning as a self-contained activity Extensive bureaucratization Inflexible adherence to objectives and processes

7. H OW TO PLAN SUCCESSFULLY Decentralizing the planning powers Using both numerical and judgmental methods Viewing planning as continuous and capable of adapting to change Avoiding paralysis of the analysis Concentrating on a manageable set of issues

8. G OOD AND B AD P LANNING GOOD Decentralize planning process Use numerical and judgmental methods Assess external forces Develop a sense of direction and purpose Identify factors that affect the organization Encourage participation Coordinate efforts Establish priorities BAD Poor forecast of future conditions Plans imposed from poor forecasts Planning as self- contained activity

9. F ORMAL P LANNING AND O PPORTUNISTIC P LANNING Formal planning IIdentify objectives SStructure the major tasks ofthe organization to accomplish them. Opportunistic planning ttriggered by unforeseen circumstances. ccan coexist with formal planning and help the formal plan function more smoothly.

10. T HE F ORMAL P LANNING P ROCESS I NVOLVES Setting objectives Charting a course of action to meet the objectives Implementation

11. O BJECTIVES S pecific M easurable A chievable R ealistic T imely More general at the top and more specific at the lower level Reflect its mission Should be prioritized

12. C HARTING A C OURSE OF A CTION Strategic Action Plans Proactive, congruent, synergistic Tactical Action Plans Division of labor, budgeting Operational Action Plans Input  process  output cycle

13. T O BE EFFECTIVE, A STRATEGIC ACTION PLAN SHOULD MEET THE FOLLOWING CRITERIA : Proactivity – The degree to which the strategic action plan takes a long-term view of the future. Congruency – The extent to which the strategic action plan fits with organizational characteristics and the external environment. Synergy – The integration of the efforts of various organizational subunits to better accomplish corporate-wide business objectives

14. T ACTICAL A CTION P LANS MUST INCLUDE : Division of Labor – The formal assignment of authority and responsibility to job holders.  Helps ensure that tasks of jobholders are appropriate for accomplishing the department’s tactical action plan, which in turn should support the organization’s strategic action plan. Budgeting – Controlling and allocating funds.  Variable budgeting  Moving budgeting

15. A T YPICAL O PERATING S YSTEM Feedback Loop Control InputsTransformationOutcome

16. O PERATIONAL P LANS MUST INCLUDE Opportunity to use feedback for continued incremental learning. Ability to visualize alternative types of operations – that is, alternative ways to use resources to create a product or service. Ability to predict the effects of modifications in operations on the efficiency of operations. Ability to evaluate the effectiveness of operations.

17. I MPLEMENTATION Means of implementation:  Authority  Persuasion  Policy  Feedback mechanism

18. A S IX -S TAGE A PPROACH TO F ACILITATE O RGANIZATIONAL P ROBLEM S OLVING 1. Identify performance gaps. 2. Identify tasks and work processes. 3. Check for organizational congruence. 4. Align in-congruencies or inconsistencies to effectively implement the plan. 5. Execute the plan. 6. Learn from the consequences.