Fundamental of Planning

Planning Ahead

The process of identifying where you want to go and how you intend to get there, is important to al organization in today’s dynamic and ever changing world. Effectivemanagers are good at planning, and they help others to establish and implement meaningful high-performance plans.

Planning Objectives

  • Planning is formally defined as a process of setting “objectives” and deciding how to accomplish them. Objectives are the spesific results that one wishes to achieve. Good managers may :
  • Plan for stability – to ensure continuation of existing success in a fairly stable environment
  • They may plan for adaptability – to ensure successful reaction to frequent changes in a more dynamic and uncertain environment
  • They may also plan for contingency – to anticipate events that may occur in the future, and identify appropriate actions that may be taken should they do so

Planning Process

a)      Define your objectives

b)      Determine where you stand vis-à-vis objectives

c)      Develop your premises regarding future conditions

d)     Identify and choose among them to create “plans” for accomplishing objectives

e)      Implement the action pland and evaluate results

Planning Challenges

  • Consider definition of planning in an Eaton Corporation: “Planning means taking hard decisions before events force them upon you, and anticipating the future needs of the market before the demand asserts itself”
  • Reason why managers neglect planning :
    • they are uncomfortable thinking about the future
    • they are impatient and tend to act before thinking
    • they feel others should do the planning
    • they let daily pressures drive out planning
    • they falsely feel superior in what they are already doing

Benefits of Planning

a)      At U.S. Healthcare : “satisfied employees lead to satisfied customers”

b)      Focus and flexibility

how planning can improve performance

ü  planning focuses attention on key results : it creates a performance oriented sense of direction

ü  planning makes managers set priorities : it focuses energies on the most important problems and opportunities

ü  planning helps managers emphasize organizational strenght’s : it assists in allocating resources to best over advantages

ü  planning helps managers deal with ever-changing situations : it helps them anticipate problems and opportunities

c)      Improved Coordination

ü  the many different subsystems and groups in organization are each pursuing a variety of objectives at any given point in time

ü  a hierarchy of objectives is a series of objectives linked together such that each-higher-level objective is supported by one or more lower-level ones

ü  creates an integrated network of means-end chains –that is, higher-level objectives or end clearly linked to lower-level objectives as the means for their accomplishment

d)     Better Control

managerial control involves measuring and evaluating performance results, and taking corrective action to improve results as necessary. Planning helps make this possible by defining the objectives-desired performance results-and by identifiying the spesific actions through which they are to be pursued.

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