Foundations of planning ppt @ bec doms bagalkot mba

1. Foundations of Planning
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2. PLANNING
 Definition:
Planning encompasses defining the
organization’s objectives or goals,
establishing an overall strategy for
achieving those goals and developing a
comprehensive hierarchy of plans to
integrate and coordinate activities .”
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3. PLANNING
 The Purpose of Planning:
 Gives direction
 Establishes coordination
 Reduces uncertainty
 Reduces overlapping / wasteful action
 Establishes objectives or standards
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4. Criticisms of Formal
Planning
 Planning may create rigidity.
 Plans cannot be developed for a
dynamic environment.
 Formal plans cannot replace
intuition and creativity.
 Planning focuses managers’
attention on today’s competition,
not on tomorrow’s survival
 Formal planning reinforces success,
which may lead to failure
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5. Planning Increases
Performance
 Generally produces positive financial
results
 Quality of the planning process and
the implementation efforts are
more important than the extent of
planning
 Environmental change can strongly
affect the impact of planning
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6. Types of Plans
FREQUENCY
BREADTH TIME FRAME SPECIFICITY OF USE
Strategic Long-term Directional Single use
Tactical Short-term Specific Standing
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7. Types of Plans
 Strategic -- organization wide,
overall objectives, position firm in
environment
 Tactical -- specify the details of
how overall objectives are to be
met
 Short term -- less than a year
 long term -- beyond five years
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8. Types of Plans
 Specific -- clearly defined
objectives
 Directional -- flexible plans
setting out general guidelines
 Single use -- meets the needs
of a unique situation
 Standing -- provides guidance
for repeatedly performed actions
BIMTECH FOUNDATION COURSE : PPM 8
JUNE 2010

9. Clear Low
Specific Plans
Flexibility
Objectives
General Directional Plans High
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10. Managerial Levels and
Plans
Strategic
Planning
Top
Executives
Middle-level
Managers
First-level
Operational Managers
Planning
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11. Management By Objectives
(MBO)
 What is MBO ?
A system in which specific performance
objectives are jointly determined by
subordinates and their superiors,
progress toward objectives is
periodically reviewed and rewards are
allocated on the basis of that progress.
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12. Management By Objectives
Common MBO elements
 Identify key job tasks
 Set specific and challenging goals
 Encourage active participation
 Prioritize goals
 Build in feedback
 Link rewards to goal attainment
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13. Management By Objectives
Overall
Organizational Objectives
Divisional
Objectives
Departmental
Objectives
Individual
Objectives
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14. MBO Downside
 Overly focussed on what is being
measured rather than final result
(quantity over quality)
 Individual rather than team focus
 Objectives become ceilings rather
than floors -- decreases further
motivation
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15. 1.
Identify Current Mission
4. 2.
Analyze Analyze the
Resources Environment
5. 3.
Strengths & Opportunities
Weaknesses & Threats
6.
Reassess Organization’s Mission
7.
Formulate Strategies
The
8.
Implement Strategies Strategic
Management
9.
Evaluate Results Process
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16. The Strategic
Management Process
 Identify the current mission and goals
 Analyze the Environment
 Environmental Opportunities – Threats
 Analyze the firm’s Resources and Skills
 Firm’s Strengths and weaknesses
 Reassess the mission and objectives
 Strategy Formulation
 Implement strategies
 Evaluation
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17. Mission
 The fundamental purpose of
an organization -- the
definition of success
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18. SWOT: Identifying
Organizational Opportunities
Organization’s Opportunities
Resources in the
Environment
Organization’s
Opportunities
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19. Competitive
Strategies
 Cost-leadership
 Differentiation
 Focus
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20. Comparison: Entrepreneurs and
Traditional Managers
Traditional Entrepreneur
Manager
Primary motivation Corporate rewards Independence
Time orientation Short-term goals 5-10 year growth of
business
Activity Delegation Direct involvement
Risk tendency Low Moderate
View toward Avoidance Acceptance
mistakes
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21. Project Management and
Process
 Contemporary planning tool
 Is a process of quality control to ensure a
project’s activities are done on time,
within budget, and according to
specification
 Project is a one-time-only set of activities
that has a definite beginning and ending
point in time
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