DPB10023 POM TOPIC 2

DPB10023






PRINCIPLES OF MANAGEMENT







CHAPTER 2: PLANNING






































Founded Since 1940



Lorem Ipsum has two main
statistical methodologies

are used in data analysis













































Noor Rahayu binti Mohd Salleh

COURSE 2.0 PLANNING








OUTLINE 2.1 Discuss Planning in Organization





2.1.1 Define planning in organization






2.1.2 Explain the purposes of planning


a. Set the standards to facilitate control


b. Provide direction


c. Minimize waste and redundancy



d. Reduce the impact of change




2.1.3 Determine the types of planning in


organization


a. Strategic Planning


b. Tactical Planning


c. Operational Planning



2.1.4 Identify the steps in planning process



a. Setting the goals


b. Defining current situation


c. Identifying assistance and resistance


d. Developing a new set of goals and action


e. Re-evaluating goals

2.1.1 DEFINITION OF PLANNING


















Management gurus have stated several definitions of planning:











1 Henri Foyal defines “ planning is deciding the best alternatives

among other to perform different managerial operation in order to



achieve the predetermined goals”


2 Stoner, Freeman, Gilbert(1995) “ a process of




forming goals and taking suitable action to achieve



the goals”.
3 Certo (1997) “a process of determining how the




management system can move the organization


towards achieving its goals “ .


4 Dessler (2001) “planning is a basic process of selecting and





determining suitable action to achieve goal




5 Ewing “ an attempt to create something that did not




exist previously.”

2.1.2 THE PURPOSES OF PLANNING


















The fundamental purpose of planning is to help the organization reach




its objective. It provide clear sense of direction and purpose of




activities and it can reduce the risk and uncertainty.













A. SET THE

STANDARDS TO

FACILITATE


CONTROL

















D. REDUCE B. PROVIDE

THE IMPACT DIRECTION

OF CHANGE

























C. MINIMIZE

WASTE AND

REDUNDANCY

2.1.2 THE PURPOSES OF PLANNING
















SET THE



STANDARDS TO MINIMIZE WASTE REDUCE THE


FACILITATE AND IMPACT OF



CONTROL REDUNDANCY CHANGE










 Planning establishes the Planning establishes  Planning reduces  By forcing managers

goals or standards that coordinated effort. It overlapping and to look ahead,


facilitate control. gives direction to wasteful activities. anticipate change,


 If organizational manager and non-  Coordination before consider the impact

members are unsure of managerial employees. the fact is likely to of change and


what they are When all uncover waste and develop responses,

attempting to achieve, organizational member redundancy. planning reduces


how can they assess understand where the uncertainty.


whether they have organization is going  It also clarifies the

achieved it? and what they must consequences of the


 When manager plan, contribute to reach the actions manager

they develop goals and goal, they can begin to might take in


plans. coordinate their response in change.


 When they control, they activities, thus fostering  Planning, then, is

see whether the plan teamwork and precisely what


have been carried out corporation managers need in a

and the goals met. changing


 If significant deviation environment


are identified, corrective

action can be taken

2. Tactical planning







• Performed by middle-line manager/ tactical


manager
1. Strategic planning

• States the roles and contributions of each


department or unit in achieving the
• Performed by top-line
strategic plan.
manager/ strategic manager

• Between 1-5 years
• Select the suitable action to


allocate organizational • Also known as mid-term planning


resources in order to achieve



these goals


• More than 5 years 3. Operational planning


• Also known as long term


planning • Performed by first line manager /


operational manager


• Provides specific guidance on the


roles and responsibilities of relevant


parties based on tactical planning



• Less than 1 year



• Also known as short term planning



• Two types:



• i. Single-use plan



• ii. Standing plan

TYPES OF PLANNING





- Operational planning can be divided into two types:




a) Single-use plan




• To overcome complex problem




• Implemented once and would not be repeated in the same form in future




• Implemented in a short duration of time.




• Three types:




• Programme – a set of bigger activities




• Project – smaller divisions and has limited scope and often be part of




programme




• Budget – a statement that shows financial resources allocated for




specific activities










b) Standing plan




• Performed repeatedly.




• Consists of 3 types:




• Policies – general guideline to action plan.




• Procedure – a set of comprehensive instructions to perform sequences




that are conducted repeatedly. (standard operating procedure)




• Rule – a statement that supports or prohibits certain actions in a




situation.

2.1.4 PLANNING PROCESS










1 • Identify desire and need of organization and target performance that has to be achieved






Setting goals • Goals must be clear, realistic, rational, logical, and have a specific time frame (SMART)







• examine the current condition and compare with goals

2
• Ensure organizational resources are adequate to achieve the set goals



• examine the condition of the current market based on available financial and statistics

Defining the


current situation



• Internal and external organizational factor that can assist or hinder the process of
3 achieving organizational goals




• Internal organizational factors :human resources, financial resources
Identifying

• External organizational factors: competition, technological changes, market demand
assistance and

• Find suitable alternatives, identify available support and existing barriers and determine
resistance
solution



4

• Identify various alternative actions, evaluate each alternative, and select the best


Developing a alternative that can be implemented



new set of plans • Need to find supporting alternatives to help quicken the achievement of organization goals


actions




• Set new goals or design new plans if many barriers occurs and planning is not


5 implemented successfully



• It involves the process or re-evaluating all the step implement in the planning process and

Re-evaluating identifying the step that had caused the planning to fail



goals • Use the information as an indicator to develop a better plan in future.

1 • Identify desire and need of organization and target performance that has to be achieved






Setting goals • Goals must be clear, realistic, rational, logical, and have a specific time frame (SMART)

Other examples:



1. Reduce overall budget costs by 10% by 20xx



2. Increase market share by 5% by 20xx



3. Increase revenues by 20% by 20xx

• examine the current condition and compare with goals

2
• Ensure organizational resources are adequate to achieve the set goals



• Make necessary changes to planning according to financial position

Defining the


current situation













Current market condition:



 Market demand Available financial


 Potential customers data & statistics


 Total expenditure


 Marketing strategies


 Resources

• Internal and external organizational factor that can assist or hinder the process of
3 achieving organizational goals





• Internal organizational factors :human resources, financial resources
Identifying


• External organizational factors: competition, technological changes, market demand
assistance and



resistance • Find suitable alternatives, identify available support and existing barriers and determine

solution

4
• Identify various alternative actions, evaluate each alternative, and select the best


Developing a alternative that can be implemented



new set of plans • Need to find supporting alternatives to help quicken the achievement of organization goals



actions

PAST YEAR QUESTIONS















• Jun 2013







1. Managers usually face various barriers in their attempt to




prepare an effective plan.






(a)List FIVE (5) reasons which cause managers tend to face self




conflict when they are establishing new goals.(5m)







(b)Explain THREE(3) barriers in implementing a plan which caused



by changes in the environment by giving suitable example (12m)







(c)Identify FOUR(4) characteristics of tactical planning.(8m)

The End