Page 1 of 4 Planning: Planning involves defining the organizations goals, establishing an overall strategy for achieving those goals

and developing plans for organizational work activities. Its concerned with both ends (whats to be done and !eans (how its to be done . Classification of Planning: Planning can either be for!al or infor!al. Planning

"or!al Planning

Infor!al Planning

"ig#re $o%1: &lassification of Planning Formal Planning: 'pecific goals covering a period of years are defined. (hese goals are written and shared with organizational !e!bers to red#ce a!big#ity and create a co!!on #nderstanding abo#t what needs to be done. "inally, specific action plans e)ist for achieving these goals* that is !anagers define how the goals will be reached. Informal Planning: +ll !anagers plan, altho#gh that planning !ight be infor!al. In infor!al planning, nothing is written down, and there is little or no sharing of goals with others in the organization. +lso, infor!al planning is general and lacks contin#ity. +ltho#gh its !ore co!!on in s!aller organizations, infor!al planning does e)ist in so!e large organizations as well. Purposes of Planning ,e can identify at least fo#r reasons why !anagers need to plan: P#rposes of Planning

Provides direction .ed#ces /ncertainty "ig#re%-: P#rposes of Planning 0ini!ize waste and red#ndancy 1stablishes the goals or standards

Page - of 4 Provides direction: Planning provides direction to !anagers and non!anagers alike. ,hen e!ployees know what their organization or work #nit is trying to acco!plish and what they !#st contrib#te to reach goals, they can coordinate their activities, cooperate with each other, and do what it takes to acco!plish those goals. ,itho#t planning depart!ents and individ#als !ight work at cross%p#rposes, preventing the organization fro! !oving efficiently toward its goals. Reduces uncertainty: Planning ded#ces #ncertainty by forcing !anagers to look ahead, anticipate change, consider the i!pact of change, and develop appropriate responses. 1ven tho#gh planning cant eli!inate change or #ncertainty, !anagers plan in order to anticipate change and to develop the !ost effective response to it. Minimize waste and redundancy: Planning !ini!izes waste and red#ndancy. ,hen work activities are coordinated aro#nd established plans, red#ndancy can be !ini!ized. "#rther!ore, when !eans and ends are !ade clear thro#gh planning, inefficiencies beco!e obvio#s and con be corrected or eli!inated. Established the goals or standards use in controlling: If we are #ns#re of what we are trying to acco!plish, how can we deter!ine whether we have act#ally done so2 ,hen !anagers plan, they develop goals and plans. ,hen the control, they see whether the plans have been carried o#t and the goals !et. ,itho#t planning, there wo#ld be no way to control. he Role of !oals and Plans in Planning Planning involves two i!portant ele!ents, goals and plan. !oals: 3oals are desired o#t co!es for individ#als, gro#ps or entire organizations. (hey are also called ob4ectives. ypes of !oals: +t first glance, it !ight appear that organizations have single goals. 1)a!ple: 5#siness fir!, the goal is to !ake profit only. $on profit organization, the goals is to !eet the needs of so!e constit#ent gro#ps. 5#t this is the reality that all organizations have !#ltiple goals. In b#siness organization, the goal they want to increase !arket and keep e!ployees enth#sed abo#t working for the organization. 5#t in generally, 3oals are two types: 'tated and real. 3oals

'tated 3oals

.eal 3oals

"ig#re $o%6: (ypes of 3oals

Page 6 of 4 "tated !oals: 'tated goals official state!ents of what an organization says, and what it wants its stakeholders to believe, its goals are. 7owever stated goals which can be fo#nd in an organizations charter, ann#al report, p#blic relations anno#nce!ents or in p#blic state!ents !ade by !anagers%are often conflicting and e)cessively infl#enced by what society believes organizations sho#ld do. Real !oals: (hose goals%those goals that an organization act#ally p#rs#es% observe what organizational !e!bers are doing. +ctions define priorities. Plans: Plans are doc#!ents that o#tline goals are going to be !et. (he plans #s#ally incl#de reso#rce allocations, sched#les and other necessary actions to acco!plish the goals. ypes of Plans: Plans are !ainly fo#r types. 1very !ain type has two s#btypes. 'o Plans are eight types.

(ypes of Plans

5readth 'trategic Plan :perational Plan

(i!e "ra!e 8ong (er! Plan 'hort (er! Plan

'pecificity 9irectional Plan 'pecific Plan

"re;#ency of /se 'ingle /se Plan 'tanding Plan

"ig#re%4: (ypes of Plans "trategic Plan: 'trategic plans are plans that apply to the entire organization, establish the organizations overall goals, and seek to position the organization in ter!s of its environ!ent. 'trategic plans tend to cover a longer ti!e fra!e and a broader view of the organization. It also incl#des the for!#lation of goals. #peration Plans: Plans that specify the details of how to the overall goals are to be achieved. It tends to cover shorter ti!e periods% 0onthly, ,eekly and day to day. $ong erm Plans: ,e define long%ter! plans as those with a ti!e fra!e beyond three years. "hort erm Plans: Plans covering one year or less.

Page 4 of 4 %irectional Plans: Plans that are fle)ible and that set o#t general g#idelines. "pecific Plans: Plans that are clearly defined and that leave no roo! for interpretation. "ingle &se Plan: + one ti!e plan specifically designed to !eet the needs of a #ni;#e sit#ation. "tanding Plans: :ngoing plans that provide g#idance for activities perfor!ed repeatedly. Establishing !oals ' %eveloping Plans ()pproaches to Establishing !oals* Management by #b+ectives (M,#* + process of setting !#t#ally agreed #pon goals and #sing those goals to eval#ate e!ployee perfor!ance. 05:, specific perfor!ance goals are 4ointly deter!ined by e!ployees and their !anagers, progress toward acco!plishing these goals is periodically reviewed and rewards are allocated on the basis of this progress. "teps in ypical M,# Program: 1. (he organizations overall ob4ectives and strategies are for!#lated. -. 0a4or ob4ectives are allocated a!ong divisional and depart!ental #nits. 6. /nit !anagers collaboratively set specific ob4ectives for their #nits with their !anagers. 4. 'pecific ob4ectives are collaboratively set with all depart!ent !e!bers. <. +ction Plans, defining how ob4ectives are to be achieved, are specified and agreed #pon by !anagers and e!ployees. =. (he action plans are i!ple!ented. >. Progress toward ob4ectives is periodically reviewed, and feedback is provided. ?. '#ccessf#l achieve!ent of ob4ectives is reinforced by perfor!ance based rewards.