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PLANNING-PA-504. MASTERS FOR PUBLIC ADMIN
- 1. LYDON EARL G. MIGUEL
- 2. Objectives: 1. Understand what managerial planning is and why it is important 2. Identify and analyze the various types of plans and show how they relate to one another 3. Outline and discuss the logical steps in planning and see how these steps are essentially a rational approach to setting objectives and selecting the means of reaching them 4. Explain the nature of objectives 5. Describe how verifiable objectives can be set for different situation
- 4. GEORGE R. TERRY Planning is the selecting and relating of facts and the making and using of assumption regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results . Planning is the selecting and relating of facts and the making and using of assumption regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results . Dalton E.Mcfarland
- 5. It is also important to point out that planning and controlling are inseparable - the Siamese twins of management. Figure 1 Close Relationship of Planning and Controlling
- 6. Purpose of Planning 1. Provides direction (coherent pic of organization) 2. Reduce uncertainty (Considering Future) 3. Minimizes waste and reduces overlapping activities 4. Sets the standard for controlling (budgeting)
- 7. 8 TYPES OF PLANNINNG MISSION GOALS AND OBJECTIVES RULES BUDGETS STRATEGIES PROCEDURES POLICIES PROGRAMS
- 8. The basic purpose or function or tasks of an enterprise or agency or any part of it. For example: The Purpose of a business generally is the production and distribution of Good and services. The purpose of a highways department is the design, building, and operation of a system if highways. The purpose of the courts is the interpretation of laws and their application. MISSION
- 9. The ends toward which activity is aimed. They represent not only the end point of planning but also the end toward which organizing, staffing, leading, and controlling are aimed.
- 10. The determination of basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals. STRATEGIES
- 11. General Statements or understanding that guide or channel thinking in decision-making.
- 12. May strictly follow-perhaps for convenience rather than as policy- the practice of promoting from within: the practice may then be interpreted as policy and carefully followed by subordinates. In fact, one of the problem of managers is to make sure the subordinates do not interpret as policy minor managerial decisions that are not intended to serve as patterns.
- 13. There are many types of policies. Examples include policies of hiring only university- trained engineer, encouraging employee suggestion for improved cooperation, promoting from within, conforming strictly to a high standard of business ethics, setting competitive prices, and insisting on fixed, rather than cost-plus pricing.
- 14. Plans that establish a required method of handling future activities.
- 15. Example Illustrate the relationship between procedures and policies. Company policy may grant employees vacations; procedures established to implement this policy will provide for scheduling vacations to avoid disruption of work, setting rates of vacation pay and methods for calculating them, maintaining records to ensure each employee of a vacation, and spelling out the means for applying foe leave.
- 16. Spell out specific required action or non-action, allowing no discretion.
- 17. For example: Workers have to prepare and sign their own time cards. The supervisors has to check each card; if one is incorrectly filled, the worker involved has to make the correction, which then has to be initiated by the worker and the boss. The original entry must not be erased so that it can be checked later. Also, general dynamics was required to establish tight rules for changing overhead expenses.
- 18. A complex of goals, policies, procedures, rules task assignment, steps to be taken, resources to be employed, and other elements necessary to carry out a given course of action.
- 19. Example The airlines company program to acquire a $ 400 million fleet of jet or a five-year program to improve the status and quality of its thousand of supervisions. Or they may be as minor as a program formulated by a single supervisor to improve the morale of workers in the parts manufacturing department of a farm machinery company.
- 20. A statement of expected results expressed in numerical terms.
- 21. Characteristics Of Planning Function Various facts need to be known about planning to apply them properly in management planning examples which are discussed as characteristics under follows:
- 22. Planning Is Goal-Oriented Purposeful Planning determines both long term and short-term goals of an organization. It not only decides the objectives but also chooses the ways and means of achieving them. Thus, management planning examples is purposeful as the whole process aims at achieving goals most effectively and efficiently. The planning function of management has no meaning until it contributes to the achievement of objectives.
- 23. Primacy of Planning It is also called a basic or primary planning function of management because it lays down the base for other functions. All other management functions are performed within the framework of plans. Thus management planning examples precede other functions which are also termed as the primacy of planning.
- 24. Planning Is Pervasive Or Universal It is required in every organization whether business or non-business, profit or non-profit, military, club, school or hospital, etc. Planning needs to be done whenever any human activity takes place. Management planning examples is also required at all levels of management like top-level plans for the overall organization, middle-level plans for their respective departments and the lower level for day-day planning. Planning Is Pervasive Or Universal
- 25. Planning Is Continuous Planning is continuous as it goes on without any break or gap in an organization till the end of its life. Managers cannot stop planning throughout the lifetime of the organization. Once the plans are made for a particular time, they are reviewed, revised and corrections are made leading to re- planning. thus the management planning examples cycle is never-ending in which plans are made, implemented and replanned.
- 26. Planning Is Futuristic Planning is called looking ahead because it is done in advance for a future period. It involves predictions for which forecasting techniques are used. Management planning examples includes looking into the future, analyzing it and deciding a future course of action beforehand.
- 27. An example of planning in management process, an annual sales plan is made based on an estimate of future sales.
- 28. Planning Involves Choosing From The Alternatives Management Planning examples involves making decisions because managers face many alternatives options when they make plans. For this, they identify the most suitable option. Plans wont be needed if there were not many choices available. Once a choice is made, detailed plans are made to implement it.
- 29. Planning Is A Mental Exercise Since management planning examples require the application of mind and thinking skills it is termed as a mental exercise. It is an intellectual exercise for which managers need mental abilities such as imagination, reasoning, judgement, forecast etc. It requires logical and systematic thinking rather than guesswork.
- 31. 1. Being aware of Opportunities Although it precedes actual planning and is therefore not strictly a part of the planning process, an awareness of opportunities In the external environment as well as within the organization is the real starting point for planning.
- 32. Example All managers should take a preliminary look at possible future opportunities and see them clearly and completely, know where their company stands in light of its strengths and weaknesses, understand the problems it has to solve and why, and know what it can expect to gain.
- 33. 2. Establishing Objectives The second step in planning is to establish objectives for the entire enterprise and ten for each subordinate works unit. This is to be done for the long term as well as for the short range Objectives specify the expected results and indicates the end points of what is to be done, where the primary emphasis is to be placed, and what is to be accomplished by the network of strategies, policies, procedures, rules, budget, and programs.
- 34. 3. Development Premises Premises assumptions about the environment in which the plan is to be carried out. Principle of planning premises the more thoroughly individuals charged with planning understand and agree to utilize consistent planning premises, the more coordinated enterprise planning will be.
- 35. 4. Determining Alternative Courses The fourth step in planning is to reach for and examine alternative courses of action, especially those not immediately apparent.
- 36. 5. Evaluating alternative courses After seeking out alternative courses and examining their strong and weak points, the next step is to evaluate the alternatives by weighing them in light of premises and goals.
- 37. 6. Selecting a Course This is the point at which the plan is adopted-the real point of decision-making. Occasionally, an analysis and evaluation of alternative courses will disclose that two or more are advisable, and the manager may decide to follow several courses rather than the one best come.
- 38. 7. Formulating Derivative Plans When a decision is made, planning is seldom complete, and a seventh step is indicated. Derivative plans are almost invariably required to support the basic and general plan.
- 39. 8. Quantifying Plans by Budgeting The overall budget of an enterprises represents the sum total of income and expenses, with resultant profit or surplus, and the budgets of major balance sheet items such as cash and capital expenditures. Budgets become a means of adding the various plans and set important standards against which planning progress can be measured.
- 40. Coordination of short and long-range plans Short range plan = 1 year or less Intermediate range plans = 1 to 2 years Long range plans= 3 years or more Responsible manager should continually review and revise immediate decisions to determine whether they contribute to long range plans, and subordinate decision consistent with the companys long range goal. Doing this is far easier than to correct inconsistencies later, especially since short term communications tend to lead to further commitment along the same line.
- 41. OBJECTIVES Is verifiable when at the end of the period one can determine whether or not it has been achieved. The goal of every manager is to create a surplus (in business organizations, this mean profits). clear and verifiable objectives facilitate measurement of the surplus as well as the effectiveness and efficiency of managerial actions.
- 42. The nature of objectives A manager may have to choose between short-term and long-term performance, and personal interests may have to be subordinated to organizational objectives.
- 44. The figure above shows the objective form a hierarchy ranging from the board aim to specific individual objectives. The zenith of the hierarchy is the purpose or mission, which has two dimension. 1. The social purpose, such as contributing to the welfare of people by providing goods and services at a reasonable price. 2. Mission or purpose of the business, which might be to furnish convenient, low-cost transportation for the average person. The stated mission might be to produce, market, and service automobile.
- 45. Setting Objectives and the Organizational Hierarchy The figure above also shows the Managers at different levels: The organizational hierarchy are concerned with different kinds of objective. The board of directors and top-level managers are very much involved in determining the purpose, the mission, and the overall objectives of the firm, as well as the more specific overall objectives in the key result areas. Middle-level managers, such as the vice president or manager or marketing or the production manager, are involved in the setting of key-result-area objective, division objectives, and departmental objectives.
- 46. Top-down approach, upper-level managers determine the objectives for objectives for their positions and present them to their superior. Proponent of the top-down approach suggest that the total organization needs direction through corporate objectives provided by the chief executive officer (in conjunction with the board of directors).
- 47. Multiplicity of objectives For example Merely stating that a universitys mission is education and research is not enough.it would be much more accurate (but still not verifiable) to list the overall objectives. Attracting student of high quality Offering basic training in the liberal arts and science as well as in certain professional fields. Granting postgraduate degrees to qualified candidates Attracting highly regarded professor
- 48. Importance of Planning in Management The importance of planning in management is to know the steps in advance that the managers need to follow or guidelines to handle specific situations. Moreover, there are various other important factors to make easy for management planning examples.
- 49. Planning Provides Direction The actions by deciding in advance what is to be done and how. It ensures that goals and targets are clearly stated so that employees are aware of exactly what to do. Management planning examples ensures unity of direction and coordination of individual efforts. It helps the organization in keeping on the right track and move in the right direction.
- 50. Reduces The Risk Of Uncertainty Managers predict the future while doing planning and the future holds uncertainties. There can be opportunities or risks in future. If they predict any opportunity so they prepare to avail them and if they have any likely risks so they try to minimize them. Thus, uncertainties cannot only be anticipated but also eliminated and also preparations can be made to face them with the help of management planning examples.
- 51. Planning Reduces Wasteful Activities And Overlapping Other importance of planning in management is that it serves as the basis of the coordination of individual efforts. It helps in avoiding confusion and duplication. Management planning examples ensure clarity about the overall goals and the contribution that every individual has to make to the achievement. Planning identifies and eliminates useless activities, detects inefficiencies and takes corrective measures to improve them.
- 52. Promotes Innovative Ideas It is often thought that management planning examples should be followed as it is by the subordinates and they are not allowed to deviate from it. While the case is a little different as the managers are required to modify the given plans according to the changes in the business environment. They must not follow the plans blindly rather should operate within the framework of plans and make changes. Thus, it promotes creativity and imagination leading to discretion.
- 53. Planning Facilitates Decision Making Managers face many alternative options while making plans. They identify all the alternatives, compare and evaluate them to make a suitable choice. Thus management planning examples are said to be facilitating decision making. They follow the principle of limiting factor while choosing among the various options. It means that they consider only suitable options and reject any outwardly unsuitable ones.
- 54. Establishing Standards For Controlling Establishing Standards For Controlling Planning involves setting goals and standards against which the actual performance of workers is compared. Managers can find out if they have achieved the required target.
- 55. Planning Process In Management The Planning process in management is a decision making and the following are the logical steps for every manager to take:
- 56. Setting Objectives The first step of planning process in management is to set up objectives both long and short term. Lon term objectives refer to the reason for which an organization exists whereas short term goals include short term targets for various management planning examples periods. Example of planning in management process, the long term objectives of a school may be to provide good academic services while short term can be to improve board results during a particular year. Objectives should be stated clearly in precise words because if the results are clear, it is easier to achieve them.
- 57. Limitations Of Management Planning Examples Plans sometimes fail despite the best efforts due to the limitations of planning. These limitations are inherent in the process of management planning examples or they result from wrong judgements on the part of the planner.
- 59. Planning Leads To Rigidity In an organization, a well defines plan is drawn up with specific goals to be achieved with a specific time frame. These management planning examples then decide the future course of action and managers may not be in a position to change it. This kind of rigidity in plans may create difficulty. Managers need to be given some flexibility to be able to cope with the changed circumstances. Following a pre- decided plan may not turn out to be in the organizational interest when circumstances have changed.
- 60. Planning May Not Work In A Dynamic Environment The business environment is dynamic and nothing is constant. The organization has to constantly adapt itself to changes. Management planning examples becomes difficult to accurately assess future trends if the economic policies are modified or political conditions in the country change or there is a natural calamity.
- 61. For example, competition in the market can upset financial plans and sales targets may have to be revised and accordingly cash budgets also need to be modified as they are based on sales figures.
- 62. Planning Reduces Creativity Planning is an activity that is done by the top management. Usually, the rest of the members just implement these plans as a consequence, middle and other levels are neither allowed to deviate from plans nor are they permitted to act on their own. Then much of their initiative or creativity also gets lost or reduced.
- 63. Planning Involves Huge Costs When plans are drawn up huge costs are involved in their formulation. These may be in terms of time, money and efforts.
- 64. For example, collecting and checking the accuracy of facts may involve lots of time. Detailed management planning examples require scientific calculations to ascertain facts or figures. The costs incurred may not sometimes justify the benefits derived from the plans. There are several incidental costs as well, like expenses on boardroom meetings, discussions with professional experts and preliminary investigation to find out the viability of the plans.
- 65. Planning Is A Time-Consuming Process Planning is a lengthy process that involves many steps. Lots of information is required and it takes time to collect, analyze, compare, evaluate, and choose among alternatives. Thus, management planning examples become costly too. Sometimes plan takes so much time to make that there is not much time left for their implementation. Time- consuming plans are worthless in case of emergencies.
- 66. False Sense Of Security The success of an enterprise is possible only when plans are properly drawn and implemented. Managers have a tendency to rely on previously tried and tested successful plans. It is not always true that just because management planning examples have worked before it will work again. This kind of complacency and a false sense of security may lead to failure instead of success. Planning gives a false sense of security and because the lower levels take the plans for granted and ignore the changes required. Thus, leading to failure of plans.
- 67. Psychological Barriers Planning sometimes fails due to mental block in the minds of lower levels. Managers take more interest in the present than the future and ignore some important aspects of management planning examples. Also, they resist changes that introduce by plans and dont implement the plans correctly. They take plans lightly and planning fails as a result
- 68. External Limitations Of Planning New inventions and innovations in production technology Changes in consumers tastes and preferences Governmental policies and legislative enactments Competitors Labor union Natural calamities