HSA 171CAR

1436/4/21

Requirements of a Good Plane.

Barriers to Effective Planning.

Types of Plans.

An effective and sound plan should have the following features:

(a)-Clear objective: The purpose of plans and their components

is to develop and facilitate the realization of organizational

objectives. The statement on objectives should be clear, concise,

definite and accurate. It should not be colored by bias resulting

from emphasis on personal objectives.

(b)-Proper understanding: A good plan is one which is well

understood by those who have to execute it. It must be based on

sound assumptions and sound reasoning.

(c)-Flexible: The principle of flexibility states that management

should be able to change an existing plan because of change in

environment without undue extra cost or delay so that activities

keep moving towards the established goals. Thus, a good plan

should be flexible to accommodate future uncertainties.

(d)-Stable: The principle of stability states that the basic

feature of the plan should not be discarded or modified because

of changes in external factors such as population trends,

technological developments, or unemployment.

(e)-Comprehensive: A plan is said to be comprehensive

when it covers each and every aspect of business. It should

integrate the various administrative plans so that the whole

organization operates at peak efficiency.

(f)-Economical: A plan is said to be good, if it is as

economical as possible, depending upon the resources

available with the organization.

(a)-Influence of external factors: The effectiveness of planning is

sometimes limited because of the external social, political, economical and

technological factors which are beyond the control of the planners.

(b)-Non-availability of data: Planning needs reliable facts and figures.

Planning loses its value unless reliable information is available.

(c)-People’s resistance: Resistance to change hinders planning. Planners

often feel frustrated in instituting new plans, because of the inability of

people to accept them.

(d)- Time and Cost: Collection of data and revision of plans involves

considerable time, effort and money.

(e) Inflexibility: Formal planning efforts can lock an organization

into specific goals to be achieved within specific timetables. When

these objectives were set, the assumption may have been made

that the environment wouldn't change during the time period the

objectives cover. If that assumption is faulty, managers who follow

a plan may have trouble. Rather than remaining flexible and

possibly scrapping the plan-managers who continue to do what is

required to achieve the original objectives may not be able to cope

with the changed environment. Forcing a course of action when the

environment is fluid can be a recipe for disaster.

Organizations use different types of planning

according to their different purposes. Planning

can be classified according to several criteria ,

including:

1- Planning by The Extent of Influence (Impact).

2- Planning by Time span.

3- Planning by Functions.

Strategic Planning.

Tactical Planning.

Operational Planning.

Sets the long-term direction of the organization in which

it wants to proceed in future.

Strategic planning involves the analysis of various

environmental factors and the competition.

Most strategic plans focus on how to achieve goals

three to five years into the future.

Top management is involved in framing the strategic

plans.

Tactical plans translate the strategic plans into specific goals for

specific parts of the organizations.

They are for shorter time frame and usually focused for 1-2 years.

Instead of focusing on the entire corporation, tactical plans

typically affect a single business within an organization.

Tactical plans are concerned with implementation of strategic

plans by coordinating the work of different departments in the

organization. They try to integrate various organization units and

ensure the commitment to strategic plans.

Both Top and middle management involved in framing the

tactical planning.

Translate the tactical plans into specific goals and

actions for small units of the organization.

They typically focus on the short term usually 12 months

or less.

These plans are least complex than strategic and

tactical plans, and rarely have a direct effect on other

plans outside of the department or unit for which the

plan was developed.

Long-term Planning: is of strategic nature and involves long period say 5 years an more.

Medium-term Planning: is usually a plan made for 3-5 years.

Short-term Planning: is usually a plan made for one year.

Production Planning: The flow of raw materials and workers in production

management and production quality control .

Financial Planning: How to get the money and how to spend it.

Marketing Planning: marketing & promotion, product evaluating, distribution.

Human-Resources Planning: Workforce such as : needs & requirements ,

polarization , training, and development ..

Storage & Purchasing Planning: size of the purchase , storage , storage

conditions .