management and organisation planning

8/9/2019 Management and Organisation Planning

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Management and

Organisation

Organisational Planning

Steps in PlanningLevels of Planning Time Horizons in Planning

Types of PlansGathering InformationImplementing PlansEvaluating Plans

Importance of Planning



Steps in Planning Gather Information

etermine Organisational Mission and

Goals !ormulate Strategy " ho# to achieve

Mission and Goals

Implement Strategy $llocate resources% including sta&

responsi'ilities to achieve desiredstrategy

Evaluate results



Planning Levels (orporate Level

)usiness or ivision Level

epartment or !unctional Level

(orporate Level

Top management decisions as tothe mission and overall corporatestrategy% ie #hich industriesand national mar*ets the

organisation intends to compete



Planning Levels )usiness or ivisional Level

Provides long term goals to ena'le the

division to meet corporate goals Provides 'usiness level strategy%

indicating the methods to 'e used tocompete in the relevant industry

epartmental or !unctional Level States the goals proposed to

allo# the department to assistin the process of )usiness LevelGoal achievement



Time Horizons +ital that planning is consistent

throughout the various levels

Time Horizons " Long Term Medium Term Short Term

Long Term ,sually - years or more% produced on a

rolling 'asis% involving corporate and.or'usiness level goals

/olling 'asis infers annual updatesto any long term plan% in order tore0ect changing conditions1



Time Horizons Medium Term

,sually 23- years% involving all levels

of planning

Short Tem ,sually 2 year or less% involving

functional level goals



Types of Plan )usiness Plan " re4uired for

e5ternal and internal purposes Sets out the mar*ets the 'usiness

unit #ill operate in

etails ho# the 'usiness unit #ill

operate Provides 6nancial details



Types of Plan Speci6c Plan

(learly de6ned " eg1 (ut costs 'y -7 over 8 months" usually 4uantitative

,nam'iguous and easily measura'le i9cult to achieve #here environmental conditions

are unpredicta'le

irectional Plan Provide some focus 'ut provides less guidance

than a speci6c plan More di9cult to measure Provides 0e5i'ility " useful #here conditions

are unpredicta'le



Types of Plan Special Purpose

Plans for speci6c pro:ects " eg a

speci6c change programme Standing Plans

!or routine recurring issues "

eg customer complaints



Gathering Information $ny plan depends on information

Information can 'e gathered froma variety of sources " Informal ;soft information<

!ormal $nalyses

anger of information overloadand need to focus on the mostimportant relevant issues



Gathering Information !ormal $nalyses "

Government statistics

Industry surveys Mar*et research Internal analysis S=OT analysis

(ritical Success !actors $nalysis !orecasting Sensitivity $nalysis Scenario Planning



Implementing Plans Particularly challenging part of the

process

Organisations and people are slo#er tochange than plans are to prepare

Successful implementation re4uires " Managerial e5perience Organisational 0uidity (lear plan% #ell communicated Timely access to re4uired resources



Evaluating Plans Important to monitor progress%

evaluate and revisit planned

o':ectives and goals +arious tools used "

Overvie# (hart

/eporting Systems



Evaluating Plans Overvie# (hart

Sho#s progress to date compared to thate5pected

Main events planned Interdependences E5pected (ompletion ates

/eporting System /egular reports " often #ee*ly "

providing details of the currentprogress



Importance of Planning $llo#s managers to have a vie# as to

#here the organisation is at present

$llo#s managers to have a vie# as to#here the organisation should 'e in thefuture

$llo#s managers to assess ho# to move

the organisation for#ard Planning is made comple5 due to an

uncertain e5ternal environment andincomplete information provided to

managers



Importance of Planning Planning instigates managers toparticipate in decision ma*ing a'outorganisational goals and strategies

Planning provides the organisation andits employees #ith a sense of direction "in the a'sence of planning% goal con0ict

#ould 'e more prevalent Planning promotes improved

team#or*

Planning provides a controlmechanism and greater motivation



Importance of Planning Promotes e9cient use of resources

Good Planning should 3 Possess unity )e continuous

Involve accuracy

)e 0e5i'le

Lac* of planning or poor planning " (an lead to poor morale

=aste of resources



Summary Planning carried out in a num'er of iterative steps Planning involves multiple levels% #hich correlate 'roadly

to multiple time horizons +ariety of types of plans " eg )usiness> Speci6c>

irectional> Standing Planning re4uires information gathering " informal and

particularly formal " eg industry survey> S=OT>!orecasting

Implementation is particularly challenging Important to evaluate and *eep trac* of plan

implementation Planning provides a clearer organisational direction

and improves team#or* and motivation Good planning should 'e coherent% continuous%

0e5i'le and 'e 'ased on accurate information

management and organisation planning

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