05/01/2023 1

Planning

PLANNING is the process of deciding exactly what one wants to accomplish and how to best go about it -when done well, it creates a solid platform for further managerial efforts at organizing and staffing-allocating and arranging resources to accomplish essential tasks; directing-guiding the efforts of human resources to ensure high levels of task accomplishment; and controlling- monitoring task accomplishments and taking necessary corrective action

05/01/2023 2

Foundations of Planning

• Planning is one of the four functions of management.

• Planning involves defining the organization’s goals, establishing an overall strategy for achieving these goals, and developing plans for organizational work activities.

05/01/2023 3

Purposes of Planning

Planning serves a number of significant purposes.1. Planning gives direction to managers and non-managers of an organization.2. Planning reduces uncertainty.3. Planning minimizes waste and uncertainty.4. Planning establishes goals or standards used in controlling.

05/01/2023 4

Planning ProcessStep 1: DEFINE YOUR OBJECTIVES – identify the desired outcomes in every specific ways. Know where you want to go; be specific enough that you will know you have arrived when you get there.

Step 2:DETERMINE WHETHER YOU STAND VIS-À-VIS OBJECTIVES – evaluate current accomplishments relative to the desired results. Know where you stand in reaching the objectives; know what strengths to work in your favor and weakenesses may hold you back

05/01/2023 5

Step 3: Develop premises regarding future conditions – try to anticipate the future events. Generate alternative scenarios for what may happen

Step 4: Analyze possible action alternatives, choose the best among them, and decide how to implement – list and evaluate the possible actions that may be taken

Step 5: Implement the plan and evaluate results – take action and carefully measure your progress toward objectives.

05/01/2023 6

Planning and Performance

Although organizations that use formal planning do not always outperform those that do not plan, most studies show positive relationships between planning and performance.

Studies have shown that when formal planning has not led to higher performance, the external environment is often the reason.

05/01/2023 7

The Role of Goals and Plans in Planning• Planning is often called the primary management function

because it establishes the basis for all other functions. Planning involves two important elements: goals and plans.

• Goals (often called objectives) are desired outcomes for individuals, groups, or entire organizations.

• Types of goalsa. Financial goals versus strategic goals• Financial goals related to the financial performance of the organization • strategic goals are related to other areas of an organizations performance.b. Stated goals versus real goals• Stated goals are official statements of what an organization says and what

it wants its various stakeholders to believe its goals are. • Real goals are those that an organization actually pursues, as defined by

the actions of its members.

05/01/2023 8

Types of PlansPlans can be described by their RANGE, TIME FRAME, SPECIFICITY, and FREQUENCY OF USE

On the basis of Range plans can be Strategic or operational plans. Strategic plans (long-term plans) are plans that apply to the entire organization, establish the organization’s overall goals, and seek to position the organization in terms of its environment. Operational plans (short-term plans) are plans that specify the details of how the overall goals are to be achieved.

On the basis of Time frame plans can be Short-term or long-term plans. Short-term plans are plans that cover one year or less. Long-term plans are plans with a time frame beyond three years.

On the basis of Specificity plans can be Specific or directional plans. Specific plans are plans that are clearly defined and leave no room for interpretation.Directional plans are flexible plans that set out general guidelines.

On the basis of Frequency of use plans can be Single-use or standing plans. single-use plan is a one-time plan specifically designed to meet the needs of a unique situation. Standing plans are on going plans that provide guidance for activities performed repeatedly .

05/01/2023 9

Indicators of Poor Planning

1. Delivery dates not met2. Machines idle3. Materials wasted4. Some machines doing jobs that should be done by

smaller machines5. Some men overworked, other men under worked6. Skilled workers doing unskilled work7. Men fumbling on jobs for which they have not been

trained8. Quarrelling, bickering, buck-passing and confusion

05/01/2023 10

Qualities that a good planner must have:

1. Good judgement, imagination, foresight and experience

2. Ability to evaluate business opportunities and hazards

3. Proficiency in the determination of objectives4. Ability to accept changes

05/01/2023 11

Organizing

• is the process of arranging people and other resources to work together to accomplish a goal.

• it involves both creating a division of labor for tasks to be performed and then coordinating results to achieved a common purpose.

05/01/2023 12

Branch Manager

Manager Loans

Manager Investments

Manager Operations

05/01/2023 13

05/01/2023 14

Benefits of Organizing

1. Division of work that avoids duplication, conflict, and misuse of resources, both material and human.

2. Clarity of individual performance expectation and specialized tasks.

3. A logical flow of work activities that can be comfortably performed by individuals or groups.

05/01/2023 15

continuations

4. Established channels of communication that enhance decision making and control.5. Coordinating mechanisms that ensure harmony among organization members engaged in diversified activities.6. Focus efforts that relate to objectives logically and efficiently.7. Appropriate authority structures with accountability to enhance planning and controlling throughout the organization.

05/01/2023 16

• The way in which the various parts of an organization are formally arranged is usually referred to as the organization structure. This is the system of tasks, workflows, reporting relationships and communication channels that link together the work of diverse individuals and group.

05/01/2023 17

• Restructuring. This term refers to the process of changing an organization’s structure that meets the needs of all circumstances.

05/01/2023 18

• Typical organization chart identifies various positions and job titles as well as the lines of authority and communication between them.

• Formal structure, it represents the way the organization is intended to function; a structure wherein individuals work in cooperation with one another in the pursuit of company goals and objectives.

05/01/2023 19

What You Can Learn From An Organizational Chart

• The division of work • Supervisory Relationships• Communication channel • Major Sub-units• Levels of Management

05/01/2023 20

What are the major types of organization structures?

05/01/2023 21

Traditional Organization Structures• Functional structures, people with similar skills who

perform similar activities work together under a common manager.

Major advantages of a functional structure include the following:• Task assignments consistent with expertise and training• High-quality technical problem solving• In-depth training and skill development within functions• Clear career paths within functions

05/01/2023 22

• Divisional structure, people who work on a similar product, work in the same geographical region, serve the same customers, or participate in the same work processes are grouped together under common managers.

05/01/2023 23

The potential advantages of divisional structures include the following:• more flexibility in responding to environment changes • Clear points of responsibility for product or services

delivery • Expertise focused on specific customers, products,

and regions• Greater ease in changing size by adding or deleting

divisions.

05/01/2023 24

• Product Structure group together jobs and activities working on a single product or service. They clearly identify costs, profits, problems, and successes with a central point of accountability.

05/01/2023 25

Geographical Structure

• Geographical Structure, area structure , group together jobs and activities being performed in the same location or geographical region.

• Used when there is a need to differentiate products or services in various locations, such as different regions of a country.

05/01/2023 26

• Customer Structure group together jobs and activities that are serving the same customers or clients.

• Business firms use them to give separate customer attention to industrial firms and consumers. Banks use them to give separate attention to consumer and commercial customers for loans.

05/01/2023 27

• Process structure is a group of task related to one another that collectively create something of value to a customer.

• Other fulfilment when you telephone catalog retailer and request a particular item.

• Process of order fulfilment takes the order form from point of initiation to point of fulfilment.

• Together jobs and activities that are part of the same processes.

05/01/2023 28

Centralization

• It is the systematic and consistent reservation of authority at central point within the organization

• Denotes that the majority of the decisions having to do with the work being performed are not made by those doing the work but at a point higher in the organization.

05/01/2023 29

Decentralization

• Refers to the systematic effort to delegate to the lowest levels all authority except that which can only be exercised at central points.

• It proceeds at a different rate to different levels and for different functions within the same company.

05/01/2023 30

Staffing

• Staffing is the process of recruitment, selecting and training of men.

• Means putting the right men on the job.• Its involves finding the right people, with the right

skills, abilities, and fit, who may be hired or already working for the company or may be working for competing companies.

• Staffing is the process of supplying the organization with needed people to achieve the purposes for which it has been established.

05/01/2023 31

The Three Parts of Staffing

• Staffing can be divided into three major parts, each consisting of a number of important activities.

1. Planning,2. Execution, and3. Maintenance

05/01/2023 32

Planning

• It has to be aided by certain analytical studies and guided by set of policies, procedures, regulations, and standards.

• Main products of this stage are human resource policies and program plans.

• Planning involves human resource forecasting, job analysis, and policies and programs formulation.

05/01/2023 33

Execution

• Implementation or administration of all policies and programs directly related to acquisition and development of personnel will be the focus of execution. Included in this group are recruitment, selection, placement, training, and development.

05/01/2023 34

Maintenance

• Phase that involves activities that serve as mechanisms that will help sustain the overall staffing efforts by providing the manager with a continuous supply of information gathered from the execution activities.

• Research or monitoring, which gathers data from the program, and evaluation, which analyses the effects of these programs, is the basic components of maintenance, are human resource accounting, performance appraisal system, and program evaluation.

05/01/2023 35

Human Resource Planning

• Is a process of analysing an organization’s human resource needs under changing conditions and developing the activities necessary to satisfy needs.

05/01/2023 36

Job Analysis

• Job Analysis is a study of what is required to do a job satisfactory. Determines what major work-connected behaviours and traits, responsibilities, capabilities, experiences, the like are needed to perform a job.

• Helps you find out what kinds of people could do the job.

05/01/2023 37

Information Flow from Job Analysis to other Staffing-related Activities

• Job Description: What the job entails• Job Specifications: What kind of person• Information Used In• Other Staffing Activities

05/01/2023 38

Kinds of Human Resource Programs

1. Recruitment and Selection2. Placement/deployment3. Skills and manpower development4. Management development5. Performance appraisal6. Rewards and benefits7. Labor or industrial relation

05/01/2023 39

Sources of Labor/Applicants

a. Internal Recruitmentb. External Recruitment

05/01/2023 40

Internal Recruitment VS External Recruitment Advantages

05/01/2023 41

Disadvantages

05/01/2023 42

Management Development

• The target of this program are the managers and would be managers being groomed for higher responsibilities. It combines formal training, practical work experience, and other educational processes.

05/01/2023 43

Ways to Carry Out a Management Development Program

1. Succession Planningthe employer or its authorized personnel

plans out how people in the company will move in various positions over time. Plan is periodically reviewed to determine who are occupying what position and to asses who are due for promotion, retirement, transfer, separation, replacement, or whatever employee movement.

05/01/2023 44

2. Career planning and developmentcareer planning and development provides

assistance and opportunities for employees to arrive and achieve realistic career goals.3. Mentoring

individual to be developed is assigned a mentor, person of high position in the organization who will serve a mixture of roles such as an advisor-coach, consultant, “Godfather”, supporter, sympathizer, and master to teacher to the person to be developed.

05/01/2023 45

5. Assistant to Positioncreation of “an assistant to” managers and

executives is one of the common approaches to develop an individual with managerial potentials. Serves as a staff to the superior who may have handpicked or selected him out of the many who showed in many instances the prospect of becoming an upcoming manager.

05/01/2023 46

Continuations

Direct exposure to the many managerial circumstances of the superior provides the “assistant to” a wealth of insights into the executive/managerial world which will prove useful when it will be his time to manage.