planning_words (mgt 215)

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PLANNING LECTURER NAME: SIR KAMARULZAMAN GROUP: CHINKY WINKY (ACD3A2) DUE DATE: MARCH 2010 GROUP MEMBERS NAME: KETTY SUHAILAH MOIDI (2008386451) NORIZAYU DANAN (2008591783) ROZIAH SUNARNI RAHMAT (2008) SHAHRIDAH SAIDIH (2008511033) SITI AZAM FARHA AZMAIN (2008300461)

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Page 1: PLANNING_words (Mgt 215)

PLANNING

LECTURER NAME: SIR KAMARULZAMAN

GROUP: CHINKY WINKY (ACD3A2)

DUE DATE: MARCH 2010

GROUP MEMBERS NAME:

KETTY SUHAILAH MOIDI (2008386451)

NORIZAYU DANAN (2008591783)

ROZIAH SUNARNI RAHMAT (2008)

SHAHRIDAH SAIDIH (2008511033)

SITI AZAM FARHA AZMAIN (2008300461)

Page 2: PLANNING_words (Mgt 215)

The Organizational Planning Process

At the top of the goal hierarchy is the mission – the organization’s reason for existence. The

mission describes the organization’s values, aspirations and reason for being. A well-defined

mission is the basis for development of all subsequent goals and plans. Without a clear

mission, goals and plans may be developed haphazardly and not take the organization in the

direction it needs to go.

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The formal mission statement is a broadly stated definition of purpose that distinguishes the

organization from others of a similar type. A well-designed mission statement can enhance

employee motivation and organizational performance. The content of a mission statement

often focuses on the market and customers and identifies desired fields of endeavor. Some

mission statements describe company characteristics such as corporate values employees.

As the example of this type of mission statement is that of State Farm Insurance:

State Farm’s mission is to help people manage the risks of everyday life,

recover from the unexpected and realize their dreams.

We are people who make it our business to be like a good

neighbor; who built a premier company by selling and keeping

promises through our marketing partnership; who bring diverse

talents and experiences to our work serving the State Farm customer.

Our success is built on a foundation of shared values –

quality service and relationships, mutual trust, integrity and

financial strength.

Because of mission statements such as State Farm, employees as well as customers,

suppliers and stockholders know the company’s stated purpose and values.

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GOALS AND PLANS

There are three goals and three plans in a managerial planning and goal setting.

GOALS

i. Strategic goals

ii. Tactical goals

iii. Operational goals

PLANS

i. Strategic plans

ii. Tactical plans

iii. Operational plans

GOALS

Strategic goals

The action steps by which an organization intends to attain strategic goals.

Sometimes called official goals, broad statements describing where the organization

wants to be in the future.

These goals pertain to the organization as a whole rather than to specific divisions or

departments.

Tactical goals

Goals that define the outcomes that major divisions and departments must achieve for the

organization to reach its overall goals.

This goals apply to middle management and describe what major subunits must do

for the organization to achieve its overall goals.

Page 5: PLANNING_words (Mgt 215)

Operational goals

The result expected from department, work groups, and individuals.

They are precise and measurable.

PLANS

Strategic plans

Define the action steps by which the company intends to attain strategic goals.

The blueprint that defines the organizational activities and resource allocations.

The purpose is of strategic plans is to turn organizational goals into realities within

that time period.

Tactical plans

Designed to help execute major strategic plans and accomplish a specific part of the

company’s strategy.

In business or nonprofit organization, tactical plans define what major departments

and organizational subunits will do to implement the organization’s strategic plan.

Might include cross-training employees so they can switch to different jobs as

departmental needs change, allowing order takers to transfer to jobs at headquarters

during off- peak times to prevent burnout, using regulars order takers train and

supervise temporary workers during peak seasons.

Page 6: PLANNING_words (Mgt 215)

Operational plans

Developed at the lowers level of organization to specify actions steps towards

achieving operational goals and to support tactical plans.

Department manager’s tools for daily and weekly operation.

Specifies plans for department managers, supervisors, and individuals employees.

Must be coordinated with the budget, because resources must be allocated for desired

activities.

Page 7: PLANNING_words (Mgt 215)

ALIGNING GOALS WITH STRATEGY MAPS

Strategy map is visual representation of a keys drivers of an organization’s success

and show how specific goals and plans in each area are linked.

Four key area that contribute to a firm’s long - term success , that’s is

i. Learning and growth

ii. Internal processes

iii. Customers service

iv. Financial performance

1. Learning and growth

Include promote employee development via ongoing training, enable continuous

and knowledge-sharing and cultivate a culture of innovation and high

performance.

2. Internal processes

Include relationships with suppliers and partners, improve cost, quality, flexibility

of operations and excel at innovative product development and next – generation

market opportunities.

3. Customers service

Include build and maintain good customers relationships, be the leader in quality

and reliability and provide innovative solution to customer needs.

4. Financial performance

Include increase revenues in existing markets, increase productivity and

efficiency and increase revenues in new markets and products.

Page 8: PLANNING_words (Mgt 215)

Operational Planning

An operational planning is a subset of strategic work plan. Managers use operational goals to

direct and resources toward achieving specific outcomes that enable the organization to

perform efficiently and effectively. One consideration is how to establish effective goals.

The managers use a number of planning approaches, including management by objectives,

single-use plans, and standing plans.

Criteria for Effective Goals

Page 9: PLANNING_words (Mgt 215)

Management by Objectives (MBO)

A method of management whereby managers and employees define goals for every

department, project, and person and use them to monitor subsequent performance.

Model of the MBO process

Page 10: PLANNING_words (Mgt 215)

MBO Benefits and Problems

Page 11: PLANNING_words (Mgt 215)

Single-Use and Standing Plans

Single-Use Plans

- Plans that are developed to achieve a set of goals that are unlikely to be repeated in

the future.

Standing Plans

- Ongoing plans that are used to provide guidance for tasks performed repeatedly

within the organization.

Major types of Single-Use and Standing Plans

Single-Use Plans

Program

- Plans for attaining a one-time organizational goal.

- Major undertaking that may take several years to complete.

- Large in scope; may be associated with several projects.

Example: a) Building a new headquarters.

b) Converting all paper files to digital.

Projects

- Also a set of plans for attaining a one-time goal.

- Smaller in scope and complexity than a program; shorter in horizon.

- Often one part of a larger program.

Example: a) Renovating the office.

b) Setting up a company intranet.

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Standing Plans

Policy

- Broad in scope-general guide to action.

- Based on organization’s overall goals/strategic plan.

- Defines boundaries within which to make decisions.

Example: a) Sexual harassment policies.

b) Internet and e-mail usage policies.

Rule

- Narrow in scope.

- Describes how a specific action is to be performed.

- May apply to specific setting.

Example: No eating rule in areas of company where employees are visible to the

public.

Procedure

- Sometimes called a standard operating procedure.

- Defines a precise series of steps to attain certain goals.

Example: a) Procedures for issuing refunds.

b) Procedures for handling employee grievances.

Page 13: PLANNING_words (Mgt 215)

Traditional Approaches to planning

Corporate planning has been done entirely by

~top executives

~consulting firms

~central planning departments - A group of planning specialist who develop plans

or the organizations as a whole and its major divisions and departments and typically

report directly to the president or CEO.

*planning specialist were hired to gather data and develop detailed strategic plans

for the corporation.

This planning approach was top down because goals and plans were assigned to major

divisions and departments after approval by the president.

*Approached worked well in many applications & still popular.

*However, formal planning increasingly is being criticized as inappropriate for today

environment.

*Central planning departments maybe not constantly with changing realities, which may lead

people struggling follow the plan that not suitable with environments and customers’ needs.

*It also can inhibit employee innovation and learning.

Page 14: PLANNING_words (Mgt 215)

High-performance Approaches to planning

Fresh approach to planning is to involve everyone in the organization in the planning

process.

Evaluation to a new approach began with a shift to decentralized planning; managers

work with planning experts develop their own goals and plans.

As the environment become more volatile, top executives saw the benefits of pushing

decentralized planning even further, by having planning experts work directly with

managers and employee to develop dynamic plans that meet fast-changing needs.

Guidelines for planning in the new workplace

Stretch goals

- A reasonable yet highly ambitious, compelling goal that energizes people and inspires

excellence

- Typically so far beyond the current levels that people have to be innovative to find

ways to reach them.

- Big hairy audacious goal or BHAG is an extension of the stretch goal.

- Managers can use these goals to compel employees to think in new ways that can lead

to bold, innovative breakthrough.

Page 15: PLANNING_words (Mgt 215)

Use Performance Dashboard

- Companies use this as a way for executive to keep track of key performance metrics

such as; sales in relation to targets, number of product on back order….

- Dashboard is evolving into organization-wide systems that help align and track goals

across the enterprise.

Deploy Intelligence Teams

- A cross functional group of managers and employees who work together to gain a

deep understanding of a specific competitive issue and offer insight and

recommendations for planning.

- Top managers might from an intelligence team to identify when and how this might

happen and how it might affect the organization.

- It also to devise contingency plans and scenarios related to major strategic issues.