This document discusses planning in organizations. It defines planning as defining goals, strategies, and coordinating activities to achieve goals. Planning provides direction, reduces uncertainty, establishes goals, and minimizes waste. There are different types of goals like financial, strategic, stated, and real goals. Approaches to goal setting include traditional top-down and MBO which involves collaborative goal setting. Plans outline how to achieve goals and come in forms like strategic, operational, short-term, long-term, specific, directional, single-use, and standing plans. Environmental uncertainty, organizational level, and future commitments impact planning.

1. Formation of PlanningFormation of Planning
Presentation by
Anlia Yasmin
M. Naeem Ashraf

2. Formation of PlanningFormation of Planning
Content
1.Define the nature and purpose of
planning.
2.Classify the types goals organization
might have and plans they use.
3.Compare and contrast the approaches
to goals setting and planning.
4.Contemporary issues in planning.

3. What is planning?What is planning?
• Planning involves defining the
organizational goals establishing
strategies for achieving those goals
and developing plans to integrate
and coordinate work activities.
• It concerned both ends and means.

4. Formal planningFormal planning
In formal planning specific goals for a
specific time period are defined.
Where goals are written and shared
with organizational members to
reduced ambiguity and create a
common understanding about what
needs to be done.

5. Why do manager plan?Why do manager plan?
At least four reasons exist behind
planning.
1. Provide direction
2. Reduces uncertainty
3. Establishing goals use in planning
4. Planning minimizing waste and
redundancy

6. Provide DirectionProvide Direction
Planning provide direction to manger
and non manger alike.
When employees know what their
organizational objectives behind
planning.
So that employees can coordinate
cooperate and feel their individual
responsibilities.

7. Reduce uncertaintyReduce uncertainty
When manager plan he looks ahead and
after planning he consider change and
control develop appropriate responses to
respond effectively that anticipate
change.
Establishing goals use in planning
 After planning the manger can see
whether plans have been carried out and
the goals met.

8. Planning minimizing waste andPlanning minimizing waste and
redundancyredundancy
When work activities are coordinated
around plans, inefficiencies became
obvious and can be corrected or
eliminated.

9. Relationship between planning andRelationship between planning and
performance.performance.
Formal planning is associated with
positive financial result, higher profits ,
higher returns on assets.
Its more important to implementing the
plans than doing extensive planning.
External environment can effect the
plan don't achieve high level of
performance.
Time frame also influenced on
relationship.

10. GoalsGoals
Goals are desired outcomes that guide
management decisions and described as
essential elements of planning.

11. Characteristics of goalsCharacteristics of goals
Written in terms of outcomes rather
than actions.
Measureable and quantifiable.
Clear as to a time frame.
Challenging but attainable.
Written down
Communicated to all necessary
organizational member.

12. Steps in goals settingSteps in goals setting
Three steps in goals settings
1. Review of organizational mission
2. Evaluate available resources
3. Determine the goals individually

13. 1-Review of organizational mission1-Review of organizational mission
A mission is a board statements of an
organization's purpose that provide an
overall guidance to what organizational
members think is important.
2-Evaluate available resources
An organization do, not want to set goals
that are impossible to achieve.
It should keep in consideration that
resources are available when setting
organizational goals.

14. 3-Determine the goals individually3-Determine the goals individually
The goals reflect desired outcomes and
should be congruent with organizational
mission and goals in other organization
areas.
These goals should be measureable
specific and include a time frame for
accomplishment.

15. Types of goalsTypes of goals
There are four types of goals
1. Financial goals
2. Strategic goals
3. Stated goals
4. Real goals

16. 1-Financial goals1-Financial goals
Financial goals are related to the financial
performance of the organization.
2-Strategic goals
Strategic goals are related to all other area
of an organization.
3-Stated goals
Stated goals are official statements of what
an organization says and what it wants its
stakeholders. These can found in an
organization's charter, annual report, public
relation announcements.

17. 4-Real goals4-Real goals
Real goals are those which an
organization actually pursues .
Observe what organizational members
are doing.
Action define priorities.

18. Goals settings approachesGoals settings approaches
1. Traditional approach
2. MBO(Management by objectives)
approach

19. 1-Traditional approach1-Traditional approach
In traditional goal setting, goals are set
by the top manager and than become
sub-goals for each organizational area.
This traditional perspective assumes
that top mangers know what's best
because they see the big picture.
Goals passed down to each succeeding
level, guide individual employees as they
work to achieve these goals.

20. MBO(Management by objectives)MBO(Management by objectives)
approachapproach
MBO is a process of setting mutually
agreed upon goals and using these goals to
evaluate employees performance.

21. Steps in MBO(Management bySteps in MBO(Management by
objectives) approachobjectives) approach
1. The organization's overall objectives and
strategies are formulated.
2. Major objectives are allocated among
divisional and departmental units.
3. Unit manager collaboratively set with all
department managers.
4. Specific objectives are collaboratively set
with all department managers.
5. Actions ,plans defining how objectives are to
be achieved are specified and agreed upon
by managers and employees.

22. Steps in MBO(Management bySteps in MBO(Management by
objectives) approachobjectives) approach
1. Actions plans are implemented.
2. Progress towards objectives is periodically
reviewed and feed back is provided.
3. Successful achievement of objectives is
reinforced by performance based reward

23. PlansPlans
Plans are documents that outline how
goals are going to met.

24. Types of planningTypes of planning
1-Breadth planning
Strategic plans
Operational plans
2-Time frame of planning
Long term plans
Short term plans
Intermediate plans

25. Types of planningTypes of planning
3-Specificity of planning
Specific plans
Directional plans
4-Frequency of use planning
Single use plans
Standing plans

26. 1-Breadth planning
(a)Strategic plans
Strategic plans are apply to entire
organization and establish
organizational overall goals
(b)Operational plans
Operational plans encompass a
particular operational area of
organization. These are not broad like
strategic plans but narrow.

27. 2-Time frame of planning
(a)Long term plan
Long term plans are those with a time
frame beyond seven years.
(b)Short term plan
Short term plans are those that cover
year or less.
(c)Intermediate plans
Any time period between long term and
short term plan.

28. 3-Specificity of planning
(a)Specific plans
Specific plans are clearly define and
leave no room for interpretation, these
state its objectives in a way that
eliminates ambiguity and problems with
misunderstandings.
(b)Directional plans
Directional plans are flexible that setout
general guidelines to deal with high
uncertainty and ambiguity.

29. 4-Frequency of use planning
(a)Single use plans
Single use plans is one time plans
specifically designed to meet the need of
a unique situation.
(b)Standing plans
Standing plans are on gonging plans that
provides guidance for activities
performed repeated.
Its include policies, rules and producers.

30. Contingency factors in process ofContingency factors in process of
developing plansdeveloping plans
Organizational level
Degree of environmental uncertainty
Length of future commitments

31. Organizational levelOrganizational level
Organizational level shows the
relationship between manager's level
in the organization.
Lower level manager do operational
planning while upper level manager do
strategic planning.

32. Degree of environmentalDegree of environmental
uncertaintyuncertainty
Degree of environmental uncertainty
factor shows in high uncertainty, plan
should be specific but flexible.

33. Length of future commitmentsLength of future commitments
The commitment concept says that
plans should extend far enough to meet
those commitments made when the
plans were developed.