Planning

1. Overview of the Goal-Setting and Planning Process

2. Goal: a desired future state that the organisation wants to realise Plan: a blueprint for goal achievement and specifies the resource allocations, schedules, tasks, and other actions necessary for attaining goals

3. Characteristics of good goals (SMART)

4. Specific - Be clear of what is expected. Measurable - Expressed in quantitative terms. Attainable - challenging but realistic, can be achieved. Relevant - cover key result areas which are activities that contribute most to the organization’s performance and competitiveness. Time limited - Goals should specify the time period over which they will be achieved.

5. The Basic Planning Process

6. 1) Provides a source of motivation and commitment for staff 2) Guides resource allocation. 3) Guide to action. 4) Set a standard of performance

7. Benefits of Planning and Goal setting

8. Step 1: Stating Goals - managers have to analyse current status and forecast the future environment. What are the organisation's SWOT. - S.M.A.R.T. goals are essential. Step 2: Listing Alternative Ways of Reaching Goals - List as many alternatives as possible. Step 3: Developing Premises - The feasibility of using any alternative is determined by the premises or assumptions. - List all the premises for each alternative. Step 4: Choosing Best Alternative for Reaching Goals - This must include the evaluation of premises; some premises may be found to be unreasonable. Step 5: Developing Plans to Pursue Chosen Alternatives Step 6: Putting Plans into Action - Plans must be put into action if the organisation is to benefit from

9. Growth Strategies

10. Types of Planning in an Organization

11. 1) Market Penetration Strategy - increasing rate of purchase of a product - attracting competitors’ customers - buying a competitor - increasing size of the market by converting nonusers into 2) Market Development Strategy - finding new geographic markets - finding new target markets - finding new users 3) Product Development Strategy 4 approaches are: - improve features - improve quality - enhance the aesthetic appeal - add models

12. 1)Strategic Planning

13. managers determine the organisation's mission or basic purpose and the set of means for achieving this mission

14. done by top-management managers

15. strategic plans tends to be long term

16. 2)Tactical Planning

17. occurs when middle-management translates strategies into shorter-term tactical plans

18. limited functional areas such as marketing, personnel, production and finance

19. focus on intermediate time frames, usually 1 to 3 years. They are more specific and concrete than strategic plans

20. 3)Operational Planning

21. done by first-line managers or supervisors. It is most concerned with budgets, quotas and schedules

22. operational plan are short time frames of less than 1 year, such as requirements for a few months, weeks or even days