PLANNING

Management function that involves, defining goals, establishing strategies for achieving
goals, and developing plans to integrate and coordinate activities. Planning is the
fundamental management function, which involves deciding beforehand, what is to be done,
when is it to be done, how it is to be done, and who is going to do it. It chalks out exactly,
how to attain a specific goal.

Importance of Planning

 It helps managers to improve future performance

 It minimizes risk and uncertainty, by looking ahead into the future.
 It facilitates the coordination of activities. Thus, reduces overlapping among activities
and eliminates unproductive work.
 It states in advance, what should be done in future, so it provides direction for action.
 It uncovers and identifies future opportunities and threats.
 It sets out standards for controlling
 Minimize the waste
NATURE
 CONTINOUS
 PERVASIVE
 INTELLECTUAL
 BASE FUNCTION
 FUTURISTICS
 DECISION MAKING
 GOAL ORIENTED

GOAL

the things we want to achieve or the results we aim to accomplish in the future. They give direction
to our actions, motivate us, and help measure our progress. They can be short-term or long-term,
small or big, and they often reflect our desires, aspirations, and values.

PLANS OR DOCUMENT

Plans are the strategies or specific actions we devise to achieve our goals. They're the detailed
steps or pathways we create to move from where we are to where we want to be. Plans involve
breaking down the goal into smaller, manageable tasks, setting deadlines, allocating resources,
and organizing efforts to reach the desired outcome. They could include things like creating a
timeline, outlining tasks, setting priorities, allocating budgets, seeking necessary support or
resources, and adjusting strategies as needed along the way. Essentially, plans serve as the
actionable roadmap that guides us toward accomplishing our goals.
Financial Goals: Financial goals are focused on the monetary aspects of the organization. They
encompass revenue, profits, cost reduction, budgeting, and financial stability objectives. These
goals could include increasing sales by a certain percentage, improving profit margins, reducing
expenses, or achieving a specific return on investment (ROI). Financial goals are essential as they
ensure the organization's sustainability and profitability.

Strategic Goals - related to the performance of the firm relative to factors in its external environment (e.g.,
competitors). Strategic goals are broader and focus on the long-term direction and growth of the
organization. They involve objectives related to market expansion, product or service innovation,
entering new markets, mergers or acquisitions, or establishing a competitive advantage

Real goals in an organization refer to the actual objectives and targets that the members, teams, or
departments actively pursue in their day-to-day activities. These goals might sometimes differ
from the officially stated or strategic goals for various reasons

OPERATION FOCUS

RESOURCES LIMITATION

CIRCUMSTANCES

INDIVIDUAL PREFERENCES

THREATS ETC

Stated Goals –Official statements of what an organization says and what its stakeholders believe

stated goals can be found in the organization's charter, annual reports, public relations announcements, or Public
statements made by managers.

Such statements are vague and probably represent management’s public relations skills
 Strategic applied to the whole organization Key aspects include (VGSRE) WE GET SOFTSWRIL
RIGHT NOW EVENING )

· Vision and Mission: A strategic plan often starts by reaffirming or establishing the organization's
vision (long-term aspiration) and mission (purpose).
· Goals and Objectives: It defines specific, measurable goals and objectives that align with the
organization's mission and vision. These goals are strategic and focus on the big picture, such as
market expansion, innovation, or long-term growth.
· Strategies and Initiatives: Strategies detail how the organization plans to achieve its goals. This
might involve market analysis, competitive positioning, product development, partnerships, or
entering new markets.
· Resource Allocation: While not getting into the nitty-gritty details, strategic plans might outline
the broad allocation of resources—financial, human, and technological—to support the strategies.
· Evaluation and Review: They often include methods for evaluating progress and a schedule for
periodic reviews to ensure alignment with changing conditions

Key components include (SRPAI) SIR REPORTS PENDING ARE IDIOTS

· Specific Actions: Operational plans break down the larger strategic goals into specific, actionable
steps. For instance, if the strategic goal is market expansion, an operational plan might detail the
actions needed to launch a new product line in a specific market segment.
· Resources and Responsibilities: Operational plans allocate resources more specifically, detailing
budgets, timelines, and the responsibilities of different departments or individuals.
· Performance Measures: They often include key performance indicators (KPIs) or metrics to track
progress in the short term and ensure that the actions are moving the organization toward its
strategic goals.
· Adaptability: Operational plans are more adaptable to changes in the short term. They might need
frequent adjustments to respond to immediate challenges or opportunities.
· Integration with Strategy: Operational plans are designed to align closely with the broader
strategic plan, ensuring that day-to-day activities contribute to the achievement of long-term
objectives.
Traditional goal setting involves establishing specific, measurable, achievable, relevant, and time-bound
(SMART) objectives to guide one's actions and efforts toward a desired outcome

The means-ends chain is a concept that highlights the interconnectedness of goals within an organization's
hierarchy. It refers to the relationship between lower-level goals (means) and higher-level goals (ends).

In this context:

1. Lower-Level Goals (Means):

 These are the specific, actionable objectives or goals at the operational levels within an
organization. They are the steps or milestones that need to be achieved to support the
attainment of higher-level goals.

2. Higher-Level Goals (Ends):

 These are the broader, more strategic goals set at the top levels of the organization. They
encompass the ultimate objectives and overall direction of the company.

3. Integration through Hierarchy:

 The means-ends chain establishes a network of goals that are interconnected through a
clearly defined hierarchy. Achievement of lower-level goals serves as the means or steps
necessary to reach and fulfill higher-level goals or ends.

This description outlines a common issue with hierarchical goal setting within organizations:

Top-Down Goal Setting:

Broad, high-level goals are set by top management. These goals usually encompass the overall vision and direction of
the organization. They guide the entire company and serve as a framework for decision-making and strategy.
1. Cascade to Subordinate Levels:
These high-level goals are then broken down into sub-goals for each level within the organization. Each managerial
level interprets and adapts these goals to align with their specific area of responsibility
Direction and Guidance from Above:
The intention behind this approach is to provide guidance and direction from the top. It's assumed that these goals
will guide the actions and decisions of lower-level managers and employees, ensuring alignment with the overall
organizational objectives.
Loss of Clarity and Focus:
However, as goals cascade down the hierarchy, they might lose clarity and specificity. Lower-level managers might
interpret or modify these goals to suit their teams or departments. Sometimes, the original intent of higher-level
goals can get diluted or misinterpreted in the process. This can lead to a lack of clarity, confusion about priorities,
and divergent interpretations of the overarching objectives.
MBO stands for Management by Objectives, a management approach developed by Peter Drucker in the
1950s. It's a strategic and systematic process that aims to align an organization's goals and objectives
between managers and employees to improve performance and achieve results.

• Key elements of MBO:

– goal specificity

– participative decision making

– an explicit performance/evaluation period

– feedback

Rewards are allocated based on progress towards the goals

Problems

Dynamics

Overemphasizes

Resistance from different employees' work styles

Dependence on effective communication

Allowing the MBO program to become an annual paperwork shuffle

Issues in planning

Technology changes

Environment sustainability

Diversity in workplace

Different leadership styles

Globalization

Market trends

Remote workplaces

Communication problem

Social responsibility