Lesson 7 Basic Elements of Planning and Decision Making
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This document discusses the basic elements of planning and decision making in organizations. It covers topics such as setting goals at different levels (mission, strategic, tactical, operational) and areas of the organization. The document also discusses managing multiple and conflicting goals, different types of plans (strategic, tactical, operational), time frames for plans, responsibilities for planning, contingency planning, crisis management, barriers to planning, and overcoming those barriers. The overall purpose is to provide guidance on goal setting and strategic, tactical, and operational planning processes in organizations.
Lesson 7 Basic Elements of Planning and Decision Making
- 1. Slide content created by Joseph B. Mosca, Monmouth University. Copyright © Houghton Mifflin Company. All rights reserved. Basic Elements of Planning and Decision Making Presented by: DR RHEA LOWELLA S. FISER,RPsy, RPm, CSIOP 7
- 2. 7 - 2 Organizational Goals • Goals are critical to organizational effectiveness and serve a number of purposes. • Purposes of goals: – Provide guidance. – Promote good planning. – Serve as sources of motivation. – Mechanism for evaluation and control.
- 3. 7 - 3 Identification Integration Adaptation RevitalizationCollaboration Organizations Have a Purpose— That Is Why They Need Goals Organizational purpose for goals
- 4. 7 - 4 Kinds of Goals • Goals vary by level, area, and time frame. • Mission: a statement of an organization’s fundamental purpose. • Strategic goal: a goal set by and for top management of the organization. • Tactical goal: set by and for middle managers of the organization. • Operational goal: set by and for lower managers of the organization.
- 5. 7 - 5 Other Goals • Area: organizations also set goals for different areas. • Time frame: organizations also set goals across different time frames.
- 6. 7 - 6 Responsibilities for Setting Goals Who sets goals? – All managers should be involved in the goal setting process. – Each manager has responsibilities for setting goals that correspond to their level.
- 7. 7 - 7 Managing Multiple Goals • When setting goals organizations sometimes experience conflicts or contradictions among goals. • Conflicts are addressed through the use of the Optimizing concept: – Optimizing: balancing and reconciling possible conflicts among goals.
- 8. 7 - 8 The planning function consists of: What is to be accomplished? How is it to be accomplished?
- 9. 7 - 9 Planning has 4 elements: Objectives Actions Resources Implementation
- 10. 7 - 10 Why Is Planning Important? A task can not be accomplished if the manager is not aware of: How is it to be done What has to be done When is it to be done
- 11. 7 - 11 Organizational Planning Kinds of organizational plans: – Strategic plan: a general plan outlining decisions of allocation, priorities, and action steps necessary to reach strategic goals.
- 12. 7 - 12 Tactical Plans • A plan aimed at achieving tactical and developed to implement specific parts of a strategic plan. • Operational plan: a plan that focuses on carrying out tactical plans to achieve operational goals.
- 13. 7 - 13 Time Frames for Plans • Long-range plan: covers many years, perhaps even decades; common long- range plans are for five years or more. • Intermediate plan: usually covers periods from one to five years. • Short-range plan: generally covers a span of one year or less.
- 14. 7 - 14 More Types of Plans • Action plan: used to put into operation any other kind of plan. • Reaction plan: designed to allow the company to react to an unforeseen circumstance.
- 15. 7 - 15 Responsibilities for Planning • Planning staff: some large organizations develop a professional planning staff. • Planning task force: often comprised of line managers with special interest in the relevant area of planning. • Board of directors: establish the corporate mission and strategy, and in some companies take part in the planning process.
- 16. 7 - 16 Contingency Planning • The determination of alternative courses of action to be taken if an intended plan of action is unexpectedly disrupted or rendered inappropriate.
- 17. 7 - 17 Crisis Management • The set of procedures the organization uses in the event of a disaster or other unexpected calamity. • A related concept is the set of procedures the organization uses in the event of a disaster or other unexpected calamity.
- 18. 7 - 18 Tactical Planning The development and executing of tactical plans: – Tactical plans are used to accomplish specific parts of a strategic plan. Each strategic plan is generally implemented through several tactical plans. Effective tactical planning involves both development and execution.
- 19. 7 - 19 Tactical Plan Development and Execution Development: – Recognize and understand overarching strategic plans and tactical goals. – Specify relevant resource and time issues. – Identify and articulate human resource commitments. Execution: – Evaluate each course of action in light of its goals. – Obtain and distribute information and resources. – Monitor horizontal and vertical communication and integration of activities. – Monitor ongoing activities for goal achievement.
- 20. 7 - 20 Types of Operational Planning • Single-use plan: developed to carry out a course of action not likely to be repeated in the future. • For a program, a plan for a large set of activities. • For a project, a plan of less scope and complexity than a program.
- 21. 7 - 21 Standing Plan • Developed for activities that recur regularly over a period of time: – For a policy, a standing plan specifying the organization’s general response to a designated problem or situation. – Standard operating procedure: a standing plan outlining steps to be followed in particular circumstances. – Rules and regulations: standing plans describing exactly how specific activities are to be carried out.
- 22. 7 - 22 Barriers to Goal Setting and Planning Major Barriers – Inappropriate goals. – Improper reward system. – Dynamic and complex environment. – Reluctance to establish goals. – Resistance to change. – Constraints. Overcoming Barriers – Understanding the purposes of goals and planning. – Communication and participation. – Consistency, revision, and updating. – Effective reward system.
- 23. DR RHEA LOWELLA S. FISER, RPSY, RPm, CSIOP 09951100143 rheasantillan@live.com Thank you