Post on 13-Apr-2017
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Group Member’s 1.Sara Jemal 2.Shimelis Birhanu 3.Setegn Addisu4.Selamawit Wolde5.Solomon T/Markos 6.Sisay Tufa
Course Instructor Course Instructor Bonson A. (ass. Bonson A. (ass.
professorprofessor)JAN.15.2017Addis Ababa/
Ethiopia
Presentation Out Line Definition of planning
Planning Terminologies
History of planning Types of planning
Planning Skills Features of Good planning
SWOT & SMART Approach
Barriers & Limitation of planning ?
Why planning fails?
Practical Experience Sharing
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Presentation Objectives
1. Provide an overview of an organizational planning &
Decision Making activities & process.
2. Describe the purpose & future of planning
3. Identify basic required skills to develop planning
4. Identify common barriers and limitations of planning.
5. To illustrate real organizational planning practice
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INTRODUCTION
Basic Managerial Function
PESC MBA Program Organizational Planning Assignment By G1 Members
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1.1 Definition of planning
‘’If you fail to plan, you are planning to fail” B.Franklin
“If you don’t know where you are going, you’ll end up someplace else.” Yogi Berra
“Without the activities determined by planning, there would be nothing to organize, no one to activate and no need to control”. George R. Terry
A goal without a plan is just a wish. Antoine de Saint-Exupéry
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1.1 What Is planning ???
Planning is deciding in advance what is to be done in
future, when, where and by whom it is to be done.
A blueprint specifying the resource allocation,
schedules, and other actions necessary for attaining
goals.
Planning is preparation for action & its a means to an end
It is a process of thinking before doing.
1.2 PLANINING TERMINOLOGIES Mission Reason of Existence Vision A desired future state Values A philosophical priorities Goal A desired future attempts
to realize Objectives The ends toward which
activity is directed8
Strategies A program to attain Object. Policies A framework for making
decisions Plan Specifying & organizing the
resource for meeting goals Planning: Determining org.’s goals & the
means for achieving them
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1.3 PLANING HISTORY
•entered to the public and semi-public sectors during the mid-1980s
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1.3 PLANING HISTORY In Ethiopia CONT…
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1.3 PLANING HISTORY In Ethiopia & History of Planning Institution CONT…
PESC MBA Program Organizational Planning Assignment By G1 Members
Name of Government Institution Period
Empire Haile Selassie Regime
Planning Board 1952/53 -1973/74
During Dergue Period Central Planning National Committee Office
1974/75-1990
During the Transition Period
Ministry of Planning and Economic Development
1990/91-1994/1995
After the Transition (FDRE)
Ministry of Economic Development and corporation
1995/96-2000/01
Ministry of Finance and Economic Development
2001/02-2012/13
National Planning Commission 2013/2014
1.4 Types Of Planning
1.4 Types Of Planning Cont.…
1.4 Types Of Planning Cont.…
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1.4 Types Of Planning Cont.…
1.4 Types Of Planning Cont.…
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Levels of Goals/Plans Managerial Planning Involvement
1.5 Why We Need Planning ???
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Merit Demerit
1. Reduces uncertainty
2. Ensures economical
operations
3. Facilitates control
4. Improves motivation
5. Gives competitive edge
6. Avoids duplication of efforts
1. Limitations of forecasts
2. Rigidity in administration
3. Time consuming process
4. Costly affair
5. Influence of external factors
6. Psychological factors
1.5 Why We Need Planning Cont. …. ???
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A. Organization succeed
B. Efficient utilization of resource
C. Cooperative & coordination effort
D. Direction and sense of purpose
E. Reduce uncertainty
F. Anticipated the future
G. Source of Motivation & Commitment
A. It used a Guides to Action
B. It serves as Standard of Performance
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1.6 PLANNING PROCESS
PESC MBA Program Organizational Planning Assignment By G1 Members
1.7 FEATURES OF GOOD PLANNING
It is Based on Clearly Defined Objectives
It is Simple It is Flexible It is Comprehensive It is Time-Bound Unity and Continuous It is Balanced, Practicable
and Suitable According to the Size and form of the Business
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It uses Available Resources to
the Utmost before Creating New
Authorities and New Resources
Participation by Subordinates
Pervasive as all the levels of
management plan
It Provides for a Proper Analysis
and Classification of Action
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1.8 SKILLS REQUIRED FOR PLANNING
1.8 SKILLS REQUIRED FOR PLANNING Cont.….
Forecasting techniques
1.8 SKILLS REQUIRED FOR PLANNING Cont.…
2.2 Steps In Decision Making 1. Ascertain the need for a
decision
2. Establish decision criteria
3. Allocate weights to criteria
4. Develop Alternatives
5. Evaluate Alternatives
6. Select the Best Alternative
7. Putting Decision Into Action
8. Following up Decisions
Decision Making Process
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1.8 SKILLS REQUIRED FOR PLANNING Cont.…
2.3 Types of in Decision Making
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1.8 SKILLS REQUIRED FOR PLANNING Cont.…
2.4 Decision making situations
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1.9 DECISION-MAKING CONDITIONS
PESC MBA Program Organizational Planning Assignment By G1 Members
Plan Developed
By:
Advantages Disadvantages
Full Board of Directors
Ownership by leadership Board becomes more
informed about programs and activities
Time availability may be limited and scheduling difficult
May not achieve staff ownership
Staff Clear understanding of operation
Time flexibility
Limited board involvement and subsequent ownership
May detract from other staff responsibilities
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1.9 DECISION-MAKING CONDITIONS Cont.…
PESC MBA Program Organizational Planning Assignment By G1 Members
Plan Developed
By:
Advantages Disadvantages
Committee Manageable size Can include a variety of
perspectives (such as board, staff, partners, constituents, etc.)
Full board may not feel sense of ownership of plan details
Board perspectives may be excluded
Consultant Good understanding of planning process
Should produce timely and professional-looking plan
Limited board and staff participation may lead to limited sense of ownership of plan details
Limited board leadership development
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1.10 SWOT ANALYSIS IN PLANNING
PESC MBA Program Organizational Planning Assignment By G1 Members
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1.10 SWOT ANALYSIS IN PLANNING CONT….
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Basic Parameter
S Strength
It Could be:
a)Adequate Technical expertise
b)Adequate financial resources?
c)Good competitive skills & Cost advantages?
d)Good Will by customers?
e)Product/service innovation abilities?
f)Proven management? & Acknowledged market leader
W WEAKNESS
It is something that a company lacks.
a)Less competent staff & Insufficient funds?
b)Lack of goodwill in the market & Poor profitability?
c)Obsolete plant and machinery & small portfolio ranges
d)No clear strategic direction?
e)Lack of managerial depth or talent?
f)Absence of key skills or competencies?
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1.10 SWOT ANALYSIS IN PLANNING CONT….
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Basic Parameter O OPPORTUNITIES It Could be:
a)To enter in a new product line b)To expand the company’s existing product lines c)To enter into the foreign markets d)To acquire the rival firms e)To create new alliances to increase competitive strength. f)To use latest technologies in the business.
T THREATS on any undertaking: A) New competitors may enter the field B) Customers purchasing substitute products C) New technology making products obsoleteD) Slow down in the market leading to slump.E) Change in government policies F) Shift in buyers needs and tastes
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1.11 SMART APPROACH
PESC MBA Program Organizational Planning Assignment By G1 Members
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1.11 SMART APPROACH
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Developing SMART Goals
S Specific . A specific goal will usually answer the five "W" questions:What: What do I want to accomplish?Why: Specific reasons, purpose or benefits of accomplishing the goal.Who: Who is involved?Where: Identify a location.Which: Identify requirements and constraints.
M Measureable A measurable goal will usually answer questions such as:
• How much?• How many?• How will I know when it is accomplished?
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1.11 SMART APPROACH CONT…
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Developing SMART Goals
A Attainable An attainable goal will usually answer the question:
•How: How can the goal be accomplished?R Relevant A relevant goal will usually answer the question:
Does this seem worthwhile?T Time Bound A timely goal will usually answer the question:
When?What can I do 6 months from now?What can I do 6 weeks from now?What can I do today?
R Reevaluate
Reward
Reevaluate each goal to make sure they are still relevant and attainable.
Once goals have been accomplished, celebrate in their accomplishment and start developing new SMART goals.
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1.12 BARRIERS TO EFFECTIVE STRATEGIC PLANNING Cont.…
S/N Barriers to Strategy
Formulation
Barriers to Strategy Implementation
How to Remove Barriers?
1 Identical procedures Lack of accountability Clear Communications
2 Strict limitations Lack of commitment Manage the Change Process
3 People Inadequate instructions
to employees
Participation of employees
in planning process
4 Emphasized
ceremonial work
Power & Influence: Regular checks
5 Limited discussion Culture Accountability
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1.13 LIMITATIONS TO EFFECTIVE PLANING
1.14 WHY PLANNING FAIL ???
1. Lack of top management’s commitment
2. Lack of control Mechanism
3. Entrenched self-interests
4. Corporate culture.
5. Fear
6. Ignorance
7. Failing to periodically alter the plan
8. Deviation from actual objectives
9. Lack of confidence about success
11. Lack of understanding of the role in the execution process
12. Deviation from planned objective
13. Changes in responsibilities of employees were not clear
14. People are not fully rewarded for the execution of plans
15. Inadequate directions given by departmental mangers
16. Information system used for implementation is inadequate
17. Overall goals are not understood by employees
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1.14 WHY PLANNING FAIL In Ethiopia???
1. Hiwote Abate Research Lack of awareness in the
organization vision Lack participation in formulation of
SP Don’t carried out effective SWOT
Analysis Don’t annually reviewed SWOT
Analysis Don’t considered dynamic business
environment No KPI for the evaluation of SP lack of employee’s motivation and
reward systems strategies design No subsequent evaluation strategies 37
2. Assefa Beyene Research Minimal and ineffective communication
There was also lack of adequate
monitoring, follow up and feedback
systems.
Decisions were made without aligning
SP document.
Lack of adequately share their
institution’s vision
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REFERENCE
1. Marx, T. G. (1991). "Removing the obstacles to effective strategic planning." Long
Range Planning24 (4): 21-28.
2. Butler, J. E., B. Brown, et al. (2000). "Guanxi and the dynamics of overseas Chinese
entrepreneurial behavior in Southeast Asia." Management and Organizations in the
Chinese Context, Macmillan, Basingstoke: 245-268.
3. Cascella, V. (2002). "Effective strategic planning." Quality progress35(11): 62-67.
4. Al-Ghamdi, S. M. (1998). "Obstacles to successful implementation of strategic
decisions: the British experience." European Business Review98(6): 322-327.
5. International Institute for Educational Planning. (2010). Strategic planning: Concept
and rationale.PESC MBA Program Organizational Planning Assignment By G1 Members
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REFERENCE CONT ….
6. Caillods, F. 1989. ‘The prospects for educational planning’. A workshop organized by IIEP
on the
7. occasion of its 25th anniversary. Paris: IIEP–UNESCO.Kaufman, R.; Herman, J. 1991.
Strategic Planning in Education: Rethinking, restructuring, revitalizing. Lancaster, PA :
Technomic Publishing Company.
8.Williams, J.H.; Cummings, W.K. 2005. Policy-making for Education Reform in Developing
Countries:Contexts and processes, Vol. 1. Lanhan, MD: Rowman and Littlefi eld Publishing
Group.
9. Hiwot Abate(2016), Assessment on formulation and execution of strategic plan: in the case
of moha soft drinks industry s.co. Unpublished master’s thesis, Saint Mary’s University.
10. Team FM (2013. SWOT Analysis Strategy skills: www.free-management e-book.com
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REFERENCE CONT ….
11. Assefa Beyene Bassa. The Practice of Strategic Planning and Strategy Implementation in Public
Universities of Ethiopia Educational Planning 17 Vol. 22, No. 2
12. Management, Tenth Edition: Richard L. Daft, & Patricia G. Lane , Vanderbilt University
13. This is the book Management Principles (v. 1.0):-nc-sa 3.0 (
http://creativecommons.org/licenses/by-nc-sa/ 3.0/)14. Shane P. Desselle/David P/2009/Second edition: Pharmacy Management, Esential for all practice seting15.The Federal Democratic Republic of Ethiopia, The Second Growth and Transformation Plan (GTP II), (2015/16-2019/20)(Draft), National Planning Commission, September 2015, Addis Ababa16. The Ethiopian New,Institutional, Framework,Habtamu Getachew17-18 Nov 2015,Incheon, South Korea17. Tesfaye Asfaw,The Ethiopian Economy: Structure, Problems and Policy Issues, AN OVERVIEW OF ETHIOPIA'S PLANNING EXPERIENCE
“If you don’t know where you are going, you’ll end up someplace else.” Yogi Berra,
THE END!!! THANK YOU!!!
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