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Management and

Organisation

Organisational Planning

Steps in PlanningLevels of Planning Time Horizons in Planning

 Types of PlansGathering InformationImplementing PlansEvaluating Plans

Importance of Planning

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Steps in Planning Gather Information

etermine Organisational Mission and

Goals !ormulate Strategy " ho# to achieve

Mission and Goals

Implement Strategy $llocate resources% including sta&

responsi'ilities to achieve desiredstrategy

Evaluate results

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Planning Levels (orporate Level

)usiness or ivision Level

epartment or !unctional Level

(orporate Level

 Top management decisions as tothe mission and overall corporatestrategy% ie #hich industriesand national mar*ets the

organisation intends to compete

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Planning Levels )usiness or ivisional Level

Provides long term goals to ena'le the

division to meet corporate goals Provides 'usiness level strategy%

indicating the methods to 'e used tocompete in the relevant industry

epartmental or !unctional Level States the goals proposed to

allo# the department to assistin the process of )usiness LevelGoal achievement

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 Time Horizons +ital that planning is consistent

throughout the various levels

 Time Horizons " Long Term Medium Term Short Term

Long Term ,sually - years or more% produced on a

rolling 'asis% involving corporate and.or'usiness level goals

/olling 'asis infers annual updatesto any long term plan% in order tore0ect changing conditions1

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 Time Horizons Medium Term

,sually 23- years% involving all levels

of planning

Short Tem ,sually 2 year or less% involving

functional level goals

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 Types of Plan )usiness Plan " re4uired for

e5ternal and internal purposes Sets out the mar*ets the 'usiness

unit #ill operate in

etails ho# the 'usiness unit #ill

operate Provides 6nancial details

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 Types of Plan Speci6c Plan

(learly de6ned " eg1 (ut costs 'y -7 over 8 months" usually 4uantitative

,nam'iguous and easily measura'le i9cult to achieve #here environmental conditions

are unpredicta'le

irectional Plan Provide some focus 'ut provides less guidance

than a speci6c plan More di9cult to measure Provides 0e5i'ility " useful #here conditions

are unpredicta'le

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 Types of Plan Special Purpose

Plans for speci6c pro:ects " eg a

speci6c change programme Standing Plans

!or routine recurring issues "

eg customer complaints

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Gathering Information $ny plan depends on information

Information can 'e gathered froma variety of sources " Informal ;soft information<

!ormal $nalyses

anger of information overloadand need to focus on the mostimportant relevant issues

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Gathering Information !ormal $nalyses "

Government statistics

Industry surveys Mar*et research Internal analysis S=OT analysis

(ritical Success !actors $nalysis !orecasting Sensitivity $nalysis Scenario Planning

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Implementing Plans Particularly challenging part of the

process

Organisations and people are slo#er tochange than plans are to prepare

Successful implementation re4uires " Managerial e5perience Organisational 0uidity (lear plan% #ell communicated  Timely access to re4uired resources

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Evaluating Plans Important to monitor progress%

evaluate and revisit planned

o':ectives and goals +arious tools used "

Overvie# (hart

/eporting Systems

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Evaluating Plans Overvie# (hart

Sho#s progress to date compared to thate5pected

Main events planned Interdependences E5pected (ompletion ates

/eporting System /egular reports " often #ee*ly "

providing details of the currentprogress

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Importance of Planning $llo#s managers to have a vie# as to

#here the organisation is at present

$llo#s managers to have a vie# as to#here the organisation should 'e in thefuture

$llo#s managers to assess ho# to move

the organisation for#ard Planning is made comple5 due to an

uncertain e5ternal environment andincomplete information provided to

managers

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Importance of Planning Planning instigates managers toparticipate in decision ma*ing a'outorganisational goals and strategies

Planning provides the organisation andits employees #ith a sense of direction "in the a'sence of planning% goal con0ict

#ould 'e more prevalent Planning promotes improved

team#or*

Planning provides a controlmechanism and greater motivation

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Importance of Planning Promotes e9cient use of resources

Good Planning should 3 Possess unity )e continuous

Involve accuracy

)e 0e5i'le

Lac* of planning or poor planning " (an lead to poor morale

=aste of resources

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Summary Planning carried out in a num'er of iterative steps Planning involves multiple levels% #hich correlate 'roadly

to multiple time horizons +ariety of types of plans " eg )usiness> Speci6c>

irectional> Standing Planning re4uires information gathering " informal and

particularly formal " eg industry survey> S=OT>!orecasting

Implementation is particularly challenging Important to evaluate and *eep trac* of plan

implementation Planning provides a clearer organisational direction

and improves team#or* and motivation Good planning should 'e coherent% continuous%

0e5i'le and 'e 'ased on accurate information