PLANNING :

THE FOUNDATION OF SUCCESSFUL MANAGEMENT

Week 4

Prepared by Management Department | www.unimedia.ac.id | man@unimedia.ac.id

 Planning

Setting goals and deciding how to achieve them

Cope with uncertainty to formulating future courses of action

to achieve specified results.

When you make a plan, you make a blueprint for action that describes what you need to do to realize your goals .

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Planning and strategic management

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 Why not plan ?

2. YOU MAY HAVE TO MAKE SOME DECISIONS

WITHOUT A LOT OF TIME TO PLAN

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 How planning helps you: 4 benefits

1. Planning helps you check on your progress

2. Planning helps you coordinate activities

3. Planning helps you think ahead

4. Above all, planning helps you cope with uncertainty

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CEO AVON (ANDREA WONG) AT AVON FOUNDATION MEETING

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 3 types of uncertainty

STATE EFFECT RESPONSE

UNCERTAINTY UNCERTAINTY UNCERTAINTY
WHEN THE ENVIRONMENT WHEN THE EFFECTS OF WHEN THE CONSEQUENCES
IS CONSIDERED ENVIRONMENTAL CHANGES OF DECISION ARE
UNPREDICTABLE ARE UNPREDICTABLE UNCERTAINTY

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 4 basic strategy types

REACTORS Lets wait until theres a crisis, then well react

Let other take the risk of innovating, and well imitate what
ANALYZERS works best

Lets create our own opportunities, not wait for them to

PROSPECTORS happen

Lets stick with what we do best, avoid other involvements

DEFENDERS

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HOW DID SAMSUNG JUMP AHEAD ON CELL PHONES ?

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 The adaptive cycle

ADMINIS-
TRATIVE

ENGINEER-
ING

ENTREPRE-
NEURIAL

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Making plans

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Three levels of management, three types of
planning

Strategic planning :
1-5 years

Tactical planning :
6-24 months

Operational planning :
1-52 weeks

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 Types of plan

PLAN DESCRIPTION

STANDING PLAN For activities that occur repeatedly over a period of time

POLICY Outlines general response to a designated problem or situation

PROCEDURE Outlines response to particular problems or circumstances

RULE Designates specific required action

SINGLE-USE PLAN For activities not likely to be repeated in the future

PROGRAM Encompasses a range of projects or activities

PROJECT Has less scope and complexity than a program

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 Types of plan

Source: Robbinss, Management.

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Directional plans VS specific plan

Source: Robbinss, Management.

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 SMART goals

S Specific

M Measurable

A Attainable

R Relevant

T Time-bound

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 Relationship between goal difficulty and
performance

Performance :

A : Committed individuals with

adequate ability
High
B : Committed individuals who are
working at capacity
C : Individuals who lack commitment
PERFORMANCE

B to high goals

Low

Low GOAL DIFFICULTY

Impossible
Moderate Challenging

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The planning / control cycle

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The problem is

Source: Robbinss, Management.

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 The 4-step process for motivating employees in
MBO

PERIODICALLY GIVE
JOINTLY DEVELOP REVIEW PERFORMANCE
SET OBJECTIVES ACTION PLAN PERFORMANCE APPRAISAL &
REWARDS, IF ANY

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 Management by Objectives

the purpose of MBO is to motivate rather than control subordinates

OBJECTIVES PURPOSE EXAMPLE

Express performance to be accomplished in Increase sport-utility sales by 10%

IMPROVEMENT
a specific way for a specific area Reduce food spoilage by 15%

Attend five days of leadership training

PERSONAL
Express personal goals to be realized Learn basics of Microsoft Office
DEVELOPMENT
software by June 1

Continue to meet the increased sales

Express the intention to maintain goals specified last quarter
MAINTENANCE
performance at preciously established levels Produce another 60,000 cases of wine
this month

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 The Project Life Cycle

THE PREDICTABLE EVOLUTION OF A PROJECT

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 Criticisms of Planning

Planning may create rigidity.

Plans cant be developed for dynamic environments.

Formal plans cant replace intuition and creativity.

Planning focuses managers attention on todays competition, not tomorrows

survival.

Formal planning reinforces todays success, which may lead to tomorrows

failure.

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 Effective Planning in Dynamic Environment

1. Develop plans that are specific but flexible.

2. Understand that planning is an ongoing process.

3. Change plans when conditions warrant.

4. Persistence in planning eventually pay off.

5. Flatten the organizational hierarchy to foster

the development of planning skills at all organizational levels.

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thank you

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