 Objectives:

 Planning & uncertainty

 Fundamental of planning
 The planning/Control cycle
 Promoting goal setting: Management by objectives
 Project Planning
 Planning Definition
“Setting goals and deciding how to
achieve them” or “To cope with
uncertainty by formulating future course
of action to achieve specified result”
Four Benefit of Planning
To check on the progress
To coordinate activities
To think ahead
To cope with uncertainty
 Three Types of Uncertainty: State,
Effect & Response
 State uncertainty – “ What possible harmful event could
occur?”
 When the environment is considered unpredictable.

 Effect Uncertainty – “ What possible harmful effect might an

environmental change have?”
 When the effects of environmental changes are
unpredictable

 Response Uncertainty
 When the consequences of a decision are uncertain
 Planning Diagram
Mission Statement: “ Vision Statement:
What is our reason for “What do we want to
being?” become?”
Strategic Planning:
Done by top
managers for the next
1-5 years

Goals

Action plans

Operational Planning: Tactical Planning:

Done by middle
Done by first-line managers for the next
managers for the next 6-24 months
1-52 weeks

Goals
Goals

Action Plans
Action Plan
 Mission & Vision Statements

 The mission statement – “ What is our reason for being?”

 An organization’s mission is its purpose or reason for
being
 Mission statement, which expresses the purpose of the
organization.

 The Vision Statement – “ What do we want to become?”

 A vision is a long-term goal describing “What” an
organization wants to become. It is a clear sense of the
future and the actions needed to get there.
 Vision statement, which expresses what the organization
should become, where it wants to go strategically.
 Three Types of Planning Levels of
Management: Strategic, Tactical &
Operational
 Strategic Planning by top management
Set by the top managers to determine goal for
the next 1-5 years
 Tactical Planning by middle management
Set by the middle manager to contribute with
the given resources for the next 6-24 months
 Operational planning by first-line management
Set by first line managers to accomplish task
given by the middle managers with available
resource
 Goals & Action Plans
Three types of goal for each level of management:
 Strategic goals
Setting by the top management to achieve
objective as whole.
 Tactical goals
Set by middle managers and focus on the
actions needed to achieve strategic goals
 Operational goals
Set by first-line managers to achieve tactical
goals for a short term period
 The planning/Control cycle

The two (1) Make the plan (2) Carry out the plan
Planning
steps

(4) Control the direction in two

ways:
The Two (a) By correcting deviations in (3) Control the direction by
Control the plan being carried out comparing the results with the
(return to step 2) or plan
Steps
(b) By improving future plan
(go to step 2 to start over
 Management by Objective (MBO)
and Its Process
It has four-steps process:
 Jointly Set Objectives
 Manager and subordinates setting up objective together
 Setting up objectives together increase employee performance
 Manager must do the follow up once the objective are set
 Develop Action Plan
 Develop an action plan for each individual and all department as to
attain the objective
 Periodically Review Performance
 Should meet with subordinates often either informal or formal as to
review the action plan progress
 Give Appraisal and Reward for Performance
 Discuss the result and performance of each subordinates without
being bias or other excuses
 The Project Life Cycle : The
Predictable Evolution of a Project
Stage 1: Definition/
Stage 2: Planning Stage 3: Execution Stage 4: Closing
Initiation
 Stage 1: Definition/Initiation
 Look onto the potential/big picture
 Identify the problem, assumptions and risk
 Identify goal and objectives
 Determine the budget and schedule
 Write proper proposal
 Stage 2: Planning
 Identify the detail for the potential to move
 Identify facilities and equipment
 Identify the roles for each people
 Stage 3: Execution
 Define management style and develop control tools
 Monitor the progress frequently
 Check up for project status and make a report
 Stage 4: Closing
 When the project has been accepted by the client
 The result can be abrupt or gradually