Managerial Planning and Goal Setting - Desklib

LESSON 04: MANAGERIAL PLANNING AND GOAL
SETTING
DR. TISSA RAVINDA PERERA
Senior Lecturer
Department of Management and Organization Studies
Faculty of Management and Finance
University of Colombo
DM 142 Principles of Management
Semester I ( 2020)
Diploma in Marketing
August 16, 2020
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SKETCH OF THE SESSION
SESSION OBJECTIVES
FUNDAMENTALS OF PLANNING
FUNDAMENTALS OF FORECASTING
STRATEGIC PLANNING
SESSION OUTCOMES
FURTHER READINGS
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SESSION OBJECTIVES
To be aware of the theoretical aspects of
planning, forecasting and strategic planning
To help students to use the theoretical
knowledge in an organizational context
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WHAT IS PLANNING?
This is a critical managerial activity. It is the process of
determining how the organization can get where it wants to go.
It is the primary function of management because all other
functions depend upon how the organization plans and to achieve
its objectives.
Planning is a decision making activity requiring the process of
establishing objectives and deciding on activities to attain theses
objectives
IN PLANNING MANAGERS ASSESS THE FUTURE, DETERMINE THE
GOALS OF THE ORGANIZATION AND DEVELOP OVERALL
STRATEGIES TO ACHIEVE THESES GOALS.
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WHY DO MANAGERS PLAN?
Planning provides a direction
Planning reduce uncertainty
Panning establishes the goals or standards used in
controlling
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CHARACTERISTICS OF PLANNING
PLANNING IS ANTICIPATORY IN NATURE: this means that a
decision has to be made now as to what to do and how, before
it is actually done
PLANNING IS A SYSTEM OF DECISIONS: it involves a process of
making decisions which will define as to what is to be achieved
in the future and the formulation of action plans for
achievement of goals
PLANNING IS FOCUSED ON DESIRED FUTURE RESULTS: it is a
means of ensuring that the important organizational objectives
are accomplished as and when desired
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IMPORTANCE OF PLANNING
PLANNING IS ESSENTIAL IN MODERN BUSINESS: the growing
complexity of the modern business with rapid technological changes,
dynamic changes in consumer preferences. Since planning takes a
future outlook, it takes into account the possible future developments
PLANNING AFFECTS PERFORMANCE: a number of studies provided
evidence of organizational success being a function of formal planning,
the success being measured by such factors as ROI, sales volume,
growth in earnings per share.
PLANNING PUTS FOCUS ON OBJECTIVES: the effectiveness of the
formal planning is primarily based upon clarity and specificity of
objective. Planning continuously reinforce the importance of these
objectives by focusing on them
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IMPORTANCE OF PLANNING
PLANNING ANTICIPATES PROBLEMS AND UNCERTAINTIES: a
significant aspect of any formal planning process is collection of
relevant information for the purpose of forecasting the future as
accurately as possible. This would minimize the chances of haphazard
decisions
PLANNING IS NECESSARY TO FACILITATE CONTROL: controlling
involves the continual analysis and measurement of actual operations
against the established standards. These standards are set in the light
of objectives to be achieved
PLANNING HELPS IN THE PROCESS OF DECISION MAKING: since
planning specifies the actions and steps to be taken in order to
accomplish organizational objectives, it serves as a basis for decision
making about future activities.
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