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- review the organisations mission i.e the statement that states the purpose of the organisation.
- evaluate available/ existing resources
- goals congruency - the goals must be consistent with each other. there ought to be no conflict among the goals. determine the goals individually or with input from others.
- write down the goals and communicate it to all the organisational members, those who need to know them;
- get feedback : collect opinions from the employees.
- to execute goals through relevant plans.
developing plans- influenced by 3 contingency factors.
1) the managers level in the organisation - operational planning usually dominates the lower levels of the organisation. As we move up through the levels of the organisations, the managers planning becomes more strategic.
2) degree of uncertainty - the grater the environmental uncertainty, the more directional the plans should be, with emphasis placed on short term. when uncertainty is high plans should be specific but flexible.
3) length of future commitments - to what extent is the management dedicated/ committed to achieving the goals.
Approaches to planning -
1) Formal Planning - the plans are prepared by the top level managers and are passed on to lower levels. concentrated on long term strategic plans.
2) Participative Planning - plans that are developed through discussions that involve the members of the organisation. These plans are not passed down from one level to the next, but are developed by thr employess at various levels to meet their needs.
built from kpi - key perfromace indicator.
contemporary issues of planning/ limitations
- plans create rigidity
- plans maybe inefficient in dynamic environment
- formal planning decreases creativity and innovation
- planning focuses of current factors not on the future competitons.
- planning stresses on success which may lead to failure.
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