Understanding the definition of planning, nature and the importance of planning-planning type understanding vision, mission, objectives and the importance of objective type. Analyzing and planning management level and understanding the definition and use of a planning tool 2. 0 Introduction Planning can be defined as a process in which managers set goals and decide on the most appropriate action to take to achieve those goals. According to Certo (1997), planning is the process of determining how the management system will achieve its goals.
Planning determines how an organization capable of working towards desired. According to the DE module writers UKM, planning is an activity that involves things like determining what goals to be achieved by an organization, how to achieve the goals set and use appropriate methods to achieve that goal. Thus, we can conclude that planning is a process that involves all the individuals in the organization, all variables of the internal and external environment that is managed to achieve the goals set.
Before a person is looking with a better understanding of the concept of management as a whole, it is better if people understand more clearly about the organization and its characteristics. Deep understanding of important concepts such as the management of the organization and the organization is an inseparable relationship. The existence of an organization, whether small or large organizations, private or public sector requires management or operation of the activities of the organization.
Organization can be defined as a social unit consisting of people who work together and are interdependent with one another in order to achieve individual, team, and organization. The above definition explains the elements that should be included in an organization: the organization as a social unit, the consolidation effort, and the relationship between an individual with another individual. When the organization is regarded as a social unit, which means it has a number of employees who have been given a specific role to carry out a task.
They must work together and communicate with each other to accomplish a task. If they are carrying out their duties without the need for the services and cooperation of the other party, of course, the work carried out can not be completed as required both in terms of time, quality, quantity, and other specifications. An organization needs workers to unite their efforts in order to achieve the desired objective. If there is no unity among the workers, of course, the organization is not able to carry out their activities effectively and properly.
State organization will be a mess without any particular direction. Consolidation efforts should exist within the organization to ensure attainment of those listed. The relationship between employees provide the organization moving very well organized and effective. Coordination through rules and procedures created to enhance the relationship between a function and one function to another and between individuals and other individuals. An organization that has been formed will reflect its own identity.
For example, a university should symbolize a place to gain knowledge, as a research center, as well as an institution that provides services and contributions to society either in the form of guidance or advice, and other teaching and learning. To reflect the identity or high values ??as an ivory tower, the university should play the role expected of the campus community in particular and society in general. Thus the function of a university is found to be different from other organizations that have a specific purpose. In an organization, whether small or large organization, it has a level of hierarchy or authority.
Compared between the two organizations large and small, of course it is different in terms of the number of hierarchy (level) activity and the number of managerial staff at all levels. For example, a large organization may have more than three levels and each level of authority that the authority will have more than three or four officers who are responsible to the heads of those who are at a higher level. In an organization, there is division of labor based on the types of jobs created or parts. In general, manufacturing organizations create parts such as the production and administration.
In the administration, there are several other units such as personnel, marketing, and finance. Organization has three divisions that operate in the division of labor according to certain responsibilities. To determine the organization’s activities to run more regularly as planned, it requires a system of supervision, coordination and control of the activities. Thus, in an organization, regulations, policies, procedures, and systems to be explained to staff relationships clearly and distinctly. The four qualities mentioned above shall exist within the organization.
Determination of whether the organization is effective, efficient or not, depending on the extent to which the four-garakan diseleng characteristic, compiled, and put into practice. In this unit you will be exposed to basic planning topics that will be discussed on the definition of the concept, importance and types of planning. Indeed, we know that planning plays an important role in the development of ourselves and our place of work organization. Individuals and organizations, both of which have joined forces to plan because of berkesanlah planning organizations can stand firm after the target is reached.
This can be seen how we plan to work hard to reap a bountiful harvest and will not directly increase the productivity of the organization and the success of our organization. For example, we need to plan how to come to the office early, do a good job so that the goals set by the organization are achieved effectively. Then to form an organization that is able to compete, managers require effective planning more efficient and involves input from all individuals in the organization regardless of the level of where a person is in the management of the organization.
In this case the planning is not solely made ??and executed by only the top-level managers but also all members of the organization. 3. 0 The basics of planning 3. 1 Concept Planning and the Importance of Planning Peter Drucker (1954) emphasizes the concept of effectiveness as a means of implementing each action correctly and the efficiency as a means to do something properly. Plans can be carried out effectively and efficiently by emphasizing the concept: i) What is to be done? ii) When an activity to be done? iii) How will it be done? iv) Who will do.?
When all the questions are answered then the target can be achieved. 3. 2 Importance of Planning. * Performance Goals Good planning is essential for the organization. With proper planning, organizations will be able to achieve the set goals effectively and efficiently. For example: An organization ABC has decided to increase profits by 15% in 2001, then to ensure the achievement of these goals, managers need to determine planning to take to that goal. * Giving Guide Planning is important because it gives guidance in giving meaning or purpose of an activity carried out by the organization.
With proper planning, an organization is able to explain the goals to be achieved and the strategies to be able to achieve success in every activity to be undertaken in the future. * Provide direction Planning is important to give a direction to a manager. With proper planning, managers can determine what exactly you want to do, how to do something that was decided when to do it and who should implement them. * Coordination Planning is also important to help managers coordinate and organize all the resources should be used to achieve organizational goals.
In other words, all the material and human resources in the organization should digembeleng to achieve organizational goals. Suppose the organization’s goals is to increase sales by 10% this year. So, to achieve that goal salespeople need to have the skills to promote further selling the product. The reward system should also be designed to encourage sales. * Understand the environment Planning can help an organization to better understand the situation of the environment such as obstacles to be encountered, the competition to be faced and know the threat and opportunity.
With the availability of good planning, an organization would be able to make the right decisions and accurate when dealing with these matters. * Not deviate Planning can also ensure that managers do not deviate from the original and identify mistakes made and the remedial action to be taken. 3. 3 Types of Planning In planning there are several types each of which has a different purpose in each other. Used by managers planning is evident in the plan are taken, the scope of a plan and the requirements of a plan to be developed.
3 main types of planning that are commonly used are: ) Strategic Planning b) Tactical Planning c) Operations Planning 3. 3. 1 Strategic Planning It is designed to reach and meet the overall objectives of the organization. To achieve the objectives and goals of strategic planning, the following should be identified: a) The potential market b) Organizational Resources c) How to use resources Strategic Planning, also known as long-term planning that for a period of 5 years and above. Fully influence the strategic planning tactical planning and operational planning. For example, our country Malaysia is implementing he Vision 2020 strategic plan to achieve the goals set in the past 30 years.
3. 3. 2 Tactical Planning It is a plan that takes between 1 to 5 years and called mid-term planning. It was held to help managers achieve. There are several features that can determine that it is a tactical planning: a) Planning focused on the individual, activities and resources specific than strategic planning covering all activities of the organization in general. For example: When a marketing manager to plan how many promoters needed to boost sales during the festive season then it performs a tactical planning. ) Planning is designed for a shorter period of strategic planning. Tactical planning must be implemented in full before a strategic plan can be achieved. If strategic planning has a period of 5 years to be implemented, then the term must be shorter tactical planning to ensure the success of strategic planning. c) Planning involves various management functions. It helps to how things are done and resources are used as effectively as possible in a certain functional as functions of marketing, finance, production, administration and so on. ) The planning is designed and implemented by mid-level managers.
Of the two types of plans that we have learned can be deduced that tactical planning is shaped by middle managers involving moderate intervals. If strategic planning is the question “who is our customer,” then the question of tactical planning is “where we can get the customer”? 3. 3. 3 Operations Planning Operational planning is planning a more narrow and specific to a particular work unit or individual. This plan outlines more specific about the roles and responsibilities that must be played by the related parties intended to chieve operational goals in line with the strategic and tactical planning. Due to its more specific, operational planning developed and implemented by subordinate managers and involves a short period of less than one year. Operational planning is divided into two main types: • Single Use Planning. • Existing Planning / Permanent. a) Single Use Planning Single Use Planning is another form of activity that is used to solve a particular problem or a complex situation that requires special attention. It is used only once and are unlikely to recur in the same form in the future.
It is divided into three types: i) Policy Are general guidelines for making decisions and it provides principles in decision making. For example: A credit card company like MBF Finance Pvt. Limited only allow customers to use credit card services if they meet conditions such as a strong financial position, debt guarantee a good and steady income. i) Procedure It provides a set of detailed instructions to perform actions that always occur and repetitive. It provides detailed guidelines to implement the policies set out for example we can see how one would like to apply for a credit card, the customer must fill out specific forms and get approval from the bank. iii) Rules are specific plans either support or prohibit certain conduct. For example, last credit card users are required to pay for each use of the money before the 25th of each month. If the late payment is made, then a fine will be imposed. .
4 Management by Objectives (PMO) PMO introduced by Peter Drucker in his book “Management Practice” (1954). PMO is a goal setting process until assessing the milestones and performance. It also involves managers and employees in actions and activities that will be done. PMO able to overcome the barriers to planning. PMO concept is based on the philosophy of the people and things that influence them to work. Thus through the PMO manager should provide a work environment that promotes the advancement and development of the employee concerned.
In the PMO, planning is dependent on the ability of managers establish clear objectives and are applied in the work of the organization. Therefore managers need to stay active in the process of determining the higher objectives to enable them to understand the main goal of the organization and how personal objectives can be linked to organizational goals earlier. 3. 5 Corporate Planning Corporate-level strategic planning involves planning for the entire firm. The question is “What kind of business should be conducted? “. Corporate level strategy planned by the management.
For organizations that have a variety of business, it must have a strategic plan for each type of business endeavor. Three common forms of corporate strategy are: * Diversification strategy This strategy refers to the acquisition and development of other businesses. Maybank is the organizations of the core business of which is the financial, insurance and trust. * Partnership Joint venture is a contractual partnership with other organizations in which each each partner to contribute to the new organization and at the same time still have a separate identity.
Through the efforts of the organization can enter the market before the face of obstacles. For example, the Citreon and DRB Hicom, where the purpose of this joint venture is to produce a national car made in Malaysia technologized France. * Divestments Companies selling business is no longer favored, perhaps because it is failure or the company changed its corporate strategy and did not want to engage in this business. For example, Ericson Company has ceased its operations in Malaysia because it can not compete with other competitors.