Planning

 Planning is Process of thinking in advance before doing any thing.Management is all about achieving organisational goals, furtherance of organizational mission.

Goals are what an organisation wants to achieve in a particular time period. Goals are set at each and every level of organization.In every organization, there are three levels of management.

At Top level of management( Board of Directors,Executives, CFOs, CEOs and COOs) strategic goals are set.  At this level, strategic intent directs the formation of strategic goals. In strategic intent, vision, mission, direct the  formation of goals. 

STRATEGIC GOAL AND STRATEGIC PLAN

Strategic goals are concerned with overall profitability, growth, direction of the organization. In spite of being concerned with a particular department, strategic goals are concerned with overall company, corporate.Strategic goals are set for a long time period i.e, for 5-10 years  For example- 

To earn 10% profits annually for next five years.

To reduce costs @ 5% annually for next five years.

To be the no.1 in market in next 5 years.

These goals are not mentioning performance of any departments, rather they are mentioning the direction - to be no. 1 ,and also mentioning the overall profit and cost reductions of the whole company. 

Strategic Planning and strategic plan: - Strategic Plan is outcome of strategic planning process. strategic planning process is as following.

1. Strategic Analysis is carried out.

2.Mission statement is revised or produced.

3.Corporate strategy is developed.

4.Business level is developed.

5.implementation is determined.

6.Strategies and implementation are assessed.

7.Strategic documents are formulated and approved.

Strategic plan consists of following parts:-

1. Mission statement.- Description of product, customer group, technology, and philosophy of an organisation.

2. Corporate strategy- Resource allocation between different businesses, which business to enter and which to exit, how to manage the portfolio of businesses? Corporate strategy is set at corporate level which deals with the organisation as a whole.

3. Business level strategy- Business level strategy is concerned with competition in particular business, industry. Business level strategies deal with how to face the competition?, how to beat the competitors in market. What strategies- cost leadership, differentiation or mix of strategies should be adopted?

4. Program and projects- structures, responsibilities,resources etc.

TACTICAL GOAL AND TACTICAL PLANNING- 

Tactical Goal setting and tactical planning is done at middle level management, by divisional and departmental managers. Tactical goals are formed with the help of strategic goals and strategic plans and are middle range goals covering 3-5 years. 

Tactical goals are set by middle level managers at departmental/divisional levels to support strategic goals, and accomplishment of strategic plans. Every department sets tactical goals for itself ( departmental managers, divisional managers are involved in this exercise.

Tactical goals are what departments wants to achieve in order to accomplish strategic goals and plans. 

For example- A company set a strategic goal  that it has to reduce its cost @ 10% for next five years. now tactical goals are set by different departments describing how much cost reduction is to be done by different departments. like marketing departments sets its cost reduction ratio at 15%,finance sets it @ 5 % , R&D sets it 12% and HR @8%. You can see how these departments set their cost reduction tactical goals so  that strategic goal can be achieved.

Tactical Plan is the plan ( mean and way ) to achieve tactical goal.A plan aimed at achieving tactical goals and developed to implement specific parts of a strategic plan. Tactical goals determine the resource needs and responsibilities at departmental level.

OPERATIONAL GOALS AND OPERATIONAL PLANS:- 

Operational Goals are set at lower level of management, by lower level managers. Operational goals are set for individuals and sub-departments within a department. A supervisor /foreman is a lower level manager who sets operational goals for himself, his team and his subordinates. Operational goals are in form of specific objectives and targets.

Operational plans are detailed description of means and ways to achieve operational goals.

Hawthrone studies

Hathrone studies were conducted by Elton mayo and his associates.

These experiments were conducted in Western Electric’s Hathrone plant near Chicago (1927-32)

The four experiments of Mayo

1. Illumination experiment
2. The relay assembly test room
3. Interview experiments
4. Bank wiring observation

1Illumination Effect:-

The productivity of workers increased both the times when light was increased or decreased.

2. The relay assembly test room experiment

Friendly observation and value given to employees resulted in higher productivity

3. Interview experiments

Revealed the importance of listening to the employees feelings, problems and use of counseling interviews

4. Bank wiring observation

Informal organization

Rate busters

Rate chiselers

Group pressure on individual workers worked stronger than financial incentives.

Importance of Hawthrone experiments

•          Impetus to human relations approach, personnel management and O.B

•          Focus on workers and people’s perspective

•          Informal organizations

Maslow Hierarchy of needs( Under Human Relations Approach)

•          Maslow’s hierarchy suggests that human needs can be classified into five categories and that these categories can be arranged in a hierarchy of importance.

•           A manager should understand that an employee may not be satisfied with only a salary and benefits; he or she may also need challenging job opportunities to experience self-growth and satisfaction

Physiological  needs

•          Things like food, sex, and air, which represent basic  issues of survival and biological function. In organizations, these needs are generally satisfied by adequate wages and the work environment itself, which provides restrooms, adequate lighting, comfortable temperatures, and ventilation.

Security Needs

•          These needs can be satisfied in the workplace by job continuity (no layoffs), a grievance system (to protect against arbitrary supervisory actions), and an adequate insurance and retirement benefit package (for security against illness and provision of income in later life

Belongingnes needs

•          relate to social processes. They include the need for love and affection and the need to be accepted by one’s peers. These needs are satisfied for most people by family and community relationships outside of work and by friendships on the job. A manager can help satisfy these needs by allowing social interaction and by making employees feel like part of a team or work group

Self Esteem needs

•          comprise two different sets of needs: the need for a positive self-image and self-respect, and the need for recognition and respect from others. A manager can help address these needs by providing a variety of extrinsic symbols of accomplishment, such as job titles, nice offices, and similar rewards as appropriate. At a more intrinsic level, the manager can provide challenging job assignments and opportunities for the employee to feel a sense of accomplishment

Self Actualization

•          These involve realizing one’s potential for continued growth and individual development. needs must be met entirely from within the individual.

A manager can help by promoting a culture wherein self-actualization is possible. For instance, a manager could give employees a chance to participate in making decisions about their work and the opportunity to learn new things.