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The Planning
Process |
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Phases of the Planning Process
 | Establishing Objectives |
| Developing Premises |
| Making Decisions |
| Implementing a Course of Action |
| Evaluating Results |
Phase 1: Establishing Objectives
| An objective or goal is an end that
an organization seeds to achieve by its existence and be its operation. |
| Classification of Objections
 | Official Goals |
| Operational Goals |
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Official Objectives
| The Alabama Cooperative Service developed a strategic
plan that identified the basis for making future decisions on programming and resource
allocation. Official objectives in five priorities--with a total of 18 emphasis
areas--emerged from the strategic planning process:
| Regain agricultural and forestry Profitability
with an emphasis on business management, production systems, alternative enterprises, and
marketing strategies. |
| Develop, Conserve, and Manage Natural Resources with an emphasis
on water quality and quantity, soil preservation and productivity, and human and cultural
uses. |
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Official Objectives
| Enhance Family and Individual Well-being
with an emphasis on family stability, wellness, diet and nutrition, resource and financial
management, home food production and preservation, and homes and home grounds. |
| Develop Human Resources with an emphasis on
leadership and volunteerism. |
| Revitalize Rural Alabama with an emphasis on
economic viability, community services and facilities, public policy, and rural-urban
relationships. |
Differences between Official and Operative Goals
| Staff may be unaware of an organization’s official
goals. |
| Perceptions about how best to accomplish official goals
may differ. |
| Official goals may be unrealistic for financial or other
reasons. |
| While official goals may remain unchanged, operative
goals may vary over time because of bargaining. |
| Official goals often legitimize or justify an
organization’s activities. Official objectives provide a number of important benefits
in Extension. |
Objectives
| Objectives guide actions by directing and channeling
staff efforts. |
| They establish constraints by prescribing both what
"should be" done and what "should not" be done. |
| Objectives should be established in each area vital to
the existence of an organization. |
Drucker’s Key Result Areas for Well-managed
Organizations
| Market Share
| Management should set objectives indicating where
it would like to be relative to its competitors who produce the same foods or deliver the
same service. |
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| Innovation
| Although an organization may possess an innovative
image based on past accomplishments, it must continue to create objectives that promote
new and better methods.. |
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| Productivity
| Productivity requires the measurement of an
organization’s ability to produce more goods/services with less input (people,
materials, money, information) resulting in less cost. |
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| Physical and Financial Resources
| Objectives should be formulated for the use of all
resources (equipment, buildings, inventory, and funds) because both physical and financial
resources to produce goods/services need to be justified for the existence of an
organization. Therefore, carefully prepared policies are essential. |
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| Profitability
| A minimum acceptable profit objective should be
interpreted as a gain resulting from activity, not necessarily money left over after bills
are paid. in this aspect, profitability is universal to all managerial situations. |
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| Manager performance and Development
| The key to success is good management; therefore,
continued development of managerial talent for the present and for the future should be
identified through objectives. |
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| Worker performance and Attitude
| The most important asset to an organization is its
workers. Respect for individuals means treating people like adults and like partners. This
aspect should be reflected within an organization's objectives. |
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| Social Responsibility
| In addition to addressing legal and economic obligations
within the establishment of objectives, an organization should also include its social
responsibilities. |
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Management by Objectives
| Superiors and subordinates jointly establish and record
goals for the subordinate that support those of the superior. |
| MBO Process:
| Discuss Job Duties |
| Develop Performance Objectives |
| Discuss Objectives |
| Determine Checkpoints |
| Evaluate Results |
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Phase 2: Developing Premises
| As soon as objectives are
established, it is essential to develop planning premises about the future environment in
which they are to be accomplished. |
| Forecast Types:
| Economic |
| Technological |
| "Sales" |
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Economic Forecasts
| Federal Budgets |
| State Budgets |
| Local Budgets |
| Income Levels of Clientele Groups |
| Price Trends for Products |
| Direction in Public Policy and Business Cycles |
Technological Forecasts
| Exploratory Forecasts |
| Normative Forecasting |
"Sales" Forecasting
| What People Say they are Doing |
| What People are Doing |
| What People have Done |
Phase 3: Making Decisions
| Decision Situations
| Certainty |
| Risk |
| Uncertainty |
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The Decision-making Process
| Define the Problem |
| Analyze the Problem |
| Develop Alternative Solutions |
| Evaluate Alternatives |
| Select the Best Solution |
Phase 4: Implementing a Course of Action
Phase 5: Evaluating Results
The Planning Process
| Phase 1 is establishing objectives. an objective or goal
is the end that an organization seeks to achieve. Before any course of action, objectives
should be clearly determined, understood, and started. |
| Phase 2 is developing premises. Premises attempt to
describe what the future will be like and provide a framework for identifying, evaluating,
and selecting a course of action. |
| Phase 3 is making decisions. A plan exists only when a
decision is made. Decisions are normally made under conditions of risk and uncertainty.
Steps in the decision-making process are defining the problem, analyzing the problem,
developing alternative solutions, evaluating alternatives, and selecting the best
solution. |
| Phase 4 is implementing a course of action. management
must provide detailed instructions covering individuals responsible and resources to be
allocated to the plan. Implementation is considered by some to be the key to effective
planning. No plan is better than the action taken to make it a reality. |
| Phase 5 is evaluating results. Once a plan has been put
in motion, evaluation is necessary to provide feedback. Adjustments are invariably needed
to verify that actual results compare favorably with expected results. |
    
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