Planning is a process of determining where the organization should be going, why and how. The fundamental purpose of planning is to help the organization reach its objectives.
Organizational planning involves defining goals / objectives and developing plan with which to achieve them. Therefore, planning requires managers to make decisions about objectives, actions, resources and implementation.
These managerial activities are seen ad planning process that contains six basic steps
- stating organizational objectives
- listing alternative ways of reaching objectives
- developing premises upon which alternatives is based
- choosing the best alternative for reaching objectives
- developing plans to pursue the chosen alternatives
- putting the plans into action
The outcome of planning is a plan, a written document that specifies the course of action the organization will take. There are several types of plans, including strategic, tactical, operational, single-use, and standing plans.
Management by objectives (MBO) helps to overcome some of barriers to effective planning. The MBO offers a comprehensive program for converting overall organizational objectives into specific objectives for organizational units and individual members.
Planning has much to offer organizations; it leads to improved performance and productivity.
The planning activities conducted throughout the organizations require the larger framework than the regular planning process. The process remains essentially the same, but managers must give some thought to where organization as a whole is going. For these and other reasons, managers have turned to strategic planning.
Strategic planning is the determinations overall organizational goals. Objectives and of how the are to be achieved. It involves the total organization in that it specifies the organizationís relation to its environment in terms of mission, objectives, and strategies.
Moreover, the strategic planning processes involve both strategy formulation (deciding what to do) and strategy implementation (doing it).
Strategic planning can be depicted as a nine-step process:
- define the organizationís mission
- establish objectives
- analyze the organizationís resources
- scan the environment
- make forecasts
- assess opportunities and threats
- identify and evaluate alternative strategies
- select strategy
- implement strategy
Corporate strategic planning is not a single concept. In this chapter has been to compare a six schools of thought or models of strategic planning.
Not-for-profit organization, which differ in many respects from the business organizations, can also apply strategic planning approaches developed in the private sector can help governments become more effective.