Management

Fourteenth Edition

Chapter 8
Planning Work Activities

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 Planning = Goals + Plan
Learning Objectives
8.1 Define the nature and purposes of planning.
8.2 Classify the types of goals organizations might have and
the plans they use.
8.3 Compare and contrast approaches to goal-setting and
planning.
Know how to set goals personally and create a useful,
functional to-do list
Develop your skill at helping your employees set goals
8.4 Discuss contemporary issues in planning.

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 Goals (What) Plan (How)
What is Planning?
• Planning: management function that involves
setting goals, establishing strategies for achieving
those goals, and developing plans to integrate and
coordinate work activities
• Formal planning
– Specific, time-oriented goals
– Goals written and shared

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Why Do Managers Plan?
• Provides direction → memberi arah → karyawan tahu
tujuan organisasi & cara mencapai tujuan → koordinasi
• Reduces uncertainty → planning sudah
mengantisipasi perubahan lingkungan
• Minimizes waste and redundancy → planning
meminimalkan pemborosan & duplikasi kegiatan
• Establishes the goals and standards for controlling
→ memungkinkan membandingkan implementasi
plan vs goals

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Planning and Performance
• Formal planning is associated with positive
financial results
• Quality of planning/implementation more important
than the extent of it
• External factors can reduce the impact of planning
on performance
• Planning-performance relationship seems to be
influenced by the planning time frame

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Goals and Plans = Planning = Goals + Plans
• Goals (objectives): desired outcomes or targets
• Plans: documents that outline how goals are
going to be met

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Types of Goals
• Financial goals → kinerja keuangan : sales growth 5%, ROI
10%
• Strategic goals → tujuan eksistensi organisasi secara
umum : menghimpun pendapatan negara dari sektor pajak
• Stated goals: official statements of what an organization
says, and what it wants its various stakeholders to believe,
its goals are → terdapat di AD/ART, annual reports :
meningkatkan kepatuhan WP
• Real goals: goals that an organization actually pursues, as
defined by the actions of its members → terlihat dari
prioritas yg ingin dicapai
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Visi & Misi DJP

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Financial Goals

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Approaches to Setting Goals
1. Traditional goal-setting: an approach to setting
goals in which top managers set goals that then
flow down through the organization and become
subgoals for each organizational area;

2. Management By Objectives (MBO)

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Exhibit 8-2
The Downside of Traditional Goal-Setting

Exhibit 8-2 illustrates what can happen as the goals make their way down from the top of
the organization to lower levels.
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• Means-ends chain:
When the hierarchy of organizational goals is
clearly defined, it forms an integrated network of
goals in which the accomplishment of goals at one
level serves as the means for achieving the goals,
or ends, at the next level → cascading

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Approaches to Setting Goals
1. Traditional goal-setting: an approach to setting
goals in which top managers set goals that then
flow down through the organization and become
subgoals for each organizational area;

2. Management By Objectives (MBO)

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MANAGEMENT BY OBJECTIVES (MBO)
• Management by objectives (MBO): a process of
setting mutually agreed upon goals and using
those goals to evaluate employee performance

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Exhibit 8-3
Steps in MBO
Step
Step 1: The organization’s overall objectives and strategies are formulated.
Step 2: Major objectives are allocated among divisional and departmental units.
Step 3: Unit managers collaboratively set specific objectives for their units with their
managers.
Step 4: Specific objectives are collaboratively set with all department members.
Step 5: Action plans, defining how objectives are to be achieved, are specified and agreed
upon by managers and employees. → dialog kinerja individu
Step 6: The action plans are implemented.
Step 7: Progress toward objectives is periodically reviewed, and feedback is provided.
Step 8: Successful achievement of objectives is reinforced by performance-based
rewards.

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Steps in Goal-Setting
1. Review the organization’s mission, or purpose.
2. Evaluate available resources.
3. Determine the goals individually or with input from others.
4. Write down the goals and communicate them to all who
need to know.
5. Review results and whether goals are being met.

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Exhibit 8-4
Well-Written Goals

Characteristics : S-M-A-R-T
Written in terms of outcomes rather than actions
Measurable and quantifiable
Clear as to a time frame
Challenging yet attainable
Written down
Communicated to all necessary organizational members

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Balance Scorecard

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Goals and Plans = Planning = Goals + Plans
• Goals (objectives): desired outcomes or targets
• Plans: documents that outline how goals are
going to be met

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Exhibit 8-1
Types of Plans

Exhibit 8-1 shows the most popular ways to describe organizational plans.
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Strategic and Operational Plans
• Strategic plans: plans that apply to the entire
organization and establish the organization’s
overall goals
• Operational plans: plans that encompass a
particular operational area of the organization

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Long-term and Short-term Plans
• Long-term plans: plans with a time frame beyond
three years
• Short-term plans: plans covering one year or
less

• Di Indonesia : RPJP = 20 tahun, ditetapkan dg UU

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Specific and Directional Plans
• Specific plans: plans that are clearly defined and
leave no room for interpretation
• Directional plans: plans that are flexible and set
out general guidelines

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Single-use and Standing Plans
• Single-use plans: a one-time plan specifically
designed to meet the needs of a unique situation
• Standing plans: ongoing plans that provide
guidance for activities performed repeatedly

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 Kaitan antara Perencanaan dan Penganggaran

RPJP PLATFORM
Visi misi Presiden Jokowi → Nawacita
Nasional PRESIDEN
dipedomani
dipedomani

5 Tahun RPJM Renstra KL

bahan
dijabarkan dipedomani

diacu

1 Tahun RKP Renja KL Pagu Indikatif

Bahan/
dipedomani diselaraskan
dipedomani

1 Tahun APBN RKA-KL Pagu Anggaran

KEPPRES DOKUMEN
RINCIAN PELAKSANAAN Pagu Alokasi
APBN ANGGARAN

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Developing Plans
• Contingency factors in planning:
– Organizational level
– Degree of environmental uncertainty
– Length of future commitments

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Exhibit 8-5
Planning and Organizational Level

Exhibit 8-5 shows the relationship between a manager’s level in the organization and the
type of planning done.
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Environmental Uncertainty
• When uncertainty is high, plans should be
specific, but flexible.

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Length of Future Commitments
• Commitment concept: plans should extend far
enough to meet those commitments made when
the plans were developed.
• Planning for too long or too short a time period is
inefficient and ineffective.

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Approaches to Developing Plan
• Traditional approach, planning is done entirely
by top-level managers who often are assisted by a
formal planning department,
• Participatory approach, planning is to involve
more organizational members at the various levels
and in the various work units to meet their specific
needs

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Contemporary Issues in Planning
• How Can Managers Plan Effectively in Dynamic
Environments?
• How Can Managers Use Enviremental Scanning ?
• Digital Tools

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How Can Managers Plan Effectively in
Dynamic Environments?
• Develop plans that are specific but flexible
• Keep planning even when the environment is
uncertain
• Make the organizational hierarchy flatter to
effectively plan in dynamic environments →
delayering

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How Can Managers Use Environmental
Scanning?
• Planning & decision making based on data
• Environmental scanning: screening information to detect emerging
trends
• Competitor intelligence: gathering information about competitors that
allows managers to anticipate competitors’ actions rather than merely
react to them
Competitive intelligence isn’t corporate espionage. Advertisements,
promotional materials, press releases, reports led with government
agencies, annual reports, want ads, newspaper reports, information on
the Internet, and industry studies are readily accessible sources of
information.
• Subscribe to news services that review newspapers and magazines
from around the globe and provide summaries to client companies,
e.g. Bloomberg, Bureau Van Dijk
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Digital Tools
• Business intelligence: data that managers can
use to make more effective strategic decisions
• Digital tools: technology, systems, or software
that allow the user to collect, visualize,
understand, or analyze data

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• Three prevalent digital tools
- Data visualization tools : Tableau, MS Power BI
- Cloud computing: refers to storing and accessing data
on the Internet rather than on a computer’s hard drive or
a company’s network
- Internet of things (IoT): allows everyday “things” to
generate and store and share data across the Internet

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Copyright

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