Types of Planning
INTRODUCTION Besides organizing, controlling and leading, planning is one of the management functions. Good planning is crucial to enable an organization to function effectively. Planning is done for two purposes, firstly as a protection to the organization and secondly to increase the affirmative levels of an organization according to C. W. Roney (Certo, 2000).
As a protection to the organization, a manager can forecast the effects from each of the suggestions or alternative actions that will be carried out.
Then managers will be able to ensure what needs to be done, how to carry out the actions, why it has to be done, when to do it, who should implement it with proper planning. And it is done to increase the affirmative levels of an organization. According to Fayol – The plan of action is, at one and the same time, the result envisaged, the line of action to be followed, the stages to go through, and the methods to use. It is a kind of future picture wherein proximate events are outlined with some distinctness.
Planning is deciding in advance what is to be done.
It involves the selection of objectives, policies, procedures and programs from among alternatives. A plan is a predetermined course of action to achieve a specified goal. It is a statement of objectives to be achieved by certain means in the future. In short, it is a blueprint for action. Louis A Allen Management planning involves the development of forecasts, objectives, policies, programs procedures, schedules and budgets. Theo Haimann Planning is deciding in advance what is to be done.
When a manager plans, he projects a course of action, for the future, attempting to achieve a consistent, co-ordinated structure of operations aimed at the desired results. Koontz O’Donnell Planning is an intellectual process, the conscious determination of courses of action, the basing of decisions on purpose, acts and considered estimates. .TYPES OF PLANNING According to Dessler (2001) there are three main types of planning which are planning based on format, organization hierarchy and frequency of use. PLANNING BASED ON FORMAT
Descriptive planning is a planning written in the form of statements that state what needs to be achieved and how it is achievable for example, planning of an individual’s career. Budgeting is plan that stated quantitatively by using financial terms.
Graphics planning is a planning that explains what needs to be achieved and how to achieve it in the form of charts. For example Gantt chart, it illustrates the time period required in order to implement an activity in the form of bar chart. PLANNING BASED ON ORGANIZATIONAL HIERARCHY There are three levels in an organization – top management, middle management, lower management.
Top management (strategic plan) Strategic planning focuses on long-term issues for the survival, growth, and overall effectiveness of the organization. Companies need to be visionary, and must develop long-term strategies to meet changing conditions in their industries.
Strategic planning involves developing a strategy to meet competition and ensure long-term survival and growth. The marketing function plays an important role in this process in that to provides information and other inputs to help in the preparation of the organization’s strategic plan long term plan. Middle management (tactical plan)
Tactical planning focuses their goals on a shorter time frame, usually ranging from one month to one year. Middle managers give authority and responsibility to team leaders or supervisors, after that they provide direction, necessary resources, and feedback on performance as tasks are completed. Usually they need more detailed information than top managers, but less information than team leaders and supervisors.
They also use business support systems, knowledge management systems, and user productivity systems to perform their jobs. Lower management (operational plan) Lower management carries out day-to-day operational plans.
Operational employees primarily receive data that they need to perform their jobs day to day. In many companies, operational employees also need information to handle tasks and make decisions that were assigned to supervisors which is called empowerment, and gives employees more responsibility and accountability. PLANNING BASED ON FREQUENCY OF USE One time usage planning is a planning that is only used once. Specially prepared to fulfill specific purposes.
For example the organization may open more than one branch, but each plan made only applicable to the specific branch only.
Because it have different resources like money, manpower, customer’s distribution, size of the branch area etc. Standing plan is a planning that is repeatedly used. Used to manage situations that frequently arise in an organization such as employees disciplinary problems. Standing plans have three types which are policy, procedure and regulations.
i. Policy Principles or general guidelines to manage situations. ii. Procedure Actions or process that must be taken if a certain situation arises. iii.
Regulations Specific guidelines when taking an action. WORKPLACE HISTORY
Malaysia Airline System Berhad is doing business as Malaysia Airlines since its inception as an independent airline in 1987. Proudly running as the national-flag carrier of Malaysia from main home base of Kuala Lumpur International Airport (KLIA) with secondary hubs at Kuching and Kota Kinabalu on the second island of the Malaysian state. With a concentration of network on both regional as well as international sectors, MAS has come to be known as world renowned airlines well as a local favorite along with its subsidiary, MAS Wings, because of staff hospitality and its marketing campaigns.
It has been understood that there are various issues and opportunities that are being faced to MAS.
Some of these are an overstaffing problem involving more than twenty-thousand employees all over the world. Another one, being incurred net losses of RM 479 million by the third quarter of 2011 and at the end of the fourth quarter the airline had incurred a loss of RM 2524 million, indicating a substantial decrease from a profit of RM 234 million in the previous year. Malaysia Airlines Vision is to be the Preferred Premium Carrier by using A380 as the flagship product.
To support the vision, Malaysia Airlines mission is to be the best-in-class, top 10 commercially viable airline in the Asia Pacific region that returns sustainable profits to the shareholders. Business plan updated June 2012 RECOVERY PLAN (TOP MANAGEMENT) BUILD A PROFITABLE NETWORK Malaysia Airlines will realign the network based on demand and profitability result in the termination of MAS highly unprofitable routes to South Africa and Argentina and its only destination in Latin America.
Other long hauls routes that unprofitable will also be eliminated MAS will deploy aircraft optimally to suit mission and for cost effectiveness. WIN BACK CUSTOMERS Malaysia Airlines will completely revamp the commercial team to improve performance and review sales and distribution channels. MAS plans to win or gain back its premium long hauls passengers through changing its carriers. A phase-out of MAS ageing widebody aircraft will be pursued and simultaneously new passenger facilities will be introduced.
By the end of 2013 the carrier will be operating only three types of modern widebody aircraft – A330-300s, B777-200ERs and A380s.
Then MAS will put in place best-in-class revenue management to fix corporate travel business and revamp our internet booking engine. MAS will enhancing our marketing and branding efforts and grow ancillary revenues. RELENTLESS COST FOCUS Malaysia Airlines will radically improve productivity and efficiency by increased aircraft utilization. Then MAS will streamline assets and resources across group. After that MAS will review and revamp legacy rocesses and work practices and reduce reliance on 3rdparty and in source jobs where possible.
Lastly overhaul the procurement and contracting practices, and review existing contracts for greater cost savings. BRIDGE THE FUNDING GAP The funding gap that must be bridged given the aircraft deliveries of 2012. This bridge has five pillars of support: 1. Positive operating cash flow 2. New debt and leasing arrangements 3.
Working capital boost via the return of pre-delivery payment deposits 4. Proceeds from potential spin-offs 5. Unwavering support of our shareholders
GAME CHANGERS (MIDDLE MANAGEMENT) i. Capture regional point-to-point traffic * Deepen and optimize regional & domestic networks * Shift focus to point-to-point traffic markets * Optimize traffic hubs in KLIA, PEN, KCH, BKI ii. Alliance and partnerships * Enter one world for greater market access, connecting traffic flows, and seamless frequent flyer arrangements * Explore collaboration and joint venture opportunities to capture new markets and consolidate market position while reducing the financial risks of participating individually.
iii. Profitable ancillary businesses Build a profitable portfolio of ancillary businesses around the core airline FOUNDATION (OPERATIONAL PLAN) i. Branded customer experience Improve product quality, including business class product offering in to match best in market and radically improve service levels at all customer service touch points also create and build on service delivery differentiation. ii. Continuous operational improvement Continuously improve processes and work practices by simplify work steps. Remove legacy practices by reduce bureaucracy.
Inject innovation in solving issues and problems. iii. Winning organization
Review organization design and manpower requirements. Improve talent and succession planning. Revamp work rules to increase productivity. Reinforce performance based compensation and rewards.
Rally staff through active engagement & communication. REFERENCE Unknown, (2011, 12). Malaysia Airline Business Plan. Retrieved 03, 2013, from http://malaysiaairlines. com/content/dam/mas/master/en/pdf/corporate-info/Malaysia%20Airlines%20Business%20Plan. pdf Unknown, (2013, 06).
Malaysia Airline Report. Retrieved 03, 2013, from http://www. scribd. com/doc/97200708/Malaysia-Airline-Report