POAN is the process of setting goals and defining the actions required to realize the dreams.
Planning begins with goals. Goals are derived from the vision and mission statements, but these statements describe what the organization wants to realize, not necessarily what they can do. The organization is affected both by conditions in its external environment—competitors, laws, availability of resources, etc.—and its internal conditions—the skills and knowledge of its workforce, its equipment and resources, and therefore the abilities of its management. These conditions are examined through a process called a SWOT analysis. (SWOT is going to be discussed in greater detail in another module.) Together, the vision and mission statements and therefore, the results of things analysis determine the goals of the organization.
When you continue a special vacation, say abroad, does one designate before time all the specific sites you would like to ascertain and keep to a decent itinerary to confirm it all? Or does one just make basic arrangements then wing it once you’re there, doing whatever you’re within the mood for? Does one wish to cook with a recipe and follow the steps carefully, or does one just start somewhere then improvise along the way?
The distinction being considered is that between planning versus spontaneity. Some may argue strongly that it’s better to vacation or cook with a selected plan. Others will say being spontaneous is the thanks to going. The solution, I suppose, is, it depends.
There are pros and cons to every approach, and these pros and cons are going to be weighted differently from one situation to subsequent. When launching a spacecraft into orbit, it is a good idea to possess that planning piece down pretty much. But when playing American football with the youngsters within the backyard, spontaneity could also be more your friend than having an effective game plan.
Planning and spontaneity each require different skill sets and skills. Planning requires logistics and discipline, while spontaneity involves trust, intuition, and a willingness to require risks. The planner wants to execute the sport plan on schedule. The improviser doesn’t want to be restricted and needs the liberty to settle on based upon how things feel.
Planning is future-oriented, tries to avoid surprises, and minimize mistakes. Spontaneity is all about the instant, thrives on surprise, and welcomes mistakes. The planner is happy if things go exactly needless to say. The improviser is satisfied if the journey was enjoyable, albeit unpredictable, and messy sometimes. Before getting any further let us clear the pros and cons of POAN.
Pros and Cons of POAN
In today’s chaotic environment, planning quite a couple of months could seem futile. Progress, however, is never made through spontaneous activity. POAN does provide benefits that expedite progress even when challenged with risk and continually changing conditions. Several advantages include the following:
Planning Provides a Guide for Action
POAN can direct everyone’s actions toward desired outcomes. When activities are coordinated and focused on specific results, they’re far more effective.
Planning Improves Resource Utilization
Resources are always scarce in organizations, and managers got to confirm the resources they need been used effectively. Planning helps managers determine where resources are most needed so that they are often allocated where they’re going to provide the foremost benefit.
POAN Provides Motivation and Commitment
People aren’t motivated once they don’t have clear goals and don’t know what’s expected of them. Planning reduces uncertainty and indicates what most are expected to accomplish. People are more likely to figure toward a goal they know and understand.
POAN Set Performance Standards
Planning defines desired outcomes also as mileposts to represent progress. These provide a typical for assessing when things are progressing and once they need correction.
Planning Allows for Flexibility
Through the goal-setting process, managers identify key resources within the organization also as critical factors outside the organization that require to be monitored. When changes occur, managers are more likely to detect them and skills to deploy resources to reply.
Planning provides clear benefits to organizations, but planning also can harm organizations it’s not implemented properly. The subsequent are some drawbacks to planning which will occur:
Planning Prevents Action
Managers can become so focused on planning and trying to plan for each eventuality that they never get around to implementing the POAN. this is often called “death by planning.” Planning does little good if it doesn’t cause other functions.
Planning Results in Complacency
Having a simple plan can lead managers to believe they know where the organization goes and the way it’ll get there. This might cause them to fail to watch the progress of the plan or to detect changes within the environment. As we discussed earlier, planning isn’t a one-time process. POAN must be continually adjusted as they’re implemented.
POAN Prevents Flexibility
Although good POAN can cause flexibility, the other also can occur. Mid- and lower-level managers may feel that they need to follow an idea even when their experience shows it’s not working. Rather than reporting problems to upper managers, so changes are often made, they’re going to still devote time and resources to ineffective actions.
POAN inhibits creativity. Associated with what was said earlier, people within the organization may feel they need to perform the activities defined within the plan. If they think they’re going to be judged by how well they complete planned tasks, then creativity, initiative, and experimentation are going to be inhibited. Success often comes from innovation also as planning, and POAN must not prevent creativity within the organization.
Goals and POAN don’t need to be formal documents. In small organizations, they’ll exist only within the minds of the manager. But research and knowledge have shown that planning brings clear advantages to a corporation, whether through formal procedures or informal intuition. However, when POAN become the thing rather than a way to an objective, they will have negative consequences for the organization. For instance, General Motors missed the chance to become the primary American automaker to supply an electric car because it had been committed to its plan instead of its goals.