Health Services Administration HSA 171 CAR Administration Operation

Health Services Administration HSA 171 CAR

Administration Operation in Health Organization Planning 2 1436/4/21

Learning Objectives: � Requirements � Barriers � Types of a Good Plane. to Effective Planning. of Plans.

Requirements of a Good Plan � An effective and sound plan should have the following features: � (a)-Clear objective: The purpose of plans and their components is to develop and facilitate the realization of organizational objectives. The statement on objectives should be clear, concise, definite and accurate. It should not be colored by bias resulting from emphasis on personal objectives. � (b)-Proper understanding: A good plan is one which is well understood by those who have to execute it. It must be based on sound assumptions and sound reasoning.

Requirements of a Good Plan � (c)-Flexible: The principle of flexibility states that management should be able to change an existing plan because of change in environment without undue extra cost or delay so that activities keep moving towards the established goals. Thus, a good plan should be flexible to accommodate future uncertainties. � (d)-Stable: The principle of stability states that the basic feature of the plan should not be discarded or modified because of changes in external factors such as population technological developments, or unemployment. trends,

Requirements of a Good Plan � (e)-Comprehensive: A plan is said to be comprehensive when it covers each and every aspect of business. It should integrate the various administrative plans so that the whole organization operates at peak efficiency. � (f)-Economical: A plan is said to be good, if it is as economical as possible, depending upon the resources available with the organization.

Barriers to Effective Planning: � (a)-Influence of external factors: The effectiveness of planning is sometimes limited because of the external social, political, economical and technological factors which are beyond the control of the planners. � (b)-Non-availability of data: Planning needs reliable facts and figures. Planning loses its value unless reliable information is available. � (c)-People’s resistance: Resistance to change hinders planning. Planners often feel frustrated in instituting new plans, because of the inability of people to accept them. � (d)- Time and Cost: Collection of data and revision of plans involves considerable time, effort and money.

Barriers to Effective Planning: � (e) Inflexibility: Formal planning efforts can lock an organization into specific goals to be achieved within specific timetables. When these objectives were set, the assumption may have been made that the environment wouldn't change during the time period the objectives cover. If that assumption is faulty, managers who follow a plan may have trouble. Rather than remaining flexible and possibly scrapping the plan-managers who continue to do what is required to achieve the original objectives may not be able to cope with the changed environment. Forcing a course of action when the environment is fluid can be a recipe for disaster.

Types of Plans: � Organizations use different types of planning according to their different purposes. Planning can be classified according to several criteria including: � 1 - Planning by The Extent of Influence (Impact). � 2 - Planning by Time span. � 3 - Planning by Functions. ,

Planning by The Extent of Influence (Impact). �Strategic �Tactical Planning. �Operational Planning.

1. Strategic Planning: � Sets the long-term direction of the organization in which it wants to proceed in future. � Strategic planning involves the analysis of various environmental factors and the competition. � Most strategic plans focus on how to achieve goals three to five years into the future. � Top management is involved in framing the strategic plans.

2. Tactical Planning: � Tactical plans translate the strategic plans into specific goals for specific parts of the organizations. � They are for shorter time frame and usually focused for 1 -2 years. � Instead of focusing on the entire corporation, tactical plans typically affect a single business within an organization. � Tactical plans are concerned with implementation of strategic plans by coordinating the work of different departments in the organization. They try to integrate various organization units and ensure the commitment to strategic plans. � Both Top and middle management involved in framing the tactical planning.

3. Operational Planning: � Translate the tactical plans into specific goals and actions for small units of the organization. � They typically focus on the short term usually 12 months or less. � These plans are least complex than strategic and tactical plans, and rarely have a direct effect on other plans outside of the department or unit for which the plan was developed.

Planning by Time span � Long-term Planning: is of strategic nature and involves long period say 5 years an more. � Medium-term Planning: is usually a plan made for 3 -5 years. � Short-term Planning: is usually a plan made for one year.

Planning by Functions. � Production Planning: The flow of raw materials and workers in production management and production quality control. � Financial Planning: How to get the money and how to spend it. � Marketing Planning: marketing & promotion, product evaluating, distribution. � Human-Resources Planning: Workforce such as : needs & requirements , polarization , training, and development. . � Storage & Purchasing Planning: size of the purchase , storage conditions.