What Contingency Factors affect the Manager Planning Process?
There are numerous Contingency Factors associated with planning.
- Organizational level
- Formal vs informal
- Environmental uncertainty
- Length of commitment
- Specificity
- Frequency of Use
Organizational Level in Management Planning
Most organizations are hierarchical to some extent. In terms of planning, Higher Levels = Increased emphasis on Strategic Planning. Lower Levels = Increased emphasis on Operational Planning.
Formal vs Informal Planning
Planning Approaches vary based upon the organizational structure.
Formal Planning is generally carried out by High-level Managers. The plans flow down the organization.
New methods have emerged that vary greatly from the formal planning approach. Two common approaches include:
- Plans are developed at each level of the organizations hierarchy,
- Means-End Planning means designing organizational goals that fit into a hierarchy so that the achievement of goals at lower levels permits the attainment of higher-level goals.
Environment Uncertainty in Management Planning
Higher levels of organizational uncertainty requires specific but flexible plans. Flatter organizational structures tend to allow for more dynamic planning.
Length of Commitment in Management Planning
Organizations must plan adequately to account for their current commitments. This includes both short-term and long-term plans. Many organizations will have long-term commitments that require extensive forward planning.
Level of Specificity in Management Planning
The level of specificity associated with an objective will determine whether plans are very specific in nature or whether they are Directional or very general in nature.
Frequency of Use in Management Planning
How often a plan will be employed is a major concern for planners. Does the potential situation require a single plan for a contingency or does it require a standing plan for routine occurrences?