What Contingency Factors affect the Manager Planning Process?

There are numerous Contingency Factors associated with planning.

• Organizational Level - 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, and Means-End Planning. 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 higherlevel goals.
• Environment Uncertainty - Higher levels of organizational uncertainty requires specific but flexible plans. Flatter organizational structures tend to allow for more dynamic planning.
• Length of Commitments - 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 - 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 - 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?

Back to: Business Management