PLANNING

Graha Agung Brahmana and Rahmat Budiman
Graduate Program of Management and Business – Bogor Agricultural University (MB-IPB), Master Sharia of Management - EK18

A. BACKGROUND

Planning is the first function of management (before organizing, staffing, directing, and controlling) and it is needed at every level of management. Most competent managers believe that planning is the most critical and important function and it has the most significant role in leading them to success. Planning is the process of assessing an organisation’s goals and creating plan of action for meeting those goals. Those two underlined phrases can clearly explain why planning is so critical and important. In the absence of planning, all the business activities of the organisation will become meaningless, and that’s why Benjamin Franklin said, “If you fail to plan, you are planning to fail”.

Discussion about planning (or management functions as a whole) can not be freely separated from discussion about people and their behaviour. Therefore, it also involves values of belief and faith. And of course, as Moslems, we should know what is planning in Islam’s perspectives and how can we involve the Islamic values in our planning.

B. WHAT IS PLANNING?: A GENERAL PERSPECTIVE

Definitions

We can easily find word “planning” in any management literatures or on the internet. Different experts have defined planning in their own way. Here are some of them define planning.

a. George H. Terry: Planning is the act of selecting facts and businesses connection based on the assumption which made for the future, in terms of describing and to

formulate activities will be proposed, which will be considered necessary to achieve the desired results.

b. Louise E. Boone and David L. Kurtz: Planning may be defined as the process by which manager set objective, assess the future, and develop courses of action designed to accomplish reviews these objective.

c. Handoko Hani T.: Planning is the selection or setting organisational goals and determining strategies, policies, projects, programs, procedures, methods, systems, budgets and standards needed to achieve the goals. Decision-making is involved in this function.

d. Prajudi Atmosudirjo: Planning is calculation and decision about something that will be executed in order to achieve a certain goal, when, by whom and how.

e. Bintoro Tjokro Amidjojo: Planning is the process of preparing activities that will be carried out systematically to achieve a particular goal.

Those definitions above mostly use business terminologies such as manager, strategy, objective, policy, budget, goal, etc. But Harold Koontz and Cyrill O’Donnel has defined planning with general terminologies and it is easier to understand. They define planning as deciding in advance - what to do, when to do, and how to do and it bridges the gap from where we are and where we want to be. By reading the definition, of course we understand that ‘where we are’ is current business condition, ‘where we want to be’ is the goals and ‘what to to, when to do, and how to do’ is the plan of action for meeting those goals.

The Advantages of Planning

The following facts show the advantages of planning and its importance for an organisation:

1. Planning Provides Direction. Under the process of planning the objectives of the organisation are defined in simple and clear words. The obvious outcome of this is that all the employees get a direction and all their efforts are focused towards a particular end. In this way, planning has an important role in the attainment of the objectives of the organisation.

2. Planning Reduces Risks of Uncertainty. Planning is always done for future and future is uncertain. With the help of planning possible changes in future are anticipated and various activities are planned in the best possible way. In this way, the risk of future uncertainties can be minimised.

3. Planning Reduces Overlapping and Wasteful Activities. Under planning, future activities are planned in order to achieve objectives in the most efficient way. Consequently, overlapping and wastful activities can be reduced or eliminated.

4. Planning Promotes Innovative Ideas. It is clear that planning selects the best alternative out of the many available. All these alternatives do not come to the manager on their own, but they have to be discovered. While making such an effort of discovery, many new ideas emerge and they are studied intensively in order to determine the best out of them. In this way, planning imparts a real power of thinking in the managers. It leads to the birth of innovative and creative ideas.

5. Planning Facilitates Decision Making. Decision making means the process of taking decisions. Under it, a variety of alternatives are discovered and the best alternative is chosen. The planning sets the target for decision making. It also lays down the criteria for evaluating courses of action. In this way, planning facilitates decision making.

6. Planning Establishes Standards for Controlling. By determining the objectives of the organisation through planning all the people working in the organisation and all the departments are informed about ‘when’, ‘what’ and ‘how’ to do things. Standards are laid down about their work, time and cost, etc. Under controlling, at the time of completing the work, the actual work done is compared with the standard work and deviations are found out and if the work has not been done as desired the person concerned are held responsible.

SWOT Analysis

The SWOT (acronym that stands for Strenghts, Weaknesses, Opportunities, and Threats) analysis is the most common method in marketing and business in general to assess current business condition (‘where we are’) before deciding ‘what to to, when to do, and how to do’ to get to ‘where we want to be’. It enables companies to identify the positive and negative influencing factors inside and outside of a company or organization. The key role of SWOT is to help develop a full awareness of all factors that may affect planning and decision making.

The first two letters in the acronym, Strengths and Weaknesses, refer to internal factors, which mean the resources and experience readily available to you. Examples of areas typically considered include:

- Financial resources, such as funding, sources of income and investment opportunities.

- Physical resources, such as your company’s location, facilities and equipment.

- Human resources, such as employees, volunteers and target audiences.

- Current processes, such as employee programs, department hierarchies and software systems.

When it comes to listing strengths and weaknesses, individuals shouldn’t try to sugarcoat or glaze over inherent weaknesses or strengths. Identifying factors both good and bad is important in creating a thorough SWOT analysis.

Every company, organization and individual is influenced and affected by external forces. Whether connected directly or indirectly to Opportunities or Threats (the last two letters in the acronym), each of these factors is important to take note of and document. External factors typically reference things you or your company does not control, such as:

- Market trends, such as new products and technology or shifts in audience needs.

- Economic trends, such as local, national and international financial trends.

- External Funding, such as donations, legislature and other foundations.

- Demographics, such as a target audience’s age, race, gender and culture.

Types of Planning

There are three main types of plans that a manager will use in his or her pursuit of company goals, which include operational, tactical and strategic. If you think about these three types of plans as stepping stones, you can see how their relationship to one another aids in the achievement of organisational goals. Operational plans are necessary to attain tactical plans and tactical plans lead to the achievement of strategic plans. Then, in true planning fashion, there are also plans to backup plans that fail. These are known as contingency plans. To best understand the relationship between the different types of plans, let's start at the top.

Strategic Plans – are designed with the entire organization in mind and begin with an organization's mission. Top-level managers, such as CEOs or presidents, will design and execute strategic plans to paint a picture of the desired future and long-term goals of the organization. Essentially, strategic plans look ahead to where the organization wants to be in three, five, even ten years. Strategic plans, provided by top-level managers, serve as the framework for lower-level planning.

Tactical Plans – support strategic plans by translating them into specific plans relevant to a distinct area of the organization. Tactical plans are concerned with the responsibility and functionality of lower-level departments to fulfill their parts of the strategic plan.

Operational Plans – sit at the bottom of the totem pole; they are the plans that are made by frontline, or low-level, managers. All operational plans are focused on the specific procedures and processes that occur within the lowest levels of the organization. Managers must plan the routine tasks of the department using a high level of detail.

Contingency Plan – is activity undertaken to ensure that proper and immediate follow-up steps will be taken by a management and employees in an emergency. Its major objectives are to ensure (1) containment of damage or injury to, or loss of, personnel and property, and (2) continuity of the key operations of the organization.

C. Planning in Islam’s Perspective

In Holy Qur’an, Allah SWT teaches all human beings especially Moslems that He planned everything in this universe in detail. The plan has been written long before everything happens. In Al Qur’an, there are so many statements that Allah SWT has planned everything. For example, in Chapter Fathir [35] verse 11, Allah SWT has planned the life time of every person and nobody can change (add or lessen) it.

“And Allah created you from dust, then from a sperm-drop; then He made you mates. And no female conceives nor does she give birth except with His knowledge. And no aged person is granted [additional] life nor is his lifespan lessened but that it is in a register. Indeed, that for Allah is easy.”

Also, Allah SWT has planned another life after death as the ultimate goal or final destination for our life in this earth. He sometimes not to fulfill every wish directly or instantly, because Allah SWT will give rewards (as well as punishments) in lifeafter. Allah SWT is The Great Planner.

Planning is Part of Sunnatullah

Allah SWT has created this universe with the best-lain plan and certain objectives as well. This can be understood from Qur’an wherein it is stated in Chapter Saad [38] verse 27:

“And We did not create the heaven and the earth and that between them aimlessly. That is the assumption of those who disbelieve so woe to those who disbelieve from the Fire.”

We can conclude from that verse that Allah SWT already had plans before He created all of His creation. Nothing has been created without any planning. The question is, “Even Allah Almighty has a plan, why don’t we?” The Islamic concept of management explained that each of human beings (not only an organisation) should take into consideration what has been done in the past to prepare comprehensive plans for future activities.

In Chapter Al-Hashr [59] verse 18, Allah SWT said:

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“O you, who have believed, fear Allah. And let every soul look to what it has put forth for tomorrow - and fear Allah. Indeed, Allah is acquainted with what you do.”

This concept teaches us that planning which is going to be made must take into account all past as well as current circumstances and conditions. In addition to this, future predictions must also be made available. To formulate future planning, we need to examine and analyze the existing situation.

Islamic concept of management describes that human (especially Moslems) need to plan and pay attention to what he will do tomorrow. Islam teaches us that tomorrow has to be better than today and today has to be better than yesterday, and so on. If we want to get better everyday, of course, we need to define what our target is and what we need to do to achieve the target.

Planning is not just our need, but it’s also a must. Prophet Muhammad (PBUH) has said:

“If you want to do deeds or activity, consider the effect. If such is of good one, then continuing, and if it is not, then do abstain” (Reported by Ibnul Mubarak).

Obstacles = Opportunities

In making a plan, regardless of being aware or not, we will find factors that may become obstacles in implementing our programs. Indeed, if we are willing to trace back the life of Prophet Muhammad (PBUH), we will find that obstacles were made as opportunities. Such obstacles ware taken as a chance to improve the quality of work. In the Qur’an, Chapter Al-Inshirah [94] verse 5 and 6, Allah SWT says:

“So, verily, with every difficulty, there is relief. Verily, with every difficulty there is relief.”
And a hadith says:

“… verily, with patience there is victory, with misery there is solution, and with difficulty there is relief.” (Reported by Tirmizi)

Generally, an individual always desires to obtain something without having many endeavours. However, it is very difficult to say that someone would achieve such desire if no effort is made. The true success is only when someone has an ability to solve the problems. A successful person, says a manager, can not be said to have attained any success if he/she never got even a single problem.

Never Stop Planning and Working

A problem is also part of sunnatullah. Nothing in this life is free of problem. There will be no development if this life is empty of problems. The life develops due to the existence of problems. Succesful leaders like Khulafaur Rasyidin (guided caliphs) or others were those leaders who were always faced with various difficulties they succeeded in handling their matters.

If we have a problem, we must not stop working but shoud continue plans and implement them accordingly. Allah SWT said in Chapter Al-Inshirah [94] verse 7 and 8:

“So when you have finished [your duties], then stand up [for worship]. And to your Lord direct [your] longing.”

The verses teach us not to remain spare. We should remain busy in doing planning for other works if one of our activities has been completed. It must also be kept in mind that a problem would surely arise in our life, at any time and circumstances as well.

A manager must not run away from problems that may arise. Someone who escapes from a problem would only fine a new debacle which is likely even bigger than previous one. Remember that one of salient features of the believers is not to fall into despair when he/she is faced by any problem. That problem should be deemed as blessing, instead. In Chapter Yusuf [12] verse 87, Allah SWT says:

“… And despair not of relief from Allah. Indeed, no one despairs of relief from Allah except the disbelieving people.”

Allah SWT asserted that a problem is a divine gift of grace for each human being. It means Allah SWT will put His rank to those who are able to face misfortune. Allah will make such person more stable when other problems follow.

Stages of Planning

1. Analysis of Need and Ability

A plan usually starts from an analysis of need and ability which can also mean physical as well as physiological analysis. Physiological analysis can be described as a society having no need of such corporation of which awareness is needed. This need to be done so that the society feels the project is really important for them.

2. SWOT Analysis

SWOT Analysis is to assess whether a thing can that was already well planned will be accordance with the ability it has. What about its obstacles was as well as its weaknesses? If weaknesses have been detected as earlier as possible, then it is a very good stage. A very well planning will be able to analyse strengths and weaknesses leading to ways on how then to solve both.

3. Arrangement on Working

In the arrangement on working, we need analysis and action planning which are steps that need to be done and thoughtful, systematic, and structured so that the expected results in accordance with the plans that have been planned in advance.

Ways for Well Planning

A planning can be said well if the following requirements are fulfilled.

1. It is based on a strong belief that whatever is to be done is good. In Islam, good standard should be in conformity with the Islamic teaching. We are not allowed to do planning to conduct any illegal business prohibited by Islam. Even though such business gives profit materially like adulterous projects, localization of gambling or prostitutions, but such profit will lead to the loss of its value and yet it may attract calamity.

2. It must be clarified that something to be done will have a lot of benefits. Such benefit does not restricted only to those who make planning, but is also for others. If planning is made for personal interests only, then it will not be sustainable. Hence, relatively long term benefits should be prefered.

3. It is based on knowledge having a clear relation to the business to be done. To plan business, a businessman must listen to and read all relevant record so that he could understand all the things he has to do.

4. It is based on benchmark. This term means study on the practice of any similar company having success in its business activity. We need to see the experiences of others and causes of their success.

5. It should be based on how to think its process. What kind of process that need to be made? Whether the process will remain same? What will be the outcome of the planned process?

Vision and Mission in Planning

In conducting planning, vision is really needed from the beginning. Such vision is further translated into mission which becomes the bases of program. Vision is an invisible matter that finally shows a thing that will be made continuously.

The vision of Islam is that human beings on earth is blessing for this universe. Therefore, programs arranged must clearly reflect the vision and mission. Someone will not do an activity that will destroy humanity. If someone does negative activity, it

is contrary to his mission and vision. Those who are doing illegal activities can not be said as human beings.

Many companies have vision to be the world class companies. What is the difference between such visions with Islamic point of view of vision? Islam explained that corporate vision is how to make the company has multi-functions based on universal values. Corporate vision in Islam is not merely a matter of worldly affairs, but also part of devotion to Allah SWT.

In practice, various deceits remain united. Yet, an adage said, “If producer commits no deceit, he would die”. How does Islam approach this issue? The adage was the result of uncertain vision. Non-availability of clear vision would deteriorate the corporation itself. Businessmen who cause loss for others are really of immoral category. Indeed, successful businessman is he who does no harm to others. It is meaningless for a success without the success for others, because such success was only measured by material value while at the same tima sacrificing matters of principle.

Once vision is put in, the next step is to determine mission. If the vision is to make all available potentials as a benefited might, then its mission is how to empower all might so that its outcome could be enjoyed by all in a better way and on wider scale.

Should all business have mission for prosperity of society? Basically, whatever kind of business may be, it should have correlation with the needs of the society. If in a business, may be interest of the society is involved, and then such business will only create changes. In conducting a business, it benefit for the society must be kept observed. Measurement of benefits of the business should be certain and obvious.

D. CONCLUSION

Planning is the starting point of management funcitons and it is the most critical and important function and it has the most significant role in leading them to success. That’s because in planning function, we assess organisation’s goals and create plan of action for meeting those goals. Islam has an obvious and perfect concept about planning. In Holy Qur’an, Allah SWT teaches all human beings especially Moslems that He planned everything in this universe in detail. The plan has been written long before everything happens.

Planning is part of sunnatullah. We need to and must plan and pay attention to what we will do tomorrow because our principle (as an individual or organisation) it that tomorrow has to be better than today and today has to be better than yesterday. If we find a problem or difficulty in our way, we have to face it and never stop planning and working, because with every difficulty there is relief. In addition, we have to treat problem or difficulty as a chance to improve our quality of work.

Generally, stages of planning starts with the analysis of need and ability and then SWOT analysis and arrangement on working, repectively. Well planning has requirements as follow: i) it is based on belief that what is made is good, ii) it is truly confirmed that a thing done has a lot of benefit, iii) it is based on knowledge having correlation with what to be made, iv) it is based on benchmark, and v) it is based on how to think its process.

In conducting planning, we need vision and mission from the beginning before they are translated into strategic, tactical, and operational planning. The vision of Islam is that human beings on earth is blessing for this universe. Furthermore, the mission from Islam point of view is how to empower all might so that its outcome could be enjoyed by all in a better way and on wider scale.

References

Antonio, Muhammad Syafi’i, Bank Syariah: Dari Teori ke Praktik, Gema Insani, Jakarta, 2001.

Cuningham, William G, Systematic Planing for Education Change, first Edition, California: Mayfield Publisihing, 1982.

Hafidhuddin, Didin and Tanjung, Hendri, Shariah Principles on Management in Practice, Gema Insani, Jakarta, 2006.

Harold Koontz and Cyril O’Donnell, Principles of Management: An Analysis of Managerial Functions, Mc Graw-Hill, 1972.

Holy Qur’an and translation.

Jawahir Tanthowi, Unsur-Unsur Manajemen Menurut Ajaran Al-Qur’an, Pustaka Al-Husna, Jakarta, 1983.

Mahdi bin Ibrahim, 1997. Amanah dalam Manajemen, Pustaka Al Kautsar, Jakarta, 1997.

Websites

http://lukmanchakim44.blogspot.com/2013/09/makalah-perencanaan-dalam-manajemen.html

http://gudang-studi.blogspot.com/2012/03/tipe-tipe-perencananaan-dalam-manajemen.html

http://www.academia.edu/5488117/Perencanaan_dalam_Perspektif_Islam_dan_Implikasinya_dalam_Kehidupan

http://sumokewa.com/index.php/tentang-al-quran/asma-ul-husna-dan-manajemen/92-33-perencanaan-planning

http://islamisone.wordpress.com/2013/01/11/perencanaan-dalam-kaidah-islam/