ch08 1 planning

PowerPoint Presentation

to Accompany

Management, 8/eJohn R. Schermerhorn, Jr.

Prepared by: Jim LoPresti

University of Colorado, Boulder

Published by: John Wiley & Sons, Inc.

Chapter 8: Planning Processes and Techniques

Management 8/e - Chapter 8 2

Planning Ahead Chapter 8 Study Questions

Why and how do managers plan?

What types of plans do managers use?

What are the useful planning tools and techniques?

How does management by objective operate?


Study Question 1: Why and how do managers plan?

Planning

The process of setting objectives and determining how to best accomplish them.

Objectives

Identify the specific results or desired outcomes that one intends to achieve.

Plan

A statement of action steps to be taken in order to accomplish the objectives.



Steps in the planning process:

Define your objectives.

Determine where you stand vis--vis objectives.

Develop premises regarding future conditions.

Analyze and choose among action alternatives.

Implement the plan and evaluate results.


Figure 8.1 The roles of planning and controlling in

the management process.



Benefits of planning:

Improves focus and flexibility.

Improves action orientation.

Improves coordination.

Improves time management.

Improves control.

Personal Time Management Tips

1. Do say No to requests that divert you from what you really should be doing.

2. Dont get bogged down in details that you can address later or leave for others.

3. Do have a system for screening telephone calls, e-mails, and requests for meetings.

4. Dont let drop-in visitors or instant messages use too much of your time.

5. Do prioritize what you will work on in terms of importance and urgency.

6. Dont become calendar-bound by letting others control your schedule.

7. Do follow priorities and work on the most important and urgent tasks first.



Figure 8.2 A sample means-ends chain for total

quality management.

FIGURE 8.2 A sample hierarchy of

objectives for quality management.



Study Question 2: What types of plans do managers

use?

Short-range and long-range plans Short-range plans = 1 year or less

Intermediate-range plans = 1 to 2 years

Long-range plans = 3 or more years

People vary in their capability to deal effectively with different time horizons.

Higher management levels focus on longer time horizons.



use?

Strategic and operational plans Strategic plans set broad, comprehensive, and

longer-term action directions for the entire organization.

Operational plans define what needs to be done in specific areas to implement strategic plans.

Production plans

Financial plans

Facilities plans

Marketing plans

Human resource plans



use?

Policies and procedures

Standing plans

Policies and procedures that are designed for repeated use.

Policy

Broad guidelines for making decisions and taking action in specific circumstances.

Rules or procedures

Plans that describe exactly what actions are to be taken in specific situations.



use?

Budgets and project schedules Single-use plans

Only used once to meet the needs and objectives of a well-defined situation in a timely manner.

Budgets Single-use plans that commit resources to

activities, projects, or programs.

Fixed, flexible, and zero-based budgets.

Projects One-time activities that have clear beginning

and end points.

Project management and project schedules.


Study Question 3: What are the useful planning tools

and techniques?

Forecasting

Making assumptions about what will happen in

the future.

Qualitative forecasting uses expert opinions.

Quantitative forecasting uses mathematical

and statistical analysis.

All forecasts rely on human judgment.

Planning involves deciding on how to deal with

the implications of a forecast.



and techniques?

Contingency planning

Identifying alternative courses of action

that can be implemented to meet the

needs of changing circumstances.

Contingency plans anticipate changing

conditions.

Contingency plans contain trigger points.



and techniques?

Scenario planning

A long-term version of contingency

planning.

Identifying alternative future scenarios.

Plans made for each future scenario.

Increases organizations flexibility and

preparation for future shocks.



and techniques?

Benchmarking

Use of external comparisons to better

evaluate current performance and

identify possible actions for the future.

Adopting best practices of other

organizations that achieve superior

performance.



and techniques?

Use of staff planners

Coordinating the planning function for

the total organization or one of its

major components.

Possible communication gaps between

staff planners and line management.



and techniques?

Participation and involvement

Participatory planning requires that the planning

process include people who will be affected by the

plans and/or will help implement them.

Benefits of participation and involvement:

Promotes creativity in planning.

Increases available information.

Fosters understanding, acceptance, and

commitment to the final plan.


Figure 8.3 How participation and involvement help

build commitments to plans.


Study Question 4: How does management by

objectives operate?

Management by Objectives (MBO)

A structured process of regular

communication.

Supervisor/team leader and workers

jointly set performance objectives.

Supervisor/team leader and workers

jointly review results.


Figure 8.4 Management by objectives as an

integrated planning and control framework.



objectives operate?

MBO involves a formal agreement

specifying

Workers performance objectives for a specific

time period.

Plans through which performance objectives

will be accomplished.

Standards for measuring accomplishment of

performance objectives .

Procedures for reviewing performance results.



objectives operate?

The MBO process: Supervisor and workers jointly set

objectives, establish standards, and choose actions.

Workers act individually to perform tasks; supervisors act individually to provide necessary support.

Supervisor and workers jointly review results, discuss implications, and renew the MBO cycle.



objectives operate

Types of MBO performance objectives

Improvement

Personal development

Maintenance

Criteria for effective performance objectives

Specific

Time defined

Challenging

Measurable



objectives operate?

Pitfalls to avoid in using MBO

Tying MBO to pay.

Focusing too much attention on easily

quantifiable objectives.

Requiring excessive paperwork.

Having managers tell workers their

objectives.



objectives operate?

Advantages of MBO

Focuses workers on most important tasks and objectives.

Focuses supervisors efforts on important areas of support.

Contributes to relationship building.

Gives workers a structured opportunity to participate in decision making.

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