Download - Ch08 1 Planning
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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
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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?
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Management 8/e - Chapter 8 3
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.
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Management 8/e - Chapter 8 4
Study Question 1: Why and how do managers plan?
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.
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Management 8/e - Chapter 8 5
Figure 8.1 The roles of planning and controlling in
the management process.
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Study Question 1: Why and how do managers plan?
Benefits of planning:
Improves focus and flexibility.
Improves action orientation.
Improves coordination.
Improves time management.
Improves control.
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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.
Management 8/e - Chapter 8 7
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Management 8/e - Chapter 8 8
Figure 8.2 A sample means-ends chain for total
quality management.
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FIGURE 8.2 A sample hierarchy of
objectives for quality management.
Management 8/e - Chapter 8 9
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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.
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Management 8/e - Chapter 8 11
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Management 8/e - Chapter 8 12
Study Question 2: What types of plans do managers
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
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Management 8/e - Chapter 8 13
Study Question 2: What types of plans do managers
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.
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Management 8/e - Chapter 8 14
Study Question 2: What types of plans do managers
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.
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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.
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Study Question 3: What are the useful planning tools
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.
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Study Question 3: What are the useful planning tools
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.
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Study Question 3: What are the useful planning tools
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.
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Study Question 3: What are the useful planning tools
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.
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Study Question 3: What are the useful planning tools
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.
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Management 8/e - Chapter 8 22
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Figure 8.3 How participation and involvement help
build commitments to plans.
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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.
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Figure 8.4 Management by objectives as an
integrated planning and control framework.
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Study Question 4: How does management by
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.
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Management 8/e - Chapter 8 27
Study Question 4: How does management by
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.
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Study Question 4: How does management by
objectives operate
Types of MBO performance objectives
Improvement
Personal development
Maintenance
Criteria for effective performance objectives
Specific
Time defined
Challenging
Measurable
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Study Question 4: How does management by
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.
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Study Question 4: How does management by
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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