Weekly Activity: Management ebooks It is important to have texts you can refer to
throughout the semester. Go to: Management ebook – Principles of Management http://www.saylor.org/site/textbooks/Principles%20of%20Management.
pdf Free Management ebooks http://www.free-management-ebooks.com/ Download those resources relevant to
management topics to be covered in class.
This Session
Establishes coordinated effortEstablishes coordinated effort
Anticipates changeAnticipates change
Reduces wasteful activityReduces wasteful activity
Facilitates controlFacilitates control
Improves performanceImproves performance
The purpose of planning
Activity: Planning
List those tasks you already undertake when planning. Start by thinking of those simple tasks, such as making a shopping list, post-it reminder notes, using a diary to plan your week, holiday or major purchase.
What similar ideas and skills do you see being used within your workplace?
Time: 10 - 15 minutes
Misconceptions about planning
Planning thatproves inaccurateis a waste of time
Planning can eliminate change
Planning reducesflexibility
OperationalGoals
OperationalPlans
TacticalGoals
TacticalPlans
StrategicGoals
StrategicPlans
GOALS v/s PLANS RELATIONSHIP
Top Management:Organisation-wide
perspective
Middle Management:Departmentperspective
First LevelManagement:
Unit/Individualperspective
Topic Example Video
The following video explains about the importance of SMART Goal setting in business.
Take note of the key points. http://www.youtube.com/watch?v=TcexQpA0Z
Mw
Six Steps to Planning
1. Establish a realistic goal and targets2. List all the things that need to
happen3. Sequence them4. Communicate your plan5. Implement your plan6. Check your progress
Types of Plans
Short term plans Long term plans Business plans Operational plans Specific plans Project plans Standing plans Protective plans
Topic Example Video
The following video explains about the different types of plans.
Take note of the key points. http://www.youtube.com/watch?v=wbdoSZcBk
zY
OperationalOperationalStrategicStrategic
Category: BreadthCategory: Breadth
Long-termLong-termShort-termShort-term
Category: Time frameCategory: Time frame
DirectionalDirectionalSpecificSpecific
Category: SpecificityCategory: Specificity
Types of plans
Plans According To Use
Single-Use PlansAim at achieving aspecific, non-recurringgoal
PROGRAM
PROJECT
Standing PlansProviding ongoingguidance for recurringactivities
POLICIESPROCEDURES
RULES
Plans According To Use
Topmanagers
Middle-levelmanagers
First-levelmanagers
Operational planning
Strategic planning
Environmental uncertaintyEnvironmental uncertainty
Organisation levelOrganisation level
Life cycleLife cycle
Future commitmentsFuture commitments
Contingency factors in planning
Activity: Planning Process
In the planning process, you need to set yourself objectives or goals. Objectives form part of an organization’s focus and ideals.
List down with examples, some of these objectives that applies to your workplace.
How does your workplace formulate it’s plans. Taking these objectives, what information does your
workplace gather in order to achieve these objectives?
Time: 10 - 15 minutes
Forecasts are predictions of likely or intended outcomesForecasts are predictions of likely or intended outcomes
RevenueRevenue
TechnologyTechnology
QuantitativeQuantitative
QualitativeQualitative
Forecasting
Use simple techniques
Compare with ‘no change’
Use multiple methods
Don’t assumetrends
Shorten lengthof forecasts
Forecasting Effectiveness
ForecastingForecasting
Quantitative
Qualitative
Quantitative
Qualitative
Revenue
Technology
Revenue
Technology
TypesTypes TechniquesTechniques
Quantitative Forecasting
Relies on numerical data and mathematical models to predict future events.· time series (historical cycles) · explanatory (causal) models
(past conditions) · regression models (variable equations) · econometric models
(economy interrelationships) · leading indicators (phenomenon correlation)
Topic Example Video
The following video explains what is a time series forecast.
Take note of the key points. http://www.youtube.com/watch?v=EaqZP36ool
8
Qualitative Forecasting
Aims at predicting technological trends and other important environmental factors.
Delphi method expert’s judgments
La Prospective possible alternative futures
Scenarios outlining possible future conditions
Judgmental experienced opinions
Forecasting Method Criteria
Time horizons Time required Development costs Accuracy in identifying trends Accuracy in predicting turning
points Ease of understanding
Topic Example Video
The following video explains about sales budgets in organisations and what is involved in calculating one.
Take note of the key points. http://www.youtube.com/watch?
v=Z6ab39muxqE
Operational Planning
Tools
Operational Planning
Tools
Break-even analysisBreak-even analysis
Linear programmingLinear programming
Queuing TheoryQueuing Theory
Probability theoryProbability theory
Marginal analysisMarginal analysis
SimulationSimulation
SchedulingScheduling
Activity: Selling Bagels in Japan
Video Questions: How could global scanning been used by Jerry
Shapiro? What could scanning have shown him? What other specific planning tools might
Shapiro find necessary as he continues to do business globally?
What implications do you see for managers and how they plan from the advice Shapiro gives for going into international markets?
PERT chart stepsPERT chart steps
1. Identify1. Identify 2. Order2. Order 3. Diagram3. Diagram 4. Time4. Time 5. Schedule5. Schedule
Gantt chartsGantt charts
Common techniques include:Common techniques include:
Load chartsLoad charts
PERT chart componentsPERT chart components
EventsEvents ActivitiesActivities Critical pathCritical path
Charting
Topic Example Video
The following video explains what is a Gantt chart and it’s usefulness in business.
Take note of the key points. http://www.youtube.com/watch?
v=rm_iWKoOd0U
Gantt Charts
To prepare a Gantt chart: List all significant activities Place in a logical sequential order Add estimates of time Plot activities horizontally by
time Adjust activity timing to eliminate
or reduce “slack” time periods.
Activity Month
Edit Manuscript
Design Sample Pages
Draw Artwork
Print Galley Proofs
Print Page Proofs
Design Cover
1 42
Reporting DateActual ProgressGoals
A Sample Gantt Chart
33
Activity Activity: Gantt Chart Software Thinking about your project’s action plans (including timelines), it
is important to convert these into a schedule so that you can implement the operational components of your project.
To assist you in developing your Gantt Chart, you can download or request a 60 day trial copy of Gantt Chart software.
Suitable software for developing your Gantt chart is Microsoft Project. Go to:
www.microsoft.com/office/project/prodinfo/trial.mspx for details. Alternatively try:
http://office.microsoft.com/en-us/templates/results.aspx?qu=gantt+chart&ex=1&origin=TC030000350#ai:TC030009340
SlackTimeSlackTime
ActivitiesActivities
CriticalPath
CriticalPath
EventsEvents
PERTNetworks
PERTNetworks
Critical Path Planning
Critical path planning is undertaken after Gantt charts or PERT exercise.
Critical activities need to be selected from list of all activities.
“Critical” relates to those activities that directly affects the project coming in: on time within budget to performance specifications.
Project dependency relationship refers to those activities which are dependent on the critical activity to finish before it can be commenced.
$90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
100 200 300 400 500 600
Rev
enu
e/C
ost
($)
Output (in thousands)
Breakeven Point
Total Revenue
Total Costs
LossArea
ProfitArea
VariableCosts
FixedCosts
Breakeven Analysis
Topic Example Video
The following video explains how to undertake a break even analysis.
Take note of the key points. http://www.youtube.com/watch?v=Du07z79T-
Js
Project planning process
Define objectives Identify activities and resources Establish sequences Estimate time for activities Schedule project completion Compare to objectives Determine resource requirements
Control Steps
1. Planning techniques - charting and critical path planning
2. Budget and review - cost estimates and budgets
3. Review schedule, costs and quality - checking variances
4. Progress inspections - minimise deviations
Criticisms of planning
May create rigidity Can’t be developed for a dynamic environment Can’t replace intuition and creativity Focuses on today’s competition and
not on tomorrow’s survival Reinforces success, which may lead to failure
Task 1: Undertake Chapter Review: Saylor.org – Principles
of Management Ch. 6, pp. 233-276 http://www.saylor.org/site/textbooks/Principles%20of%20Management.pdf
Task 2: Undertake Chapter Multi-choice Question Quizz:
Robbins – Management Ch. 7 (Planning) http://wps.prenhall.com/au_be_robbins_mgt_3/8/2064/528541.cw/
index.html
Task 3: Undertake Case Study – TNT http://businesscasestudies.co.uk/tnt/delivering-a-business-strategy/introduction.html#axzz2twKvWaj1
How does TNT deliver it’s business strategy?
Next Session