plans and planning

8/8/2019 Plans and Planning

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Plans: A DefinitionyA plan is a specific action proposed to help the

organization achieve its objectives.

y Dimensions of Plansy Repetitiveness

y Time

y

Scopey Level


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Types of PlansTypes of Plans

Standing Plans: Policies, Procedures, and Rules

Policy: is a standing plan that furnishes broad guidelines for taking actionconsistent with reaching organizational objectives.

Procedure: is a standing plan that outlines a series of related actions thatmust be taken to accomplish a particular task.

Rules: is a standing plan that designates specific required action.

Single-use Plans: Programs and Budgets

Program: is a single-use plan designed to carry out a special project withinan organization.

Budget: is a single-use financial plan that covers a specified length of time.


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Plans: A Definitiony Why Plans Fail

1. Corporate planning not integrated into total management system

2. Lack of understanding of different steps of planning process

3. Management at different levels has not properly engaged in or contributed toplanning activities

4. Responsibility for planning is wrongly vested solely in the planningdepartment

5. Management expects that plans developed will be realized with little effort

6. In starting formal planning, too much is attempted at once

7. Management fails to operate by the plan

8. Financial projections are confused with planning

9. Inadequate inputs are used in planning

10. Management fails to grasp the overall planning process


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Plans: A Definitiony Planning Areas: Input Planning (continued)

y Human Resource Planning

Kinds of questions personnel planners should try to answer:

1. What types of people does the organization need to reach its objectives?

2. How many of each type are needed?

3. What steps should the organization take to recruit and select suchpeople?

4. Can present employees be further trained to fill future needed positions?

5. At what rate are employees being lost to other organizations?


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Planning Toolsy Forecasting: predicting future environmental happenings that will

influence the operation of the organization.

y How Forecasting Works

Insect Control Services forecasts by attempting to:1. Establish relationships between industry sales and national economic and social

indicators

2. Determine the impact government restrictions on the use of chemical pesticides willhave

3. Evaluate sales growth potential, profitability, resources required, and risks involved

4. Evaluate potential for expansion of marketing efforts in U. S. as well as foreigncountries

5. Determine likelihood of technological breakthroughs making existing product linesobsolete

y Types of Forecasts economic, social trends and sales forecasting


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Planning Toolsy Methods of Sales Forecasting

y Jury of Executive Opinion Method

Delphi method:

Step 1Experts are asked to answer, independently and in writing, a series ofquestions about the future of sales

Step 2A summary of all the answers is then prepared in confidence

Step 3 Copies of the summary are given to the individual experts withrequest to modify their original answers if necessary

Step 4Another summary is made of these modifications, copies aredistributed to the experts. This time, expert opinions that deviatesignificantly from the norm must be justified.

Step 5Third summary made of opinions and justifications, and copies areagain distributed. Justification in writing for all answers is nowrequired.

Step 6Forecast generated from all of the opinions and justifications that

arise from step 5


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Planning Toolsy Methods of Sales Forecasting

y Salesforce Estimation Method: analyzing the opinions of salespeople as a group.

y Time Series Analysis Method chart

y

Historical relationship between sales and timey Product Stages - chart

y Evaluating Sales Forecasting Methods

y Framework is logical

y Fits the needs of the organization

y Can be adapted to changes in the environment


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Planning Toolsy Scheduling: is the process of formulating a detailed listing of

activities that must be accomplished to attain an objective, allocatingthe resources necessary to attain the objective and setting up andfollowing timetables for completing the objective

y Gantt Charts graph

y Is essentially a bar graph with time on horizontal axis and resource tobe scheduled on the vertical axis.

y Features

1) Summary overview of how organizational resources are beingemployed. Which are contributing to productivity.

2) Coordinate organizational resources

3) Establish realistic worker output standards


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Planning Toolsy Scheduling (continued)

y Program Evaluation and Review Technique (PERT)

y Defining PERT activities and events

y Features - chart

y Critical Path

y Steps in Designing a PERT Network

Step 1List all the activities/events that must be accomplished and thesequence

Step 2Determine how much time will be needed to complete eachactivity/event

Step 3Design PERT network that reflects all of the information in steps 1and 2

Step 4Identify the critical path

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