2-Functions of Management - Planning.pptx

Lessons

1. Organization and Management

2. PLANNING MANAGEMENT FUNCTIONS

3. Specific Learning Objectives Understand the nature and importance of planning; Compare and contrast the different type of plans; Describe planning at different levels of the firm; Apply appropriate planning techniques and tools. At the end of this chapter the students will able to:

4. “If you fail to plan, you are planning to fail!” ―  Benjamin Franklin

5. When you think of planning in a management role, think about it as the process of choosing appropriate goals and actions to pursue and then determining what strategies to use, what actions to take, and deciding what resources are needed to achieve the goals. PLANNING

6. Involves defining the organization’s goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities. It’s concerned with both ends (what) and means (how). When we use the term planning , we mean formal planning. In formal planning , specific goals covering a specific time period are defined. These goals are written and shared with organizational members to reduce ambiguity and create a common understanding about what needs to be done. Finally, specific plans exist for achieving these goals. PLANNING

7. Planning provides direction. Planning reduces the risks of uncertainty. Planning reduces overlapping and wasteful activities. Planning promotes innovative ideas. Planning facilitates decision making. Planning establishes standards for controlling. Importance of Planning

8. Organizational plans can be generally described in terms of: Comprehensiveness - the completeness of planning coverage. Length of time covered or time frame- a plan may be long-term or short-term plans. Specificity - refers to the very detailed, clearly defined plans wherein objectives are clearly stated and could easily be understood. Frequency of use- refers to the number of times or instances a plan may be used. Types of Plans

9. STRATEGIC PLANS Plans that apply to the entire organization and establish the organization’s overall goals OPERATIONAL PLANS Plans that encompass a particular operational area of the organization

10. LONG-TERM PLANS Plans with a time frame beyond three years. Everyone must understand the organization’s long-term to avoid confusion that may divert the organization members’ attention. SHORT-TERM PLANS Plans that are cover one year or less; such as plan must lead the attainment of long-term goals and are the responsibility of the unit/department heads.

11. DIRECTIONAL PLANS Plans that are flexible and set out general guidelines SPECIFIC PLANS Plans that are clearly defined and leave no room for interpretation. Language used must be very understandable

12. SINGLE-USE PLAN A one-time plan specifically designed to meet the needs of a unique situation STANDING PLANS Ongoing plans that provide guidance for activities performed repeatedly

13. Setting objectives : Objectives may be set for the entire organization and each department or unit within the organization. Developing premises : Planning is concerned with the future which is uncertain and every planner is using conjuncture about what might happen in the future. Identifying alternative courses of action : Once objectives are set, assumptions are made. Then the next step would be act upon them. PLANNING PROCESS

14. Evaluating alternative courses : The next step is to weigh the pros and cons of each alternative. Selecting an alternative : This is the real point of decision making. The best plan has to be adopted and implemented. Implement the plan : This is concerned with putting the plan into action. Follow-up action : Monitoring the plans are equally important to ensure that objectives are achieved. PLANNING PROCESS

15. Planning at Different Levels of the Firm

16. Different levels in the firm are all engaged in planning however all the resulting plans must be related to one another and directed toward the same goals.

17. Planning at Different Levels of the Firm Strategic Planning Tactical Planning Operational Planning

18. STRATEGIC PLANNING Involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. Strategic planning has a long time frame , often three years or more. Strategic planning generally includes the entire organization and includes formulation of objectives. Strategic planning is often based on the organization’s mission, which is its fundamental reason for existence. An organization’s top management most often conducts strategic planning.

19. TACTICAL PLANNING Is intermediate-range (one to three years) planning that is designed to develop relatively concrete and specific means to implement the strategic plan. Middle-level managers often engage in tactical planning.

20. OPERATIONAL PLANNING Generally assumes the existence of organization-wide or sub-unit goals and objectives and specifies ways to achieve them. Operational planning is short-range (less than a year) planning that is designed to develop specific action steps that support the strategic and tactical plans.

21. Planning Techniques and Tools

22. FORECASTING An attempt to predict what may happen in the future. A planning tool that help management in its attempts to cope with the uncertainty of the future, relying mainly on data from the past and present and analysis of trends. It starts with certain assumptions based on the management’s experience, knowledge, and judgement.

23. CONTINGENCY PLANNING Offer alternative courses of action when the unexpected happens or when things go wrong. This plan must be prepared by managers ready for implementation when things do not turn out as they should be.

24. SCENARIO PLANNING Planning for future state of affairs is a long –term version of contingency planning. Several future states of affairs must be identified and alternative plans must be prepared in order to meet the changes of challenges in the future. This is a big help for organizations because it allows them to plan ahead and make necessary adjustments in their strategies and operations.

25. BENCHMARKING Planning technique that generally involves external comparisons of company’s practices and technologies with those of other companies. Identifying the best practices (achieved result) of industry leaders and compairing your own business performance with them.

26. PARTICIPATORY PLANNING Planning process that includes the people who will be affected by the plans and those who will be asked to implement them in all planning steps.

27. Thank You! Shaira Bolaños + 639352214043