1. Management 11e John Schermerhorn
Chapter 8
Planning Processes and Techniques

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 can plans be well implemented?
Management 11e 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
Management 11e 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-à-vis objectives
Develop premises regarding future conditions
Analyze alternatives and make a plan
Implement the plan and evaluate results
Management 11e Chapter 8

5. Figure 8.1 The roles of planning and controlling in the management process
Management 11e Chapter 8

6. 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
Management 11e Chapter 8

7. Study Question 1: Why and how do managers plan?
Personal time management tips:
DO say “no” to requests that distract from what you should be doing
DON’T get bogged down in details that can be addressed later
DO screen telephone calls, s, and meeting requests
Management 11e Chapter 8

8. Study Question 1: Why and how do managers plan?
More personal time management tips:
DON’T let drop-in visitors instant messaging use up your time
DO prioritize your important and urgent work
DON’T become calendar bound by letting others control your schedule
DO follow priorities; do most important and urgent work first
Management 11e Chapter 8

9. Study Question 2: What types of plans do managers use?
Long-term plans look three or more years into the future
Short-term plans typically cover one year or less
Management 11e Chapter 8

10. Study Question 2: What types of plans do managers use?
Most of us
3 month time frame
A few of us
1 year time frame
Very few of us
20 year time frame
Management 11e Chapter 8

11. Study Question 2: What types of plans do managers use?
Strategic plans — set broad, comprehensive, and longer-term action directions for the entire organization
Vision – clarifies purpose of the organization and what it hopes to be in the future
Management 11e Chapter 8

12. Study Question 2: What types of plans do managers use?
Tactical plan – helps to implement all or parts of the strategic plan
Functional plans – indicate how different operations within the organization will help accomplish the overall strategy
Production plans
Financial plans
Facilities plans
Marketing plans
Human resource plans
Logistics plans
Management 11e Chapter 8

13. Study Question 2: What types of plans do managers use?
Operational plans — identify short-term activities to implement strategic plans
Policies are standing plans the communicate guidelines for decisions
Procedures are rules that describe actions to be taken in specific situations
Budgets are plans the commit resources to projects or activities
Zero based budgets allocate resources as if each budget were brand new
Management 11e Chapter 8

14. 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
Management 11e Chapter 8

15. 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
Management 11e Chapter 8

16. 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 organization’s flexibility and preparation for future shocks
Management 11e Chapter 8

17. 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
Management 11e Chapter 8

18. Study Question 4: How can plans be well implemented?
Great Goals
Specific
Timely
Measurable
Challenging
Attainable
Management 11e Chapter 8

19. Figure 8.2 A sample hierarchy
Management 11e Chapter 8

20. Study Question 4: How can plans be well implemented?
Participatory Planning
unlocks the motivational potential of goal setting
management by objectives (MBO) promotes participation
when participation is not possible, workers will respond positively if supervisory trust and support exist
Management 11e Chapter 8

21. Figure 8.3 How participation and involvement help build commitment to plans
Management 11e Chapter 8

22. Lands’ End: Living the Golden Rule
Chapter 8 Case
Lands’ End: Living the Golden Rule

23. For activities and assessments, please visit…