How do managers plan? Planning Objectives Plan 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.

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 and choose among action alternatives. Implement the plan and evaluate results.

The roles of planning and controlling in the management process.

Benefits of Planning Focus Set goals - http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html Set Priorities Determines the needs of the customer Provides a unified direction Ability to Adapt Deals with changing situations Helps cope with a changing economy

Benefits of Planning Increased Co-ordination Sets a series of objectives Lower level objectives support higher level objectives Improved co-ordination between departments Improved Control Identify and measure results Easy to evaluate results

Benefits of Planning Improved Time Management Sets priorities for employees’ time Motivates Staff People will work harder to achieve goal especially if a rewarded when plan is completed

A sample means-ends chain for total quality management.

What types of plans do managers use? Short Range Plans Less than one year Decided by lower management levels Example—hire a new shift http://youtu.be/U6DE93esEug Intermediate-range plans 1 to 2 years Long Range Plans Greater than 3 years Decided by top management Example—launch a new product http://youtu.be/CzZYgSEVDQs 8

What types of plans do managers use? Strategic Plans Extensive, long range plans Created by upper management Provides the overall direction of the company Example—launching a product into another country Operational Plans Plans that implement strategic plans Example—hiring employees in the new country Production, Financial, Facilities, Marketing, Human Resource Plans Single-Use Plans Only used once to meet the needs and objectives of a well-defined situation in a timely manner.

What types of plans do managers use? Standing-Use Plans - Designed to be used again and again Policies - broad guidelines to assist in making decisions Rules and Procedures detailed plans that state actions to be taken in specific situations found in employee handbooks and manuals Budgets determines how money is to be spent on specific projects Fixed, flexible, and zero-based budgets. Projects One-time activities that have clear beginning and end points. Project management and project schedules.

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. 11

What are the useful planning tools and techniques? Contingency Planning Planning for alternative courses of action should your plan fail or situations change Worst case scenario planning Contingency plans contain trigger points.

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. 13

What are the useful planning tools and techniques? Benchmarking Using external comparisons to understanding what is occurring in your company Adopting best practices of other organizations that achieve superior performance. Example—if your competitor lost 15% in sales, you gain perspective on your company losing 2% in sales

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. 15

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. 16

How participation and involvement help build commitments to plans.