CHAPTER 6 PLANNING PROCESSES AND TECHNIQUES BOH4M CHAPTER 6 PLANNING PROCESSES AND TECHNIQUES Lajipe Faleyimu
CHAPTER OVERVIEW 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? Lajipe Faleyimu
Why and How Managers Plan PLANNING – process of setting objectives and determining how to accomplish them. OBJECTIVES – specific results that one wishes to achieve PLAN – statement of intended means for accomplishing objectives Lajipe Faleyimu
Why and How Managers Plan Lajipe Faleyimu
Why and How Managers Plan Steps in the planning process Define your objectives Determine where you stand vis-a-vis objectives Develop premises regarding future conditions Analyze alternatives and make a plan Implement the plan and evaluate results Benefits of Planning Personal time management tips fig 6.1 Lajipe Faleyimu
PLANS USED BY MANAGERS Short-range and long-range plans Short-range plans = 1 year or less Intermediate-range plans = 1 to 2 years Long-range plans = 3 or more years Strategic and Tactical Plans Operational plans Lajipe Faleyimu
PLANNING TOOLS AND TECHNIQUES Forecasting – attempts to predict the future Contingency planning – identifies alternative courses of action to take when things go wrong Scenario planning – identifies alternative future scenarios and makes plans to deal with each other Benchmarking – uses external and internal comparisons to plan for future improvements Use of staff planners Lajipe Faleyimu
PLANS TO ACHIEVE RESULTS Goal Setting – S.M.A.R.T Goal Alignment Management by Objectives (MBO) Types Criteria Advantages Pitfalls Participation and Involvement Lajipe Faleyimu
REVIEW Which step in the planning process is likely to cause the most difficulties for managers Is there any real value to long-term planning in today’s rapidly changing environment? Shouldn’t all plans really be contingency plans? Given its potential advantages, why isn’t MBO standard practice in all organizations Lajipe Faleyimu