Planning How we do it, why we do, and ways we do it.

In this unit we will be asking: How and why managers plan -The importance of it -The process -Benefits of it -Planning theories Types of plans used by managers -Short- and long- range plans -Strategic and operational plans -Policies and procedures -Budgets and projects

Let’s do some planning. Available ItemsBC Sextant 15 Shaving mirror 1 20 litres of water 3 Mosquito netting 14 1 survival meal 4 Maps of the Pacific Ocean 13 Floatable seat cushion 9 6 litres of oil-gas mix 2 Small transistor radio 12 Shark repellent square metres of black plastic 5 1 litre of 60% rum metres of nylon rope 8 24 chocolate bars 6 Fishing kit 7

How and why do managers plan? Why do managers plan? Planning allows managers to use resources as required. It can eliminate waste, and cut down on time. BUT… …what happens if something changes? Managers must also be incredibly flexible. Not everything goes the way it should, ALL THE TIME.

The Basics Planning is “the process of setting objectives and determining how to accomplish them.” Provides direction for themselves. More importantly, provides direction for employees.

The Basics “Planning at Eaton means taking the hard decisions before events force them upon you, and anticipating the future needs of the market before the demand asserts itself.” Objectives – Specific results you want to achieve. Plan – A statement of intended means for accomplishing objectives.

Basic Steps to Planning 1. Define your Objectives 2. Determine where you stand (when it comes to your objectives) 3. Develop premises regarding future conditions 4. Analyze and choose among action alternatives 5. Implement the plan and evaluate results.

Basic Steps to Planning Planning has to be happening all the time. It cannot be by yourself, way before the task you are asked to complete. Should include everyone involved.

Starting off with a reality check. What do you think of this?

Benefits to Planning Let’s look at what business today has to deal with Ethical expectations Government regulations More-complex technologies Uncertain global economy Costs of labour, capital, etc

Benefits to Planning Planning improves focus and flexibility. -Organizations with focus know what they do best, and the needs of their customers. -Individuals with focus know what they want to do with their life and are able to keep that objective in sight no matter what. -Organizations with flexibility can continue even when things do not go to plan, or they change unexpectedly. -Individuals with flexibility adjusts plans according to situations and opportunities.

Benefits to Planning Planning improves “Action Orientation” -Companies want to be able to “stay ahead” of the flow. -Stephen R. Covey, a management consultant, says that “the most executives zero in on what they do that adds value to an organization.” -Good planning makes companies more results oriented (goals), priority oriented (important things first), advantage oriented (best use of resources), and change oriented(dealing with problems).

Benefits to Planning Planning improves coordination. -Organizations are made up of a LOT of different people and departments. Having a proper plan makes it easier for all of those different groups to work with each other. -They will have their own goals and objectives. -Remember “value chain?” Think now of “means-end chain” or “hierarchy of objectives.” Lower level objectives are completed to assist with the higher level ones.

Manufacturing Business Objectives Corporate Quality Objectives Deliver error-free products that meet customer requirements 100% of the time Manufacturing Division Quality Objectives Become a preferred supplier by achieving 100% on-time delivery of all products Plant Quality Objectives Increase customer delivery acceptance rate by 5% Shift Supervisor Quality Objectives Assess capabilities of machine operators and provide/arrange appropriate training.

Benefits to Planning Planning improves time management -We could ALL use a little help here. -Businesses and managers need to use their time as best as they can. -“To-do lists” work well if the right things are on it: -Things we must do, things we should do, things that would be nice to do, and things we really don’t need to do.

Benefits to Planning Planning improves control -When we have good plans, maintaining controls is a lot easier. -If we know what we need to do, and it is not done, it is clear that the job was not done well. -We can measure progress, evaluate, and adjust.

Planning Theories There are two management theories of planning: Rational Comprehensive Planning (RCP) “focuses on a logical decision- making approach and advocates a holistic approach to problem solving.” -This way of planning used mathematical analysis and models created by taking information from the environment. -It takes objectives and relates them to the resources and limitations using statistics. Can only be used for relatively simple problems.

Planning Theories Incrementalism – making small decisions based on imperfect information. -It is short-range planning. -Problems constantly redefined. -Only a small number of alternatives are looked at. Nowadays, a lot of planning combines the two. An official plan is made with RCP and Incrementalism constantly and regularly updates the plan.

Hannah’s Ice Cream Read the hand-out. Underline words in the article you do not understand (for discussion tomorrow). There is 1 question with multiple parts. We will be discussing it tomorrow.