Tutorial: Business Academy Topic: Planning Prepared by : Ing. Adéla Hrabcová Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/ je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.

Planning – managerial function Planning is an essential managerial function; on its basis another functions are dependent. Planning means setting future goals and means to achieve them. expresses a state that should be achieved in the future. Objective – expresses a state that should be achieved in the future. The result of planning is a plan that expresses the way how to achieve the desired goal.

Strategic plans formulate the main goals of the company. They determine its strategy or direction. It is a long-term planning that determines future development of the company. Long-term planning is a task of the top management. Tactical plans specify tasks arising from strategic plans. They are created for a shorter time period. This type of planning is ensured by middle management. Operative plans reflect actual situation. They are based on tactical plans. These plans are considered as short-term plans – daily, weekly, monthly. They are created by middle and operational management.

over 5 years Long-term planning is considered for a time period over 5 years - strategic planning. 1 – 5 years Medium-term planning is considered for a time period of 5 years – tactical planning. up to 1 year Short-term planning concerns the plans in a time period of 1 year – operational planning.

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General aim Specific aim Create an The following year to increase adequate profit profitability of equity by 5% Increase productivity Through quality supervision of the production to reduce a waste rate in department production Achieve a higher level The following month of managers to organize a lecture for managers on…..

Business owners may be aimed at immediate profit, sale of shares or merge with another company - but this does not have to be acceptable for managers Managers‘ goal is to obtain the highest rewards for themselves – it may not be acceptable for trade unions and company owners Employees (trade unions) aim to get the highest wages. On the contrary, managers or owners want to reduce the costs = to pay as low wages as possible

The author of this control method is Peter Drucker. It includes goal determination by top management, determination of managers who are responsible for meeting the goals and then gradual development of objectives for line managers and other workers. The personal responsibility for tasks and methods of evaluation are determined and goals are regularly monitored. This method is successfully used to monitor skilled and motivated employers that perform their work independently and initiatively.

General steps for drawing up the plan: 1.specify business plans 2.secure information for plan creation 3.prepare a proposed plan 4.introduce the proposed plan 5.wait for an opinion on the proposed plan 6.modify the proposed plan 7.approve the proposed plan 8.issue the final form of the plan

QUESTIONS 1. What does the letter ‚M‘ in the SMART method mean? 2. What does the letter ‚T‘ in the SMART method mean? 3. Try to modify the general objectives to meet the SMART method  increase profit  increase productivity  reduce waste rate  increase qualification of workers  product promotion

What does MBO mean? a) Way of inventory control b) Management by objectives c) Employee‘s transfer on a higher position The aim of planning is: a) Determine long-term goals b) Determine the way how to make profit c) Determine the goals and ways to achieve them The short-term plan is for example: a) Weekly production plan b) Company‘s vision c) Monthly plan shifts

 VEBER, J., et al. Management: základy, moderní manažerské přístupy, výkonnost a prosperita. Praha: Management Press, ISBN  VEBER, Jaromír, DĚDINA, Jiří, HRŮZOVÁ, Helena, KOŘENÁŘ, Václav, MALÝ, Milan, SRPOVÁ, Jitka. Příklady z managementu a jejich řešení. 1. vyd. Praha : Fortuna, ISBN  ZLÁMAL, Jaroslav, BAČÍK, Petr, BELLOVÁ, Jana. Základy managementu. 1. vyd. Kralice na Hané: Computer Media, ISBN  ŠAJDLEROVÁ, I., KONEČNÝ, M.: Základy managementu. Učební texty, Ostrava: VŠB-TUO, ISBN