1. CSC350: Learning Management Systems
COMSATS Institute of Information Technology (Virtual Campus)

2. Lecture # 5 Planning and Planning Tools

3. Review of the Previous Lecture
Understanding international management
Categorizing organizations by level of international involvement
Constituting a multinational corporation
Information about those who work in multinational corporations
Relating management functions to multinational corporations
Transnational organizations
Issues impacting managing in the international system

4. Topics of Discussion General characteristics of planning
Different types of plans
Major steps of the planning process
Relationship between planning and organizational objectives
Management by objectives (MBO) program
Types of planning tools

5. GENERAL CHARACTERISTICS OF PLANNING
Defining Planning
Process of determining how an organization can get where it wants to go and what it will do to accomplish its objectives
Through planning, the firm identifies:
Where it is going
How it will get there

6. GENERAL CHARACTERISTICS OF PLANNING
Purposes of Planning
Minimize risk by reducing uncertainties
Increase degree of organizational success
Establish a coordinated effort within the organization
Facilitate the accomplishment of the organization and its objectives

7. GENERAL CHARACTERISTICS OF PLANNING
Advantages of Planning
Helps managers become future-oriented
Enhances decision coordination
Emphasizes organizational objectives
Helps ensure sustainability of the firm
Helps managers identify and deal with problems that arise as the firm conducts its business

8. GENERAL CHARACTERISTICS OF PLANNING
Disadvantages of Planning
Managerial time involvement
Rigidity and lack of adaptability
Balance of time spent on organizing, influencing, and controlling

9. GENERAL CHARACTERISTICS OF PLANNING
Primacy of Planning
Planning is the primary management function
Planning serves as the basis for the other management functions

10. TYPES OF PLANS Standing Single-Use
Exist for routine guidelines & actions that occur repeatedly
Single-Use
Exist for single purpose only

11. STEPS IN THE PLANNING PROCESS

12. STEPS IN THE PLANNING PROCESS
Step 1 – State Organizational Objectives
Managers begin the planning process with a clear statement and understanding of the organization’s objectives
Step 2 – List Alternative Ways of Reaching Objectives
Managers need to list as many alternatives as possible for reaching the firm’s objectives

13. STEPS IN THE PLANNING PROCESS
Step 3 – Develop Premises on Which to Base Each Alternative
Managers need to identify the premises and assumptions upon which the alternatives are based
Step 4 – Choose the Best Alternative for Reaching Objectives
Managers determine which alternative best accomplishes an organizational objective

14. STEPS IN THE PLANNING PROCESS
Step 5 – Develop Plans to Pursue the Chosen Alternative
Managers begin their strategic/long-range and tactical/short-range plans based on the chosen alternative
Step 6 – Put the Plans into Action
Managers implement the plan and evaluate the results of the planning process

15. ORGANIZATIONAL OBJECTIVES
The target toward which the organization’s open management system is directed
Reflect the purpose (mission) of the organization
Identify what the organization exists to do, given a particular group of customers and customer needs

16. ORGANIZATIONAL OBJECTIVES

17. ORGANIZATIONAL OBJECTIVES
In an open management system, the organization’s targets/objectives are reached from many sources

18. ORGANIZATIONAL OBJECTIVES AREAS OF FOCUS
Market Standing
Innovation
Productivity
Physical & Financial Resources
Profitability
Managerial Performance & Development
Worker Performance & Attitudes
Public Responsibility

19. ORGANIZATIONAL OBJECTIVES
Three Types of Objectives
Short-Term
Targets to be reached in one year or less
Intermediate-Term
Targets to be achieved in one to five years
Long-Term
Targets to be achieved in five to seven years

20. ORGANIZATIONAL OBJECTIVES
Guidelines for Establishing Quality Objectives
Let the individuals responsible for attaining the objectives have a voice in setting them
State objectives as specifically as possible
Relate objectives to specific actions whenever necessary
Pinpoint expected results

21. ORGANIZATIONAL OBJECTIVES
Guidelines for Establishing Quality Objectives
Set goals high enough that employees will have to strive to meet them but not so high employees will give up trying to meet them
Specify when goals are expected to be achieved
Set objectives only in relation to other organizational objectives
State objectives clearly and simply

22. MANAGEMENT BY OBJECTIVES (MBO)
Management approach based exclusively on objectives
Includes three basic parts:
Mutually set and agreed upon objectives
Performance reviews conducted periodically
Employees rewarded upon reaching goals

23. MANAGEMENT BY OBJECTIVES (MBO)
The MBO Process

24. MANAGEMENT BY OBJECTIVES (MBO)
Factors Necessary for a Successful MBO Program
Top management commitment
Managers and employees develop goals together
Employee performance conscientiously evaluated against established objectives
Management follow-through on employee performance and reward accordingly

25. MANAGEMENT BY OBJECTIVES (MBO)
Advantages:
Emphasize what should be done in an organization to achieve organizational goals
Secures employee commitment to attaining organizational goals
Disadvantages:
Time-consuming
Increased paperwork

26. PLANNING TOOLS FORECASTING
Process of predicting future environmental happenings that will influence the operations of the organization
Ability to help managers understand future makeup of the organizational/managerial environment helps managers formulate more effective plans

27. Planning Tools - Forecasting
Sales Forecasts
Qualitative
Jury of Executive Opinion Method
Delphi Method
Sales Force Estimation Method
Quantitative
Moving Average
Regression
Product Stages

28. Planning Tools - Forecasting
Regression Analysis Method

29. Planning Tools - Forecasting
Product Stages Method

30. PLANNING TOOLS SCHEDULING Process:
Formulating detailed listings of activities that must be accomplished to attain an objective
Allocating resources necessary to attain the objective
Setting up and following time tables for completing the objective

31. Planning Tools - Scheduling
Gantt Charts

32. Planning Tools - Scheduling
PERT – Program Evaluation & Review Technique

33. WHY PLANS FAIL
Understanding why plans fail helps eliminate factors that cause failures and increases probability plans will succeed…
Planning not integrated
Lack of understanding
Managers across all levels are not engaged
Responsibility is wrongly vested
Expectation plans are realized effortlessly

34. WHY PLANS FAIL
Understanding why plans fail helps eliminate factors that cause failures and increases probability plans will succeed…
Too much attempted at once
Management fails to implement the plan
Financial projections confused with planning
Inadequate inputs used in planning
Failure to grasp overall planning process

35. Conclusions
Think of the sum-up and listen to me carefully.

36. Thank You