1. PowerPoint Presentation to Accompany Management Third Canadian Edition John R. Schermerhorn, Jr. Barry Wright
Prepared by: Jim LoPresti
University of Colorado, Boulder
Revised by: Dr. Shavin Malhotra
Ryerson University, Toronto, Ontario

2. Chapter 6: Planning Processes and Techniques
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3. Chapter 6 Learning Objectives
6.1 Explain why and how managers plan.
6.2 Describe the types of plans managers use.
6.3 Identify and describe the various planning tools and techniques.
6.4 Explain how to implement plans to achieve results.
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4. Why and How Managers Plan
Planning
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.
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5. Why and How 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.
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6. Why and How Managers Plan
Figure 6.1 The roles of planning and controlling in the management process.
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7. Why and How Managers Plan
Benefits of planning:
Improves focus and flexibility.
Improves action orientation.
Improves coordination and Control.
Improves time management
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8. Why and How Managers Plan
Personal Time Management Tips:
DO say “no” to requests that distract from what you should be doing.
DON’T get bogged down in details that can be addressed later.
DO screen telephone calls, s, and meeting requests.
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9. Why and How Managers Plan
Personal Time Management Tips:
DON’T let drop-in visitors instant messaging use up your time
DO prioritize your important and urgent work
DON’T become calendar bound by letting others control your schedule
DO follow priorities; do most important and urgent work first.
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10. Types of 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
People vary in their capability to deal effectively with different time horizons.
Higher management levels focus on longer time horizons.
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11. Types of Plans Used by Managers
Strategic and Tactical Plans
Strategic plans — set broad, comprehensive, and longer-term action directions for the entire organization.
Tactical plans — define what needs to be done in specific functions to implement strategic plans.
Production plans
Financial plans
Facilities plans
Marketing plans
Human resource plans
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12. Types of Plans Used by Managers
Operational plans
Policies and procedures
Policy
Broad guidelines for making decisions and taking action in specific circumstances.
Rules or procedures
Plans that describe exactly what actions are to be taken in specific situations.
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13. Types of Plans Used by Managers
Operational plans
Budgets
Single-use plans that commit resources to activities, projects, or programs.
Fixed, flexible, and zero-based budgets.
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14. 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.
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15. Planning Tools and Techniques
Contingency planning
Identifying alternative courses of action that can be implemented if circumstances change.
Contingency plans anticipate changing conditions.
Scenario planning
A long-term version of contingency planning.
Identifying alternative future scenarios.
Plans made for each future scenario.
“worst-case” and “best-case” scenarios
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16. Planning Tools and Techniques
Benchmarking
Use of external and internal comparisons to better evaluate current performance and identify possible actions for the future.
Adopting best practices of other organizations that achieve superior performance.
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17. Planning Tools and Techniques
Use of staff planners
Coordinating and energizing the planning function.
Help bring focus and expertise to accomplish important, often strategic, planning tasks.
Possible communication gaps between staff planners and line management.
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18. Implementing Plans to Achieve Results
Goal Setting:
Can make a big difference in how well management does in pointing people in the right directions and inspiring them to work hard.
Great goals are SMART:
Set specific goals.
Make sure goals are measurable.
Ensure goals are attainable.
Goals must be referred to regularly.
Goals must be timely.
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19. Implementing Plans to Achieve Results
Goal Alignment
To make sure that goals and plans are well integrated across the many people, work units, and levels of an organization as a whole.
Goals set anywhere in the organization should ideally help advance its overall mission or purpose
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20. Figure 6.8 A sample hierarchy
Implementing Plans to Achieve Results
Figure 6.8 A sample hierarchy
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21. Implementing Plans to Achieve Results
Management by Objectives (MBO)
A structured process of regular communication.
Supervisor/team leader and workers jointly set performance objectives.
Supervisor/team leader and workers jointly review results.
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22. Implementing Plans to Achieve Results
MBO involves a formal agreement specifying …
Workers’ performance objectives for a specific time period.
Plans through which performance objectives will be accomplished.
Standards for measuring accomplishment of performance objectives.
Procedures for reviewing performance results.
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23. Implementing Plans to Achieve Results
Figure 6.9 Management by objectives as an integrated planning and control framework.
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24. Implementing Plans to Achieve Results
Types of MBO performance objectives
Improvement
Personal development
Maintenance
Criteria for effective performance objectives
Specific
Time defined
Challenging
Measurable
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25. Implementing Plans to Achieve Results
Pitfalls to avoid in using MBO
Tying MBO to pay.
Focusing too much attention on easily quantifiable objectives.
Requiring excessive paperwork.
Having managers tell workers their objectives.
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26. Implementing Plans to Achieve Results
Advantages of MBO
Focuses workers on most important tasks and objectives.
Focuses supervisor’s efforts on important areas of support.
Contributes to relationship building.
Gives workers a structured opportunity to participate in decision making.
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27. Implementing Plans to Achieve Results
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.
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28. Implementing Plans to Achieve Results
Figure 6.10 How participation and involvement help build commitments to plans.
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29. COPYRIGHT
Copyright © 2014 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.