management planing prince dudhatra 9724949948

8/7/2019 Management Planing Prince Dudhatra 9724949948

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PowerPoint Presentationto Accompany Chapter 8 of

Management, 8/eJohn R. Schermerhorn, Jr.

.


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prince dudhatra-9724949948

Planning Ahead Chapter 8 Study Questions

How do managers plan?

What types of plans do managers use?

What are the useful planning tools and

techniques?

What is the control process?

What are the common organizational

controls?


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Study Question 1: How do 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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Steps in the planning process:

Define your objectives.

Determine where you stand vis--vis objectives.

Develop premises regarding future conditions.

Analyze and choose among action alternatives.

Implement the plan and evaluate results.


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Figure 8.1 The roles of planning and

controlling in the management process.


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Benefits of planning:

Improves focus and flexibility.

Improves action orientation.

Improves coordination.

Improves time management.

Improves control.


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Figure 8.2 A sample means-ends chain for

total quality management.


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Study Question 2: What types of plans do

managers use?

Short-range and long-range plans

Short-range plans = 1 year or less

Intermediate-range plans = 1 to 2 yearsLong-range plans = 3 or more years

People vary in their capability to dealeffectively with different time horizons.

Higher management levels focus on longertime horizons.


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managers use? Strategic and operational plans

Strategic plans set broad, comprehensive, andlonger-term action directions for the entire

organization. Operational plans define what needs to be done in

specific areas to implement strategic plans.

Production plans

Financial plans

Facilities plans Marketing plans

Human resource plans


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managers use?

Policies and procedures

Standing plans

Policies and procedures that are designed forrepeated use.

Policy

Broad guidelines for making decisions and takingaction in specific circumstances.

Rules or procedures

Plans that describe exactly what actions are to betaken in specific situations.


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managers use?

Budgets and project schedules

Single-use plans

Only used once to meet the needs and objectives of a well-defined situation in a timely manner.

Budgets Single-use plans that commit resources to activities, projects,

or programs.

Fixed, flexible, and zero-based budgets.Projects

One-time activities that have clear beginning and end points.

Project management and project schedules.


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Study Question 3: What are the useful

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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Contingency planning

Identifying alternative courses of action that

can be implemented to meet the needs of

changing circumstances.

Contingency plans anticipate changing

conditions.

Contingency plans contain trigger points.


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Scenario planning

A long-term version of contingency planning.

Identifying alternative future scenarios.

Plans made for each future scenario.

Increases organizations flexibility and

preparation for future shocks.


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Benchmarking

Use of external comparisons to better evaluatecurrent performance and identify possible

actions for the future.

Adopting best practices of other organizations

that achieve superior performance.


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Use of staff planners

Coordinating the planning function for the total

organization or one of its major components.

Possible communication gaps between staff

planners and line management.


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Participation and involvement

Participatory planning requires that the planning

process include people who will be affected by theplans 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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Figure 8.3 How participation and

involvement help build commitments to plans.


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Study Question 4: What is the

control process?

Controlling

The process of measuring performance and taking

action to ensure desired results.

Has a positive and necessary role in the management

process.

Ensures that the right things happen, in the right way, at

the right time.

Organizational learning and after-action review.


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control process?

Steps in the control process:

Step 1 establish objectives and standards.Step 2 measure actual performance.

Step 3 compare results with objectives and

standards.

Step 4 take corrective action as needed.


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Figure 8.4 Four steps in the control

process.


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control process?

Step 1 establishing objectives and

standards

Output standards

Measure performance results in terms of quantity,

quality, cost, or time.

Input standards Measure effort in terms of amount of work

expended in task performance.


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control process?

Step 2 measuring actual performance

Goal is accurate measurement of actualperformance results and/or performance efforts.

Must identify significant differences between

actual results and original plan.

Effective control requires measurement.


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control process?

Step 3 comparing results with objectives

and standards

Need for action reflects the difference between

desired performance and actual performance

Comparison methods:

Historical comparison Relative comparison

Engineering comparison


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control process?

Step 4 taking corrective action

Taking action when a discrepancy exists

between desired and actual performance.Management by exception

Giving attention to situations showing the greatest

need for action.

Types of exceptions Problem situation

Opportunity situation


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control process?

Feedforward controls

Employed before a work activity begins.

Ensures that:

Objectives are clear.

Proper directions are established.

Right resources are available.

Focuses on quality of resources.


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control process?

Concurrent controls

Focus on what happens during work process.

Monitor ongoing operations to make sure they

are being done according to plan.

Can reduce waste in unacceptable finishedproducts or services.


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control process?

Feedback controls

Take place after work is completed.

Focus on quality of end results.

Provide useful information for improving future

operations.


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Figure 8.5 The role of feedforward,

concurrent, and feedback controls inorganizations.


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control process?

Internal and external control

Internal control

Allows motivated individuals and groups to exercise

self-discipline in fulfilling job expectations.

External control

Occurs through personal supervision and the use of

formal administrative systems.


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Study Question 5: What are the common

organizational controls?

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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Figure 8.6 Management by objectives as

an integrated planning and control framework.


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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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organizational controls?The MBO process:

Supervisor and workers jointly set objectives,

establish standards, and choose actions.Workers act individually to perform tasks;supervisors act individually to providenecessary support.

Supervisor and workers jointly review results,discuss implications, and renew the MBOcycle.


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organizational controls? Types of MBO performance objectives

Improvement

Personal development Maintenance

Criteria for effective performance objectives

Specific

Time defined Challenging

Measurable


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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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Advantages of MBO

Focuses workers on most important tasks and

objectives.Focuses supervisors efforts on important areas

of support.

Contributes to relationship building.

Gives workers a structured opportunity to

participate in decision making.


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Employee discipline systems

Discipline is the act of influencing behavior

through reprimand.

Discipline that is applied fairly, consistently,

and systematically provides useful control.


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To be effective, reprimands should

Be immediate.

Be directed toward actions, not personality.

Be consistently applied.

Be informative.

Occur in a supportive setting.

Support realistic rules.


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Employee discipline systems

Progressive discipline ties reprimands to the

severity and frequency of the employees

infractions.

Progressive discipline seeks to achieve

compliance with the least extreme reprimand

possible.


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organizational controls? Important financial aspects of organizational

performance

Liquidity

The ability to generate cash to pay bills.

Leverage The ability to earn more in returns than the cost of debt.

Asset management The ability to use resources efficiently and operate at minimum

cost.

Profitability

The ability to earn revenues greater than costs.


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Break-even analysis

Determination of the point at which sales

revenues are sufficient to cover costs.Break-Even Point = Fixed Costs / (Price

Variable Costs)

Used in evaluating:

New products

New program initiatives


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Figure 8.7 Graphical approach to break-

even analysis.


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Purchasing control

A productivity tool

Trends in purchasing control:

Leveraging buying power

Committing to a small number of suppliers

Working together in supplier-purchaser partnerships


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Inventory control

Goal is to ensure that inventory is just the right

size to meet performance needs, thus

minimizing the cost.

Methods of inventory control:

Economic order quantity

Just-in-time scheduling


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Statistical quality control

Quality control involves checking processes,

materials, products, and services to ensure thatthey meet high standards.

Statistical quality control involves:

Taking samples of work. Measuring quality in the samples.

Determining the acceptability of results.


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management planing prince dudhatra 9724949948

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