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Chapter 8

Chapter 8

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Global Management Studies
GMS 200
Shavin Malhotra

GMS200 Chapter 8 – PLANNING AND CONTROLLING Management process (management functions..) planning, organizing, leading, controlling the use of resources to achieve performance objectives Planning: process of setting objectives & determining how to accomplish them Organizing: allocating/ arranging resources to accomplish tasks Leading: guiding efforts of human resources to ensure high levels of task accomplishment Controlling: monitoring task accomplishments and taking necessary corrective action Planning – to set the directions decide where you want to go, how to do that Organizaing – create structures Leading – inspire effort Controlling – to ensure results measure performance, take corrective action Planning Process Objectives: specific results one wants to achieve Plan: Statement of intended means (action steps) for accomplishing objectives Steps of systematic planning process... 1. Define objectives i. (in specific way, where you wanna go, how far off the mark you are, specific to know exactly when you have arrived) 2. Determine where you stand vis-a-vis objectives i. (evaluate currect accomplishments relative to desired results, know where you stand in reaching objective, know strengths that work in your favour + weaknesses that may hold you back) 3. Develop premises regarding future conditions i. (Anticipate future events. Generate alternative scenarios for what may happen, identify things that may help/hinder progress toward your objectives) 4. Analyze and choose among action alternatives i. (list/evaluate possible actions. Choose alternative most likely to accomplish objectives. Describe step-by-step what’s to be done to follow chosen action.) 5. Implement the plan and evaluate results i. ( take action, measure progress towards objectives. Do what plan requires, evaluate results, take corrective action/revise plans) Planning is ongoing, continuously done even while dealing with otherwise hectic, demanding work setting, BEST PLANNING done w/ active participation and involvement of people whose work efforts eventually determine whether or not objectives are accomplished BENEFITS OF PLANNING Planning improves focus & flexibility o Focus (know strengths, needs of customers, where they wanna go), o Flexibility (organization willing to change and adapt to shifting circumstances) Improves action orientation o Stay ahead of competition, become better o Good planning makes us more... Result oriented www.notesolution.com GMS200 Priority oriented (most important thing get done) Advantage oriented (all resources are used to best advantage) Change oriented (anticipating problems, opportunities) Improves coordination o Good planning throughout organization creates...means-ends chain (hierarchy of objectives): lower-level objectives help accomplish higher –level ones Improves time management o To-do lists can help, but they should contain the right things, distinguish b/w what you must do (top priority), should do (high priority), would be nice to do (low priority), don’t really need to do (no priority) Improves control o Planning assists w/ control, makes easier to measure performance results and take action to improve things as necessary o Planning + controlling work closely together in management process PLANNING THEORIES Rational comprehensive planning (RCP): focuses on a logical decision-making approach and advocates a holistic (Relating to a study of the whole instead of a separation into )partroach to problem solving o Uses conceptual/mathematical models, relate ends (objectives) to means (resources and constraints) w/ heavy reliance of statistical analysis o Major advantage: simplicity, (logical, deliberate process) o Unrealistic though, can be applied to relatively simple problems Incrementalism: “to muddle through” o Strength: rather than trying to be rational and comprehensive, looks at decision making as it generally occurs o Changes are made in small doses, rather than radical action (like RCP) o Fewer info demands, examines the consequences of smaller change, both of which allow decision makers to act more quickly in response to environmental changes o Critics say it is limited in scope as it generally addresses only small range of alternatives. By focusing on very near future, fails to take advantage of innovations/innovative thinking Planners take advantage of the strengths of both approaches, attempting to avoid weaknesses of each. (collectivist approach to get SUCCESSFUL PLANNING) TYPES OF PLANS USED BY MANAGERS 1. Short –range and long-range plans 1 Short-range plans cover one year or less 2 Intermediate-range plans cover one to two years 3 Long-range plans look three or more years into the future 4 top-management most likely involved in setting long-range plans and directions for organization, low-management levels focus on short-range plans 5 everyone should understand organization’s long-term plans 2. Strategic and operational plans 1 Strategic plans: identifies/set long-term directions for the organization 2 Strategic planning by top management involves determining objectives for entire organization (describing what/where organization wants to be in future) 3 Operational plans: identifies activities to implement strategic plans i. Production plans, financial plans, facilities plans, marketing plans, human resource plans www.notesolution.com GMS200 3. Policies and procedures 1 Standing plans in the form of organizational policies and procedures are designed for use over and over again 2 Policy: standing plan that communicates broad guidelines for decisions and action 3 Rules or procedures: precisely describes actions that are to be taken in specific situations i. Often found in employee handbooks as “SOPs” standard operating procedures 4. Budgets and projects 1 Single-use plans used once, serve needs of well-defined situations in timely manner 2 Budget: a (single-use) plan that commits resources to projects or activities or programs i. Allocate resources among multiple/competing uses ii. Fixed budget – allocates fixed amount of resources for a specific purpose iii. Flexible budget –llows allocation of resources to vary in proportion w/ various levels of activity iv. Common problem w/ budgets: resource allocations get rolled over from one budgeting period to the next, often w/o a rigorous performance review 1. Solution zero-based budget: allocates resources as if each budget were brand new 3 Projects: one-time activities that have clear beginning and end points 4 Project management: makes sure that activities required to complete a project are accomplished on time and correctly i. Extensive use of project schedules that define specific task objectives, link activities to be accomplished with due dates, identify amounts and time of resource requirements PLANNING TOOLS AND TECHNIQUES 5 Forecasting: attempts to (process of) predicting the future i. Qualitative forecasting: use expert opinions to predict future ii. Quantitative forecasting: use mathematical models and statistical analysis of historical data and surveys to predict future events iii. Can be incorrect. Forecasting always relies on human judgement. Planning involves deciding what to do about the implications of forecast once they are made 6 Contingency Planning: identifies alternative courses of action to take when things go wrong/ during changing circumstances i. Contain “trigger-points” that indicate when pre-selected alternative plans should be activated 7 Scenario planning: long-term version of contingency planning. Identifies alternative future scenarios and makes plans to deal with each. 8 Benchmarking: uses external comparisons to gain insights for planning/ to better evaluate one’s current performance and identify possible actions for future i. Benchmarking technique...search for Best practices: things that lead to superior performance (done by competitors, non competitors) 9 Use of Staff Planners: employed to coordinate planning for organization as whole or for one of its major components. Skilled w/ steps of p. process & planning tools/techniques 10 Participatory planning: includes the persons who will be affected by plans a
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