Why and how do managers plan? 4/11/2013 5:21:00 PM
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.
1. Define your objectives – outcomes/results intended to achieve.
2. Determine where you stand vis-à-vis objectives – evaluate current
accomplishments relative to desired results
3. Develop premises regarding future conditions – anticipate future events,
4. Analyze and choose among action alternatives – list/evaluate possible actions,
choose alternatives, what to be done
5. Implement the plan and evaluate results – take action, carefully measure process
Fig. 6.1 the roles of planning/controlling in the management process.
BENEFITS OF PLANNING:
Improves focus and flexibility.
Improves action orientation.
o complacency trap: being carried along by flow of events
Improves coordination and control.
Improves time management
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, emails, and meeting requests.
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. What types of plans do managers use? 4/11/2013 5:21:00 PM
SHORT-RANGE + LONG-RANGE PLANS:
o Short-range plans = 1 year or less
o Intermediate-range plans = 1 to 2 years
o 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.
STRATEGIC AND TACTICAL PLANS
Strategic plans — set broad, comprehensive, and longer-term action directions for the
Tactical plans — define what needs to be done in specific functions to implement
Production plans dealing w/ work methods or technologies
Financial plans dealing w/ money and capital investments
Facilities plans dealing w facilities and work layouts
Marketing plans dealing w/ suppliers and acquiring resource inputs
Human resource plans dealing w building talented work force
Policies and procedures:
Policy broad guidelines for making decisions and taking action in specific circumstances.
Rules/procedures plans that describe exactly what actions are to be taken in specific
Budgets Single-use plans that commit resources to activities, projects, or programs.
o Fixed, flexible, and zero-based budgets- allocates resources as if each budget were
flexible budget What are the useful planning tools and techniques? 4/11/2013 5:21:00 PM
Making attempts 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.
Identifying alternative co