Engr. Mgt 211 Managing Engineering

1
Engr. Mgt 211 Managing Engineering Technology

• Chapter 5
• Planning Systems

2
What is planning?

• Planning is defining organizational goals,
  establishing a strategy for reaching those goals,
  and developing a comprehensive hierarchy of
  plans to integrate and coordinate activities.

3
Types of plans
Managers classify plans according to their
breadth (strategic vs. operational) and time
frame

• Strategic vs Operational
• Establish overall objectives
• Specify details of how objectives are achieved
• Short, Intermediate and Long-term

4
Strategic Verses Operational plans
1. Upper-level managers develop strategic plans
that apply to the entire organization, establish
overall objective, and position the organization
within its environment
5
Strategic Verses Operational plans
2. Lower-level managers focus on operational
plans that specify how the overall objectives
will be achieved. These plans differ in time
frame and scope
6
Strategic Verses Operational plans
3. Operational plans are limited in scope and are
measured daily, weekly or monthly strategic
plans are broader, less specific and encompass
five or more years
7
Short, Intermediate, and Long Term Plans

• The short-term covers less than one year
• 2) Intermediate-term covers one to five years
• 3) The long term normally covers five or more
  years

8
Planning in an Uncertain Environment

• Why managers plan?
• Planning gives direction
• Reduces impact of change
• Minimizes waste and redundancy
• Sets standards for control

9
Planning in an Uncertain Environment

• Formalized and strategic planning is popular in
  business, but critics have observed the
  following
• Planning creates too much rigidity
• You cant plan for change in a turbulent
  environment
• Systems cant replace intuition and creativity
• Planning focuses to much on todays environment
• Organizations may become preoccupied with factors
  responsible for current success

10
Planning in an Uncertain Environment

• The bottom line Does planning improve
  organizational performance ?

11
Does Planning Improve Performance?

• Financial results
• Contingency planning
• Quality and implementation
• Insight and creativity
• Environmental concerns

12
Defining Organizations Purpose

• Mission Statements defines organizations
  purpose and provides guidance to managers and
  employees. Answers such questions as
• What business are we in?
• What are we trying to accomplish?
• Focuses an organizations strengths into a
  competitive advantage

13
Creating Strategies

• Types of Strategies
• Growth
• Stability
• Retrenchment
• Combination

14
Creating Strategies

• SWOT Analysis (Strengths, Weaknesses,
  Opportunities, Threats)
• Identify external opportunities and threats
• Identify organizations strengths and weaknesses
• Choose a niche

15
(No Transcript)
16
Strategic Framework

• Michael Porter asserts that no firm can be all
  things to all people ( so dont try)
• Competitive advantage
• Capability or circumstance that gives an
  organization an edge over its rivals
• Cost leadership strategy
• Differentiation strategy
• Focus strategy

17
Implementing a Strategy7 S Model

• Strategy
• Super-ordinate goals
• Skills
• Structure
• Systems
• Style
• Staff

18
Implementing a Strategy
Structure
Systems
Strategy
Superordinate Goals
Style
Skills
Staff
19
Importance of Sustaining a Competitive Advantage

• Long-term success requires that the strategy be
  sustainable despite changing technology, fickle
  customers, and increasing competition

20
Sustaining a Competitive Advantage

• Project Management
• Entrepreneurship
• Multiple Objectives
• Effective Time Management

21
Project Management

• Getting the activities done on time, within
  budget, and according to specifications
• Project Planning Process
• Objectives, activities and resources, establish
  sequencing, time estimate, project completion
  time, compare objectives, determine resource
  requirements
• Role of Project Manager

22
Entrepreneurship

• Process by which individuals pursue
  opportunities, fulfilling needs and wants through
  innovation, without regard to the resources they
  currently control

23
Are You an Entrepreneurial Type?

• Entrepreneurial personality
• High need for achievement, strong belief that you
  control your destiny and desire to take moderate
  risks
• Not contented in typical large corporations
• Challenges of starting own business mesh well
  with personality

24
How Entrepreneurs and Traditional Managers Differ

• The entrepreneurs strategy is driven by
  perceived opportunity rather then available
  resources
• Only after identifying an opportunity and
  developing a plan for exploiting it does he or
  she worry about resources

25
Objectives Use Misuse

• Objectives or goals refer to desired outcomes for
  individuals, groups or entire organization
• Organizations have Multiple objectives
• Real vs Stated Objectives
• Value of Objectives Goal setting theory

26
Management by Objectives

• Identify key tasks
• Establish specific and challenging goals
• Specify deadline
• Have employee actively participate
• Prioritize goals
• Rate goals
• Build in feedback mechanisms
• Line rewards to goal attainment

27
The Downside of Objectives

• Goal setting should be on-going, and goals should
  be regularly reviewed and updated. In addition,
  individuals should be rewarded for setting
  difficult goals, even if they are not fully
  achieved.

28
Time Management Skills

• Time is a scarce resource
• Response time vs discretionary time
• Analyze how time is spent
• Very important, important, not so important,
  unimportant
• Very urgent, urgent, not urgent, time not a factor

29
Effective Time Management Skills

• Five steps list objectives, rank objectives,
  list activities needed, assign priorities,
  schedule accordingly
• 10-90 principle
• Know productivity cycle
• Parkinsons law
• Group less important activities
• Minimize disruptions