Planning and Controlling

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Chapter 8

• Planning and Controlling

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The management functions

• Planning
• Organizing
• Leading
• Controlling
• Planning is the springboard for the other
  functions you must have a plan!

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Definition of planning

• The process of setting objectives and determining
  how to accomplish them.
• It is the conscious, systematic process of making
  decisions about goals and activities.

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The planning process

• Establish goals
• Perform a situation analysis (SWOT)
• Generate scenarios or alternatives
• Analyze select an alternative
• Implement evaluate

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The environmental context

• What is our fundamental purpose? Mission
  statement.
• Under what premises do we operate?
• What are our values?
• What direction are we going?
• To plan for the future you must know where you
  are today.

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Objectives are specific results that one wishes
to achieve.

• Why are objectives important?

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Importance of objectives

• Provide guidance a unified direction
• Effective goal setting promotes good planning
• Goals can serve as a source of motivation
• Provide a mechanism for effective evaluation and
  control

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A Plan is a statement of intended means for
accomplishing objectives

• What is the importance of a plan?

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Importance of planning

• Improves focus flexibility
• Improves action orientation
• Improves coordination
• Improves time management
• Improves control

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Types of Plans

• Time based plans
• By level within the organization
• Standing plans
• Single use plans

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Time based

• Daily
• Short-range usually one year or less
• Long-range three to five year plans

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By level in the organization

• Strategic
• Top level long-term
• Defines goals for overall organization
• Operational
• Middle managers short-term
• Functional specific area
• Tactical
• Line managers daily, weekly, monthly
• Specific to parts of the operational strategic
  plans

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Standing plans

• Policy
• Standing plan that communicates broad guidelines
  for decisions and actions
• Procedure
• A rule that describes exactly what action to take
  in a given situation.

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Single use plans

• Budgets
• A proposal to commit or allocate resources
• Schedules
• The time frame within which specific tasks are to
  be accomplished

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Planning tools techniques

• Forecasting
• Contingency
• Scenario
• Benchmarking
• Use staff planners
• Participation involvement

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Definition of Controlling

• The process of measuring performance and taking
  action to ensure desired results.
• Im not proud of the fact that, in retrospect,
  we didnt know what the hell was going on.
• Roderick M. Mills
• Waste Management board member

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Why is controlling important?

• To make sure plans are fulfilled
• To see if actual performance meets the
  expectations of the plan
• It measures what you are doing!

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Steps in the control process

• Establish objectives standards to be measured
• Measure the actual performance
• Compare actual with desired
• Take corrective action or?

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Types of controls

• Feedforward
• Concurrent
• Feedback
• Internal control is self governing
• External control is imposed regulation

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Control systems

• Compensation benefits
• Disciplinary actions
• Information financial
• Operations management
• MBO MBWA

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Questions?

• For next class, please read chapter 9.