Management 11e John Schermerhorn

1
Management 11e John Schermerhorn

• Chapter 8
• Planning Processes and Techniques

2
Planning Ahead Chapter 8 Study Questions

1. Why and how do managers plan?
2. What types of plans do managers use?
3. What are the useful planning tools and
   techniques?
4. How can plans be well implemented?

3
Study Question 1 Why and 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

4
Study Question 1 Why and how do managers plan?

• Steps in the planning process
• Define your objectives
• Determine where you stand vis-à-vis objectives
• Develop premises regarding future conditions
• Analyze alternatives and make a plan
• Implement the plan and evaluate results
• Benefits of planning
• Improves focus and flexibility
• Improves action orientation
• Improves coordination
• Improves time management . Improves control

5
Figure 8.1 The roles of planning and controlling
in the management process
6
Study Question 1 Why and how do managers plan?

• Personal time management tips
• DO say no to requests that distract from what
  you should be doing
• DONT get bogged down in details that can be
  addressed later
• DO screen telephone calls, emails, and meeting
  requests
• More personal time management tips
• DONT let drop-in visitors instant messaging use
  up your time
• DO prioritize your important and urgent work
• DONT become calendar bound by letting others
  control your schedule
• DO follow priorities do most important and
  urgent work first

7
Study Question 2 What types of plans do managers
use?

• Types of plans
• Long-term plans look three or more years into the
  future
• Short-term plans typically cover one year or
  less

8
Study Question 2 What types of plans do managers
use?
9
Study Question 2 What types of plans do managers
use?

• Strategic plans set broad, comprehensive, and
  longer-term action directions for the entire
  organization
• Vision clarifies purpose of the organization
  and what it hopes to be in the future
• Tactical plan helps to implement all or parts
  of the strategic plan
• Functional plans indicate how different
  operations within the organization will help
  accomplish the overall strategy
• Production plans
• Financial plans
• Facilities plans
• Marketing plans
• Human resource plans
• Logistics plans

10
Study Question 2 What types of plans do managers
use?

• Operational plans identify short-term
  activities to implement strategic plans
• Policies are standing plans the communicate
  guidelines for decisions
• Procedures are rules that describe actions to be
  taken in specific situations
• Budgets are plans the commit resources to
  projects or activities
• Zero based budgets allocate resources as if each
  budget were brand new

11
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 \
• 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

12
Study Question 3 What are the useful planning
tools and techniques?

• 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
• Benchmarking
• Use of external comparisons to better evaluate
  current performance and identify possible actions
  for the future
• Adopting best practices of other organizations
  that achieve superior performance

13
Study Question 4 How can plans be well
implemented?
14
Figure 8.2 A sample hierarchy
15
Study Question 4 How can plans be well
implemented?

• Participatory Planning
• unlocks the motivational potential of goal
  setting
• management by objectives (MBO) promotes
  participation
• when participation is not possible, workers will
  respond positively if supervisory trust and
  support exist

16
Figure 8.3 How participation and involvement help
build commitment to plans
17
Chapter 8 Case

• Lands End Living the Golden Rule