7394081-schermerhorn-mgmt9-ch08.pdf

8/17/2019 7394081-Schermerhorn-Mgmt9-Ch08.pdf

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PowerPoint Presentation

to AccompanyManagement, 8/e

John R. Schermerhorn, Jr.

Prepared by: Jim LoPresti

University of Colorado, Boulder Published by: John Wiley & Sons, Inc.

ap er :Planning – Processes and Techniques


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Planning Ahead — Chapter 8 Study Questions

Why and how do managers plan?

What types of plans do managersuse?

Management 8/e - Chapter 8 2

What are the useful planning toolsand techniques?

How does management by objectiveoperate?


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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 desiredoutcomes that one intends to achieve.

Plan

A statement of action steps to be taken inorder to accomplish the objectives.


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Steps in the planning process:

Define your objectives.

Determine where you stand vis-à-vis objectives.


Develop premises regarding future conditions.

Analyze and choose among action alternatives.

Implement the plan and evaluate results.


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Figure 8.1 The roles of planning and controlling in

the management process.



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Benefits of planning:

Improves focus and flexibility.


Improves coordination.

Improves time management.

Improves control.


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Figure 8.2 A sample means-ends chain for total

quality management.



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Study Question 2: What types of plans do managers

use?

Short-range and long-range plans Short-range plans = 1 year or less Intermediate-range plans = 1 to 2

ears


Long-range plans = 3 or more years People vary in their capability to

deal effectively with different timehorizons.

Higher management levels focus on

longer time horizons.


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use?

Strategic and operational plans Strategic plans — set broad, comprehensive, and

longer-term action directions for the entireorganization.

Operational plans — define what needs to be done


r r . Production plans

Financial plans

Facilities plans

Marketing plans Human resource plans


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use?

Policies and procedures Standing plans

Policies and procedures that are designed


Policy

Broad guidelines for making decisions andtaking action in specific circumstances.

Rules or procedures

Plans that describe exactly what actionsare to be taken in specific situations.


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use?

Budgets and project schedules

Single-use plansOnly used once to meet the needs andobjectives of a well-defined situation in atimely manner.


Budgets Single-use plans that commit resources to

activities, projects, or programs.

Fixed, flexible, and zero-based budgets.

Projects One-time activities that have clear beginning

and end points.

Project management and project schedules.


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Study Question 3: What are the useful planning tools

and techniques?

Forecasting

Making assumptions about what will happen inthe future.

ualitative forecastin uses ex ert o inions.


Quantitative forecasting uses mathematicaland statistical analysis.

All forecasts rely on human judgment.

Planning involves deciding on how to deal withthe implications of a forecast.


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and techniques?

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.


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and techniques?

Scenario planning

A long-term version of contingency

lannin .


Identifying alternative future scenarios.

Plans made for each future scenario.

Increases organization’s flexibility and

preparation for future shocks.


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and techniques?

Benchmarking

Use of external comparisons to better


identify possible actions for the future.

Adopting best practices of other

organizations that achieve superior

performance.


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and techniques?

Use of staff planners Coordinating the planning function for


the total organization or one of its

major components.

Possible communication gaps between

staff planners and line management.


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and techniques?

Participation and involvement Participatory planning requires that the planning

process include people who will be affected by the


.

Benefits of participation and involvement:

Promotes creativity in planning.

Increases available information.

Fosters understanding, acceptance, and

commitment to the final plan.


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Figure 8.3 How participation and involvement help

build commitments to plans.



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Study Question 4: How does management by

objectives operate?

Management by Objectives (MBO)

A structured process of regular


.

Supervisor/team leader and workers

jointly set performance objectives.

Supervisor/team leader and workers

jointly review results.


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Figure 8.4 Management by objectives as an

integrated planning and control framework.



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objectives operate?

MBO involves a formal agreement

specifying …

Workers’ performance objectives for a specific


.

Plans through which performance objectives

will be accomplished.

Standards for measuring accomplishment ofperformance objectives .

Procedures for reviewing performance results.


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objectives operate?

The MBO process: Supervisor and workers jointly set

objectives, establish standards, andchoose actions.


Workers act individually to performtasks; supervisors act individually toprovide necessary support.

Supervisor and workers jointly reviewresults, discuss implications, and renewthe MBO cycle.


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objectives operate

Types of MBO performance objectives Improvement Personal development

Maintenance


Criteria for effective performanceobjectives Specific

Time defined Challenging

Measurable


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Study Question 4: How does management byobjectives operate?

Pitfalls to avoid in using MBO

Tying MBO to pay.


quantifiable objectives.

Requiring excessive paperwork.

Having managers tell workers their

objectives.


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Study Question 4: How does management byobjectives operate?

Advantages of MBO Focuses workers on most important

tasks and objectives.

’


important areas of support.

Contributes to relationship building.

Gives workers a structured opportunityto participate in decision making.


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