principles of managment
DESCRIPTION
MUHAMMAD WAQAS QURESHITRANSCRIPT
Principles of Managment
Planning Tools and Techniques
Chapter 9
Presented by
Muhammad Waqas
Shakeel Ahmed Husnain dar Tanvir ul Hassan Abubakar Ashraf
Prensented To :
DR Ijaz Ahmed Qureshi
Outlines
Techniques for Assessing the Enviroment
Techniques for Allocation Resources
Contemporary Planning Techniques
Techniques for Assessing the Enviroment
1. Environmental Scanning2. Forecasting3. Benchmarking
Enviromental Scanning
Monitoring and Scanning
Political, social , Demographics,Global, Competitors etc.
Competitor Intellegence
Identify Competitors , Their Activities , and their Impact on Organization
Advertisement , Annual Report etc
Global Scanning
Information on global forces.
Draws information from sources that provide global perspectives on world-wide issues and opportunities.
Forecasting
Prediction of outcomes
1. Quantative forecasting Applies a set of mathematical rules
to series of past data to predict outcome.E.g: units to be probuced
2. Qualitative forecasting.Use the expert judment and
opinions of knowledge individuals to predict outcomes.E.g: direction of the economy.
Quantitative Time series analysis Regression models Econometric models Economic indicators Substitution effect
Qualitative Jury of opinion Sales force composition Customer evaluation
Forecasting Effectiveness
Dynamic environments decrease the forecasting effectiveness. Shorter timeframes improve forecasting
effectiveness. Simple forecasting techniques are more
effective than complex techniques. Compare every forecast with “no change”. Use multiple forecasting techniques. Forecasting skills improve with practice
Benchmarking
The search for the best practices among competitors and non-competitors that lead to their superior performance.
By analyzing and copying these practices, firms can improve their performance.
Steps in Benchmarking
Form a benchmarking planning team.
Gather internal and external data.
Analyze data to identify performance gaps.
Prepare and implement action plan.
Steps in BenchmarkingContinue..
Techniques for Allocating Resources
Types of Resources
The assets of the organization
• Financial: debt, equity, and retained earnings
• Physical: buildings, equipment, and raw materials
• Human: experiences, skills, knowledge, and competencies
• Intangible: brand names, patents, reputation, trademarks, copyrights, and databases
Allocating Resources: Budgeting
Are numerical plans for allocating resources.
E.g., revenues, expenses, and capital expenditures.
Are the most commonly used and most widely applicable planning technique for organizations.
Types of Budgets
Suggestions for Improving Budgeting
Collaborate and communicate.
Be flexible.
Budgets should not determine goals.
Remember that budgets are tools.
Allocating Resources: Scheduling
Schedules
Plans that allocate resources by detailing what activities have to be done.
Represent the coordination of various activities.
PERT Network Analysis
Program Evaluation and Review Technique (PERT) Network—a flowchart diagram showing the sequence of activities needed to complete a project and the time or cost associated with each activity.
Breakeven Analysis
It is used to determine the point at which all fixed costs have been recovered and profitability begins.
Fixed cost (FC)
Variable costs (VC)
Total Fixed Costs (TFC)
Price (P)
The Break-even Formula:
Costs VariableUnit -PriceUnit
Costs Fixed :
TotalBreakeven
Contemporary Planning Techniques
Project
Set of activities that has a definite beginning and ending point time.
Project Management
The task of getting a project’s activities done on time, within budget, and according to specifications.
Project Planning Process
Terms to Know
environmental scanning.competitor intelligence.Forecasts.quantitative forecasting.qualitative forecasting.Benchmarking.Resources.Budget.Scheduling.
PERT network.Events.Activities.slack time.critical path.breakeven analysis.linear programming.Project.project management.