Fundamental of Management Chap 7

8/18/2019 Fundamental of Management Chap 7

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PowerPoint Presentation

to Accompany

Management, 10/eJohn R. Schermerhorn, Jr .

Prepared by: Jim LoPresti

University of Colorado, Boulder

Published by: John Wiley & Sons, In!

Chapter 7:Fundamentals of Planning


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Management 10/e - Chapter7 2

Planning Ahead — Chapter 7 Study Questions

Why and how do managers plan What types of plans do managers

use What are the useful planning tools

and te!hni"ues

#ow !an plans $e well implemented


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Management 10/e - Chapter7 %

Study Question 1 !hy and how do managers plan"

Planning &he pro!ess of setting o$'e!ti(es and

determining how to $est a!!omplish them)

*$'e!ti(es +dentify the spe!ifi! results or desired

out!omes that one intends to a!hie(e)

Plan , statement of a!tion steps to $e taen in

order to a!!omplish the o$'e!ti(es)


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Management 10/e - Chapter7 .


teps in the planning pro!ess:efine your o$'e!ti(es)

etermine where you stand (is--(is

o$'e!ti(es)

e(elop premises regarding future

!onditions)

,nalye and !hoose among a!tionalternati(es)

+mplement the plan and e(aluate results)


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#igure 7.1 $he roles o% planning and controlling inthe management process.


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5enefits of planning:

+mpro(es fo!us and fle6i$ility)

+mpro(es a!tion orientation)

+mpro(es !oordination)

+mpro(es time management)

+mpro(es !ontrol)


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Personal &ime Management &ips:

* say no8 to re"uests that distra!t

from what you should $e doing)*9& get $ogged down in details that

!an $e addressed later)

* s!reen telephone !alls; emails; andmeeting re"uests)


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Management 10/e - Chapter7 <


Personal &ime Management &ips:

*9& let drop-in (isitors instant

messaging use up your time

* prioritie your important and urgent

wor

*9& $e!ome !alendar $ound $y letting

others !ontrol your s!hedule

* follow priorities= do most important

and urgent wor first)


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Management 10/e - Chapter7 >

Study Question & !hat types o% plans do managers

use"

hort-range and long-range plans hort-range plans ? 1 year or less

+ntermediate-range plans ? 1 to 2 years @ong-range plans ? % or more years

People (ary in their !apa$ility to deal

effe!ti(ely with different time horions)

#igher management le(els fo!us on longer

time horions)


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use"

trategi! and operational plans trategi! plans A set $road; !omprehensi(e; and

longer-term a!tion dire!tions for the entireorganiation)

*perational plans A define what needs to $e donein spe!ifi! areas to implement strategi! plans) Produ!tion plans Finan!ial plans Fa!ilities plans Mareting plans #uman resour!e plans


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use"

Poli!ies and pro!edures tanding plans

Poli!ies and pro!edures that are designedfor repeated use)

Poli!y 5road guidelines for maing de!isions and

taing a!tion in spe!ifi! !ir!umstan!es)

Bules or pro!edures Plans that des!ri$e e6a!tly what a!tions

are to $e taen in spe!ifi! situations)


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use"

5udgets and pro'e!t s!hedulesingle-use plans

*nly used on!e to meet the needs ando$'e!ti(es of a well-defined situation in a

timely manner)5udgets

ingle-use plans that !ommit resour!es toa!ti(ities; pro'e!ts; or programs)

Fi6ed; fle6i$le; and ero-$ased $udgets)

Pro'e!ts *ne-time a!ti(ities that ha(e !lear $eginning

and end points) Pro'e!t management and pro'e!t s!hedules)


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Management 10/e - Chapter7 1%

Study Question ' !hat are the use%ul planning tools

and techni(ues"

Fore!asting Maing assumptions a$out what will happen in

the future)

ualitati(e fore!asting uses e6pert opinions)

uantitati(e fore!asting uses mathemati!al

and statisti!al analysis)

,ll fore!asts rely on human 'udgment)

Planning in(ol(es de!iding on how to deal with

the impli!ations of a fore!ast)


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Management 10/e - Chapter7 1.


and techni(ues"

Contingen!y planning

+dentifying alternati(e !ourses of a!tion

that !an $e implemented to meet theneeds of !hanging !ir!umstan!es)

Contingen!y plans anti!ipate !hanging

!onditions)Contingen!y plans !ontain trigger points)


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and techni(ues"

!enario planning

, long-term (ersion of !ontingen!y

planning) +dentifying alternati(e future s!enarios)

Plans made for ea!h future s!enario)

+n!reases organiations fle6i$ility and

preparation for future sho!s)


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and techni(ues"

5en!hmaring

Dse of e6ternal !omparisons to $etter

e(aluate !urrent performan!e and

identify possi$le a!tions for the future)

,dopting $est pra!ti!es of other

organiations that a!hie(e superior

performan!e)


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and techni(ues"

Dse of staff planners

Coordinating the planning fun!tion for

the total organiation or one of its

ma'or !omponents)

Possi$le !ommuni!ation gaps $etweenstaff planners and line management)


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Management 10/e - Chapter7 1<

Study Question ) *ow can plans +e well

implemented"

Pro'e!t managementE

Maes sure a!ti(ities re"uired to !omplete

a pro'e!t are planned well anda!!omplished on time and within $udget

Pro'e!ts one-time a!ti(ities with many

!omponent tass that must $e !ompletedin proper order and within $udget


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Management 10/e - Chapter7 1>


implemented"

Gantt !harts graphi! display of s!heduledtass re"uired to !omplete a pro'e!t

CPM/PHB& a !om$ination of the !riti!alpath method and the program e(aluation

and re(iew te!hni"ue

Criti!al path pathway from pro'e!t start

to finish that in(ol(es a!ti(ities with thelongest !ompletion times


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implemented"

Iey issues and prin!iples in thegoal-setting pro!ess:et spe!ifi! goals)et !hallenging goals)Hnsure goals are attaina$le)Goals must $e timely)

Mae sure goals are measura$le)


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implemented"

Goal-setting theory

Parti!ipation in goal setting

unlo!s the moti(ational potential of goalsetting)

management $y o$'e!ti(es JM5*K promotes

parti!ipation)

when parti!ipation is not possi$le; worerswill respond positi(ely if super(isory trust

and support e6ist)


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#igure 7.& A sample hierarchy


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Management 10/e - Chapter7 2%


implemented"

Management $y *$'e!ti(es JM5*K

, stru!tured pro!ess of regular

!ommuni!ation)

uper(isor/team leader and worers

'ointly set performan!e o$'e!ti(es)

uper(isor/team leader and worers

'ointly re(iew results)


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Management 10/e - Chapter7 2.

Study Question ) *ow does management +y

o+ecti-es operate"

M5* in(ol(es a formal agreement

spe!ifying E

Worers performan!e o$'e!ti(es for a spe!ifi!time period)

Plans through whi!h performan!e o$'e!ti(es

will $e a!!omplished)

tandards for measuring a!!omplishment ofperforman!e o$'e!ti(es)

Pro!edures for re(iewing performan!e results)


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#igure 7.' anagement +y o+ecti-es as anintegrated planning and control %ramewor/.


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o+ecti-es operate"

&he M5* pro!ess:uper(isor and worers 'ointly set

o$'e!ti(es; esta$lish standards; and

!hoose a!tions)Worers a!t indi(idually to perform

tass= super(isors a!t indi(idually topro(ide ne!essary support)

uper(isor and worers 'ointly re(iewresults; dis!uss impli!ations; and renewthe M5* !y!le)


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o+ecti-es operate

&ypes of M5* performan!e o$'e!ti(es +mpro(ement Personal de(elopment

Maintenan!e Criteria for effe!ti(e performan!e

o$'e!ti(es pe!ifi!

&ime defined Challenging Measura$le


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Management 10/e - Chapter7 2<


o+ecti-es operate"

Pitfalls to a(oid in using M5*

&ying M5* to pay)

Fo!using too mu!h attention on easily"uantifia$le o$'e!ti(es)

Be"uiring e6!essi(e paperwor)

#a(ing managers tell worers their

o$'e!ti(es)


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Management 10/e - Chapter7 2>


o+ecti-es operate"

,d(antages of M5* Fo!uses worers on most important

tass and o$'e!ti(es) Fo!uses super(isors efforts on

important areas of support)Contri$utes to relationship $uilding)

Gi(es worers a stru!tured opportunityto parti!ipate in de!ision maing)


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Management 10/e - Chapter7 %0


implemented"

Parti!ipation and in(ol(ement Parti!ipatory planning re"uires that the planning

pro!ess in!lude people who will $e affe!ted $y the

plans and/or will help implement them)

5enefits of parti!ipation and in(ol(ement:

Promotes !reati(ity in planning)

+n!reases a(aila$le information)

Fosters understanding; a!!eptan!e; and

!ommitment to the final plan)


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#igure 7.) *ow participation and in-ol-ement help+uild commitments to plans.


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Fundamental of Management Chap 7