Planning Processes and Techniques
BUSINESS 1 H
3rd Group
Antonio Evander
Galih Suci
Janice Alesandrina
Richard Harrisen
Stefanus Arvin
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Why and How Managers Plan
Why and How Managers Plan
Planning sets the stage for the others by providing a sense of direction. It is a process of setting objectives and determining how best to accomplish them.
Planning sets the stage for the others by providing a sense of direction. It is a process of setting objectives and determining how best to accomplish them.
Importance of Planning
When planning is done well, it creates a solid platform for the other management functions, it helps with organizing - allocating, leading guiding, and controlling monitoring every single action needed.
Determine where you stand vis a vis objectivies
Develop premises regarding future conditions
Analyze alternatives and make a plan
Implement the plan and evaluate results
Planning Improves Focus and Flexibility
Good planning improves focus and flexibility, both of which are important for performance success.
Planning Improves Action Orientation
Planning focuses attention on priorities and helps avoid the complacency trap simply being carried along by the flow of events
Planning Improves Coordination and Control
Planning improves coordination. Individuals, and subsystem in organizations are all engaged in multiple tasks and activities simultaneously.
Planning and Time Management
- As a manager you’re gonna faced tight schedules, little time alone, lots of meetings and phone calls, and not much room for spontaneity.
- The key to success in such classic management is have a good planning time management.
Personal Time Management Tips
- get bogged down in detail that you can address later or leave for others
- let drop in visitors or instant messages use too much of your time
- become calendar bound by letting others control your schedule
- say “no” to request that divert you from what you really should be doing
- have a system for screening telephone calls, emails, and request for meetings
- prioritize what you will work on in terms of importance and urgency
- follow priorities and work on the most important and urgent tasks first.
Types of Plans Used By Managers
Types of Plans Used By Managers
Long Range and Short Range Plans
The key to success in such classic management is have a good planning time management.
- Long term plans - typically look three or more years into the
future
- Short-term plans- typically cover one year or less
- Top management is responsible for setting long-term plans and directions for the organization.
- Without long-term plan/ direction, people will work hard but not achieve anything
As a manager you’re gonna faced tight schedules, little time alone, lots of meetings and phone calls, and not much room for spontaneity.
- Most people work comfortably with only 3-month timespan
- Only few people work well with 1 year timespan
- Only very few people can handle a 20 year timespan
There are 6 types of functional plans on an organization
Strategic and Tactical Ways
Production plan - deal with work methods and technologies
Financial plan - deal with money and capital investment
- Strategic plan - identifies long-term directions for the organization and focused on the organization as a whole.
- Vision - the purpose of the organization and expresses what it hopes to be in the future.
- Tactical plans - developed and used to implement strategic plan
Facilities plan - deal with physical space and work layout
Logistics plan - deal with suppliers and acquiring
Marketing plan - deal with selling and promoting the product
- It works like a “special key” when there is a threat/opportunity
- Functional plans indicate how different operations within the organization will help advance the overall strategy.
Human Resource plan - deal with employee and workforce
Operational Plans
- Operational plan identifies short-term activities to support strategic and tactical plan
- It includes standing plans and single-use plans
- Standing plans - It is like policies and procedures that are used over and over again
- Single-use plans - It is used only once for example budget that only apply to one task.
- A policy is a broad guidelines for making decisions and taking action in specific circumstances.
- Procedure is a rule describing actions that are to be taken in specific situation
- Usually procedures are stated in the employee's handbook and often called as Standard Operating Procedures.
- It is more focused than a policy.
- Budgets are single-use plans that commit resources for specific time periods to activities, projects, or programs
- One of the most common problems that budgeting suffer is ‘rollover’.
- A zero-based budget allocates resources as if each budget were brand new.
Planning Tools and Techniques
Planning Tools and Techniques
Forecasting
Contingency Planning
Forecasting
= attempt to predict the future
Qualitative forecasting : using expert opinions to predict future
= attempt to predict the future
Quantitative forecasting : uses mathematical models and statistical analyses of historical data and surveys to predict the future
Forecast should be treated cautiously because it relies on human judgment
- Qualitative forecasting : using expert opinions to predict future
- Quantitative forecasting : uses mathematical models and statistical analyzes of historical data and surveys to predict the future
- Identifying alternative courses of action if the situation changes. (Plan B)
- A really good contingency planning involves “trigger points” to indicate when to change alternative.
- Contingency planning can’t prevent crises from occurring. But when things do go wrong, there’s nothing better to have in place than good contingency plans.
- Forecast should be treated cautiously because it relies on human judgment
Planning Tools and Techniques
Scenario Planning
Benchmarking
- Long-term version of contingency planning.
- It involves identifying several possible future scenarios or states of affairs and then making plans to deal with each scenario should it actually occur.
- Forces us to think really far ahead and to be open to a wide range of possibilities.
- Uses external and internal comparisons to plan for future improvements.
- The purpose is to determine what others are doing very well, then plan how to incorporate ideas into one’s own operation.
- Best practices, things people do that help them to achieve superior performance.
- Example : An automotive company is benchmarking their car to get to know how the performance compared to other cars.
Planning Tools and Techniques
Staff Planning
- As organizations grow, their planning challenges and the use of staff planners.
- They can help bring focus and expertise to a wide variety of planning tasks.
- Risk : a tendency of communication gap between staff and line managers.
- Solution : Works closely together
- Need little commitment to implement the plans.
- Example : An automotive company