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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.

Importance of Planning

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.

The Planning Process

Define your objectivies

1

Determine where you stand vis a vis objectivies

2

Develop premises regarding future conditions

3

Analyze alternatives and make a plan

4

Implement the plan and evaluate results

5

Benefits of Planning

Planning Improves Focus and Flexibility

1

Good planning improves focus and flexibility, both of which are important for performance success.

Planning Improves Action Orientation

2

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

3

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.

x

Personal Time Management Tips

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  • 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

1

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

2

Production plan - deal with work methods and technologies

1

Financial plan - deal with money and capital investment

2

  • 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

3

Logistics plan - deal with suppliers and acquiring

4

Marketing plan - deal with selling and promoting the product

5

  • 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

6

Operational Plans

3

  • 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

1

Contingency Planning

2

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

3, 4

Planning Tools and Techniques

Scenario Planning

3

Benchmarking

4

  • 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.

5

Planning Tools and Techniques

Staff Planning

5

  • 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

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