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Planning, Organizing, Implementing, and Controlling

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John Blechacz

on 31 July 2016

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Transcript of Planning, Organizing, Implementing, and Controlling

Planning
Steps of Strategic planning
Operational Planning
Types of Organizational Charts
Characteristics of Good Organization
The Process of Organizing
Managers are faced with decisions, some big and some small. Regardless of impact or importance of a decision, extensive planning is done to ensure effectiveness and success.
Step 1: External Analysis
What needs to be done?

How it will be done?

Who will do it?

What resources are needed?
Division of Work:
Business Management
Planning
Organizing
Implementing
Controlling

Levels of Planning
Strategic Planning:
focuses on long-term goals and direction for an entire business
Operational Planning:
focuses on short-term goals and identifies specific activities for each area of a business
managers study factors outside (external) the business that can affect operations (customers, competitors, the economy, and government).
Step 2: Internal Analysis
managers study factors inside (internal) the business that affects success (operations, resources, employees and finances)
Step 3: Mission
managers agree on the direction of the business based on information gathered.
Step 4: Goals
managers develop outcomes for the business to achieve the mission
Step 5: Strategies
managers identify what is needed from each area of the business
Each Area of a business Will Determine...
projects or tasks
step by step plans and specific deadlines
employees
money, machinery, outsourcing
Tools to Help Plan Strategically
SWOT Analysis
a tool managers use to evaluate strengths, weaknesses, opportunities, and threats.
Mission Statement
a short, specific statement about a business' purpose and direction.
Vision Statement
a broad statement about the primary goal of a business.
Planning Tools
Budgets
Schedules
Standards
Policies
Procedures
Research
a specific financial planning tool used to determine how a business should allocate money (investments, product development, research)
How do you budget money?
a planning tool used to establish time frames and deadlines fir projects, objectives, and goals.
a specific measure against which something is judged.
Example: Quality Tests and Production Time
Who uses a planner?
guidelines used in making decisions regarding specific, recurring situations (better known as general rules).
Example: Employe Evaluations
What are some policies you use at home or school?
a list of steps to be followed for performing certain work. In order to implement a policies, a business must first develop specific procedures .
What procedures are needed to evaluate your employees?
to be an effective planner, managers need a great deal of information before making a decision.
How can you conduct research?
What information should you look for?
Organizing
Before a plan can be put into place, a company must organize its employees and resources accordingly to effectively carry out a plan.
Organization Chart:
a drawing that shows the structure of an organization, major job classifications, and relationships among personnel.
group activities must be divided into sections or departments that share common task and responsibilities in similar scopes of work.
Facilities and Resources:
each department requires different resources for their employees to carry out projects and responsibilities (software, technology, office space).
Responsibility and Authority
Responsibility:
the obligation to do an assigned task accurately and timely.
Authority:
the right to make decisions about assigned work and to assign work to others.
Accountability
the obligation to accept responsibility for the outcomes of assigned work.
if a employee makes a mistake, who is responsible?
if an employee makes multiple mistakes, who is responsible?
Unity of Command
an employee reports to only one (1) supervisor at a time or for a particular task.
Why is this?
Span of Control
the number of employees a manager supervises directly.
what if a manager from another department asks you to do something?
Line Organization
all authority and responsibility can be traced in a direct line from the top executive down to the lowest employee level in an organization.
Line-And-Staff Organization
managers have direct control over departments and employees they supervise, but also have access to staff specialists for assistance.
staff specialists: give advice and help employees where needed.
Matrix Organization
employees are organized into temporary work teams to complete specific projects.
Every new project has a new team
Team Organization
employees are divided into permanent work teams with experiences employees taking on leadership roles (limited management control).


Self-Direct Work Teams:
a team organization model without leadership roles. All employees are responsible for their own work and every team member has a equal power.
Improving Business Organizations
Centralized Organization:
a few top managers do all the planning and decision making (traditional method).
Decentralized Organization:
business are divided into small units and managers in each unit control the unit.
Flattened Organization:
few managers exists and many managerial responsibilities are passes onto employees which creates better communication.
Implementing
The carrying out of plans created by management and helping employees work to effectively and efficiently to complete projects relating to the plans.
What's Needed to Effectively Carrying out Plans?
Implementing Activities
Effective Communication
Managers must be able to communication plans and directions, gather feedback from employees, and identify and resolve communication problems.
Employee Motivation
a set of factors that influence an individual's actions toward accomplishing a goal
What Motivates You?
money?, work freedom?, good management?
Work Teams
a group of individuals who cooperate to achieve a common goal.
What makes a good team?
respect?
trust?
acceptance?
Operations Management
when completing the implementing functions, managers are ensuring that employees are involved in the process.
Process Improvement:
the effort to increase the effectiveness and efficiency of specific business operations.
Motivation Theories
What is motivation?
Maslow's Hierarchy of Needs
McClelland's Achievement Motivation
Herzberg's Two-Factor Theory
Managing Change
Step 1: carefully plan for the change
Step 2: Communicate the change with employees
Step 3: Involving employees in the changing process
Step 4: Educate employees so they understand the change(s)
Step 5: Support employees in their efforts to change
Controlling
Evaluating results to determine if the company's objectives have been accomplished as planned.
What Does Controlling Look Like?
Maintenance costs are down an average of $150 per vehicle.

Sales in the southwest region have increased by 12% this year.

Employee absences have decreased 3% in Quarter 3 of this year.

Internet traffic to the website has doubled since re-designing the site.
Steps in Controlling
Controlling is a continuous process that is on-going and always adjusted.
Step 1:
Establish Standards
Step2:
Compare Performance Against Standards
Step 3:
Make Corrections
Step 1: Setting Standards
used to control a business' operations to ensure consistency and quality.
- Four Types: Quantity, Quality, Time, and Cost
Quantity Standards
establishes the expected amount of work to be completed (number of units produced per hour/day/week/month/year).
Quality Standards
a detailed description of the expectation of production and/or performance to ensure consistency.
-AKA Quality Assurance (QA)
-zero errors, defects, waste, injuries

Time Standards
The amount of time needed to complete an activity. Time has an effect on costs, the quantity of work, and quality.
-time is money!
-time standards are applied to machinery, employees, and processes
Cost Standards
Profit = Sales - Cost
Managers can increase profit by either increase sales or decreasing costs.

How can this be done?
-Eliminating waste
-Maximizing productivity
Step 2: Measuring and Comparing Performance
Standards are basis for determining effective performance within a business. Results or outcomes will be compared against the standards to identify accuracy and effectiveness.
Variance:
the difference between current performance and the standard.
Step 3: Make Corrections/Improvements
If performance is not meeting the standards, managers can take three possible actions:
1) take steps to improve performance
2) change the policies and/or procedures
3) revise the standard

Step 3: Make Corrections/Improvements
Controlling Costs
There are four (4) areas where money can be saved : Inventory, Credit Use, Theft, and Health and Safety
Inventory
Companies need enough materials or products to meet the requirements of buyers.
If inventories are too high, the cost of storage will increase and some products may never sell.
Greater the Inventory = Higher the Costs
Just-In-Time Inventory Controls (JIT)
Method of inventory control in which a company maintains very small inventories and obtains materials/products just in time for use.
Amount purchased decreases, frequency of buying increases
Credit
Most business extend credit to customers. Business also use credit when buying materials from suppliers.
Accounts Payable:
Accounts Receivable:
Money that customers owe a business
Money that a business owes another business
Theft
Businesses lose a great amount of money if products are stolen. This can be done by either employees or customers.
- products, materials, cash, and other resources
Shrinkage:
the loss of products or materials between the time of production and potential selling.
Health and Safety
Even when an employee is absent from work due to injury or illness, the company must continue to operate.

Other employees must be available to fill in otherwise work will go undone.

The salary of the sick or injured employee as well as the fill in employee must be paid.

Companies establish benefits and programs to keep employees healthy.
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