Planning And Controlling

2

What is “Planning”?

Planning is a process of…setting objectives

and…determining how to accomplish

them.

3

Key Terms used in Planning

Goals comprise the org’s purposes statements in wider perspective.

Objectives are goals expressed in concrete and measurable terms.

Strategies often denote a general program of actions and an implied deployment of emphasis and resources to meet the comprehensive objectives.

4

How do managers plan?

Steps in the planning process (Stoner/Wankel)– Establish a goal or set of goals. What the org. wants or needs.

– Define the present situation. How far the org. from its goals. Available resources ?

– Identify the aids and barriers to the goals.

What factors in the internal and external environments can help the org. reach its goals. Or, factors which might create problems ?

– Develop a plan or set of actions for reaching the goal(s): Strategic Plan and Operational Plan

5

Approaches to Planning

Outside-in• Opportunities• Threats

Inside-Out• Strengths• Weaknesses

Top-Down

Bottom-Up

6

SWOT Analysis

The combined internal and external strategic analysis is referred to as a SWOT analysis.– Strengths

– Weaknesses

– Opportunities

– Threats

7

External Analysis

Purpose of External Analysis– To identify aspects of the external environment that

represent either an opportunity for or a threat to the organization.

– Opportunities: • Those environmental trends on which the organization can

capitalize and improve its competitive position.

– Threats• Conditions that jeopardize the organization’s ability to

prosper and its competitive position in the long term.

8

External institutional analysis examples: Perception/image studies of prospective students, parents, counselors, and employers

Price sensitivity studies of prospective students and parents

Competition analyses

Market share and trend analysis of college bound target populations using College Board’s EPS and ACT’s EIS

Demographic projection analyses of high school graduates and other target populations such as adults

Workforce demand projections

Analyses of prospective student, parent, counselor, adult, and employer wants and needs, including academic programs

9

Internal Analysis

Purpose of Internal Analysis– To identify the assets, resources, skills, and

processes that represent either strengths or weaknesses for the organization.

– Strengths• Aspects of the organization’s operations that represent

potential competitive advantages or distinctive competencies.

– Weaknesses• Areas that are in need of improvement.

10

Internal institutional analysis examples include:

Assessment of the relationship of enrollment and institutional fiscal health

Enrollment and fiscal projection scenarios

Analyses of student flows into academic majors and courses

Academic program capacity and demand analyses

Assessment of student satisfaction, engagement, and what is important

Incoming characteristic profile of students who succeed of those who don’t succeed

Price discount sensitivity studies of admitted students

Graduating student outcome analyses

11

Classroom

School / school community

District/ community

Provincial

•Classroom data informs instruction and tracks progress of individual students.

•School data tracks progress and informs school practices / policies / goals and objectives.

•District data tracks trends and informs district practices / policies / goals and objectives.

•Provincial data tracks trends over time and reveals patterns and systemic strengths and weaknesses.

Educational MIS

12

Classroom DataExamples of classroom-based data include:

•BC Performance Standards •Unit tests and quizzes•Report card marks•Teacher observations, checklists and notes•Assessments developed by teacher, school or district•Attendance information

13

School-Level Data

Examples of school-level data include:

•Reading assessments •School-wide writes•Report card marks•BC Performance Standards•Behaviour & attendance information•Satisfaction Surveys

14

District-Level DataExamples of district-level data include:

•District-wide assessments (reading, math, etc.) •District-wide write•Report card marks•Participation rates•Discipline & attendance records•Demographic information

15

Provincial-Level Data

Examples of Provincial-level data include:

•Ministry of Education Satisfaction Surveys •Foundation Skills Assessment (FSA)•Provincial Exams•Dogwood Completion Rate•Grade-to-grade transition rates

16

An Elementary Example

READING (2002 - 2006)Students (%) meeting or exceeding expectations

72%78% 81%

74%67%

73%

78% 78% 79% 84% 87%83%83%

0%

20%

40%

60%

80%

100%

Jun Dec Mar Jun Dec Mar Jun Dec Mar Jun Dec Mar Jun

BC Performance Standards (each term)

17

What types of plans do managers use?

Strategic and operational plans– Strategic plans—address long-term needs and set

comprehensive action directions for an organization or subunit.

– Operational (tactical) plans—define what needs to be done in specific areas to implement strategic plans and achieve strategic objectives.

• Production plans• Financial plans• Facilities plans• Marketing plans• Human resources plans

18

The Operational Plans

Standing Plans– Policies:

• Gen. statements which guide thinking and decision making.

– Procedures: • These detail the exact manner in which in which activities

should done.

– Rules or procedures • Plans that describe exactly what actions are to be

taken in specific circumstances.

19

The Operational Plans (cont.)

Single-use plans:– Program

• A plan encompassing a relatively large undertaking..

– Project• A smaller and separate portion of a program.

– Budget • A forecast of anticipated costs of a program..

20

What are the useful planning tools and techniques?

Forecasting– Making assumptions about what will happen in

the future

– A forecast is a vision of the future

– Qualitative forecasting

– Quantitative forecasting

– All forecasts rely on human judgment

21


Scenario planning (sometimes known as

“what-if analyses” and simulations)

– A long-term version of contingency planning

– Identifying alternative future scenarios

– Plans made for each future scenario

– Increases organization’s flexibility and

preparation for future shocks

22


Benchmarking

– Use of external comparisons to better evaluate

one’s current performance

– Identify possible actions for the future

– Incorporate successful ideas into one’s own

organization

– Compare against: self, others, and/or ideals

24

What is the control process?

Controlling

– The process of measuring performance and

taking action to ensure desired results.

– Has a positive and necessary role in the

management process.

– Ensures that the right things happen, in the

right way, at the right time.

25


Steps in the control process

– Step 1—establish objectives and standards

– Step 2—measure actual performance

– Step 3—compare results with objectives and standards

– Step 4—take corrective action as needed

26

Figure 8-4 Four steps in management control.

Schermerhorn/Management, 7eChapter 8, Figure 07-04

27


Step 1—establishing objectives and standards– Output standards

• Measure performance results in terms of quantity, quality, cost, or time.

– Input standards• Measure effort in terms of amount of work

expended in task performance.

28


Step 2—measuring actual performance

– Goal is accurate measurement of actual results

on output and/or input standards.

– Effective control requires measurement.

29


Step 3—comparing results with objectives

and standards

– Control equation

– Need for action reflects the difference between

desired performance and actual performance

30


Step 3—comparing results with objectives and standards– Methods of comparing desired and actual performance

• Historical comparison• Relative comparison• Engineering comparison

– Benchmarking using different comparison methods

31


Step 4—taking corrective action– Taking action when a discrepancy exists

between desired and actual performance.– Management by exception

• Giving priority attention to situations showing the greatest need for action.

• Types of exceptions– Problem situation

– Opportunity situation

32


Feedforward controls …

– Employed before a work activity begins.

– Ensures that:

• Objectives are clear.

• Proper directions are established.

• Right resources are available.

– Focuses on quality of resources.

33


Concurrent controls …

– Focus on what happens during work process.

– Monitor ongoing operations to make sure they

are being done according to plan.

– Can reduce waste in unacceptable finished

products or services.

34


Feedback controls …

– Take place after work is completed.

– Focus on quality of end results.

– Provide useful information for improving

future operations.

35

Figure 8-5 Feedforward, concurrent, and feedback controls in the management process.


Files

Transaction processing

Operational control reports

(b) Control reportsTransaction output

Transactions

Files

Transaction processing

(a) Transaction

Inquiry response

Operational report

processingInquiry

Files

(c) Inquiry Processing

Processing to support operational control.

Database

Inquiry

Processing

Decision models

Problem analysis model

Variance

reporting

Planning/budget models

Requests inquiries problems

Etc

Plans and budgets Scheduled reports,

Special reports Analyses decision for

review inquiry responses

Other

Budgets, standards,

plans. etc

Transaction based files

Figure:6.4:- Management Control database and processing support

38

Figure 8-1 The roles of planning and controlling in the management process.


39

Figure 8-3 How participation and involvement help build commitments to plans.


41

What control systems are used in organizations?

Important financial aspects of organizational performance …– Liquidity

• The ability to generate cash to pay bills.

– Leverage• The ability to earn more in returns than the cost of debt.

– Asset management• The ability to use resources efficiently and operate at

minimum cost.

– Profitability• The ability to earn revenues greater than costs.

42


Purchasing control …

– A productivity tool

– Trends in purchasing control:

• Leveraging buying power

• Committing to a small number of suppliers

• Working together in supplier-purchaser partnerships

43


Inventory control

– Goal is to ensure that inventory is just the right

size to meet performance needs, thus

minimizing the cost.

– Methods of inventory control:

• Economic order quantity

• Just-in-time scheduling

44


Statistical quality control– Quality control involves checking processes,

materials, products, and services to ensure that they meet high standards.

– Statistical quality control involves:• Taking samples of work.

• Measuring quality in the samples.

• Determining the acceptability of results.

45

HOW TO CONTROL QUALITY

QUALITYIN:• People• Resources

QUALITYOUT:• Products• Services

QUALITY OPERATIONS:• Activities & Processes

Q

46

QUOTE OF THE DAY

What gets measured

happens!WRONG! You must manage even what you can’t measure

47


Benefits of planning

– Improves focus and flexibility

– Improves action orientation

– Improves coordination

– Improves time management

– Improves control

48


Contingency planning– Identifying alternative courses of action that

can be used if and when original plan proves inadequate.

– Early identification of possible shifts in future events.

– Forward thinking …• Using devil’s advocate method• Developing worst case scenarios

49


Use of staff planners– Lead and coordinate the planning function– Responsibilities include:

• Assisting line managers in preparing plans.

• Developing special plans.

• Gathering and maintaining planning information.

• Assisting in communicating plans.

• Monitoring plans in progress and suggesting changes.

50


Participation and involvement– Participatory planning requires that the planning

process include people who will be affected by the plans and/or will help implement them.

– Benefits of participation and involvement:• Promotes creativity in planning.

• Increases available information.

• Fosters understanding, acceptance, and commitment to the final plan.

51

What types of plans do managers use?

Short-range and long-range plans– Short-range plans = 1 year or less– Intermediate-range plans = 1 to 2 years– Long-range plans = 3 or more years

People vary in their capability to deal effectively with different time horizons.

Higher management levels are supposed to focus on longer time horizons.

52


Planning– The process of setting objectives and determining how

to best accomplish them.

Objectives – Identify the specific results or desired outcomes that

one intends to achieve.

Plan– A statement of action steps to be taken in order to

accomplish the objectives.

53

Figure 8-2 A sample hierarchy of objectives for totalquality management.


54

Table 4.2 Sample Issues in the General EnvironmentEconomic

• Inflation rates

• Unemployment rates

• Wage rates

• Exchange rates

• Stock market fluctuations

• Per capita income

• GDP trends

• Economic development

Sociocultural

• Norms and values

• Demographic trends

• Age groups

• Regional shifts in population

• Household composition

• Diversity

• Ecological awareness

• Life expectancy

Technological

• Spending on research and development

• Internet availability

• Availability of information technology

• Production technology trends

• Productivity improvements

• Telecommunications infrastructure

Political–Legal

• Tax laws

• Environmental protection

• International trade regulation

• Antitrust regulation

• Federal Reserve policy

• Intellectual property and patent laws

Planning And Controlling

Education

Transcript of Planning And Controlling