Schermerhorn Mgmt9 Ch08

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PowerPoint Presentation to Accompany Management, 8/e John R. Schermerhorn, Jr. Chapter 8: Prepared by: Jim LoPresti University of Colorado, Boulder Published by: John Wiley & Sons, Inc. Chapter 8: Planning – Processes and Techniques

Transcript of Schermerhorn Mgmt9 Ch08

Page 1: Schermerhorn Mgmt9 Ch08

PowerPoint Presentation

to Accompany

Management, 8/eJohn R. Schermerhorn, Jr.

Chapter 8:

Prepared by: Jim LoPresti

University of Colorado, Boulder

Published by: John Wiley & Sons, Inc.

Chapter 8: Planning – Processes and Techniques

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Planning Ahead — Chapter 8 Study Questions

�Why and how do managers plan?

�What types of plans do managers use?

What are the useful planning tools

Management 8/e - Chapter 8 2

�What are the useful planning tools and techniques?

�How does management by objective operate?

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Study Question 1: Why and how do managers plan?

� Planning� The process of setting objectives and

determining how to best accomplish them.

� Objectives

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� 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.

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Study Question 1: Why and how do managers plan?

� Steps in the planning process:

� Define your objectives.

� Determine where you stand vis-à-vis objectives.

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� Develop premises regarding future conditions.

� Analyze and choose among action alternatives.

� Implement the plan and evaluate results.

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Figure 8.1 The roles of planning and controlling in

the management process.

Management 8/e - Chapter 8 5

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Study Question 1: Why and how do managers plan?

� Benefits of planning:

� Improves focus and flexibility.

� Improves action orientation.

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� Improves action orientation.

� Improves coordination.

� Improves time management.

� Improves control.

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Figure 8.2 A sample means-ends chain for total

quality management.

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Study Question 2: 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

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years

� Long-range plans = 3 or more years

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

� Higher management levels focus on longer time horizons.

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Study Question 2: What types of plans do managers

use?

� Strategic and operational plans� Strategic plans — set broad, comprehensive, and

longer-term action directions for the entire organization.

� Operational plans — define what needs to be done in specific areas to implement strategic plans.

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in specific areas to implement strategic plans.� Production plans

� Financial plans

� Facilities plans

� Marketing plans

� Human resource plans

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Study Question 2: What types of plans do managers

use?

� Policies and procedures� Standing plans

� Policies and procedures that are designed for repeated use.

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for repeated use.

� Policy

� Broad guidelines for making decisions and taking action in specific circumstances.

� Rules or procedures

� Plans that describe exactly what actions are to be taken in specific situations.

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Study Question 2: What types of plans do managers

use?

� Budgets and project schedules� Single-use plans

�Only used once to meet the needs and objectives of a well-defined situation in a timely manner.

Budgets

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� Budgets� Single-use plans that commit resources to activities, projects, or programs.

� Fixed, flexible, and zero-based budgets.

� Projects� One-time activities that have clear beginning and end points.

� Project management and project schedules.

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Study Question 3: What are the useful planning tools

and techniques?

� Forecasting

� Making assumptions about what will happen in

the future.

� Qualitative forecasting uses expert opinions.

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Qualitative forecasting uses expert opinions.

� Quantitative forecasting uses mathematical

and statistical analysis.

� All forecasts rely on human judgment.

� Planning involves deciding on how to deal with

the implications of a forecast.

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Study Question 3: What are the useful planning tools

and techniques?

� Contingency planning

� Identifying alternative courses of action

that can be implemented to meet the

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needs of changing circumstances.

� Contingency plans anticipate changing

conditions.

� Contingency plans contain trigger points.

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Study Question 3: What are the useful planning tools

and techniques?

� Scenario planning

� A long-term version of contingency

planning.

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planning.

� Identifying alternative future scenarios.

� Plans made for each future scenario.

� Increases organization’s flexibility and

preparation for future shocks.

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Study Question 3: What are the useful planning tools

and techniques?

� Benchmarking

� Use of external comparisons to better

evaluate current performance and

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evaluate current performance and

identify possible actions for the future.

� Adopting best practices of other

organizations that achieve superior

performance.

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Study Question 3: What are the useful planning tools

and techniques?

�Use of staff planners

� Coordinating the planning function for

the total organization or one of its

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the total organization or one of its

major components.

� Possible communication gaps between

staff planners and line management.

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Study Question 3: What are the useful planning tools

and techniques?

� 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.

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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.

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Figure 8.3 How participation and involvement help

build commitments to plans.

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Study Question 4: How does management by

objectives operate?

�Management by Objectives (MBO)

� A structured process of regular

communication.

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communication.

� Supervisor/team leader and workers

jointly set performance objectives.

� Supervisor/team leader and workers

jointly review results.

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Figure 8.4 Management by objectives as an

integrated planning and control framework.

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Study Question 4: How does management by

objectives operate?

� MBO involves a formal agreement

specifying …

� Workers’ performance objectives for a specific

time period.

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time period.

� Plans through which performance objectives

will be accomplished.

� Standards for measuring accomplishment of

performance objectives .

� Procedures for reviewing performance results.

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Study Question 4: How does management by

objectives operate?

� The MBO process:� Supervisor and workers jointly set objectives, establish standards, and choose actions.

Workers act individually to perform

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� Workers act individually to perform tasks; supervisors act individually to provide necessary support.

� Supervisor and workers jointly review results, discuss implications, and renew the MBO cycle.

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Study Question 4: How does management by

objectives operate

� Types of MBO performance objectives� Improvement

� Personal development

� Maintenance

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� Criteria for effective performance objectives� Specific

� Time defined

� Challenging

� Measurable

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Study Question 4: How does management by

objectives operate?

� Pitfalls to avoid in using MBO

� Tying MBO to pay.

� Focusing too much attention on easily

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� Focusing too much attention on easily

quantifiable objectives.

� Requiring excessive paperwork.

� Having managers tell workers their

objectives.

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Study Question 4: How does management by

objectives operate?

� Advantages of MBO� Focuses workers on most important tasks and objectives.

� Focuses supervisor’s efforts on

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� Focuses supervisor’s efforts on important areas of support.

� Contributes to relationship building.

� Gives workers a structured opportunity to participate in decision making.

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