Essential University Physics Test Bank by Wolfson 3rd Edition
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Management, 8/e John R. Schermerhorn, Jr .
apter 88 :: Planning \u2013 Processes and Techniqu C h a p t e r
Prepared by: Jim LoPresti University of Colorado, Boulder Published by: John Wiley & Sons, Inc.
Planning Ahead \u2014 Chapter 8 Study Questions
Why and how do managers plan? \ u e 0 0 0 What types of plans do manage use? \ue000
What are the useful planning too and techniques?
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How does management by objec operate?
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Study Question 1: Why and how do managers plan?
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Planning
The process of setting objectives and determining how to best accomplish them.
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Objectives
Identify the specific results or desired outcomes that one intends to achieve.
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Plan
A statement of action steps to be taken 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. Develop premises regarding future conditions. Analyze and choose among action alternatives. Implement the plan and evaluate results.
Figure 8.1 The roles of planning and controlling in the management process.
Study Question 1: Why and how do managers plan?
Benefits of planning: Improves focus and flexibility. Improves coordination. Improves time management. Improves control.
Figure 8.2 A sample means-ends chain for total quality management.
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 y e a r s ears 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.
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 i n speci f i c areas t o i mpl ement st rat egi c pl ans. Production plans Financial plans Facilities plans Marketing plans Human resource plans
Study Question 2: What types of plans do managers use?
Policies and procedures Standing plans
Policies and procedures that are designed fo r
re p e a te d
u s e .
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.
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.
B u d g e t s 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.
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. 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.
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 needs of changing circumstances. Contingency plans anticipate changing conditions. Contingency plans contain trigger points.
Study Question 3: What are the useful planning tools and techniques?
Scenario planning A long-term version of contingency p llannin a n n i n gg .. Identifying alternative future scenarios. Plans made for each future scenario. Increases organization’s flexibility and
preparation for future shocks.
Study Question 3: What are the useful planning tools and techniques?
Benchmarking Use of external comparisons to better
identify possible actions for the future. Adopting best practices of other organizations that achieve superior
performance.
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 major components. Possible communication gaps between
staff planners and line management.
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 . Benefits of participation and involvement: Promotes creativity in planning. Increases available information. Fosters understanding, acceptance, and commitment to the final plan.
Figure 8.3 How participation and involvement help build commitments to plans.
Study Question 4: How does management by objectives operate?
Management by Objectives (MBO) A structured process of regular . Supervisor/team leader and workers jointly set performance objectives. Supervisor/team leader and workers jointly review results.
Figure 8.4 Management by objectives as an integrated planning and control framework.
Study Question 4: How does management by objectives operate?
MBO involves a formal agreement specifying … Workers’ performance objectives for a specific . Plans through which performance objectives will be accomplished. Standards for measuring accomplishment of performance objectives . Procedures for reviewing performance results.
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 tasks; supervisors act individually to provide necessary support. Supervisor and workers jointly review results, discuss implications, and renew the MBO cycle.
Study Question 4: How does management by objectives operate
Types of MBO performance objectives Improvement Personal development Maintenance
Criteria for effective performance objectives Specific Time defined Challenging Measurable
Study Question 4: How does management by objectives operate?
Pitfalls to avoid in using MBO Tying MBO to pay.
quantifiable objectives. Requiring excessive paperwork. Having managers tell workers their objectives.
Study Question 4: How does management by objectives operate?
Advantages of MBO
Focuses workers on most important tasks and objectives. F o c u u ss ee ss ss uu pp ee rr v i ss oo r r ’ ’ ss eeff ff o rr t ts s oo n n important areas of support.
Contributes to relationship building. Gives workers a structured opportunity to participate in decision making.
