Lecture 2 (Em)

Front 1

It is a logical and systematic approach of formulating objectives, programs, policies, procedures, budgets, rules and regulations, and other type of plans.

Back 1

Planning

Front 2

Four Major factors that summarize the essential nature of planning

Back 2

1. Contribution to purpose and objectives

2. Planning as the first basic function

3. Planning as a function of all managers

4. Planning for efficient organization

Front 3

To facilitate accomplishment of business purposes and objectives

Back 3

Contribution to purpose and objectives

Front 4

Planning is logically performed before the execution of all other managerial function

Back 4

Planning as the first basic function

Front 5

... though the character and scope of planning will differ from one authority to another

Back 5

Planning as a function of all managers

Front 6

The efficiency of a plan is evaluated by the amount it contributes to purpose and objectives as offset by the expenses and other things required to formulate and implement it

Back 6

Planning for efficient organization

Front 7

Importance of Planning

Back 7

1. To offset uncertainty and change

2. To focus attention to planned targets

3. To gain economical and efficient operation

4. To facilitate control

Front 8

Planning allows the organization to determine the constraints, specify the planned target, select the number of options, monitor and control the implementation so as to allow replanning if necessary.

- back up or second plan

Back 8

To offset uncertainty and change

Front 9

It unifies the work activities of the different personnel of the organization to act as one party.

Back 9

To focus attention to planned targets

Front 10

It minimizes cost. It's emphasis is on efficient and effective operations and consistency of procedures and methods.

Back 10

To gain econimical and efficient operation

Front 11

Managers cannot always check on the accomplishments or failures of their subordinate

Back 11

To facilitate control

Front 12

Guidelines for good planning

Back 12

1. A plan should have specific planned targets

2. A good plan should facilitate action

3. If many people are involved in planning, coordination and communication are very important to arrive at realistic result

4. Good plans can be constantly, improved, redrafted, and replanned. What may change are strategies and programs of achieving the planned targets.

5. Planning may be delegated to a formal training staff or group within the company.

6. All plans are tentative and interim. They never fault. They should be flexible not rigid

Front 13

Plans should be SMART

Back 13

Simple

Measurable

Attainable

Realistic

Time bounded

Front 14

Objectives defined

Back 14

- are clear cut and carefully considered statements designed to give an organization and it's members direction and purpose

- it is synonymous to aim, purpose, goal, and mission

- objectives are established at organizatonal, departmental, or individual level.

Front 15

Kinds of Objectives

Back 15

1. Organizational Objectives

2. Managerial/Departmental Objectives

3. Individual Objectives

Front 16

Deal with the general direction and purposes of an organization

Back 16

Organizational Objectives

Front 17

Identify the goals of particular department, or organization segement.

Back 17

Managerial/Departmental Objectives

Front 18

Are personalized objectives which outline what individuals in the group are trying to accomplish

Back 18

Individual Objectives

Front 19

Characteristics of Objectives

Back 19

1. Must be specific, clear and concise

2. Must be practical

3. Must be quantifiable or measurable

Front 20

Must give precise meaning to the manager

Back 20

Must be specific/clear/concise

Front 21

Must be within the capacity of the individual or group to achieve

Back 21

Must be Practical

Front 22

Ex. To increase the production of Coca-Cola's 8 ounce soft drink by 12% by August 11

Back 22

Must be quantifiable or measurable

Front 23

Types of setting objectives

Back 23

Profitability

Customer service

Employee-management needs and well-being

Front 24

This can be measured in terms of profits, Return on Investment and Earnings Per Share

Back 24

Profitability

Front 25

Can be expressed in a very explicit terms

Ex. To reduce the number of complaints by...

Back 25

Customer service

Front 26

This may be quantitatively expressed in terms of number of grievances, training, etc.

Back 26

Employee-Management needs and well being

Front 27

It is the continuing commitment by business to behave ethically and contribute economic development while improving the quality of life of the workforce as well as the local community and society at large.

Back 27

Corporate Social Responsibilty

Front 28

Flow

Back 28

Front 29

Unified framework of plans (coordinated plans)

Back 29

Front 30

Vision Framework

Back 30

Front 31

Clear statement about why the organization exists.

It can be defined in terms of an organization's products/services or markets/customers

Back 31

Mission

Front 32

Types of Planning according to level of managemet

Back 32

1. Strategic Planning. (Top Level Management)

2. Tactical Management (Middle Level Management)

3. Primary Operational Planning (First Level Management)

Front 33

Concerned with the entire operation.

It reflects the broad overall concepts of an Enterprise operation. It begins with org's mission

Back 33

Strategic Planning

Front 34

Method of shaping a company's future and involves determining the long-run direction of the organization.

It outlines the basic steps and Management intends to do to achieve it's objectives.

Back 34

Strategy

Front 35

Some activities in strategic planning

Back 35

1. Choosing company planned targets

2. Planning the organization

3. Setting personnel policies

4. Setting financial policies

5. Setting marketing policies

Front 36

Are the means to achieve a strategy, to activate it and make it works

Back 36

Tactical Plans

Front 37

Some activities in tactical planning

Back 37

1. Formulating budgets

3. Formulating personnel practices

2. Planning the staff line3. Formulating personnel practices4. Working capital expenditures

line3. Formulating personnel practices4. Working capital expenditures

4. Working capital expenditures

Front 38

Is one that a manager uses to accomplish his job responsibilities.

It can be a single use plan or an ongoing plan

Back 38

Operating Plan

Front 39

Types of operating plans

Back 39

1. Single use plans (program, budget)

2. Ongoing Plans (Policy, procedures, Rules)

Front 40

Actual course of action designed to carry out the established objectives

Can be easily and systematically shown using a project schedule and drawn using a Gantt chart

(Marketing and Personnel Program)

Back 40

Program

Front 41

Plan stated in financial terms.

Also called a "numberized program"

Back 41

Budget

Front 42

The basic guidelines for action.

These are broad, general guides for action which constraint or direct objective attainment (personnel policy

Back 42

Policy

Front 43

Set of step-by-step directions in which activities are to be carried out and expressed in chronological order for a specific purpose.

Back 43

Procedures

Front 44

Specific plans for controlling human behavior and conduct at work.

Do's and don'ts statements

Back 44

Rules

Front 45

Types of planning according to range of plans

Back 45

Short-range plans

Long range plans

Front 46

Plans for a short period of time (6mons-1yr)

Back 46

Short range plans

Front 47

Plans for a long period of time (5-20yrs)

Back 47

Long range plans

Front 48

How Management Gets Results

Back 48

1. Management by Objectives (MBO)

2. Management by Exceptions (MBE)

3. Management by Committees (MBC)

4. Total Quality Management (TQM)