Plans and planning tools (principles of management).


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  • you missed in your report some other tools of planning like environment planning and one of the most important tools: budgetting..without the resources how can you resources, physical resources : buildings, equipment, raw materials; human resources: who will do the work for you? are they qualified? are they skilled? are they competent?...just to name a few...for without these your plan will not prosper..
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Plans and planning tools (principles of management).

  1. 1.  Plan is a specific action proposed to help the organization achieve its objectives.  Rational managers are crucial to the development of an organization plan. › A critical plan of the management of any organization is developing logical plans and then taking the steps necessary to put the plans into action. › Regardless of how important experience- related intuition may be to managers successful management actions and strategies typically are based on reason.
  2. 2. Repetitiveness Time Scope Level
  3. 3.  REPETITIVENESS is the extent to which the extent plan is used over and over again. › Non-repetitive are plans which are designed for one situation that is relatively short term in nature. › Repetitive are plans which are designed to be used after time for long term recurring situations.  TIME is the length of time the plan covers. › Strategic plan covers long period of time. › Tactical plan covers short period of time.
  4. 4.  SCOPE is the portion of the total management system at which the plan is aimed. › Some plans are design to cover the entire management system: the organizational environment, inputs, process and outputs. This plans are called Master Plan. › Other plans are designed to cover only a portion of management system. › “The greater the portion of the management system that a plan covers, the broader the plan’s scope is said to be.  LEVEL is the level of the organization at which the plan is aimed. › Top level plans (top management) › Middle and lower plans (middle and lower management) › Plans designed for any level of the organization have some effect on all other levels since they are interdependent.
  5. 5.  Standing Plans are used over and over again because they focus on the organizational situations that occur repeatedly. › Policy is a standing plan that furnishes broad guidelines for taking action consistent. › Procedure is a standing plan that outlines a series of related actions. › Rule is a standing plan that designates specific action.  To be effective? They must consistent and mutually supportive.
  6. 6.  Single-Use Plans are used only once- or, at most, several times--- because they focus on unique or rare situations within the organization. › Program is a single-use plan designed to carry out a special project within an organization.  The project exist to achieve some purpose that, if accomplished, will contribute to the organization’s long term success. It is not intended to remain in existence over entire life. › Budget is a single-use financial plan that covers a specified length of time.  It details how fund will be obtained or spent.  They are also Strategies for organizational control.
  7. 7.  Corporate planning is not integrated into total management system.  There is a lack of understanding of the different steps of the planning process.  Managers at different levels in the organization have not properly engaged in or contributed to planning activities.  Responsibility for planning is wrongly vested solely in the planning department.
  8. 8.  Management expects that plans developed will be realized with little effort.  In starting formal planning, too much is attempted at once.  Management fails to operate by the plan.  Financial projections are confused with planning.  Inadequate inputs are used in planning.  Management fails to grasp the overall planning process.
  9. 9.  Input Planning is the development of proposed action that will furnish sufficient and appropriate organizational resources for established organizational objectives. › Two factors in this area: 1. Plant Facilities Planning 2. Human Resource Planning
  10. 10. Plant Facilities Planning Human Resource Planning It involves determining the type of buildings and equipment an organization needs to reach its objectives. Site selection is a major part of this determination. It is deciding where a plant facility should be located. Foreign Location is one factor that significantly influences site selection. It involves reflecting on organizational objectives to determine overall human resource needs; existing human resource inventory for the net human resource needs to seek appropriate members to meet this. Human resource is another area of concern to input planners. Organization objectives can’t be obtained without appropriate personnel.
  11. 11.  Deciding on a set of variables critical to obtaining an appropriate site.  Assigning each of these variables a weight reflecting its relative importance.  Ranking alternative sites according to how
  12. 12.  What types of people does the organization need to reach its objectives?  How many of each type are needed?  What steps should the organization take to recruit and select such people?  Can present employees be further trained to fill needed positions?  At what rate are employees being lost to other organizations? › Future needs for human resources are influenced mainly by employee turnover, the nature of the present workforce and the rate of growth of organization.
  13. 13.  These are techniques managers can use to help develop plans.  The most important of these tools are: › Forecasting › Scheduling
  14. 14.  It is the process of predicting future environmental happenings that will influence the operation of the organization.  The importance of forecasting lies his ability to help managers understand the future makeup of the organizational environment, which, in turn, helps them formulate more effective plans.  It is a imprecise science according to recent survey.
  15. 15.  Establish relationships between industry sales and national economic and social indicators.  Determine the impact government restrictions on the use of chemical pesticides will have on the growth of chemical, biological and electromagnetic energy pest-control markets.
  16. 16.  Evaluate sales growth potential, profitability, resource required, and risks involved in each of its market areas (commercial, industrial, institutional, governmental and residential).  Evaluate the potential for expansion of marketing efforts in domestic geographical areas as well as in foreign countries.  Determine the likelihood of technological breakthroughs that would make existing product line obsolete.
  17. 17.  Sales Forecast is a prediction of how high or low sales of the organization’s products or services will be over the period of time under consideration. › It is the key forecast of organizations because it serves as the fundamental guideline for planning. › Only after the sales forecast has been completed can managers can decide.  Sales forecasting is considered the key organizational forecast.
  18. 18.  QUALITATIVE METHOD › Jury of Executive Opinion Method of sales forecasting is straight forward. A similar, more recently developed forecasting method, called DELPHI METHOD also gathers, evaluates, and summarizes expert opinions as the basis for a forecast, but the procedure is more formal than that for the jury of executive opinion.
  19. 19. The BASIC DELPHI METHOD employ the following steps:  Various experts are asked to answer, independently and in writing, a series of questions about the future of sales or whatever other area is being forecasted.  A summary of all the answers is then prepared. No expert knows how any other expert answered the questions.  Copies of the summary are given to the individuals experts with the request that they modify their original answers if they think it necessary
  20. 20.  Another summary is made of these modifications, and copies again are distributed to the experts. This time, however, expert opinions that deviated significantly from the norm must be justified in writing.  A third summary is made of the opinions and justifications and copies are once again distributed to the experts. Justifications in writing for all answers is now required.  The forecast is generated from all of the opinions and justifications that arise from Step 5.
  21. 21. > Sales Force Estimation Method  It is a sales forecasting technique that predicts future sales by analyzing the opinions of sales people as a group.  It is considered to be valuable management tool and is commonly used in business and industry throughout the world
  22. 22.  QUANTITATIVE METHOD › Moving Average  It utilizes historical data to predict future sales level. › Regression Method  predicts future sales by analyzing the historical relationships between sales and time. › Product Stages Method  It Predicts future sales by using the product life cycle better to understand the history and future of the products. › Product Life Cycle  It is the five stages through which most products and services pass.
  23. 23.  It is the process of formulating a detailed listing of activities that must be accomplished to attain an objective, allocating the resources necessary to attain the objective, and setting up and following time tables for completing the objective.  It is the integral part of every organizational plan.
  24. 24.  It is a scheduling device developed by Henry L. Gantt.  It is essentially a bar graph with time on the horizontal axis.  It is used for scheduling resources, including management system inputs such as human resources and machines.  The main weakness of the Grantt Chart is that it does not Contain any information about the interrelationship of tasks to be performed.
  25. 25.  It is a technique that involved partly from the Grantt chart, is a scheduling tool that emphasize the interrelationship of tasks.  It is a network of project activities showing both the estimate of time necessary to complete each activity and the sequence of activities that must be followed to complete the projects.  This scheduling tool was developed in 1935 for designing and building Polaris Submarine Weapon System.
  26. 26.  List all the activities/ events that must be accomplished for the project and the sequence in which these activities/ events should be performed.  Determine how much time will be needed to complete each activity/ event.  Identify the critical path.
  27. 27.  ACTIVITIES › These are specified sets of behaviour within a project.  EVENTS › These are the completions of major project tasks.  CRITICAL PATH OF A PERT NETWORK › It is the sequence of events and activities requiring the longest period of time to complete. This is called critical because a delay on completing this sequence results in a delay in completing the entire project.