BUS 51 - Mosley7e ch02


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Cengage Professor, Karen Gordon-Brown, Peralta Community College District @ Merritt College, Oakland, CA

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  • BUS 51 - Mosley7e ch02

    1. 1. Part 2 Planning and Organizing Chapter 2 Fundamentals of Planning Mosley • Pietri PowerPoint Presentation by Charlie Cook The University of West Alabama © 2008 Thomson/South-Western All rights reserved.
    2. 2. Learning Objectives Learning Objectives After reading and studying this chapter, you should be able to: 1. Discuss the important points about planning. 2. Explain the steps involved in planning. 3. Explain how planning differs at top, middle, and supervisory management levels. 4. Explain how the hierarchy of objectives works. 5. Discuss some important guidelines in setting objectives. 6. Differentiate the various kinds of standing and singleuse plans. 7. 2008 Thomson/South- chart. © Draw a simple PERT Western. All rights reserved. 2–2
    3. 3. EXHIBIT 2.1 The Three Planning Steps What is to be achieved? What present and future variables could influence what is to be achieved? © 2008 Thomson/SouthWestern. All rights reserved. What, when, who, where, and how will the plan be achieved? 2–3
    4. 4. Achieving Objectives or Goals 4 Implementing the plan (organizing, leading, staffing) 5 Monitoring the plan’s implementation (controlling) © 2008 Thomson/SouthWestern. All rights reserved. 6 Evaluating the plan’s effectiveness (controlling) 2–4
    5. 5. “Siamese Twins” of Management: Planning and Controlling Steps in Controlling Steps in Controlling 1. Setting performance goals or norms. 1. Setting performance goals or norms. 2. Measuring performance. 2. Measuring performance. 3. Comparing performance with goals. 3. Comparing performance with goals. 4. Analyzing performance results. 4. Analyzing performance results. 5.Taking corrective action as needed. 5.Taking 2008 Thomson/South-corrective action as needed. © Western. All rights reserved. 2–5
    6. 6. EXHIBIT 2.2 Lack of Planning © 2008 Thomson/SouthWestern. All rights reserved. 2–6
    7. 7. EXHIBIT 2.3 The Nonplanner’s Cycle © 2008 Thomson/SouthWestern. All rights reserved. 2–7
    8. 8. Contingency Planning Anticipates Problems • Contingency Planning  Thinking in advance about possible problems or changes that might arise and having anticipated solutions available.  The responses to the “what if . . . ?”questions that describe serious events. • Scenario Planning  Anticipating alternative future situations and developing courses of action for each alternative. © 2008 Thomson/SouthWestern. All rights reserved. 2–8
    9. 9. Questions for Good Contingency Planners 1. What might happen that could cause problems within my area of responsibility? 2. What can I do to prevent these events from happening? 3. If these events do occur, what can I do to minimize their effect? 4. Have similar situations occurred in the past? If so, how were they handled? © 2008 Thomson/SouthWestern. All rights reserved. 2–9
    10. 10. Strategic Planning • Strategic Planning by Top Managers Involves: 1. Defining the mission—the purpose the organization serves and identifies its services, products, and customers. 2. Setting objectives—the purposes, goals, and desired results for the organization and its parts. 3. Developing strategies—the activities by which the organization adapts to its environment in order to achieve its objectives. © 2008 Thomson/SouthWestern. All rights reserved. 2–10
    11. 11. Strategic and Operational Planning • Strategic Planning  Has a longer time horizon, affects the entire organization, and deals with the organization’s interface to its external environment. • Operational Planning  Consists of intermediate and short-term planning that facilitates achievement of the long-term strategic plans set at higher levels.  Middle and supervisory level managers are more concerned with operational planning. © 2008 Thomson/SouthWestern. All rights reserved. 2–11
    12. 12. EXHIBIT 2.4 Planning at Three Management Levels Level Planning Periods What Is Planned Top managers Strategic long-term intermediate-range plans of 1 to 5 or more years Growth rate Competitive strategies New products Capital investments Middle managers Intermediate- and shortrange plans of 1 month to 1 year How to improve scheduling and coordination How to exercise better control at lower levels Supervisors Short-range plans of 1 day, 1 week, 1 to 6 months How to accomplish performance objectives How to implement new policies, work methods, and work assignments How to increase efficiency (in costs, quality, etc.) Employee and supervisor vacations © 2008 Thomson/SouthWestern. All rights reserved. 2–12
    13. 13. Importance of Setting Objectives • Objectives  Can by synonymous with goals (semantics).  Some say specific objectives support broader goals.  Answer the question “What do I want to accomplish?.”  Serve as a stimulus for motivation and effort.  Guide managers at lower levels in developing operational plans and coordinating activities. • Hierarchy of Objectives  A network with broad goals at the top level of the organization and narrower goals for individual divisions, departments, or employees. © 2008 Thomson/SouthWestern. All rights reserved. 2–13
    14. 14. EXHIBIT 2.5 Hierarchy of Objectives for Computronix © 2008 Thomson/South*Objectives directly linked to improved cost effectiveness. Western. All rights reserved. 2–14
    15. 15. Unified Planning through Objectives • Unified Planning  Facilitates coordinating departments to ensure harmony rather than conflict or competition.  Is important where coordination is required among departments or work units. © 2008 Thomson/SouthWestern. All rights reserved. 2–15
    16. 16. Guidelines for Setting Objectives 1. Select key performance areas for objectives. 2. Be specific, if possible. 3. Set challenging objectives. 4. Keep objective areas in balance. 5. Objectives should be measurable. 6. Involve employees in setting objectives. 7. Follow up on performance results. © 2008 Thomson/SouthWestern. All rights reserved. 2–16
    17. 17. Types of Plans • Standing (Repeat-Use) Plans  Plans that are used repeatedly over a period of time. • Policy  Supports attainment of an organizational objective.  Provides guidance for implementation consistency among decision makers.  Sets a boundary on a supervisor’s freedom of action. • Role of Supervisors in Policy  Implementing established policies.  Creating policies within their organizational units. © 2008 Thomson/SouthWestern. All rights reserved. 2–17
    18. 18. EXHIBIT 2.6 Examples of Policies Compensation policy: “This company shall establish and maintain wages on a level comparable to those paid for comparable positions in other firms in the community.” Overtime policy: “Supervisors shall offer overtime opportunities first to the most senior employees in the department.” Grievance policy: “Each employee shall have an opportunity for due process in all disciplinary matters.” Purchasing policy: “Where feasible, several sources of supply shall be utilized so as not to be solely dependent on one supplier.” Supervisory policy: “Managers shall periodically hold group meetings with employees for the purposes of discussing objectives, explaining new developments that may affect employees, responding to questions, and, in general, encouraging more effective and accurate communications within the organization.” © 2008 Thomson/SouthWestern. All rights reserved. 2–18
    19. 19. Rules and Procedures • Rule  Is a final and definite policy that is invariably enforced under threat of consequences (i.e., punishment). • The Role of Supervisors in Rules  Knowing when and how much flexibility there is in application of a rule.  Avoiding overmanagement of employees through the application of too many rules. • Procedure  Sets out the steps to be performed when a particular course of action (e.g., application of a rule) is taken. © 2008 Thomson/SouthWestern. All rights reserved. 2–19
    20. 20. Types of Plans (cont’d) • Single-Use Plans  Are developed to accomplish a specific purpose and then discarded after use. • Types of Single-Use Plans  Program—a large-scale plan composed of a mix of objectives, policies, rules, and projects.  Project—a distinct part of a program.  Budget—a forecast of expected financial performance over time.  Schedule—a plan of activities to be performed and their timing. © 2008 Thomson/SouthWestern. All rights reserved. 2–20
    21. 21. EXHIBIT 2.7 Example of Gantt Chart Showing Activities Needed in Production Start-Up Gantt Chart A visual progress report that identifies work stages or activities on a vertical axis and scheduled completion dates horizontally. © 2008 Thomson/SouthWestern. All rights reserved. 2–21
    22. 22. Program Evaluation and Review Technique • Program Evaluation and Review Technique (PERT)  Is a management scheduling tool.  Shows relationships among a network of activities to determine the completion time of a project.  Is used on highly complex, one-time projects and requires the use of a computer. • Critical Path  The longest route in a PERT network that, in terms of time and required sequence of activities, is required to complete the job. © 2008 Thomson/SouthWestern. All rights reserved. 2–22
    23. 23. EXHIBIT 2.8 PERT Network for Completing Machine Overhaul © 2008 Thomson/SouthWestern. All rights reserved. 2–23
    24. 24. Important Terms Important Terms • • • • • • • • • • • • budget contingency planning critical path Gantt chart hierarchy of objectives mission objectives operational planning policy procedure program Program Evaluation and Review Technique (PERT) © 2008 Thomson/SouthWestern. All rights reserved. • • • • • • • • • • project rule scenario planning schedule “Siamese twins” of management single-use plans standing plans or repeat-use plans strategic planning strategies unified planning 2–24