Planning and cybernetic control

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Planning and cybernetic control

  1. 1. Planning and Cybernatic Planning Eka Darmadi Lim Gerry Geraldo Isa Tridjojo Reni
  2. 2. Topics • MCS as a Package (in a brief) • Cybernatic Control • Planning Control – Long Range – Action Planning • Budget • Case Study
  3. 3. Topic
  4. 4. Introduction “The Package” Management Control System Package
  5. 5. Introduction “The Package” Management Control System Package Today
  6. 6. Introduction “The Package” Management Control System Package Week 4
  7. 7. Introduction “The Package” Management Control System Package Week 5
  8. 8. Introduction “The Package” Management Control System Package Week 6
  9. 9. Introduction “The Package” Management Control System Package Week 7
  10. 10. Introduction “The Package” Management Control System Package Week 8
  11. 11. Topic
  12. 12. Introduction “Cybernetic Controls” The Explanation of “Cybernetic Control” In organizations a cybernetic system can either be an information system or control system contingent. “A cybernetic system would be an information and decision-support system”
  13. 13. Introduction “Cybernetic Controls”
  14. 14. Cybernetic Controls “Inside” Measuring System Performance Comparing that performance to Standards Modifying system’s component Feeding back information about unwanted
  15. 15. Cybernetic Controls in Management Control System Budgets Financial Measurement Non-Financial Measurement Hybrid
  16. 16. Topic
  17. 17. Introduction Planning Control • What is Planning? “Decision making in advance or we can say planning is looking ahead and chalking out future courses of action to be followed.”
  18. 18. Introduction Planning Control Types of Planning? • Long Range Planning • Action Planning
  19. 19. Topic
  20. 20. Planning Control “Long Range Planning” • What is Long Range Planning? “the goals and actions for the medium and long run are established.” “This has a more STRATEGIC focus”
  21. 21. Planning Control “Long Range Planning” • “Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.” • Simply put, strategic planning determines where an organization is going over the next year or more
  22. 22. Planning Control “Long Range Planning” • A Variety of Strategic Planning Models: Goal Base Planning Issues Based Strategic
  23. 23. Planning Control “Long Range Planning” • Strategic planning involves both analysis of the past (using data cost, revenue, etc.) and forecast of the future • Strategic planning provides a framework for the more detailed planning that takes place in the planning cycles that follow.
  24. 24. Six Iterative Steps of Strategic Plan Process Develop a Corporate Vision, Mission, Objective Understand the firm’s present position, SWOT Decide on a corporate diversification strategy that identifies what business the firm Decide on a strategy for each SBU
  25. 25. Tools for Strategic Plan Process SWOT Analysis Balanced Scorecards Scenario Planning
  26. 26. The Purpose of Strategic Plan “For Organization” Clearly define the Purpose of Organization Communicate the Goals Develop a sense of Ownership A Base of Progress that can be Measured
  27. 27. Topic
  28. 28. Planning Control “Action Planning” What is Action Planning? “Action planning is a sequence of steps that must be taken, or activities that must be performed well, for a strategy to succeed”
  29. 29. Planning Control “Action Planning” The Importance of Action Planning? “To help the company to reach their objective (the strategic planning)”
  30. 30. Planning Control “Action Planning” • The Importance of Action Planning? “To help the company to reach their objective (the strategic planning)”
  31. 31. Planning Control “Action Planning” • Major Elements of Action Planning? Specific Tasks Time Horizon Resource Allocation
  32. 32. Planning Control “Action Planning” • Main Step in Preparing “Action Planning” Have a Clear Objective List of Benefit (Goals) Step by Step Clearly Arrange the Steps in Logical
  33. 33. Planning Control “Action Planning” • Main Step in Preparing “Action Planning” Try a Goal Map Think about The Problems Review the Progress
  34. 34. Topic
  35. 35. Budgeting • The process of budgeting is initiated with the establishment of specific targets of performance • followed by executing plans to achieve such desired goals and from time to time comparing actual results with the targets of performances/goals.
  36. 36. Budgeting • Strategic planning also has a relation to budgeting because they both involve a planning but they have different activities in two processes. • The budgeting process focuses on a single year
  37. 37. Budgeting • Strategic planning focuses on activities that extend over a period of several years. Strategic planning precedes budgeting and provides the framework within which the annual budget is developed.
  38. 38. The Uses of Budgeting Fine Turning the Strategic Plan Coordination Assigning Responsibility Basis for performance Evaluation
  39. 39. Budget Preparation Process Organization Issuance of Guidelines Initial Budget Proposal Negotiation
  40. 40. Budget Preparation Process Review and Approval Budget Revisions Contingency Budgets
  41. 41. Budget Limitation Budget based on Estimate Budget must be adjusted to changes Budget can be useful by Management Can not replace the management Function
  42. 42. Principal Terms of Successful Budget Program Healthy Corporate Organization Adequate Accounting Systems Research and Analysis Support from Executive
  43. 43. The Uses of Budgeting • “The budget acts as an effective management tool” • by providing a means of identifying and allocating limited resources (Revenues), and monitoring their use (Expenditures).
  44. 44. The Uses of Budgeting • “The budget also is used to help prevent the company from overspending.” • “Budget reports provide management with information on operations” • Allowing the organization to monitor and control spending and revenue collection while they are in progress.
  45. 45. Topic
  46. 46. Thank You Eka Darmadi Lim Gerry Geraldo Isa Tridjojo Reni

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