2.  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.

3. ◦ 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.

4. ◦ A long-term version of contingency planning.
◦ Identifying alternative future scenarios.
◦ Plans made for each future scenario.
◦ Increases organization’s flexibility and preparation
for future shocks.

5. ◦ Use of external comparisons to better evaluate
current performance and identify possible actions
for the future.
◦ Adopting best practices of other organizations that
achieve superior performance.

6. ◦ Lead and coordinate the planning function
◦ Responsibilities include:
 Assisting line managers in preparing plans.
 Developing special plans.
 Gathering and maintaining planning information.
 Assisting in communicating plans.
 Monitoring plans in progress and suggesting
changes.

7. ◦ Participatory planning requires that the
planning process include people who will be
affected by the plans and/or will help
implement them.
◦ Benefits of participation and involvement:
 Promotes creativity in planning.
 Increases available information.
 Fosters understanding, acceptance, and
commitment to the final plan.

9. ◦ A structured process of regular communication.
◦ Supervisor/team leader and workers jointly set
performance objectives.
◦ Supervisor/team leader and workers jointly review
results.

11. ◦ Workers’ performance objectives for a specific time
period.
◦ Plans through which performance objectives will be
accomplished.
◦ Standards for measuring accomplishment of
performance objectives .
◦ Procedures for reviewing performance results.

12. ◦ 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.

13. ◦ Improvement
◦ Personal development
◦ Maintenance

Criteria for effective performance objectives
◦
◦
◦
◦
Specific
Time defined
Challenging
Measurable

14. ◦ Focuses workers on most important tasks and
objectives.
◦ Focuses supervisor’s efforts on important areas of
support.
◦ Contributes to relationship building.
◦ Gives workers a structured opportunity to
participate in decision making.