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    2. 2. HOW DO MANAGERS USE THE PLANNINGPROCESS? Planning is one of the four functions of management
    3. 3.  Planning is the process of setting objectives and identifying how to achieve them Steps in the Planning Process: Step 1: Define your objectives Step 2: Determine where you stand vis a vis objectives Step 3: Develop premise regarding future conditions
    4. 4.  Step 4: Make a plan Step 5: Implement the plan and evaluate results Objectives: specific results that one wishes to achieve Plan : statement of intended means for accomplishing objectives
    5. 5.  Good planning makes us… Action Oriented Priority Oriented Advantage Oriented Change Oriented Planning provides focus and orientation The complacency trap is being lulled into inaction by current successes or failures
    6. 6.  Planning improves coordination and control In a hierarchy of objectives, lower-objectives help achieve higher-level ones Planning improves time management
    7. 7. WHAT TYPES OF PLANS DO MANAGERS USE? Managers use short-range and long-range plans Short-range plans – covers a year or less Long-range plans- covers three years or more Strategic plans – identifies long-term decisions for the organization Vision – clarifies purpose of the organization and expresses what it hopes to be in the future
    8. 8.  Operational Plan/ Tactical Plans : sets out ways to implement a strategic plans Functional Plans: identifies how different parts of an enterprise will contribute to accomplishing strategic plans Organizational policies and procedures are plans Policy: standing plans that communicates broad guidelines for decisions and action
    9. 9.  Procedure/ Rule: precisely describes actions to take in specific situations Budgets are plans that commit resources to activities Zero-based resources: allocates resources as if each budget was brand-new Forecasting tries to predict the future Contingency planning creates backup plans for when things go wrong
    10. 10.  Scenario planning crafts plans for alternative future conditions Benchmarking identifies best practices used by others Participatory planning improves implementation capacities
    11. 11.  Goal setting helps align plans and activities throughout an organization Stretch goals are performance targets that we have to work extra hard and stretch to reach
    13. 13. HOW AND WHY DO MANAGERS USE THE CONTROLPROCESS? Controlling is one of the four functions of management Controlling: the process of measuring performance and taking action to ensure desired results After-action review: structured review of lessons learned and results accomplished through a completed project, task force assignment or special operations
    14. 14.  Control begins with objectives and standards
    15. 15.  Output standards: measures performance results in terms of quantity, quality, cost or time Input standards: measures work effort that goes into a performance task Control measures actual performance Control compares results with objectives and standards
    16. 16.  Control takes corrective actions as needed Management by exception: focuses attention on differences between actual and desired performance
    17. 17. WHAT TYPES IF CONTROLS ARE USED BYMANAGERS? Managers use feedforwad, concurrent, and feedback results
    18. 18.  Feedforward: ensures clear directions and needed resources before the work begins Concurrent control: focuses on what happens during the work process Feedback: takes place after completing an action Managers use both external and internal controls
    19. 19.  Internal control/ self control: occurs as people exercise self-discipline in fulfilling job expectations External control: occurs through direct supervision or administrative systems Bureaucratic control: influences behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision
    20. 20.  Clan control: influences behavior through social norms, and peer expectations Market control: the influence of market competition on the behaviors of organizations and their members
    21. 21.  Managing objectives is a way to integrate planning and controlling
    22. 22.  Managing by objectives: a process of joint objective setting between a superior and a subordinate Improvement objectives: documents intentions to improve performance in a specific way Personal development objectives: documents intentions to improve personal growth, such as expanded job knowledge or skills
    23. 23. WHAT ARE SOME USEFUL CONTROL TOOLS ANDTECHNIQUES? Quality control is a foundation of modern management Total Quality Management (TQM): commits to quality objectives, continuous improvement and doing things right the first time Continuous improvement: involves always searching for new ways to improve work quality and performance Control charts: graphical ways of displaying trends so that exceptions to the quality standards can be identified
    24. 24.  Six sigma: quality standard of 3.4 defects or less per million products or service deliveries Gantt Chart and CPM/PERT are used in project management and control Project: one time activities with many competent tasks that must be completed in proper order and according to budget Project management: makes sure activities required are to complete a project are planned well and accomplished on time
    25. 25.  Gantt Chart: graphically displays the scheduling of tasks required to complete the project CPM/PERT: is a combination of critical path method and program evaluation and review technique. Critical path: the pathway from project start to conclusion that involves activities with the longest completion times
    26. 26.  Critical path
    27. 27.  Inventory controls help save costs Inventory control: ensures that inventory is only big enough to meet immediate needs Economic order quantity method: places new orders when inventory levels fall to predetermined points Just in Time (JIT) scheduling: routes materials to workstations just in time of use
    28. 28.  Breakeven analysis shows where revenues will equal costs Breakeven point: occurs where revenues equal costs Breakeven analysis performs what-if calculations under different revenue and cost conditions.
    29. 29.  Financial ratios measure key areas of financial performance
    30. 30.  Balanced scorecards help top managers exercise strategic control Balanced scorecard: measures performance on financial, customer service, internal process, and innovation and learning goals
    32. 32. WHAT TYPES OF STRATEGIES ARE USED BYORGANIZATIONS? Strategy is a comprehensive plan for achieving competitive advantage. Corporate strategy: sets long term direction for total enterprise Business strategy: identifies how a division or strategic business unit will compete in its product or service domain Functional strategy: guides activities within ne specific area of operations
    33. 33.  Growth strategies focus on expansion Functional strategy: guides activities within one specific area of operations Restructuring and divestiture strategies focus on consolidation Retrenchment strategy: changes operations to correct weakness Liquidation: occurs when business closes and sells its assets to pay creditors
    34. 34.  Restructuring: reduces the scale or mix of operations Chapter 11 bankruptcy: protects an insolvent firm from creditors during a period of reorganization to restore profitability Downsizing: decreases the size of operations Divestiture: involves selling off parts of the organization to refocus attention on core business areas
    35. 35.  Global strategies focus on international business incentives Global strategy: adopts standardized products and advertising for use worldwide Transnational firm tries to operate globally without having a strong national identity
    36. 36.  Cooperative strategies focus on alliances and partnerships Strategic allegiance: organizations join together in partnership to pursue an area of mutual interest Co-opetition: working with rivals on projects with mutual benefit
    37. 37.  E-business strategies focus on using the internet for business strategies
    38. 38.  B2B Business strategy: uses IT and Web portals to link organizations vertically in supply chains B2C Business strategy: uses IT and Web portals to link businesses with customers Social media strategy: uses social media to better engage with an organization’s customers, clients and external audiences in general Crowdsourcing: strategic use of internet to engage customers and potential customers in providing opinions and suggestions on products and their designs
    39. 39. HOW DO MANAGERS FORMULATE AND IMPLEMENTSTRATEGIES? The strategic management process formulates and implements strategies
    40. 40.  Strategic management: process of formulating and implementing strategies Strategic formulation: process of creating strategies Strategic implementation: process of putting strategies into action
    41. 41.  Strategy formulation begins with organizations mission and objectives Mission: organizations reason for existence in society Operating objectives: specific results that organizations wish to accomplish SWOT analysis identifies strengths, weaknesses, opportunities and threats Core competencies: special strength that gives an organization a competitive advantage
    42. 42.  Porter’s Five-process model examines industry attractiveness
    43. 43.  Porter’s competitive strategies model examines business or product strategies Differentiation strategy: offers products that are unique and different from those of the competition Cost leadership strategy: seeks to operate with lower costs than competitors Focused differentiation strategy: offers unique products to a special market segment Focused cost leadership strategy: seeks the lowest cost of operations within a special market segment
    44. 44.  Portfolio planning examines strategies across multiple businesses or products BCG Market – analyzes business opportunities according to market growth rate and market share Strategic leadership ensures strategy implementation and control Strategic leadership: inspires people to implement organizational strategies Strategic control: makes sure that strategies are well implemented and that poor strategies are scrapped or changed