ch 8 AI QUIZ

• Planning sets the stage for other management processes, providing direction by setting objectives and determining how to achieve them.

The Planning Process

• Define objectives specifically to know where you want to go.
• Evaluate current accomplishments relative to desired results, understanding strengths and weaknesses.
• Anticipate future events by generating alternate scenarios.
• List and evaluate possible actions, describing what must be done for the best course.
• Take action, measure progress, and revise plans based on results.
• Objectives and goals should push for significant accomplishments (stretch goals).
• A plan is a statement of action steps to achieve objectives and goals.
• Planning is an ongoing process that requires constant adjusting and revising.

Benefits of Planning

• Planning assists organizations to deal with internal and external pressures.
• Planning improves focus by clarifying what an organization does best and understanding customer needs and flexibility.
• Managers avoid the complacency trap through good planning.
• Good planning promotes coordination of activities and ensures resources are used to their best advantage.
• Planning and time management require discipline and prioritizing tasks.
• Saying "no", avoiding unnecessary details, screening communications, prioritizing tasks by importance and urgency will improve time management.

Types of Plans

• Long-term plans look three or more years into the future and are subject to revisions, with top management responsible for setting them.
• Short-term plans cover one year or less.
• Strategic plans focus on the organization as a whole and set broad action directions for resource allocation.
• Tactical plans implement strategic plans by specifying how resources are used.
• Functional plans (e.g., production, financial, marketing, HR) are examples of tactical plans.
• Operational plans guide behavior and support strategic and tactical plans, including standing plans and single-use plans.

Policies and Procedures

• A policy communicates broad guidelines for making decisions.
• Procedures describe specific rules for actions in various situations.

Budgets

• Budgets are single-use plans that commit resources for specific time periods.
• Financial budgets project cash flows, and operation budgets allocate resources like labor and equipment.
• Fixed budgets allocate a set amount, while flexible budgets allow resources to vary with activity levels.
• Zero-based budgeting avoids rollover budget problems by treating each new budget period as brand new.

Planning Tools and Techniques

• Forecasting predicts future events, using qualitative (expert opinion) and quantitative (mathematical models) methods.
• Contingency planning creates backup plans for uncertain environments with trigger points.
• Scenario planning involves identifying possible future scenarios and planning for each.
• Benchmarking uses external and internal comparisons to improve performance.
• Best practices are things people/organizations do to achieve superior performance.
• Internal benchmarking shares best practices within the organization, while external benchmarking learns from others.
• Staff planning is included as a planning tool.

Implementing Plans to Achieve Results

• SMART goals have five qualities; Specific, Measurable, Attainable, Relevant, and Timely.
• High stress, poor results, and unethical behavior may result from poorly managed stretch goals.
• Learning goals create knowledge and skills, and outcome goals set targets for performance results.
• Participatory planning involves those affected by the plans in the planning and implementation process.