Principles of Management - Chapter 4 - Planning - Al-Baha University - 2024/1445 PDF

Principles of Management Al-Baha University Faculty of Computing and Information Computer Information Systems 1st Semester – 2024/1445 Essentials of Management Chapter 4 PLANNING 2  Purpose of Planning...

Principles of Management Al-Baha University Faculty of Computing and Information Computer Information Systems 1st Semester – 2024/1445 Essentials of Management Chapter 4 PLANNING 2  Purpose of Planning Planning is the iterative task of setting goals, specifying how to achieve them, implementing the plan and evaluating the results. A goal (or objective) is a desired future state for an activity or organisational unit. Good plans give direction to the people whose work contributes to their achievement. Planning reduces overlap and at the same time ensures that someone is responsible for each activity. A plan helps people coordinate their separate tasks, so saving time and resources. The content of a plan depends on what aspect of business it deals with: strategic, business unit, operational, tactical or special purpose. 3  Content of Plans 1. A business plan is a document describing the markets a business intends to serve, how it will do so and what finance they require. 2. Strategic plans apply to the whole organisation. – A strategic plan sets out the overall direction for the business, is broad in scope and covers all the major activities. – A strategic business unit consists of a number of closely related products for which it is meaningful to formulate a separate strategy. – Strategic plans usually set out a direction for several years. So they are sometimes called ‘rolling plans’. 4  Content of Plans 3. Operational plans detail how the overall objectives are to be achieved, by specifying what senior management expects from specific departments or functions. 4. Activity plans are short term plans which deal with immediate production or service delivery. 5. Standing plans specify how to deal with routine, recurring issues like recruitment or customer complaints. Enterprise resource planning (ERP) is a computer-based planning system which links separate databases to plan the use of all resources within the enterprise. 5 6  The Process of Planning A planning system Gathering information refers to the processes by which the members Evaluating results Developing a mission of an organisation produce plans, including their frequency and who Setting Goals & objectives Monitoring progress takes part in the process. Implementing Plans Identifying actions & allocating resources 7 Essentials of Management Chapter 5 Decision Making 8  Stages in Decision Making Recognise the problem or A decision is a specific opportunity commitment to action (usually a commitment Evaluate Effectiveness of Set Objectives of resources). Solution Decision making is the process of identifying problems and Implement chosen Set and Weight decision opportunities and then Alternative criteria resolving them. Compare Alternative & choose Develop Alternatives 9  Decision Making Condition Decisions arise within a context whose nature, measured by the degree of certainty, risk, uncertainty and ambiguity, materially affects the decision process. Certainty describes the situation when all the information the decision maker needs is available. Risk refers to situations in which the decision maker is able to estimate the likelihood of the alternative outcomes. Uncertainty is when people are clear about their goals but have little information about which course of action is most likely to succeed. Ambiguity is when people are uncertain about their goals and how best to achieve them. 10  Decision Making Models James Thompson distinguished decisions on two dimensions – agreement or disagreement over goals, and the beliefs that decision makers hold about the relationship between cause and effect. On this basis 4 model Agreement / Disagreement Over Goals High Low I III Computational strategy Compromise strategy Certainty Beliefs about Rational model Political model cause-and-effect II IV relationships Judgemental strategy Inspirational strategy Uncertainty Administrative, incremental Garbage-can model and intuitional models 11 v Computational strategy - Rational model The rational model of decision making assumes that people make consistent choices to maximise economic value within specified constraints. v Judgemental strategy- Administrative, incremental and intuitional models Simon’s administrative model describes how people make decisions in uncertain, ambiguous situations. The administrative model is descriptive, showing how managers decide complex issues. Charles Lindblom developed an incremental model, which people use when they are uncertain about the consequences of their choice. They search for a limited range of options, and policy unfolds from a series of cumulative small decisions George Klein developed an intuitional model, concluded that effective decision makers use their intuition as much as formal processes. 12 v Compromise strategy- Political model The political model is a model of decision making that reflects the view that an organisation consists of groups with different interests, goals and values. v Inspirational strategy- Garbage-can model This approach is concerned with those who are uncleared about cause-effect relationship and uncertain about outcome 13 Essentials of Management Chapter 6 Strategy 14  Strategy ØStrategy is about how people decide to organise major resources to enhance the performance of an enterprise. It is about resource decisions that are large, relatively long-term, expensive and visible – with correspondingly large implications for performance. ØCompetitive strategy explains how an organisation (or unit within it) intends to achieve competitive advantage in its market. 15  ‫أھداف واھﻣﯾﺔ اﻻﺳﺗراﺗﯾﺟﯾﺔ‬ ‫ﺗوﺟﯾﮫ اﻟﻘرارات اﻹدارﯾﺔ‬ ‫ ‬ ‫ﺗﺣدﯾد ﻣﺳﺎر اﻟﻣؤﺳﺳﺔ ﻧﺣو ﺗﺣﻘﯾق اﻟرﺳﺎﻟﺔ واﻻھداف‬ ‫ ‬ ‫ﺗﺣدﯾد ﻣﺟﺎل اﻟﻣﻧﺎﻓﺳﺔ‬ ‫ ‬ ‫ﺗﺣدﯾد ﻣﺟﺎﻻت اﻻﺳﺗﺟﺎﺑﺔ ﻟﻠﻔرص واﻟﺗﮭدﯾدات اﻟﺧﺎرﺟﯾﺔ وﻟﻧﻘﺎط اﻟﻘوة واﻟﺿﻌف‬ ‫ ‬ ‫اﻟداﺧﻠﯾﺔ‬ ‫ﺗﺣدﯾد ﻣﺟﺎﻻت اﻟﺗﻣﯾﯾز ﺑﯾن ﻣﮭﺎم ﻣﺳﺗوﯾﺎت اﻹدارة‬ ‫ ‬ ‫ﺗﺣدﯾد ﻣﺟﺎﻻت اﻹﺳﮭﺎم اﻻﻗﺗﺻﺎدي‬ ‫ ‬ ‫‪16‬‬  ‫اﻟﻔرق ﺑﯾن اﻟﺧطﺔ واﻻﺳﺗراﺗﯾﺟﯾﺔ‬ ‫ اﻻﺳﺗراﺗﯾﺟﯾﺔ ﻋﺎدة ﺗﺄﺗﻲ ﻗﺑل اﻟﺧطﺔ‪ ،‬وﺗﻘوم اﻟﺷرﻛﺎت ﻓﻲ اﻟﻐﺎﻟب ﺑﺗطوﯾر ﺧطﺔ‬ ‫ﻟﺗﺣﻘق اﺳﺗراﺗﯾﺟﯾﺔ ﻣﻌﯾﻧﺔ‪.‬‬ ‫ اﻟﺧطﺔ واﻻﺳﺗراﺗﯾﺟﯾﺔ ﻛﻼھﻣﺎ ﯾﺷﯾران أن ھﻧﺎﻟك ھدف ﻧﮭﺎﺋﻲ ﯾﺟب ﺗﺣﻘﯾﻘﮫ ﻟﻛن‪:‬‬ ‫– اﻻﺳﺗراﺗﯾﺟﯾﺔ ﺗ ُﻌﻧﻰ ﺑﺎﻟﮭدف اﻷﺳﻣﻰ ﻓﮭﻲ ﺗرﻛز ﻋﻠﻰ اﻟﻧﺗﺎﺋﺞ ﻓﻲ اﻟﻣدى اﻟﺑﻌﯾد‪ ،‬وﺗﺳﺗﺟﯾب‬ ‫ﻟﺗﻐﯾر اﻟظروف وﺗﺳﺗﻔﯾد ﻣن ﺗﺟﺎرب اﻟﺳﺎﺑﻘﺔ‬ ‫– اﻟﺧطﺔ ﺗﺣدد ﻧﻘﺎط ﻣرﺣﻠﯾﺔ ﻣﺻﻣﻣﺔ ﺧﺻﯾﺻﺎ ً ﻟﺗﺗﻣﻛن ﻣن إﻧﺟﺎز ھدف واﺣد ودﻗﯾق‪ ،‬ﻓﻲ ﺣﺎل‬ ‫ﻓﺷﻠت اﻟﺧطﺔ ﯾﺗم ﺷطﺑﮭﺎ واﺳﺗﺧدام ﺧطﺔ ﺑدﯾﻠﺔ واﻟﺗﻲ ﯾ ُطﻠق ﻋﻠﯾﮭﺎ اﻟﺧطﺔ ب‬ ‫ ﻓﻲ اﻟﻐﺎﻟب اﻟﺧطﺔ ﺗﻛون ﻗﺻﯾرة اﻟﻣدى وھﻲ ﺟزء ﻣن اﺳﺗراﺗﯾﺟﯾﺔ طوﯾﻠﺔ اﻟﻣدى‪.‬‬ ‫‪17‬‬  SWOT Analysis A SWOT (Strength, Weakness, Opportunity, Threat) analysis is a way of summarising the organisation’s strengths and weaknesses relative to external opportunities and threats. Strategy follows a ‘fit’ between internal capabilities and external changes – managers try to identify key issues from each and draw out the strategic implications 18  SWOT Analysis Strengths (strategic) – Internal resources that are available or things that an organization does well Core competency: a unique skill or resource that represents a competitive edge Weaknesses – Resources that an organization lacks or activities that it does not do well Opportunities (strategic) – Positive external environmental factors Threats – Negative external environmental factors