Planning - How and Why Managers Plan PDF

Planning– How and Why Managers Plan BOH4M What is Planning? Definition: the process of setting objectives and determining how to achieve them Purpose: creates a foundation for management functions Organizing: allocating resources to tasks Leading: guiding human...

Planning– How and Why Managers Plan BOH4M What is Planning? Definition: the process of setting objectives and determining how to achieve them Purpose: creates a foundation for management functions Organizing: allocating resources to tasks Leading: guiding human resources for successful outcomes Controlling: monitoring progress and taking corrective actions The Planning Process Objectives – are specific results that one wishes to achieve Plan – is a statement of intended means for accomplishing objectives Benefits of Planning 1. Improves Focus and Flexibility Helps organizations understand their strengths and customer needs Enables individuals to stay committed to career goals despite challenges Promotes adaptability to changing circumstances Benefits of Planning 2. Enhances Action Orientation A proactive approach that emphasizes taking initiative and focusing on results. Result orientated – creating a performance-oriented sense of direction Priority orientated- making sure the most important things get first attention Advantage oriented – ensuring that all resources are used to best advantage Change oriented – anticipating problems and opportunities so they can be best dealt with  Benefits of Planning 3. Planning Improves Coordination: aligns lower-level objectives with higher-level goals - (means-end chain) 4. Facilitates Improves Time Management: prioritizes tasks to manage time efficiently (e.g. to-do lists) 5. Strengthens Control: provides a framework for measuring progress and making improvements Planning Process 1. Define your objectives – identify specific desired outcomes 2. Assess current position: evaluate current accomplishments compared to objectives 3. Develop premises (assumptions): anticipate future events and create alternative scenarios 4. Analyze action alternatives: list and evaluate options to achieve objectives Types of Plans A.Short-range and long range plans B.Strategic Plans C.Policies and Procedures / Budgets  A.Short-Range and Long- Range Plans Short-range plans: up to one year (Lower Management) Intermediate-range plans: 1-2years Long-range plans: 3+ years (Top Management)  B. Strategic Plans Set broad, comprehensive, and longer-term action directions Objectives for entire organization Recall – SWOT, PEEST, Porter’s, BCG  C. Policies and Procedures Standing Plans –policies and procedures designed for use over and over again  C. Policies Versus Procedures Policy: broad guidelines for decision-making (e.g. hiring, performance appraisals, promotions, sexual harassment and discipline) Procedure: specific actions to be taken in certain situations (handbooks and manuals) Example: School Attendance policy Policy: All students required to attend school every day unless they have a valid reason for absence Procedure: notification, documentation, make-up work, consequences for excessive absences Example: remote-work policy  C. Budgets Plans that allocate resources for activities, serving as single-use plans  Planning Methods 1. Forecast 2. Contingency 3. Scenario 4. Benchmark  *Scenario Planning Prepares for various future scenarios (e.g. economic growth rates) Scenarios are not wild predictions: They are realistic descriptions of how various external factors (politics, tech, economy) could change and interact in the future Scenario planning process: Organizations create three to four different scenarios that explore possible futures Analyze opportunities and challenges of each scenario Helps them make informed short and long term strategic decisions Scenario Planning Example 2. If there is Somewhat 1. If there is Poor Poor Economic Growth Economic Growth - Be careful with purchases - Consider relocation - Aim for low cost R&D - Sell assets initiatives - Downsize 4. If there is Strong 3. If there is Somewhat Economic Growth Strong Economic Growth - Be aggressive with - Make normal purchases corporate investments. - Aim for medium cost R&D - Try ambitious R&D initiatives projects  *Contingency Plan Develops alternative actions for unexpected events Contingency Plan Ex) If a natural disaster takes place, we will move our business to another location. Here is how we will switch storefronts: Ex) If a competing convenience store opens nearby, here is what we will do: Contingency plans in action https://www.youtube.com/watch?v=mWvM48wF bcI https://www.youtube.com/watch?v=tEYEFa5CvR 0 https://www.youtube.com/watch?v=ZBcOJKyT-q M https://www.youtube.com/watch?v=1AxxRtc3K- k