Planning Technical Activities Module 3 PDF

PLANNING TECHNICAL ACTIVITIES 3 MANAGEMENT LEVEL Top Management Chief Executive...

PLANNING TECHNICAL ACTIVITIES 3 MANAGEMENT LEVEL Top Management Chief Executive PLANNING HORIZON Strategic Planning Officer, President, (One to ten years) Vice President, General Manager, THE NATURE OF PLANNING 1 Division Heads A plan, which is the output of planning provides a methodical Middle Management Functional Managers, Intermediate way of achieving desired results. Product Line Planning (Six months Managers, to two years) To minimize mistakes in decision-making planning is undertaken. Department Heads Lower Management Unit Manager First Operational Planning Without the plan, some minor tasks may be afforded Line Supervisors (One week to one major attention which may, later on hinder the accomplishment of year) objectives. STRATEGIC PLANNING 4 Refers to the process of determining the major goals of the PLANNING DEFINED 2 organization and the policies and strategies for obtaining and using resources to achieve those goals. Nickels and others – The manager function that involves The output is the STRATEGIC PLAN anticipating future trends and determining the best strategies and tactics to achieve organizational objectives. Spells out the decision about long-range goals and the course of action to achieve these goals Aldag and Stearns – The selection and sequential ordering of tasks required to achieve an organizational goal. Parts of strategic planning: Cole and Hamilton – Deciding what will be done, where, when Company or Corporate Mission and how it will be done, and the standards to which will be done. Objective or Goal Strategies PLANNING AT VARIOUS MANAGEMENT LEVELS 3 INTERMEDIATE PLANNING 5 Planning activities undertaken at various levels are as follows: Refers to the process of determining the contributions that subunits can Top management level – strategic planning make with allocated resources. Middle management level – intermediate planning Lower management level – operational planning The goals of a subunit are determined, and a plan is prepared to provide a guide to the realization of the goals. It is designed to support the strategic plan. ENGS32A - MGSD OPERATIONAL PLANNING 6 TYPES OF PLANS Classification of Plans: Refers to the process of determining how specific tasks can best be accomplished on time with available resources. Functional area plan It must be performed in support of the strategic plan and intermediate Marketing Plan plan. o The Executive Summary o Table of Contents o Situational Analysis and Target Market THE PLANNING PROCESS 7 o Marketing Objectives and Goal o Marketing Strategies o Marketing Tactics o Schedules and Budgets Generally, planning involves the following: o Financial Data and Control Setting organizational, divisional, or unit goals Production Plan Goals = The precise statement of results sought o The amount of capacity the company must have quantified in time and magnitude, where possible o How many employees are required o How much material must be purchased Developing strategies or tactics to reach those goals Strategy = a course of action aimed at ensuring that the Financial Plan organization will achieve its objectives o An analysis of the firm’s current financial condition as Tactic = a short-term action taken by management to indicated by an analysis of the most recent statements. adjust to negative internal or external influences o A sales forecast Determining resources needed o The capital budget o The cash budget Human Human Resource Management Plan Non-Human o Personnel requirement of the company Setting Standards o Plans for recruitment and selection o Training plan Standards for measuring performance may be set at the o Retirement plan planning stage Plans with time horizon When actual performance does not match with the planned performance, corrections or reinforcements o Short-range Plan should be given o Long-range Plan ENGS32A - MGSD  Plans according to Frequency of Use o Improper planning process o Lack of commitment to the planning process o Standing plans o Improper information ▪ Policies – broad guidelines to aid managers at every level in making decisions about recurring o Focus on the present at the expense of the future situations or functions o Concentrating on only the controllable variables ▪ Procedures – plans that describe the exact series Aids to Planning of actions to be taken in a given situation o Gather as much information ▪ Rules – statements that either require or forbid a o Develop multiple sources of information certain action o Involve others in the planning process o Single-use Plans ▪ Budgets – a plan which sets forth the projected expenditure for a certain activity and explains where the required plans will come from ▪ Programs – a single-use plan designed to coordinate a large set of activities ▪ Projects – a single-use plan that is usually more limited in scope that a program and is sometimes prepared to support a program MAKING PLANNING EFFECTIVE 8 Recognize the planning barriers o Manager’s inability to plan o Improper planning process o Lack of commitment to the planning process o Improper information o Focus on the present at the expense of the future o Concentrating on only the controllable variables Aids to Planning o Gather as much information o Develop multiple sources of information o Involve others in the planning process MAKING PLANNING EFFECTIVE 9 Recognize the planning barriers o Manager’s inability to plan ENGS32A - MGSD