Chapter 10 the planning process

Strategic, Tactical, and Operational Plans

Most of the time, lower-level managers tend to form and execute operating plans; in middle management, the primary concern is tactical plans; and finally, at the top levels, strategic planning dominates the attention of the executives.

Planning and Time Management

Not only do fully planned days reduce "lag time" in which nothing substantial gets done, it also allows a manager to better prioritize, so things that need to be addressed immediately can be addressed, while other items can be postponed, delegated, or in some cases, not addressed at all.

Standing Plans

One type of standing plan is a policy. A policy communicates broad guidelines that are intended to guide individuals in the organization as they make decisions. Sexual harassment policy is an example Another type of standing plan is more specific: rather than a broad, sweeping guideline, a procedure or rule details specific responses to certain situations. Another name for procedures and rules is standard operating procedures, or SOPs. For example, a standard operating procedure might detail a specific demotion or pay cut as a result of performance falling below a certain level.

Performance Objectives in MBO there are there are three main types of objectives:

Personal Development Objectives—Goals that deal with additional training and other growth opportunities on a personal level Improvement Objectives—These objectives detail specified improvements in performance Maintenance Objectives—Goals that deal with keeping performance on its current level If possible, these objectives should be quantifiable (ex. "to boost sales by 10% this year"). If it is a clear-cut, measurable goal, it will be easier to monitor and evaluate.

Benefits of Planning

Planning Improves Flexibility and Focus. Planning Improves Action Orientation. Planning Improves Control and Coordination.

Goal Setting

Specific—Precisely targeted results Measurable—Results should be able to be measured without vagueness Timely—There should be a schedule of completion dates Challenging—Goals that push the limits to get increased results Attainable—Realistic goals

Tactical Plans

Tactical plans are the plans that are designed to accomplish part or all of a strategic plan.A type of tactical plan that is often used in the business world is a functional plan—how each part or "silo" of an organization can individually contribute to the overall strategic plan of the firm. These functional plans may have the following components: Human Resources Finances Production Marketing Logistics

When using MBO, do not:

Tie MBO to pay Have excessive paperwork and "red tape" Exclude the employees involved from the planning process Give too much attention to easily obtained objectives

Goal Alignment

, the goals for various departments and individuals across an organization must be coordinated so that each goal directly benefits the others, which in turn should help the organization pursue its overall mission. To help integrate various goals, it can be helpful to form a hierarchy of goals—a sequence of goal priorities that starts with the lower-level objectives and ends with the higher-level objectives.

PLANNING TOOLS AND TECHNIQUES

1.Forecasting:, the act of predicting future events and scenarios, is a useful tool for any manager. 2. Contingency planning: creates various action plans that will be implemented when an unfortunate event occurs.plan B or C 3.Scenario Planning:While contingency plans are primarily concerned with short-term problems, scenario planning deals with predicting and creating responses to possible long-term environment changes or scenarios. 4.Benchmarking:when a person or organization measures performance against an internal or external standard. Benchmarks provide comparisons for an organization that can reveal its current standing and aid the organization in setting future performance goals. best practices, which are methods or activities that are believed to yield superior outcomes. 5.Use of Staff Planners:Staff planners are professionals who are experienced in bringing coordination and focus to the planning process.

The Planning Process

1.define the objectives 2.know where you stand in relation to your objectives 3., predict future scenarios of varying conditions. 4.determine the best course of action and create a plan. 5.execute the plan and monitor the outcome.

Single-Use Plans

A common example of a single-use plan is a budget. zero-based budget that "starts over" every period; each resource allocation must be justified as if on a brand-new budget

Operational Plans

An operational plan consists of activities designed to execute the ultimate strategic plans of an organization. The two main types of organizational plans are standing plans, which are used on a constant basis, and single-use plans, which are used only once or during one specific time period.

Advantages of MBO:

Helps workers concentrate on the highest-priority objectives Assists supervisors in finding areas of support for their employees Relationship building through "face time" between managers and workers Promotes self-management because employees take part in decisions that shape their jobs

MBO Management by Objectives

When one combines controlling and planning with goal setting and goal alignment, it becomes a system known as management by objectives or MBO

complacency trap,

a situation in which an organization, team, or individual is simply "going with the flow" and at the total mercy of its circumstances.

Planning

is the method of determining important goals in advance, as well as the best way to achieve them. effective planning process will also help a manager anticipate potential problems, needs, and opportunities.

Participation and Involvement

participatory planning—a process that includes all of the people carrying out the plan, as well as all parties who are affected by the plan

Short-Range and Long-Range Plans

short-term goal is under one year, an intermediate-range plan covers one year to two years, and a long-range plan is anything over three years.

Strategic Plans

strategic plan is primarily concerned with the goals of the whole organization. vision is key because it identifies the purpose of the organization and what it aspires to accomplish.