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JOHN R. SCHERMERHORN, JR. MANAGEMENT 12th Edition

Chapter 8

Fundamentals of Planning

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Planning Ahead — Chapter 8 Study Questions

Why and how do managers plan?

What types of plans do managers use?

What are the useful planning tools and techniques?

How can plans be well implemented?

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Chapter 8 Learning Dashboard

Why and How Managers Plan

Importance of planning

The planning process

Benefits of planning

Types of Plans Used by Managers

Long-range and short-range plans

Strategic and tactical plans

Operational plans

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Chapter 8 Learning Dashboard

Planning Tools and Techniques

Forecasting

Contingency planning

Scenario planning

Benchmarking

Use of staff planners

Implementing Plans to Achieve Results

Goal setting

Goal alignment

Participation and involvement

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Takeaway 1: Why and How Managers Plan

Planning

The process of setting objectives and determining how to accomplish them

Objectives and goals

Identify the specific results or desired outcomes that one intends to achieve

Plan

A statement of action steps to be taken in order to accomplish the objectives

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Takeaway 1: Why and How Managers Plan

Steps in the planning process:

Define your objectives

Determine where you stand vis-à-vis objectives

Develop premises regarding future conditions

Analyze alternatives and make a plan

Implement the plan and evaluate results

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Figure 8.1 The roles of planning and controlling in the management process

2.bin

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Takeaway 1: Why and How Managers Plan

Benefits of planning:
Improves focus and flexibility
Improves action orientation
Improves coordination and control
Improves time management

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Takeaway 1: Why and How Managers Plan

Personal time management tips:

DO say “no” to requests that distract from what you should be doing

DON’T get bogged down in details that can be addressed later

DO screen telephone calls, emails, and meeting requests

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Takeaway 1: Why and How Managers Plan

More personal time management tips:

DON’T let drop-in visitors instant messaging use up your time

DO prioritize your important and urgent work

DON’T become calendar bound by letting others control your schedule

DO follow priorities; do most important and urgent work first

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Takeaway 2: Types of Plans Used by Managers

Types of plans
Long-term plans look three or more years into the future
Short-term plans typically cover one
year or less

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Takeaway 2: Types of Plans Used by Managers

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Takeaway 2: Types of Plans Used by Managers

Strategic plans — set broad, comprehensive, and longer-term action directions for the entire organization
Vision – clarifies purpose of the organization and what it hopes to be in the future

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Takeaway 2: Types of Plans Used by Managers

Tactical plan – helps to implement all or parts of the strategic plan
Functional plans – indicate how different operations within the organization will help accomplish the overall strategy
Production plans
Financial plans
Facilities plans
Logistics plans
Marketing plans
Human resource plans

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Takeaway 2: Types of Plans Used by Managers

Operational plans — identify short-term activities to implement strategic plans

Policies are standing plans the communicate guidelines for decisions

Procedures are rules that describe actions to be taken in specific situations

Budgets are plans the commit resources to projects or activities

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Takeaway 3: Planning Tools and Techniques

Forecasting
Attempts to predict the future
Qualitative forecasting uses expert opinions
Quantitative forecasting uses mathematical models and statistical analysis of historical data and surveys

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Takeaway 3: Planning Tools and Techniques

Contingency planning

Identifying alternative courses of action to take when things go wrong

Contingency plans anticipate changing conditions

Contingency plans contain active points

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Takeaway 3: Planning Tools and Techniques

Scenario planning

A long-term version of contingency planning

Identifying alternative future scenarios

Plans made for each future scenario

Increases organization’s flexibility and preparation for future shocks

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Takeaway 3: Planning Tools and Techniques

Benchmarking

Use of external and internal comparisons to plan for future improvements

Adopting best practices: things people and organizations do that lead to superior performance

Staff planners assist in all steps of the planning process

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Takeaway 4: Implementing Plans to Achieve Results

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Takeaway 4: Implementing Plans to Achieve Results

Goal Alignment Between Team Leader and Team Member

Jointly plan: set objectives, set standards, choose actions

Individually set: perform tasks (member), provide support (leader)

Jointly control: review results, discuss implications, renew cycle

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Takeaway 4: Implementing Plans to Achieve Results

Participatory Planning

management by objectives (MBO) promotes participation

Requires that the planning process include people who will be affected by resulting plans and asked to help implement them.

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Figure 8.3 How participation and involvement help build commitment to plans