boh4m chapter 6 planning processes and techniques lajipe faleyimu1

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BOH4M

CHAPTER 6PLANNING PROCESSES AND

TECHNIQUES

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CHAPTER OVERVIEW

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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Why and How Managers PlanPLANNING – process of setting

objectives and determining how to accomplish them.

OBJECTIVES – specific results that one wishes to achieve

PLAN – statement of intended means for accomplishing objectives

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Why and How Managers Plan

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Why and How Managers PlanSteps in the planning process

Define your objectivesDetermine where you stand vis-a-vis

objectivesDevelop premises regarding future

conditionsAnalyze alternatives and make a planImplement the plan and evaluate results

Benefits of PlanningPersonal time management tips

fig 6.1

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PLANS USED BY MANAGERSShort-range and long-range plans

◦ Short-range plans = 1 year or less

◦ Intermediate-range plans = 1 to 2 years

◦ Long-range plans = 3 or more years

Strategic and Tactical PlansOperational plans

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PLANNING TOOLS AND TECHNIQUESForecasting – attempts to predict the future

Contingency planning – identifies alternative courses of action to take when things go wrong

Scenario planning – identifies alternative future scenarios and makes plans to deal with each other

Benchmarking – uses external and internal comparisons to plan for future improvements

Use of staff planners

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PLANS TO ACHIEVE RESULTSGoal Setting – S.M.A.R.TGoal AlignmentManagement by Objectives

(MBO)TypesCriteriaAdvantagesPitfalls

Participation and Involvement

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REVIEWWhich step in the planning process is

likely to cause the most difficulties for managers

Is there any real value to long-term planning in today’s rapidly changing environment?

Shouldn’t all plans really be contingency plans?

Given its potential advantages, why isn’t MBO standard practice in all organizations