planning
DESCRIPTION
its use full to students of managementTRANSCRIPT
Re 1 Sachet Story
1983, a 20-something chemistry student, Rang Nathan set out to sell shampoos with Rs.15000 in his pocket
A market with 200 brands, lorded over by the big daddy of them all, HLL Ltd.,
Non affordability by middle class- Rs. 60 shampoo, could afford Re 1
Visualizing this gap, created ‘CHIK’ sachet
Contd.,
Brilliant idea- “Return 5 shampoo sachets and get one chik free”
Idea clicked in rural households of TamilNadu Volumes tripled Revenues took care of distribution and the brand
name stuck Advertising first on regional satellite channels and
consolidated brands- Chik, Nyle, Fair ever Fairness Cream-Southern Markets
His Company “CAVINKARE”-250 Crore approx
Products division, Polymers division, Export divisions
Market dominated by Multinationals- How do you think he would have managed?
Contd.,
The Answer is
PROACTIVE THINKING AND CAREFUL PLANNING!
Planning
Planning is one of the four functions of management.
Planning sets objectives and identifies how to achieve them.
Planning improves focus and action orientation. Planning improves coordination and control. Planning improves time management.
Planning
Planning The process of setting objectives and determining
how to accomplish them.
Features of Planning
Planning is goal-oriented Planning is a primary function Planning is all-pervasive Planning is a mental exercise Planning is a continuous process Planning involves choice Planning is forward looking Planning is flexible Planning includes efficiency and effectiveness
dimensions
Planning
Steps in the Planning Process
Step 1. Define your objectives Know where you want to go;
Step 2. Determine current status vis-à-vis objectives
Step 3. Develop premises regarding future conditions and generate alternative scenarios for what may happen;
Contd.,
Step 4. Make a plan ; describe what must be done to implement this course of action
Step 5. Formulating derivative plans
Step 6. Implement the plan and evaluate results.
Approaches to Planning
Top-down approach Bottom-up approach Composite approach Team approach
Advantages of Planning
Action oriented—keeping a results-driven sense of direction
Priority oriented—making sure the most important things get first attention
Advantage oriented—ensuring that all re-sources are used to best advantage
Change oriented—anticipating problems and opportunities so they can be best dealt with
Limitations of Planning
Rigidity Costly and time consuming Employee resistance False sense of security Managerial deficiencies PEST factors
Effective Planning- Koontz O’Donnell
Climate Top management support Participation Communication Monitoring
Types of plans
Strategic plan Tactical plan Short-term plan Intermediate-term plan Long-term plan Standing plan Single-use plan
Types of plans Formal plan—specific goals are formulated,
committed to writing, and made available to organizational members.
Informal plan—Planned in the head, but not written down. There is little or no sharing of these plans with others.
Types Of Plans
Short-range plans usually cover a year or less.
Long-range Plans Usually cover three years or more
Types Of Plans
Strategic Plan identifies long-term directions for the organization.
Operational Plan identifies activities to implement strategic plans.
Marketing Plans Financial Plans Production Plans
Types of Plans
Proactive planning- Challenge the future, anticipating future contingencies and get ready with alternative routes for unforeseen circumstances
Reactive planning- The organization merely reacts to events as and when they arise
Standing plans
A plan that can be used over and over again by managers faced with recurring activities
Objectives Policies Procedures Rules Methods
Single-use plans
Plan designed for a specific activity or time period Programs Budgets Schedules Projects
Types Of Plans
Policy communicates broad guidelines for making
decisions A policy is a standing plan that communicates
broad guidelines for decisions and action.
Procedure
defines specific actions to be taken in a chronological sequence in a specific situation
Contd.,
Methods: Sub-units of procedure. Indicate the simplified and standardized techniques to be employed to carry out a task
Rules- Describes exactly how specific activities are to be carried out, leaving no scope for individual discretion and judgment.
Single-Use Plans ProgramsAna aggregate of several related action plans that have been
designed to accomplish a mission within a specified time period ScheduleIt is a kind of time table of work, specifying the date when a task is
to begin and the time need to complete each task Project Plans
specify activities, resources, and timetables for completing projects
Budget plan that commits resources to projects or activities
Zero-based Budget allocates resources as if each budget was brand new
Planning Tools And Techniques
Forecasting tries to predict the future. Contingency planning creates back-up plans for when things go
wrong. Benchmarking identifies best practices used by others. Staff planners provide special expertise in planning. Participatory planning improves implementation capacities.
Planning Tools And Techniques
Forecasting Attempts to predict the future
Twenty Five-Year Forecasts from The Economist Intelligence Unit:
• U.S. GDP will grow 2.7% per year; EU15 countries 1.9%; Japan 1%. • Aging populations will be a drag on economies. • Emerging markets will have higher growth; Russia and Brazil 3%, India and China 6%. • In 2030 the United State will be biggest economy in world, China second, Japan third, India fourth.
Planning Tools And Techniques
Contingency Planning creates back-up plans for when things go wrong
Benchmarking uses external comparisons to gain insights for
planning. Best Practices
are methods that lead to superior performance.
Planning Tools And Techniques
Participatory Planning includes the persons who will be affected by
plans and/or who will implement them.
Semantic Confusion!
Mission: The organization’s purpose or fundamental reason for existence
Vision: A widely descriptive image of what a company wants to be or wants to be known for
Value: The set of cherished notions and beliefs that guides every move that a company makes
Contd.,
Objective: End point of a a management program
Goal: A future target or end result that an organization wishes to achieve
What may happen in traditional objective setting.
Establishing Goals and Developing Plans
Management By Objectives (MBO) Specific performance goals are jointly determined by
employees and managers. Progress toward accomplishing goals is periodically
reviewed. Rewards are allocated on the basis of progress
towards the goals. Key elements of MBO:
Goal specificity, participative decision making, an explicit performance/evaluation period, feedback
Steps in a Typical MBO Program1. The organization’s overall objectives and strategies are
formulated.
2. Major objectives are allocated among divisional and departmental units.
3. Unit managers collaboratively set specific objectives for their units with their managers.
4. Specific objectives are collaboratively set with all department members.
5. Action plans, defining how objectives are to be achieved, are specified and agreed upon by managers and employees.
6. The action plans are implemented.
7. Progress toward objectives is periodically reviewed, and feedback is provided.
8. Successful achievement of objectives is reinforced by performance-based rewards.
Does MBO Work?
Reason for MBO Success Top management commitment and involvement
Potential Problems with MBO Programs Not as effective in dynamic environment that
require constant resetting of goals.
Overemphasis on individual accomplishment may create problems with teamwork.
Allowing the MBO program to become an annual paperwork shuffle.
Characteristics of Well-Designed Goals Written in terms of outcomes,
not actions Focuses on the ends, not
the means. Measurable and quantifiable
Specifically defines how the outcome is to be measured and how much is expected.
Clear as to time frame How long before
measuring accomplishment.
Challenging yet attainable Low goals do not motivate. High goals motivate if they
can be achieved. Written down
Focuses, defines, and makes goals visible.
Communicated to all necessary organizational members Puts everybody “on the
same page.”
Steps in Goal Setting
1. Review the organization’s mission statement.
Do goals reflect the mission?
2. Evaluate available resources.
Are resources sufficient to accomplish the mission?
3. Determine goals individually or with others.
Are goals specific, measurable, and timely?
4. Write down the goals and communicate them.
Is everybody on the same page?
5. Review results and whether goals are being met.
What changes are needed in mission, resources, or goals?
Comparison of entrepreneurs and traditional supervisors.
MANAGEMENT TIPS Time management tips
Do say “No” to requests that divert you from what you really should be doing.
Don’t get bogged down in details that you can address later or leave for others.
Do have a system for screening telephone calls, e-mails, and requests for meetings.
Don’t let drop-in visitors or instant messages use too much of your time.
Do prioritize what you will work on in terms of importance and urgency.
Don’t become calendar bound by letting others control your schedule.
Do follow priorities; work on the most important and urgent tasks first. Continually work to optimize your time.”