Chapter 3 Flashcards
- Provides methodical way of achieving desired results
- Serves as a useful guide in the implementation of activities
Plan
“the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives”
Planning, according to Nickels and others
“the selection and sequential ordering of tasks required to achieve an organizational goal”
Planning, according to Aldag and Stearns
“deciding what will be done, who will do it, where, when and how it will be done and the standards to which it will be done”
Planning, according to Cole and Hamilton
Planning at Various Management Levels
- Top Management Level
- Middle Management Level
- Lower Management Level
Strategic planning
Top Management Level
Intermediate planning
Middle Management Level
Operational planning
Lower Management Level
Refers to the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve these goals.
Strategic Planning
Refers to “the process of determining the contributions that sub units can make with allocated resources”
Intermediate Planning
Refers to “the process of determining how specific tasks can be best accomplished on time with available resources.”
Operational Planning
The Planning Process
- Setting organizational, divisional, or unit goals
- Developing strategies or tactics to reach those goals
- Determining resources needed and
- Setting standards
May be defined as the “precise statement of results sought, quantified in time and magnitude, where possible. “
Goals
First task of the engineer manager:
- Provide a sense of direction to his:
Firm (CEO)
Division (heads a division)
Unit (supervisor)
May be defined as “a course of action aimed at ensuring that the organization will achieve its objectives”
Strategy
- Short-term action taken by management to adjust to negative internal or external influences
- Formulated and implemented in support of the firm’s strategies
Tactic
Indicate the decision about short-term goals and the courses of action
Tactical Plan
May be defined as “a quantitative or qualitative measuring device designed to help monitor the performances of people, capital goods, or processes”
Standard
Types of Plan
- Functional Area Plans
- Plans with Time Horizon
- Plans According to Frequency of Use
this is a written document that states the quantity of output a company must produce in broad terms and by product family
Production Plan
this is the written document or blueprint for implementing and controlling an organization’s marketing activities related to a particular marketing strategy
Marketing Plan
Functional Area Plans
- Marketing Plan
- Production Plan
- Financial Plan
- Human Resource Management Plan
it is a document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities
Financial Plan
it is a document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company’s strategic plan
Human Resource Management Plan
Plans with Time Horizon consists of the following
- Short-range Plan
- Long-range Plan
these are plans intended to cover a period of less than one year.
Short-range Plan
these are plans covering a time span of more than one year. These are mostly undertaken by middle and top management
Long-range Plan
Plans According to Frequency of Use classifications:
- Standing Plans
- Single-use Plans
these are plans that are used again and again, and they focus on managerial situations that recur repeatedly
Standing Plans
Standing Plans may be further classified into the following
- Policies
- Procedures
- Rules
they are broad guidelines to aid managers at every level in making decisions about recurring situations or functions
Policies
they are plans that describe the exact series of actions to be taken in a given situation
Procedures
they are statements that either require or forbid a certain action
Rules
These plans are specifically developed to implement courses of action that are relatively unique and unlikely to be repeated
Single-Use Plans
Single-use plans may be further classified as follows:
- Budgets
- Programs
- Projects
according to Weston and Brigham is “a plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from”
Budget
is a single-use plan designed to coordinate a large set of activities
Program
is a single-use plan that is usually more limited in scope that a program and is sometimes prepared to support a program
Project
The Contents of a Marketing Plan
- The Executive Summary
- Table of Contents
- Situational Analysis and Target Market
- Marketing Objectives and Goals
- Marketing Strategies
- Marketing Tactics
- Schedules and Budgets
- Financial Data and Control
Which presents overall view of the marketing project and its potential
The Executive Summary
The Contents of Production Plan
- The amount of capacity the company must have
- How many employees are required
- How much material must be purchased
The Contents of the Financial Plan
- Analysis of the firm’s current financial condition (as
indicated by an analysis of the most recent
statements) - Sales Forecast
- Capital Budget
- Cash Budget
- Set of Pro Forma (or Projected) Financial
Statements - External Financing Plan
The Contents of the Human Resources Plan
- Personnel requirements of the company
- Plans for recruitment and selection
- Training Plan
- Retirement Plan.
Parts of the Strategic Plan
- Company or Corporate Mission
- Objectives or Goals
- Strategies
refers to the “strategic statement that identifies why an organization exists, its philosophy of management, and its purpose as distinguished from other similar organizations in terms of products, services, and markets.
Company of corporate mission
is done so that some desired results may be achieved
Planning
Planning may be made successful if the following are observed:
- Recognize the planning barriers
- Use of aids to planning
Planning Barriers according to Plunkett and Attner
- Manager’s inability to plan
- Improper planning process
- Lack of commitment to the planning process
- Improper Information
- Focusing on the present at the expense of the future
- Too much reliance on the planning department
- Concentrating on only the controllable variables
Aids to planning:
- Gather as much information as possible
- Develop multiple sources of information
- Involve others in the planning process
