PLANNING &FORECASTING Flashcards
It focuses you on how best to achieve the desired results.
To decide in advance…
What to do
How to do it
When to do it
Who is to do it
Planning
Elaborate the Planning/Decision-Making Process.
- Recognize the problem or opportunity
- Define problems, specify premises and
constraint - Gather information, Formulate/develop alternatives _ Formulate value (decision) model
- Evaluate alternatives
- Implement best
alternative - Follow-up and
review effectiveness
What is The Foundation for Planning?
This essential for long term success of any enterprise.
Vision, Purpose, Mission
The Foundation for Planning
The basic purpose of the organization.
Vision
The Foundation for Planning
This needs to be revised from time to time to ensure the underlying assumptions are still valid.
Mission
Once a mission is chosen, an organization needs to achieve that mission. This is the organized process for selecting these strategies.
Strategic Planning
What is Strategic Planning
Strategic planning is the strategy which defines how the organization plans to move from its current state to the state envisioned in its mission and vision
frameworks.
Strategic Planning
What are the Eight key areas for establishing objectives?
Market share
Innovation
Productivity
Physical and Financial Resources
Manager Performance and Development
Worker Performance and Attitude
Profitability
Social Responsibility
Strategic Planning
Management by Objectives
Develop work assignments based on organizational needs and
objectives.
Plans are agreed between manager and subordinate.
Objectives should be stretch objectives
Objectives should be quantifiable (increase income by 5%) or at least tangible (written policy).
Needed resources should be determined and agreed to.
Plans should include employee development as well.
Plans are for a 6 month to 1 year time span.
Some Planning Concepts
Responsibility for Planning
It is the continuing responsibility of each manager.
The higher managers rise the more time they spend on planning.
Ultimate responsibility lies with top and middle management.
Plans must lead to action.
Some Planning Concepts
Planning Premises
These are the assumptions under which the
developed plans are expected to be executed.
Assumptions are based on forecasts and trends in market and technology.
When there is uncertainty, there is a need to develop contingency plans.
One can forecast:
Production levels
Technological developments
Needed manpower
Governmental regulations
Needed Funds
Training needs
Resource needs
Sale levels.
This is to predict/approximate what a certain future event or condition will be.
Forecasting
Two types of information to forecast
Qualitative and Quantitative Information
