Week 4 - Planning 1 Flashcards
involves selecting missions and objectives as well as the actions to
achieve them, which requires decision making that is, choosing a course
of action from among alternatives.
Planning
choosing a goal and developing a method of strategy to
achieve that goal.
Planning
bridges the gap from where we are to where we want to go
Planning
helps management pull the individual to achieve common
goals by provision of well-defined objectives
Planning
first and foremost function of management
Planning
What the organization want to accomplish and how to
reach the establish/sited goals. By ____ comes that to be
follow, in order to reach and achieve goal.
Provide direction
Planning reduce uncertainty by look ahead to
anticipate changes.
• Manager can estimate their consider impact of changes and then they can
develop response to these changes.
Reduce uncertainty
When work activities are coordinated
around established plans redundancy can be minimized
Minimize waste and redundancy
Planning helps in controlling and monitoring
the work that either this works is on its right path or not.
Provide ability in controlling
The basic purpose or function or tasks of an enterprise or agency or any
part of it.
In every social system, enterprises have a basic function or task
assigned to them by society.
_____ means that the whole is greater than its parts
Mission or purpose
Synergy
are the ends toward which activity is aimed.
They represent not only the end point of planning, but also the end
toward which organizing, staffing, leading, and controlling are aimed.
Objectices and goals
the determination of the basic long-term objectives of an
enterprise and the adoption of courses of action and allocation of
resources necessary to achieve these goals.
Strategies
general statements or understandings that guide or channel
thinking in decision making. These are, at times, expressions of the
company culture and practices that involved over time.
Policies
Example of Policies are:
Customer policy: Merchandise can be returned by customers
within one week from the date of purchase.
Personnel policy: Promote from within starting a specific level.
o New hires should not be first-degree relatives of present
employees.
Pricing policy: Fixed-price policy
Minimum Cash balance: All funds in excess of a specified minimum
cash balance should be invested in marketable securities.
Policies are usually contained in memos or, more frequently, in
company manuals.
Merchandise can be returned by customers
within one week from the date of purchase
Customer policy
Promote from within starting a specific level.
o New hires should not be first-degree relatives of present
employees.
Personnel policy
Fixed-price policy
Pricing policy
All funds in excess of a specified minimum
cash balance should be invested in marketable securities.
Policies are usually contained in memos or, more frequently, in
company manuals.
Minimum cash balance
Plans that establish a required method of handling future
activities.
These are guides to action, rather than to thinking, and they detail
the exact manner in which certain activities must be accomplished.
Procedurez
spell out specific required actions or non-actions, allowing no
discretion.
Rules
are usually the simplest type of plan.
different from policies. While policies are meant to guide
decision making by marking off areas in which managers can use their
discretion, these allow no discretion in their application.
Rules
Example of rules:
Customer’s Refund: No refund will be given for returned
merchandise if, invoice is not returned by the customer.
Uniform Rule: Employees not in uniform will not be allowed to
render service during the day.
Gate pass: Equipment brought out of company premises must be
accompanied by a gate pass.
No refund will be given for returned
merchandise if, invoice is not returned by the customer
Customer refund
Employees not in uniform will not be allowed to
render service during the day
Uniform rule
Equipment brought out of company premises must be
accompanied by a gate pass
Gate pass
are a complex of goals, policies, procedures, rules, task
assignments, steps to be taken, resources to be employed, and other
elements necessary to carry out a given course of action.
these are ordinarily supported by budget
Programs
statement of expected results expressed in numerical terms.
this may be called a “quantified” plan. In fact the
Budget
The practical steps listed below, and diagramed in Figure 4.1, are of general
application. In practice, however, one must study the feasibility of possible
courses of action at each stage.
The practical steps listed below, and diagramed in Figure 4.1, are of general
application. In practice, however, one must study the feasibility of possible
courses of action at each stage.
- Being aware of opportunities:
This activity involves collecting and analyzing relevant external
information which define opportunities or threat to the firm’s business.
Include the following:
Time market
Competition
What customers want
Our strengths
Our weaknesses - Establishing objectives
The second step in planning is to establish objectives for the entire
enterprise and then for each subordinate work unit.
Determine where we want to be and what we want to accomplish and
when - Developing Premises
By considering planning premises: In what environment (internal or
external) –will our plan operate?
Premises: Assumptions about the environment in which the plan is to be
carried out.
Principle of Planning premises: the more thoroughly individuals charged
with planning understand and agree to utilize consistent planning premises,
the more coordinated enterprise planning will be. - Determining alternative courses
The fourth step in planning is to search for and examine alternative courses
of action, especially those not immediately apparent. There is seldom a plan
for which reasonable alternatives do not exist, and quite often an alternative
that is not obvious proves to be the best. - Evaluating alternative courses
After seeking out alternative courses and examining their strong and weak
points, the next step is to evaluate alternatives by weighing them in light of
premises and goals. One course may appear to be the most profitable but
may require a large cash outlay and have a slow payback; another may look
less profitable but may involve less risk; still another may better suit the
company’s long-range objectives. - Selecting a course
This is the point at which the plan is adopted - the real point of decision
making. An analysis and evaluation of alternative courses will disclose that
two or more are advisable, and the manager may decide to follow several
courses rather than the one best course. - Formulating derivative plans
When a decision is made, planning is seldom complete, and a seventh step is
indicated. Derivative plans are almost invariably required to support the
basic plan. - Quantifying plans by budgeting
After decision are made and plans are set, the final step in giving them
meaning , as was indicated in the discussion on types of plans, is to quantify
them by converting them into budgets. The overall budget of an enterprise
represents the sum total of income and expenses, with resultant profit or
surplus, and the budgets of major balance sheet items such as cash and
capital expenditures. Each department or program of a business or some
other enterprise can have its own budgets, usually of expenses and capital
expenditures, which tie into the overall budget.
Assumptions about the environment in which the plan is to be
carried out
Premises
the more thoroughly individuals charged
with planning understand and agree to utilize consistent planning premises,
the more coordinated enterprise planning will be.
Principles of planning premises
External Variables:
the rate of growth of the economy and/or the industry
- the rate of inflation and its expected impact costs and prices
- the continuance or discontinuance of certain government policies which have a
favorable or unfavorable impact on the operations of the firm (i.e., high interest
rates).
- the expected market strategies of key competitors.
Internal Variables
- the level of internally generated funds to support investments
- the level of labor productivity in the company’s factories.
- the company’s total staffing level.
- the continuance of certain operating policies (i.e., rate if dividend, choice of
production technology, supply source, etc.)
Planning activity and the responsibility for planning at different levels in the firm.
The scope or coverage of the plans, i.e., whether it covers to the whole firm, a
department or other subunit, or just one individual, generally depends on the level
in the organization at which the planning occurs. At the top management levels, plan
generally covers the whole firm. At the middle or sub-unit levels, the plans may
cover only particular sections or departments.
-read-
_______ denotes planning activities at the top level and cover
the entire organizational activities.
Determine the long-term objectives.
Generate plans to achieve the objectives bearing in mind the probable
changes in environment.
Corporate planning
is segmental and it is undertaken for each major
function of the organization like:
Production/operation,
Marketing, finance,
Human resource/personnel etc.
At the second level, this type of planning is undertaking for sub-functions
within each major function.
Functional planning
Deciding on objectives of the organization,
Deciding on changes on these objectives;
Deciding on the resources used to attain these objectives;
Policies that manage the acquisition, use and disposition of these resources.
Strategic planning
plans usually cover all the functional areas of the business and are
affected within the existing and long-term framework of economic, social,
and technological factors.
Analysis of environmental factors, particularly with respect to how the
organization relates to its competition and environment.
Lobg term planning
These plan are aimed at sustaining organization in its production and
distribution of current products or services to the existing markets.
Short term planning
planning involves designing suitable courses of action in hope of
likely changes in the relevant environment.
this planning are organizations responses come after the environmental
changes have taken place.
Proactive and reactive planning
form of well-structured process involving different
steps.
Formal planning
This planning process is based on managers memory of events,
perception, and got feeling rather than based on systematic evaluation of
environmental happenings.
Informal planning
These are a means to achieve long term goals.
Short term goals
This means at the end of the period it should be
possible to determine whether or not objective has been achieved
Verifiable objectives
This is often called a Profit plan
financial
operating budget
This activity involves collecting and analyzing relevant external
information which define opportunities or threat to the firm’s business.
Include the following:
Time market
Competition
What customers want
Our strengths
Our weaknesses
Being aware of opportunities
The second step in planning is to establish objectives for the entire
enterprise and then for each subordinate work unit.
Determine where we want to be and what we want to accomplish and
when
Establishing objectives
By considering planning premises: In what environment (internal or
external) –will our plan operate?
Premises: Assumptions about the environment in which the plan is to be
carried out.
Principle of Planning premises: the more thoroughly individuals charged
with planning understand and agree to utilize consistent planning premises,
the more coordinated enterprise planning will be.
Developing premises
The fourth step in planning is to search for and examine alternative courses
of action, especially those not immediately apparent. There is seldom a plan
for which reasonable alternatives do not exist, and quite often an alternative
that is not obvious proves to be the best.
Determining alternative course
After seeking out alternative courses and examining their strong and weak
points, the next step is to evaluate alternatives by weighing them in light of
premises and goals. One course may appear to be the most profitable but
may require a large cash outlay and have a slow payback; another may look
less profitable but may involve less risk; still another may better suit the
company’s long-range objectives.
Evaluating alternative course
This is the point at which the plan is adopted - the real point of decision
making. An analysis and evaluation of alternative courses will disclose that
two or more are advisable, and the manager may decide to follow several
courses rather than the one best course.
Selecting a course
When a decision is made, planning is seldom complete, and a seventh step is
indicated. Derivative plans are almost invariably required to support the
basic plan.
Formulating derivative plans
After decision are made and plans are set, the final step in giving them
meaning , as was indicated in the discussion on types of plans, is to quantify
them by converting them into budgets. The overall budget of an enterprise
represents the sum total of income and expenses, with resultant profit or
surplus, and the budgets of major balance sheet items such as cash and
capital expenditures. Each department or program of a business or some
other enterprise can have its own budgets, usually of expenses and capital
expenditures, which tie into the overall budget.
Quantifying plans by budgeting
This includes:
The setting of objectives
Organizing the work, people, and systems to enable those objectives
to be attained.
Motivating through the planning process of the plan and developing
Corporate planning
