CHAPTER 2
PLANNING
Contingency Plans ( Back Up Plans)
Alternative plans that can be implemented if uncontrollable events occur.
Functional Plans
Classified by their use or function.
Short-Term Plan and Long-Term Plan
Long‐Term Plans Plans with time frames extending beyond five years
Short‐Term Plans Plans with time frames on one year or less
Problem Solving
Process of taking correction action
Definition
“Planning is a process that begins with objectives, defined strategies, policies and detail plans to achieve them. Planning establishes an organization to implement decisions and includes a review of performance and feedback to introduce a new planning cycle” (Stoner, 1995)
“The process of determining in advance what should be accomplished and how it should be realized” (Mondy, 1993)
“Planning is the process of outlining the activities that are necessary to achieve the goal of organization” (Lewis, Goodman & Fandt, 2001)
“Planning involves understanding the current situation of the organization, knowing what results the organization desires to achieve, devising the means to achieve those results, and guiding and controlling operations so that the results are achieved” (Lewis, Goodman & Fandt, 2001, p.120)
Decision Making
Process of selecting action
Decision Style
Reflexive - Making snap decision
Reflective - Takes plenty of time to decide
Consistent - Doesn't rush and doesn't waste time
Planning Should Be
Formally prepared
Factual, logical and realistic
Short term and long term
Good Planning
Minimize problems in the effort of getting from point A to point Z .Good planning leads more effective and result. Efficiency and effectiveness translate into grater productivity.
Poor Planning
Failure to reach desired objectives
Failure to survive
Failure to operate within budget
Failure to maximize the use of resources
Decision Condition
Certainty - All outcomes are known
Risk - Probabilities may be the result
Uncertainty - Limited information
Benefit Of Plannig
Better of planning
Focus on forward thinking
Participatory work environment
More effective control system
Road map
Type of Plans
Strategic plans
Operational plans
Single use operational plans
Standing operational plans
contingency plans
Functional plans
Short run plans
Long run plans
Strategic Planning
Long terms
Mission
Strategy
Strategic Planning Process
Develop the misson
Analyze the environment
Strength
Weakness
Opportunities
Threats
Set objective
Marketing
Promotion
Players
Develop strategics
Implement and control the strategy
Operational Plans
Very detailed
Carrying out the strategy
Single use operational plans
Not repeated
Manufacturer
Standing operational plans
Repeated
Manufacturer
Strategic vs Operational Planning
In strategic planning, management develops a mission and long‐term objectives
In operational planning, management sets short‐term objectives and determines in advance how they will be accomplished.
Six Step of Effective Decision Making
Define the problem or opportunity
Set the objective and criteria
Generate alternative
Innovation
Creativity
Selecting the most feasible
Implementing the decision
Control the result