CHAPTER 2 PLANNING

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CHAPTER 2 PLANNING

Use this mind map structure to discover unseen connections, generate new ideas and reach a better understanding of any given subject.

Type of Problems and Decisions

Unstructured Problems

Non-programmed decision

Structured Problems

Policy

Rule

Procedure

Six Step of Effective Decision Making

Control the result

Implementing the decision

Selecting the most feasible

Generate alternative

Creativity

Innovation

Set the objective and criteria

Define the problem or opportunity

Strategic vs Operational Planning

In operational planning, management sets short‐term objectives and determines in advance how they will be accomplished.

In strategic planning, management develops a mission and long‐term objectives

Operational Plans

Repeated

Manufacturer

Not repeated

Carrying out the strategy

Very detailed

Strategic Planning Process

Implement and control the strategy

Develop strategics

Set objective

Players

Promotion

Marketing

Analyze the environment

Threats

Opportunities

Weakness

Strength

Develop the misson

Strategic Planning

Strategy

Mission

Long terms

Type of Plans

Long run plans

Short run plans

Functional plans

contingency plans

Operational plans

Standing operational plans

Single use operational plans

Strategic plans

Benefit Of Plannig

Road map

More effective control system

Participatory work environment

Focus on forward thinking

Better of planning

Decision Condition

Uncertainty - Limited information

Risk - Probabilities may be the result

Certainty - All outcomes are known

Poor Planning

Failure to maximize the use of resources

Failure to operate within budget

Failure to survive

Failure to reach desired objectives

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.

Planning Should Be

Short term and long term

Factual, logical and realistic

Formally prepared

Decision Style

Consistent - Doesn't rush and doesn't waste time

Reflective - Takes plenty of time to decide

Reflexive - Making snap decision

Decision Making

Process of selecting action

Definition

“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)

“Planning is the process of outlining the activities that are necessary to achieve the goal of organization” (Lewis, Goodman & Fandt, 2001)

“The process of determining in advance what should be accomplished and how it should be realized” (Mondy, 1993)

“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)

Problem Solving

Process of taking correction action

Short-Term Plan and Long-Term Plan

Short‐Term Plans Plans with time frames on one year or less

Long‐Term Plans Plans with time frames extending beyond five years

Functional Plans

Classified by their use or function.

Contingency Plans ( Back Up Plans)

Alternative plans that can be implemented if uncontrollable events occur.