MEP-Kuliah 3 - Planning

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BRIEF CONTENTS

• THE ROLE OF PLANNING IN THE MANAGEMENT


PROCESS
• WHY AND HOW MANAGER PLAN ?
• BENEFITS OF PLANNING
• TYPES OF PLANS USED BY MANAGERS
• PLANNING TOOLS AND TECHNIQUES
• IMPLEMENTING PLANS TO ACHIEVE RESULTS
• THE DECISION-MAKING PROCESS
• MANAGERS AS DECISION MAKER
• CREATIVITY IN DECISION MAKING
THE ROLE OF PLANNING IN THE MANAGEMENT PROCESS

Planning
to set the direction
>Decide where you want to go
> Decide how best to go about it
Organizing
Leading
to create
structures to inspire effort
Controlling
to ensure results
WHY AND HOW MANAGER PLAN ?
• Planning sets the stage for providing a sense
of direction.
• It is a process of setting objectives and
determining how the best ways to
accomplish.
• Planning involves deciding exactly what you
want to accomplish
THE PLANNING PROCESS
• Define Your Objectives — Identify desired outcomes or results in very specific ways.
• Determine Where You Stand Vis-à-vis Objectives — Evaluate current accomplishments relative
to the desired results.
• Develop Premises regarding Future Conditions — Anticipate future events and generate
alternative “scenarios” for what may happen.
• Analyze Alternatives and Make a Plan — List and evaluate possible actions and choose the
alternative plan most likely to accomplish your objectives.
• Implement The Plan And Evaluate Results — Take action, carefully measure your progress
toward objectives, evaluate results, take corrective action, and revise plans as needed.
BENEFITS OF PLANNING Good Planning Helps
Us
• Action oriented—keeping a results driven
Planning Improves Focus and Flexibility sense of direction;
• Priority oriented—making sure the most
important things get first attention;
Planning Improves Action Orientation • Advantage oriented—ensuring that all
resources are used to best advantage;
• Change oriented—anticipating problems
Planning Improves Coordination and Control and opportunities so they can be best
dealt with.
TYPES OF PLANS USED BY MANAGERS
1
Long-Range and Short-Range Plans

2 Strategic and Tactical Plans

3
Operational Plans
CONT. TYPES OF PLANS USED BY MANAGERS
1

Long-Range and Short-Range Plans


• Long-term plans typically look three or more
years into the future.
• Short-term plans typically cover one year or less.
• Top management is still responsible for setting
longer-term plans.
• While, lower management to work on useful
short-terms plans.
CONT. TYPES OF PLANS USED BY MANAGERS
2
Strategic and Tactical Plans
• Focused on the organization as a whole or a major component.
• Identified long-term directions for the organization.
• Set the goals and objectives needed to accomplish the organization’s vision what it hopes to be in
the future.
• Specify how the organization’s resources can be used to put strategies into action.
• Tactical plans in business often take the form of functional plans
Functional Plans indicate how different operations within the organization will help advance the overall
strategy, that might include:

• Production plans—dealing with work methods and technologies.


• Financial plans—dealing with money and capital investments.
• Facilities plans—dealing with facilities and work layouts.
• Logistics plans—dealing with suppliers and acquiring resource inputs.
• Marketing plans—dealing with selling and distributing goods or services.
• Human resource plans—dealing with building a talented workforce.
CONT. TYPES OF PLANS USED BY MANAGERS
3
Operational Plans
• Guide behavior and describe what needs to be done in the short term to support
strategic and tactical plans
• Include standing plans like policies and procedures that are used over and over again.
• Single-use plans like budgets that apply to one specific task or time period.

Policies Procedures Budgets

• A policy communicates broad • Describe specific rules for what • Commit resources for specific time
guidelines for making decisions and actions are to be taken in various periods to activities, projects, or
taking action in specific situations. programs.
circumstances. • Often called SOPs—standard • Use a variety of budgets namely
• Typical human resource policies cover operating procedures. Financial budgets, operating budgets,
things like employee hiring, • Whereas a policy sets a broad nonmonetary budgets, fixed budget,
termination, performance appraisals, guideline, procedures define precise and flexible budget
pay increases, promotions, and actions to be taken
discipline
PLANNING TOOLS AND TECHNIQUES
• Forecasting - Attempts to predict the future.
• Contingency planning - Identifies alternative courses
of action to take when things go wrong.
• Scenario planning - Identifies alternative future
scenarios and makes plans to deal with each.
• Benchmarking - Uses external and internal
comparisons to plan for future improvements.
• Staff planning - To help coordinate and energize
planning.
IMPLEMENTING PLANS TO ACHIEVE RESULTS
1 Specific
Desired outcomes clear to
anyone

Attainable Timely
Realistic, possible Linked to due date
to accomplish and timetable
Great
Goals

Challenging Measurable
Include “stretch,” No doubt when
focused on doing accomplished,
better or missed
CONT. IMPLEMENTING PLANS TO ACHIEVE RESULTS
2

Goal Alignment between Team Leader and Team Member

Jointly plan Jointly control


Individually set
- Set objectives - Review results
- Perform tasks (member)
- Set standards - Discuss implications
- Provide support (leader)
- Choose actions - Renew cycle
CONT. IMPLEMENTING PLANS TO ACHIEVE RESULTS
Define
planning
3
objectives

Implement Determine where


plans and Build things stand
evaluate results commitments vis-à-vis objectives
to plans by
allowing others
to
participate

Identify action Develop


alternatives premises regarding
and make plans future conditions
THE DECISION-MAKING PROCESS
The decision-making process begins with identification of a problem and ends with evaluation of
implemented solutions.

Step 2
Step 3
Step 1 Generate and Step 4 Step 5
Choose a
Find and define evaluate Implement Evaluate
preferred
the problem alternative the decision results
course of action
solutions

Double check ethical reasoning


MANAGERS AS DECISION MAKER
Classical Model Behavioral Model
- Structured problem • Unstructured problem
Rationality
- Clearly defined • Not clearly defined
- Certain environment
Acts in perfect world • Uncertain environment
- Complete information • Incomplete information
- All alternatives and Managers as • Not all alternatives and
consequences known Decision Maker consequences known

Optimizing Decision Bounded rationality


Satisficing Decision
Choose absolute best Acts with cognitive Choose first
among alternatives limitations “satisfactory” alternative
CREATIVITY IN DECISION MAKING
• Creativity is the generation of a novel idea or unique approach that solves a problem or crafts an
opportunity.
• Big-c creativity occurs when extraordinary things are done by exceptional people.
• Little-c creativity occurs when average people come up with unique ways to deal with daily
events and situations.

Task Personal Creativity Situational Creativity Drivers Team Creativity


Expertise Skills

Task Creativity Creativity Management


Motivation Support

Creativity Organizational
Skills Culture

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