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Planning Ahead —
How do managers plan?
What types of plans do managers use? What are the useful planning tools and techniques? What is the control process? What are the common organizational controls?
1 How do managers plan?
Planning • The process of setting objectives and determining how to best accomplish them. Objectives • Identify the specific results or desired outcomes that one intends to achieve. Plan • A statement of action steps to be taken in order to accomplish the objectives. 2 How do managers plan?
Steps in the planning process:
• Define your objectives. • Determine where you stand vis-à-vis ( how far you are to achieve) objectives. • Develop premises regarding future conditions. • Analyze and choose among action alternatives. • Implement the plan and evaluate results. 3 Figure:The roles of planning and controlling in the management process.
5 What types of plans do managers use? Short-range and long-range plans • Short-range plans = 1 year or less • Intermediate-range plans = 1 to 2 years • Long-range plans = 3 or more years People vary in their capability to deal effectively with different time horizons. Higher management levels focus on longer time horizons.
6 What types of plans do managers use?
Strategic and operational plans
• Strategic plans — set broad, comprehensive, and longer- term action directions for the entire organization. • Operational plans — define what needs to be done in specific areas to implement strategic plans. • Production plans • Financial plans • Facilities plans • Marketing plans • Human resource plans 7 What types of plans do managers use? Policies and procedures • Standing plans • Policies and procedures that are designed for repeated use. • Policy • Broad guidelines for making decisions and taking action in specific circumstances. • Rules or procedures • Plans that describe exactly what actions are to be taken in specific situations.
8 What types of plans do managers use? Budgets and project schedules • Single-use plans • Only used once to meet the needs and objectives of a well- defined situation in a timely manner. • Budgets • Single-use plans that commit resources to activities, projects, or programs. • Fixed, flexible, and zero-based budgets. • Projects • One-time activities that have clear beginning and end points. • Project management and project schedules.
9 What are the useful planning tools and techniques? Forecasting • Making assumptions about what will happen in the future. • Qualitative forecasting uses expert opinions. • Quantitative forecasting uses mathematical and statistical analysis. • All forecasts rely on human judgment. • Planning involves deciding on how to deal with the implications of a forecast.
10 What are the useful planning tools and techniques? Contingency planning • Identifying alternative courses of action that can be implemented to meet the needs of changing circumstances. • Contingency plans anticipate changing conditions. • Contingency plans contain trigger points.
11 What are the useful planning tools and techniques? Scenario planning
• A long-term version of contingency planning.
• Identifying alternative future scenarios. • Plans made for each future scenario. • Increases organization’s flexibility and preparation for future shocks.
12 What are the useful planning tools and techniques? Benchmarking
• Use of external comparisons to better evaluate current
performance and identify possible actions for the future.
• Adopting best practices of other organizations that
achieve superior performance.
13 What are the useful planning tools and techniques? Participation and involvement • Participatory planning requires that the planning process include people who will be affected by the plans and/or will help implement them. • Benefits of participation and involvement: • Promotes creativity in planning. • Increases available information. • Fosters understanding, acceptance, and commitment to the final plan. 14 Figure: How participation and involvement help build commitments to plans.
15 Approaches To Planning 1. Reactive - past oriented Reactive planning is an active attempt to turn back the clock to the past. The past, no matter how bad, is preferable to the present. And definitely better than the future will be. The past is romanticized and there is a desire to return to the "good old days." These people seek to undo the change that has created the present, and they fear the future, which they attempt to prevent.
16 Approaches To Planning 2. Inactive - present oriented Inactive planning is an attempt to preserve the present, which is preferable to both the past and the future. While the present may have problems it is better than the past. The expectation is that things are as good as they are likely to get and the future will only be worse. Any additional change is likely to be for the worse and should therefore be avoided.
17 Approaches To Planning 3. Preactive - predict the future Preactive planning is an attempt to predict the future and then to plan for that predicted future. Technological change is seen as the driving force bringing about the future, which will be better than the present or the past. The planning process will seek to position the organization to take advantage of the change that is happening around them.
18 Approaches To Planning 4. Proactive - create the future Proactive planning involves designing a desired future and then inventing ways to create that future state. Not only is the future a preferred state, but the organization can actively control the outcome. Planners actively shape the future, rather than just trying to get ahead of events outside of their control. The predicted changes of the preactive planner are seen not as absolute constraints, but as obstacles that can be addressed and overcome 19 Management by Objectives
Management by Objectives (MBO)
• A structured process of regular communication.
• Supervisor/team leader and workers jointly set performance objectives.
• Supervisor/team leader and workers jointly review
results.
20 Figure: Management by objectives as an integrated planning and control framework.
21 MBO involves a formal agreement specifying … • Workers’ performance objectives for a specific time period. • Plans through which performance objectives will be accomplished. • Standards for measuring accomplishment of performance objectives . • Procedures for reviewing performance results.
22 The MBO process: • Supervisor and workers jointly set objectives, establish standards, and choose actions. • Workers act individually to perform tasks; supervisors act individually to provide necessary support. • Supervisor and workers jointly review results, discuss implications, and renew the MBO cycle.
23 Types of MBO performance objectives • Improvement • Personal development • Maintenance Criteria for effective performance objectives • Specific • Time defined • Challenging • Measurable
24 Advantages of MBO • Focuses workers on most important tasks and objectives. • Focuses supervisor’s efforts on important areas of support. • Contributes to relationship building. • Gives workers a structured opportunity to participate in decision making.
25 PERFORMANCE MANAGEMENT THE THREE P’S
PEOPLE
PERFORMANCE PERFORMANCE COACHING & PLANNING EVALUATION PEOPLE
Control vs. Commitment
Commitment Control PEOPLE
• UNDERSTAND THE INDIVIDUAL
• UNLOCK HUMAN POTENTIAL
• COACH WITH EMPATHY
PERFORMANCE PLANNING
• ENCOURAGE SELF-MOTIVATION
• CONNECT INTERESTS
• SET GOALS
• MAKE A COMMITMENT GOAL SETTING:
Involve employee in setting goals:
• Performance Development • Project/Program Accomplishments • Career Development SET SMART GOALS:
• Take Initiative • Solve Problems COACHABLE MOMENTS: • Performance Results • Job-Task Progression • Innovation and Creativity • Negative Performance Results ( how to respond) • Job-Task Retrogression ( Moving to early stage) • Mistakes or Lapses FEEDBACK MODEL
• State the expectation
• Describe what the employee did • Describe specific behaviors • Do not assume intent • Describe the impact • Describe the goal • Determine what should happen next FEEDBACK SKILLS
CORRECTIVE COACHING • Use good judgment – don’t be judgmental • Have civilized dialogue – don’t debate or berate • Provide employee opportunity to solve problem • Work toward a positive future outcome FEEDBACK SKILLS DELIVERING A DIFFICULT MESSAGE • Modify feedback style for individual • Be cognizant of tone & manner • Keep anger out of the picture • State the problem – be specific • Determine the root of the problem • Develop solutions • State expectations & check for understanding • Make a note of your discussion WHEN IT ISN’T WORKING OUT . . .
• Consult with manager and HR
• Restate your expectations • Establish corrective actions • Check for understanding • Observe implementation • Document every step • Terminate within probationary period if performance is not acceptable PERFORMANCE APPRAISAL
• Continual process • Memorialized by periodic review • Goal is to: • Review past performance • Set goals for future performance • Plan for employee’s development • Make the process participative PREPARING TO APPRAISE
• Review appraisal form
• Have job responsibilities changed? • How have circumstances impacted performance? • Check your performance notes • Prepare to meet with employee PREPARATORY MEETING
MEET WITH EMPLOYEE TO PREPARE:
• Explain collaborative process • Acknowledge any changes in expectations up front • Ask employee to do self-rating • Ask employee to identify goals • Schedule appraisal meeting APPRAISAL MEETING
• Agree on goals • Program/Project Goals • Performance Development Goals • Personal Development Goals • Complete Action Plan • Identify resources, timelines, benchmarks • Identify what support you’ll provide APPRAISAL TIPS
• Schedule adequate time
• Prepare in advance • Give the employee time to prepare • Put the employee at ease • Use the feedback model • Check for agreement/understanding • Adjust your style to the individual APPRAISAL TIPS
• Make appraisal a continual process
• Use ongoing debriefing • Check in periodically between formal appraisal discussions • Consider asking employee to give you feedback A PARTING THOUGHT . . .
