FUNDAMENTALS
OF PLANNING
CHAPTER 5
PLANNING AHEAD — KEY TAKEAWAYS
• Identify the importance of
planning and steps in the
• Planning process.
• List and give examples of
the types of plans used by
• managers.
• Discuss useful planning
tools and techniques.
• Explain how goals and
participation influence
• Planning success.
[Link] and How
Managers Plan
⚬ Importance of planning
⚬ The planning process
Chapter 5 ⚬ Benefits of planning
[Link] of Plans Used
Outline by Managers
⚬ Long-range and short-
range plans
⚬ Strategic and tactical
plans
⚬ Operational plans
3
[Link] Tools and
Techniques
⚬ Forecasting
⚬ Contingency planning
⚬ Scenario planning
Chapter 5 ⚬ Benchmarking
Outline ⚬ Use of staff planners
[Link]
Plans to Achieve
Results
⚬ Goal setting
⚬ Goal alignment
⚬ Participation and
involvement
3
WHY AND HOW
"
MANAGERS PLAN
• Planning
The process of setting objectives
and determining how to
accomplish them.
• Objectives and goals
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.
"
WHY AND HOW
MANAGERS PLAN
Steps in the planning
process:
• Define your objectives.
• Determine where you stand
vis-à-vis objectives.
• Develop premises regarding
future conditions.
• Analyze alternatives and
make a plan.
• Implement the plan and
evaluate results.
Figure 8.1 The roles of planning
and controlling in the management
process
"
WHY AND HOW
MANAGERS PLAN
• Benefits of planning:
⚬ Improves focus and flexibility
⚬ Improves action orientation
⚬ Improves coordination and
control
⚬ Improves time management
WHY AND HOW"
MANAGERS PLAN
• Personal time management tips:
⚬DO say “no” to requests that
distract from what you should
be doing.
⚬DON’T get bogged down in
details that can be addressed
later.
⚬DO screen telephone calls,
emails, and meeting requests.
WHY AND HOW"
MANAGERS PLAN
• More personal time management tips:
⚬DON’T let drop-in visitors instant
messaging use up your time
⚬DO prioritize your important and
urgent work
⚬DON’T become calendar bound by
letting others control your schedule
⚬DO follow priorities; do most
important and urgent work first
"
TYPES OF PLANS
USED BY • Types of plans
MANAGERS ⚬Long-term plans look
three or more years into
the future
⚬Short-term plans typically
cover one
year or less
8
TYPES OF PLANS USED BY MANAGERS
Most of us
3 month time A few of us
frame Very few of us
1 year time
frame 20 year time
frame
"
TYPES OF PLANS
USED BY • Strategic plans — set broad,
MANAGERS comprehensive, and longer-
term action directions for the
entire organization
• Vision – clarifies purpose of
the organization and what it
hopes to be in the future
8
"
TYPES OF PLANS
USED BY
• Tactical plan – helps to
implement all or parts of the
strategic plan
• Functional plans – indicate
MANAGERS how different operations
within the organization will
help accomplish the overall
strategy
￭ Production plans
￭ Financial plans
￭ Facilities plans
￭ Logistics plans
￭ Marketing plans
￭ Human resource plans
8
"
• Operational plans — identify short-
term activities to implement
TYPES OF PLANS strategic plans
⚬Policies are standing plans the
USED BY
communicate guidelines for
MANAGERS decisions
⚬Procedures are rules that
describe actions to be taken in
specific situations
⚬Budgets are plans the commit
resources to projects or
activities
• Zero based budgets allocate
resources as if each budget were
brand new
8
"
PLANNING TOOLS
AND TECHNIQUES
• Forecasting
⚬Attempts to predict the
future.
⚬Qualitative forecasting
uses expert opinions.
⚬Quantitative forecasting
uses mathematical
models and statistical
analysis of historical
data and surveys.
8
"
PLANNING TOOLS
AND TECHNIQUES • Contingency planning
⚬Identifying alternative
courses of action to
take when things go
wrong.
⚬Contingency plans
anticipate changing
conditions.
⚬Contingency plans
contain trigger points.
8
"
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
8
"
PLANNING TOOLS
AND TECHNIQUES
• Benchmarking
⚬Use of external and
internal comparisons to
plan for future
improvements
⚬Adopting best practices:
things people and
organizations do that lead
to superior performance
⚬Staff planners assist in all
steps of the planning
process
8
IMPLEMENTING PLANS TO ACHIEVE
RESULTS
FIGURE 8.2 A SAMPLE HIERARCHY
"
IMPLEMENTING
PLANS TO ACHIEVE
• Goal Alignment Between Team
Leader and Team Member
⚬Jointly plan: set objectives, set
standards, choose actions.
RESULTS ⚬Individually set: perform tasks
(member), provide support
(leader).
⚬Jointly control: review results,
discuss implications, renew
cycle.
"
IMPLEMENTING
PLANS TO ACHIEVE
• Participatory Planning
⚬Unlocks the motivational
potential of goal setting.
⚬Management by objectives
RESULTS (MBO) promotes participation.
⚬When participation is not
possible, workers will respond
positively if supervisory trust
and support exist.
Copyright ©2015 John Wiley & Sons, Inc.
FIGURE 8.3 HOW PARTICIPATION AND
INVOLVEMENT HELP BUILD COMMITMENT TO
PLANS
Copyright ©2015 John Wiley & Sons, Inc.