SPH R 311 1nd Edition Lecture 4 5 Outline of Last Lecture I Leadership Theories A Trait Theories B Attribution Theories C Behavioral Theories II Leadership Styles A Autocratic B Democratic C Laissez faire III Service Sectors A Public B Non profit C Commercial Outline of Current Lecture I Planning Processes and Techniques A Why and How Managers Plan B Types of Plans Used by Managers C Planning Tools and Techniques D Implementing Plans to Achieve Results Current Lecture I Planning Processes and Techniques A Why and how managers plan Planning the process of setting objectives and determining how to accomplish them Decides exactly what you want to accomplish and how best to o about it Objectives specific results that one wishes to achieve Stretch goals performance targets that w have to work extra hard and stretch to reach Plan statement of intended means for accomplishing objectives Five basic steps in the planning process 1 Define your objective 2 Determine where you stand vis vis objectives 3 Develop premises regarding future conditions 4 Analyze alternatives and make a plan 5 Implement the plan and evaluate results Good planning improves focus and flexibility serves customers well and is willing to change and adapt Planning improves coordination facilitates control Without planning control lacks objectives and standards for measuring how well things are going Without control planning lacks the follow through needed to ensure that things work out as planned B Types of plans used by managers Long term plans look three or more into the future Short term plans cover one year or less Top management still responsible for setting longer term plans and directions for the organization as a whole Strategic plan identifies long term directions for the organization Vision clarifies the purpose of the organization and expresses what it hopes to be in the future o Involves determining the goals and objectives that will be pursued in order to accomplish that vision Tactical plan helps to implement all or parts of a strategic plan o Specify how the organization s resources can be used to put strategies into action Functional plans indicate how different operations within the organization will help advance the overall strategy Functional plans might include o Production plans o Financial plans o Facilities plans o Logistics plans o Marketing plans o Human resource plans Operational plans identifies short term activities to implement strategic plans o Standing plans policies and procedures that are used over and over again o Single use plans budgets that apply to one specific task or time period Policy a standing plan that communicates broad guidelines for decisions and action Procedures rule describing actions that are to be taken in specific situations Budget plan that commits resources to projects or activities C Planning tools and techniques Techniques of managerial planning 1 Forecasting attempts to predict the future o Qualitative forecasting uses expert opinions to predict the future o Quantitative forecasting use mathematical models and statistical analyses of historical data and surveys to predict future events o All forecasting can be wrong because it relies on human judgment 2 Contingency planning identifies alternative courses of action to take when things go wrong o Thinking ahead o Can t prevent a crises but can be prepared and help deal with crises if and when they do happen 3 Scenario planning identifies alternative future scenarios and makes plans to deal with each o Typically involves discussions of both worse case and best case 4 Benchmarking uses external and internal comparisons to plan for future improvements o Find out what other people and organizations are doing very well and then plan how to incorporate these ideas into one s own operations o Internal benchmarking encourages members and work units to learn and improve by sharing one another s best practices o External benchmarking learn form competitors and non competitors alike 5 Use of staff planners employed to help coordinate and energize planning D Implementing plans to achieve results Three foundations for successful implementation 1 Goal setting way goals are set can make a big difference in how well they do in pointing people in the right directions and inspiring them to work hard o Great goals are specific timely measurable challenging attainable 2 Goal alignment goals set everywhere in the organization should ideally help advance its overall mission or purpose 3 Participation and involvement when people participate in setting goals they gain motivation to work hard to accomplish them o Participation can increase the creativity and information available for planning o Increase the understanding and acceptance of plans o Increase commitment to their success o Improve results by improving implementation