Planning Purpose of Planning The purpose of planning is to formalize and develop an outline or blueprint to attain objectives in the desired period of time in the most efficient and effective way possible with a minimum of problems Purpose of Planning Minimum of Problems Sound planners try to anticipate major problems in advance This way steps are taken to prepare for them so that loss will be minimized if problems do occur Examples fire insurance on property cross training employees to do more than one job Effective End Results When all parties directly involved understand the goal and his her individual role s the odds are increased that the effective end results will be achieved One Minute Manager Desired end result is achieved Nature of Planning Everyone plans Including students and managers Plans are developed to achieve objectives Risks and uncertainties 1 2 Associated with all plans Derived from the futuristic nature of planning You cannot foresee or control all variables that affect the plans Importance of Planning Precedent activity Anchors all other managerial responsibilities Precedes all functions of management Plan Organize Implement and Control Poor planning is the 1 cause of organizational failure Failure to reach desired objectives failure to operate within budget and failure to maximize use of resources are all results of poor planning Types of Plans Strategic plans Tactical plans Developed to achieve the broadest objective Set by top management long run Responsibility of the middle management Represent operational objectives needed to be achieved in order to reach strategic goals Operational goals Set by first level managers Short run 1 year or less Achieving operational objectives is part of the effort to reach tactical goals Management by Objectives MBO Popular planning decision making aid Philosophical approach to more effectively implementing plans Converts organizational objectives into group and individual objectives It can be time consuming and costly Management by Objectives MBO http www 1000ventures com business guide mgmt mbo main html Five Step MBO Process Employees objectives set 1 Ideally employees get strong input in setting their objectives Progress Monitored 2 Mangers should participate in the strategic planning process and implement a performance monitoring system to help the organization stay on the right track Performance Evaluated 3 MBO managers focus on the result not the action Achievers Rewarded 4 Extrinsic Intrinsic Organizational objectives reviewed 5 The principle behind MBO is to make sure everybody within the organization has an understanding of the objectives and their responsibilities Overall Benefits from Planning Gives direction to the efforts of employees People know what they are meant to be doing and focusing on Helps an organization determine its own destiny A key to effective control evaluation Essential to managerial success Planning and Control Control or Evaluation is designed to measure performance against plans set standards Gantt chart developed in 1917 as a visual control chart A Gantt chart is a graphical representation of the duration of tasks against the progression of time Gantt charts are useful in Planning and scheduling They allow you to assess how long a project should take Lay out the order of tasks Monitor progress Gantt Chart Measure performance against plans Planned Output Standard Difference in what period of time Actual Output 0 OUTPUT TIME SCALE Modified Gantt Control Chart Organizational Guidelines Managers are responsible for making sure people know what they are doing Organizational guidelines provide guidance on the implementation of plans Definition anything managers introduce to influence the behavior of personnel working to achieve objectives Sometimes referred to as Red tape Organizational Guidelines 1 2 3 4 5 6 7 Policies most flexible and open to interpretation Procedures series of steps taken in order to achieve an end result e g accident and emergency procedures Rules guidelines that demand employee action NO FLEXIBILITY Systems group of coordinated procedures followed to achieve a major end Codes standards of professional behavior i e dress code code of ethics Methods guidelines that specify an exact way to perform a task Regulations guidelines given by higher management or government e g Job safety regulations by OSHA Organizational Guidelines Recommendations for maximum effectiveness 1 2 3 Introduce only if essential Keep guidelines simple Put guidelines in writing and make them known To avoid misunderstanding give each employee a copy or even have a contract to sign stating he she has read understands and agrees to abide by these guidelines 4 Audit guidelines periodically remove as needed