Types
of plans
•Objectives/goals
•Strategies & tactics
•Standards
•Budgets
•Policies
•Procedures
•Programmes
•Rules
•Methods
What
types of plans do managers use?
ØShort-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
ØPeople
vary in their capability to deal effectively with different time horizons. Higher
management levels focus on longer time horizons.
ØStrategic
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
ØPolicies
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.
ØBudgets
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.
What are
the useful planning tools and techniques?
ØForecasting
–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.
ØContingency
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.
ØScenario
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.
ØBenchmarking
–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.
ØUse
of staff planners
–Coordinating
the planning function for the total organization or one of its major
components.
–Possible
communication gaps between staff planners and line management.
ØParticipation
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.
