Management and Entrepreneurship : 1 Management and Entrepreneurship Subject Code:07HSS51 Chapter – 2 PLANNING : 2 Chapter – 2 PLANNING “Successful managers deal with foreseen problems and unsuccessful managers struggle with unforeseen problems”….Terry Slide 3: 3 EXTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SYSTEM APPROACH TO MANAGEMENT Agenda : 4 Agenda Nature of Planning (Importance & Purpose of Planning).
Types of Plans.
Strategies for manufacturing technology. What is Planning? : 5 What is Planning? Deciding in advance what to do, how to do it , when to do it and who has to do it.
A forecast for accomplishment.
Predetermined course of action.
To produce a scheme for future action and to bring about specified results at a specified cost in a specified period of time. Definition : 6 Definition Defined in to directions by management thinkers.
Based on futurity
As an intellectual function
Based on futurity:
“Planning is a trap laid down to capture the future” (Allen)
“Deciding in advance what is to be done in future” (Koontz)
“Informed anticipation of future”( Haimann)
Anticipatory decision making” (R L Ackoff) Definition : 7 Definition As an intelligence function:
“Planning is a thinking process, an organized foresight, a vision based on fact and experience that is required for intelligent action”( Alford & Beatty)
“Deciding in advance what to do, how to do it, when to do it and who has to do it” ( Koontz & O’ Donnell) Planning focuses on future and it involves all the activities that determine objectives for the future and the appropriate means for achieving those
objectives. Outcome of planning is a plan, which is a document that specifies the course of action the organization will take. Nature of Planning : 8 Nature of Planning Provides basic foundation from which all future management functions arise.
Integrated Process Planning- A bridge : 9 Planning- A bridge Where we are Where we want to
be Planning Importance of Planning : 10 Importance of Planning Provides direction
Creates a unifying frame work
Leads to economical utilization of resources
Reduces the risks of uncertainty
Facilitates decision making
Encourages Innovation & Creativity
Facilitates control Planning & Control – Siamese Twins : 11 Planning & Control – Siamese Twins Types of Plans : 12 Types of Plans Long range Vs Short range
Strategic Vs Operational
Corporate Vs Functional
Proactive Vs Reactive
Standing Vs Single Use Long range Vs Short range : 13 Long range Vs Short range Strategic Vs Operational : 14 Strategic Vs Operational Corporate Vs Functional : 15 Corporate Vs Functional Corporate Plan:
A comprehensive plan that outlines the broad objectives of a company as a whole and develops plans to achieve those objectives
Holistic and Unified focus
Focus on organizational performance
Is unit planning and deals with different departments in an isolated manner.
Focus on departmental performance Proactive Vs Reactive : 16 Proactive Vs Reactive Proactive Planning:
Managers challenge the future, anticipating future contingencies and get ready with alternative routes for unforeseen circumstances
Organizations react to events as and when they arise Standing Vs Single Use : 17 Standing Vs Single Use Standing Plans
Developed for activities that recur regularly over a period of time
Objectives, Policies, Procedures, Methods, Rules Single Use plans
Developed to carry out a course of action that is not likely to be repeated in future
Programmes, Schedules, Projects, Budgets Hierarchy of Plans : 18 Hierarchy of Plans Relationship of objectives and the organizational Hierarchy : 19 Relationship of objectives and the organizational Hierarchy Slide 20: 20 Steps in Planning Steps in Planning : 21 Steps in Planning Forecasting : Forecasting It involves careful study of past data & present scenario.
To estimate the occurrence, timing or magnitude of future events.
Types of forecasting:
Long Range Forecasting
Medium Range Forecasting
Short Range Forecasting 22 Methods of forecasting : Methods of forecasting Break Through
Time Series Analysis
Part explosion in to Product family 23 Long Range Forecasting Medium Range Forecasting Short Range Forecasting Qualitative Method : Qualitative Method Human judgments
Historical analogies 24 Quantitative Methods : Quantitative Methods Past few values
Next value extrapolated on graph
Time Series Analysis
Simple moving average
Weighted moving average
Double Exponential smoothing 25 Strategies : 26 Strategies General programs of action and deployment of resources to attain comprehensive objectives
Determination of long term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve the goals.
Don’t attempt to outline how to accomplish objectives, but provides a framework for guiding thinking and action
Includes major policies
Ex: GM’s Strategy: Marketing directly rather than through distributors, Concentrating on proprietary products, or having full line of autos. References : 27 References Principles of Management-P C Tripathi, P N Reddy; 3rd Edn.,TMH
Management-Stephen Robbins; 8th Edn.,PHI
Management-VSP Rao, V H Krishna; Excel
Essentials of Management-Koontz,Weihrich;5th Edn.,TMH
Management – James A F Stoner, R Edward Freeman, Daniel R Gilbert;6th Edn., PHI
Principles of management: a modern approach-Henry Albers, 4th Edn,,John Wiley & sons
Fundamentals of management-Donnelly, Gibson,Ivancevich ,10th Edn,.Irwin Mc Graw Web References : 28 Web References www.12manage.com
www.harehall.co.uk Slide 29: Thank You 29