Chapter 3 Planning Technical Activities

PLANNING TECHNICAL ACTIVITIES Managers who plan are afforded with the opportunity to carefully analyze situations which directly contribute to effective decision-making.

Planning Defined Nickels and Others

• refers to the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.

Planning Defined Aldag and Stearns

is the selection and sequential ordering of tasks required to achieve an organizational goal.

Planning Defined Cole & Hamilton

is deciding what will be done, who will do it, where, when and how it will be done, and the standards to which it will be done.

Planning at Various Management Levels 1. Top management level- strategic planning 2. Middle management level – intermediate planning 3. Lower management level – operational planning

• • • Top • Management •

Middle Management

Lower Management

Chief Executive Officer President Vice Presidents General Manager Division Heads

• Functional Managers • Product Line Managers • Department Heads

• Unit Managers • First Line Supervisors

The Planning Process 1.Setting organizational, divisional, unit goals 2. Developing strategies or tactics to reach those goals 3. Determining resources needed

4. Setting standards

Types of Plans Functional Areas Time Horizon Frequency of Use

Functional Plans • • • •

Marketing Plan Production Plan Financial Pluman Resource Management Plan

Plans With Time Horizon • Short-range Plan • Long-range Plan

Plans According to Frequency of Use • Standing Plans: Policies Procedures Rules • Single-use Plans: Budgets Programs Projects

The Contents of the Marketing Plan The Executive Summary

Table of Contents Situational Analysis and Target Market Marketing Objectives and Goals Marketing Strategies and Tactics

Schedules and Budgets Financial Data and Control

The Contents of a Production Plan • The amount of capacity the company must have • How many employees are required • How much material must be purchased

The Contents of the Financial Plan • An analysis of the firm’s current financial condition as indicated by an analysis of the most recent statements • A sale forecast • The capital budget • The cash budget • A set of pro forma (or projected) financial statements • The external financing plan

Contents of the Human Resources Plan • • • •

Personal requirements of the company Plans for recruitment and selection Training plan Retirement plan

PARTS OF THE STRATEGIC PLAN • Company or corporate mission • Objectives or goals • Strategies

MAKING PLANNING EFFECTIVE – Planning may be made successful if the following are observed:

Recognize the planning barriers Use of aids to planning

Planning Barriers 1. Manager’s in ability to plan 2. Improper planning process 3. Lack of commitment to the planning process 4. Improper information 5. Focusing on the present at the expense of the future 6. Too much reliance on the planning department 7. Concentrating only on the controllable variables

Aids to planning that may be used are: 1. Gather information as much as possible 2. Develop multiple sources of information 3. Involve others in the planning process