Professional Documents
Culture Documents
Controlling
Planning Ahead
Planning
The process of setting objectives and determining
how to best accomplish them.
Objectives
Identify the specific results or desired outcomes that
one intends to achieve.
Plan
A statement of action steps to be taken in order to
accomplish the objectives.
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How do managers plan?
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Study Question 1: How do managers plan?
Benefits of planning:
Improves focus and flexibility.
Improves action orientation.
Improves coordination.
Improves time management.
Improves control.
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Figure 8.2 A sample means-ends chain
for total quality management.
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Study Question 2: What types of plans do
managers use?
Projects
One-time activities that have clear beginning and end points.
Forecasting
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.
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Study Question 3: What are the useful
planning tools and techniques?
Contingency planning
Identifyingalternative courses of action
that can be implemented to meet the
needs of changing circumstances.
Contingency plans anticipate changing
conditions.
Contingency plans contain trigger points.
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Study Question 3: What are the useful
planning tools and techniques?
Scenario planning
A long-term version of contingency planning.
Identifying alternative future scenarios.
Plans made for each future scenario.
Increases organizations flexibility and
preparation for future shocks.
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Study Question 3: What are the useful
planning tools and techniques?
Benchmarking
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.
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Study Question 3: What are the useful
planning tools and techniques?
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Study Question 3: What are the useful
planning tools and techniques?
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Figure 8.3 How participation and
involvement help build commitments to
plans.
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Study Question 4: What is the
control process?
Controlling
The process of measuring performance and taking
action to ensure desired results.
Has a positive and necessary role in the management
process.
Ensures that the right things happen, in the right way,
at the right time.
Organizational learning and after-action review.
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Study Question 4: What is the
control process?
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Study Question 4: What is the
control process?
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Study Question 4: What is the
control process?
Feedforward controls
Employed before a work activity begins.
Ensures that:
Objectives are clear.
Proper directions are established.
Right resources are available.
Focuses on quality of resources.
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Study Question 4: What is the
control process?
Concurrent controls
Focus on what happens during work process.
Monitor ongoing operations to make sure they
are being done according to plan.
Can reduce waste in unacceptable finished
products or services.
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Study Question 4: What is the
control process?
Feedback controls
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Figure 8.5 The role of feedforward,
concurrent, and feedback controls in
organizations.
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Study Question 4: What is the
control process?
External control
Occurs through personal supervision and the use
of formal administrative systems.
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Study Question 5: What are the common
organizational controls?
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Study Question 5: What are the common
organizational controls?
Advantages of MBO
Focuses workers on most important tasks and
objectives.
Focuses supervisors efforts on important
areas of support.
Contributes to relationship building.
Gives workers a structured opportunity to
participate in decision making.
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Study Question 5: What are the common
organizational controls?
through reprimand.
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Study Question 5: What are the common
organizational controls?
Break-even analysis
Determination of the point at which sales
revenues are sufficient to cover costs.
Break-Even Point = Fixed Costs / (Price
Variable Costs)
Used in evaluating:
New products
New program initiatives
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Figure 8.7 Graphical approach to break-
even analysis.
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Study Question 5: What are the common
organizational controls?
Purchasing control
A productivity tool
Trends in purchasing control:
Leveraging buying power
Committing to a small number of suppliers
Working together in supplier-purchaser
partnerships 44
Study Question 5: What are the common
organizational controls?
Inventory control
Goal is to ensure that inventory is just the
right size to meet performance needs, thus
minimizing the cost.
Methods of inventory control:
Economic order quantity
Just-in-time scheduling
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Study Question 5: What are the common
organizational controls?