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4. MGT230 Chapter 8 Presentation with New Narration.pptx
- 1. CHAPTER 8 The Manageras a Planner and Strategist
- 2. Learning Objectives LO Understandwhat is Planning, Planning Steps, and the Importance of planning. LO Understanding Characteristics/Criterion of Effective Planning & the meaning of a Rolling Plan. LO Classify Planning according to Time Horizon. LO Differentiate between Corporate-Level Planning, Divisional-level Planning, and Operational-level planning steps and strategies. LO Differentiate between Types and Components of Operational Plans.
- 3. Planning, Steps, Importance & Characteristics Planning according to TimeHorizon Corporate Divisional Operational Level Planning Types of Operati onal Plans
- 4. Planning Planning • Identifying andselecting appropriate goals and courses of action for an organization and planning the allocation of the required resources The organizational plan that results from the planning process details the goals and the specific strategies managers will implement to attain those goals.
- 5. Planning and Strategy Strategy •A cluster of decisions about • what goals/targets/end results/Objectives to pursue, • what actions, means, methods to take, and • how to use resources to achieve goals
- 6. What are thePlanning Steps?
- 7. Three Steps inPlanning
- 8. Mission statement • Abroad statement that declares an organization’s purpose that identifies the organization’s products and customers and distinguishes the organization from its competitors Products Customers Distinction
- 9. Why Planning isImportant?
- 10. Why Planning IsImportant Direction Participation Coordination Controlling Device
- 11. Why Planning IsImportant Deciding and unifying the Direction Managers Participation in Decision- making Coordination of Information Controlling Device - Means to measure performance Direction Participation Coordination Controlling Device
- 12. What are theCharacteristics of Effective Planning? Henri Fayol
- 13. Characteristics of EffectivePlanning - UCAF Unity Continuity Accuracy Flexibility
- 14. Unity • Planning iscascaded throughout the organizations • All Goals + Strategies + PAR are all connected • Resulting in one central plan that contains all the lower level plans
- 15. Continuity • Not aone day or a week effort • Its an on-going process • Due to the constant changes in the internal and external environments
- 16. • Due tothe constant changes in the internal and external environments • Managers should be able to change/ alter plans are required • So planning is not rigid Flexibility
- 17. Accuracy • Based oninformation • That is correct (verified)
- 18. Rolling Plan • rollingplan is a plan that is continuously revised and amended to take into consideration that the changes that are happing or will happen in the internal and external environments. Continuity Flexibility
- 19. Planning, Steps, Importance & Characteristics Planning according toTime Horizon Corporate Divisional Operational Level Planning Types of Operati onal Plans
- 20. Time Horizon ofPlans Time Horizon is the duration of the plans/planning. Period of time over which plans are intended to apply or endure
- 21. Time Horizons ofPlans Usually, there are 3 types of time horizon Short-term plans are less than 1 year. Intermediate-term plans are 1 to 5 years. Long-term plans are usually 5 years or more. Short-term A year or less Intermediate More than a year but less than 5 years Long-term 5 or more years
- 22. Planning, Steps, Importance & Characteristics Plannin g accordin gto Time Horizon Corporate Divisional Operational Level Planning Types of Operati onal Plans
- 23. Corporation Definition A largecompany or group of companies authorized to act as a single entity and recognized as such in law.
- 24. Corporate + Business+ Operational Levels Business Level All businesses in the corporation Corporate Level Management of the whole group Functional Level Departments of each Business in the corporation
- 25. Corporate + Business+ Operational Levels Business Level Also called Divisional-level or Business Unit level Corporate Level Also called Group-level or Organizational-level Functional Level Also called Department-level Operational-level
- 26. Corporate-Level Planning 1.Decide corporategoals. 2. Formulate corporate strategies. 3. Implement corporate strategy = Allocate corporate resources = Design Corporate structural control
- 27. Business-Level Planning 1.Decide businessgoals. 2. Formulate business strategies. 3. Implement business strategy = Allocate business resources = Design business structural control
- 28. Functional-Level Planning 1.Decide departmentalgoals. 2. Formulate departmental strategies. 3. Implement departmental strategy = Allocate departmental resources = Design departmental structural control
- 29. Levels and Typesof Planning CORPORTE-LEVEL PALNNING BUSINESS-LEVEL PALNNING FUNCTIONAL-LEVEL PALNNING
- 30. Corporate Level Planning 1.Decide corporategoals. 2. Formulate corporate strategies. 3. Implement corporate strategy = Allocate corporate resources = Design Corporate structural control A plan that indicates in which industries and markets an organization intends to compete
- 31. Business Level Planning 1.Decide businessgoals. 2. Formulate business strategies. 3. Implement business strategy = Allocate business resources = Design business structural control outlines the specific methods a division, business unit, will use to compete effectively against its rivals in an industry
- 32. Functional Level Planning 1.Decide departmentalgoals. 2. Formulate Functional strategies. 3. Implement departmental strategy = Allocate departmental resources = Design departmental structural control A plan of action to improve the ability of each of an organization’s functions to perform its task-specific activities in ways that add value to an organization’s goods and services
- 33. Types of PlanningLevels Corporate-level planning • Top management’s decisions pertaining to the organization’s mission and goals, overall strategy, and structure. Business-level planning • Long-term divisional goals that will allow the division to meet corporate goals • Division’s business-level strategy and structure to achieve divisional goals Functional-level planning • Goals that the managers of each function will pursue to help their division attain its business-level goals • Functional -level strategy and structure to achieve functional goals
- 34. Types of Strategies Corporate-levelstrategy • A plan that indicates in which industries and national markets an organization intends to compete Business-level strategy • This strategy outlines the specific methods a division, business unit will use to compete effectively against its rivals in an industry Functional strategy • A plan of action to improve the ability of each of an organization’s functions to perform its task-specific activities in ways that add value to an organization’s goods and services
- 35. Planning, Steps, Importance & Characteristics Plannin g accordin gto Time Horizon Corporate Divisional Operation al Level Planning Types of Operational Plans
- 36. Types of OperationalPlans Standing Plans (Ready) Single Use Plans
- 37. Standing plans Used insituations in which programmed decision making is appropriate. Consists of Policies Rules Standard operating procedures (SOP)
- 38. Standing plans Used insituations in which programmed decision making is appropriate. Consists of Policies are general guidelines to situation. Rules are formal written guides to action. Standard operating procedures (SOP) are written instructions describing the exact series of actions that should be followed in a specific situation.
- 39. Single-use plans Developed tohandle non-programmed decision-making in unusual or one-of-a-kind situations. Consists of Program — Integrated sets of plans achieving certain goals Projects — Specific action plans to complete various aspects of a program
Editor's Notes
- #5 4
- #6 See A Manager’s Challenge: Sorenson Plans for Growth at Marriott. Sorenson’s strategy to accelerate Marriott’s growth included a three-year plan to add 100,000 rooms per year. Challenge: OTAs. Strategy: acquisition of Starwood brought in a successful customer-loyalty rewards program. Marriott’s business model focuses on hotels that are owned by others, allowing the company to deliver a great experience to guests without the expense or risk. Growth strategy: add distinctive properties, add features such as entertainment lounges and comfortable lobbies.
- #8 7
- #9 8
- #11 All managers participate in some kind of planning, because they must try to predict future opportunities and threats and develop a plan and strategies that will result in a high-performing organization. Absence of a plan results in hesitations, false steps, and mistaken changes of direction that can hurt an organization or lead to disaster.
- #12 All managers participate in some kind of planning, because they must try to predict future opportunities and threats and develop a plan and strategies that will result in a high-performing organization. Absence of a plan results in hesitations, false steps, and mistaken changes of direction that can hurt an organization or lead to disaster.
- #14 Henri Fayol, the originator of the model of management discussed in Chapter 1, said that effective plans should have four qualities: unity, continuity, accuracy, and flexibility. Unity means that at any one time only one central plan is put into operation. More than one plan would cause confusion and disorder. Continuity means that planning is an ongoing process.
- #15 PAR – Planning Acclotion of Resources
- #16 PAR – Planning Allocation of Resources
- #17 PAR – Planning Allocation of Resources
- #18 PAR – Planning Allocation of Resources
- #22 21
- #30 shows the link between these three levels and the three steps in the planning and strategy-making process illustrated.
- #34 33
- #35 34
- #38 37
- #39 38
- #40 Single-use plans are developed to handle nonprogrammed decision-making. Single-use plans include: Programs, which are integrated sets of plans for achieving certain goals. Projects, which are specific action plans created to complete various aspects of a program.