Introduction to Modern Management (IMM) - BUS230

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Assoc. Prof. Dr. Ab Rahman Ahmad Assoc. Prof. Dr. Ab Rahman Ahmad Faculty of Computing and Information Faculty of Computing and Information

Technology, Technology,

King Abdulaziz University, King Abdulaziz University,

Rabigh Branch, KSA Rabigh Branch, KSA

Mobile:

Mobile: 05618421520561842152

Email: [email protected] Email: [email protected]

Introduction to Modern

Management

(IMM) - BUS230

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••Decide in advance Decide in advance What What, , How

How, , When When and and Who Who

((WHWW WHWW) to do it. Bridge ) to do it. Bridge the gap where are we and the gap where are we and where to go. It makes

where to go. It makes

possible for things to occur possible for things to occur or otherwise.

or otherwise.

IMM – BUS230

CHAPTER 2: PLANNING

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IMM – BUS230

PLANNING PROCESS PLANNING PROCESS

Plans

Objective and how to achieve them

Kind of people need and

when How most effective to

lead Kind of organization

structure

Furnish standards

of Control

Helps us know Helps us know

Affects kind of Affects kind of leadership and leadership and

direction direction Ensure Ensure success of success of

plans plans

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••Well defined goals lead to Well defined goals lead to efficiency in planning.

efficiency in planning.

••Accurate forecasting leads to Accurate forecasting leads to correction decisions.

correction decisions.

••Selection of alternativesSelection of alternatives

••Require every course of actionRequire every course of action

••Flexible as based on future and Flexible as based on future and always dynamic, adjustment

always dynamic, adjustment needed.

needed.

IMM – BUS230

2.1: CHARACTERISTICS 2.1: CHARACTERISTICS

OF PLANNING

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••Contribution to purpose and Contribution to purpose and objectives

objectives –– to facilitate to facilitate

accomplishment of enterprise and accomplishment of enterprise and objectives.

objectives.

••Primacy of planningPrimacy of planning –– POSDC POSDC to support accomplishment of to support accomplishment of enterprise and objectives.

enterprise and objectives.

Planning precedes other Planning precedes other

executions. Planning and control executions. Planning and control are inseparable

are inseparable

IMM – BUS230

2.2: NATURE OF PLANNING

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IMM – BUS230

2.2: NATURE OF PLANNING 2.2: NATURE OF PLANNING

Planning

Controlling:

Comparing Plans with results Implementation

of plans

Corrective action Undesirable

Undesirable deviation deviation No desirable

No desirable Deviation Deviation From plans From plans

Unplanned action cannot be Unplanned action cannot be controlled, thus plan furnish controlled, thus plan furnish

standards of control.

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••Pervasiveness of planningPervasiveness of planning –– Planning is function for all

Planning is function for all

managers, character and breadth managers, character and breadth may vary with authority and policy.

may vary with authority and policy.

••Efficiency of plans Efficiency of plans –– measured measured by amount contribute to purpose by amount contribute to purpose and objectives, off

and objectives, off--set by cost and set by cost and other consequences required to other consequences required to formulate and operate it.

formulate and operate it.

IMM – BUS230

2.2: NATURE OF PLANNING

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••To offTo off--set uncertainty and set uncertainty and change

change –– Future is always Future is always uncertain and change,

uncertain and change,

organization has to function to organization has to function to these changes though can be these changes though can be forecasted. Thus planning

forecasted. Thus planning foresees future and makes foresees future and makes provision, added strength for provision, added strength for steady growth.

steady growth.

IMM – BUS230

2.3: IMPORTANCE 2.3: IMPORTANCE

OF PLANNING

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••To focus attention on To focus attention on objectives

objectives –– planning depends on planning depends on objectives from activities

objectives from activities performed. It makes more performed. It makes more

concrete and tangible by focusing concrete and tangible by focusing attentions on these. It helps in

attentions on these. It helps in providing guidelines for the

providing guidelines for the individual in organizations.

individual in organizations.

IMM – BUS230

OF PLANNING

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••To help in coordinationTo help in coordination –– well well conceived plan unify inter

conceived plan unify inter-- department activities, create department activities, create

harmony. Coordination is essence harmony. Coordination is essence and planning become base.

and planning become base.

•• To gain economy in operationTo gain economy in operation –

– minimize cost for efficient, select minimize cost for efficient, select profitable tasks. Consistency in

profitable tasks. Consistency in planning makes continuous flows.

planning makes continuous flows.

IMM – BUS230

OF PLANNING

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••To help in controlTo help in control –– involves involves

measurement of accomplishment measurement of accomplishment of events against plan, correction of events against plan, correction to compare with actual expected.

to compare with actual expected.

••To increase organizational To increase organizational effectiveness

effectiveness –– planning and planning and control is measure in stated control is measure in stated objectives. Reliable future

objectives. Reliable future infosinfos need for interest of organization.

need for interest of organization.

IMM – BUS230

OF PLANNING

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••Planning process results into Planning process results into

several specific plans, in the form several specific plans, in the form of

of standing plansstanding plans –– objectives, objectives, policy, rules, procedure or

policy, rules, procedure or singlesingle-- use

use plan plan –– budgets, targets, budgets, targets,

quotas. The difference is standard quotas. The difference is standard plan over a long period whereas plan over a long period whereas single

single--use plans on specific times. use plans on specific times.

IMM – BUS230

2.4: TYPES OF PLANS

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••ObjectivesObjectives –– a structured a structured

hierarchy, lower unit contribute to hierarchy, lower unit contribute to higher level. A broad objective for higher level. A broad objective for entire organization. First step in entire organization. First step in planning is setting the objectives.

planning is setting the objectives.

Serves as reference points to Serves as reference points to determine policies, procedures, determine policies, procedures, methods, strategies. Well defined methods, strategies. Well defined objectives, clear what to achieve.

objectives, clear what to achieve.

IMM – BUS230

2.4: TYPES OF PLANS

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••PoliciesPolicies –– general statements general statements which provide guidance in

which provide guidance in decision

decision--making. It might be in the making. It might be in the form writing, interpreted by people form writing, interpreted by people at the top. It is part of a plan and at the top. It is part of a plan and also assist mapping out action.

also assist mapping out action.

••StrategiesStrategies –– plan brings to better plan brings to better position in future involve objective, position in future involve objective, policies to achieve goals and

policies to achieve goals and

helps to encounter competitors.

IMM – BUS230

2.4: TYPES OF PLANS

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••ProceduresProcedures –– how and when it how and when it takes place and who do it. Time is takes place and who do it. Time is important, both on expedite and important, both on expedite and

coordinate operations. Once done it coordinate operations. Once done it can be used again. More exact on can be used again. More exact on lower level as routine less decision lower level as routine less decision-- making, cross

making, cross--department such as department such as sales will involve production,

sales will involve production, finance and inventory.

finance and inventory.

IMM – BUS230

2.4: TYPES OF PLANS

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••Policy and proceduresPolicy and procedures –– policy policy provide guidance for thinking and provide guidance for thinking and action, whereas procedure provide action, whereas procedure provide guidelines to the action. Policy is guidelines to the action. Policy is

more flexible compare to procedure more flexible compare to procedure and it merely channels decision

and it merely channels decision

making. Vacation policy followed by making. Vacation policy followed by procedure. Employee can get

procedure. Employee can get

vacation through certain procedure.

IMM – BUS230

2.4: TYPES OF PLANS

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••Characteristics of a good Characteristics of a good procedure

procedure::

•• based on factsbased on facts –– consideration consideration on objectives, facilities, personnel on objectives, facilities, personnel and type of works. Good for a

and type of works. Good for a particular organization.

particular organization.

••Procedure as a systemProcedure as a system ––

recognize as interrelated activities recognize as interrelated activities in a network, analyze system

in a network, analyze system structure.

structure.

IMM – BUS230

2.4: TYPES OF PLANS

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procedure::

•• WellWell--balancedbalanced –– maintaining maintaining between stability and flexibility.

between stability and flexibility.

Should possess stability when Should possess stability when

modification is made that affecting modification is made that affecting operation. Flexible to cope with

operation. Flexible to cope with crisis, emergency, special

crisis, emergency, special demands.

demands.

IMM – BUS230

2.4: TYPES OF PLANS

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procedure::

•• Updating proceduresUpdating procedures ––

continuous review to ascertain continuous review to ascertain

utility. Some added might be useful, utility. Some added might be useful, but need to be revised, eliminate

but need to be revised, eliminate unnecessary.

unnecessary.

••Minimum proceduresMinimum procedures –– this is this is

basic principle, reduce costs, paper basic principle, reduce costs, paper handling, delay and lack response.

handling, delay and lack response.

IMM – BUS230

2.4: TYPES OF PLANS

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••RulesRules –– a specific guide of action, a specific guide of action, authorized, utilized to inform

authorized, utilized to inform

employees, designated action to be employees, designated action to be performed. Definitive action to a

performed. Definitive action to a situation.

situation. Smoking is prohibitedSmoking is prohibited is is a rule and oblige it. Procedure is a a rule and oblige it. Procedure is a sequence of rules, some violations sequence of rules, some violations must be penalized. Rule doesn’t must be penalized. Rule doesn’t prescribed time, more than the prescribed time, more than the orders, obligations of officials.

orders, obligations of officials.

IMM – BUS230

2.4: TYPES OF PLANS

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••MethodsMethods –– it is a step of a it is a step of a procedure. Perform task with procedure. Perform task with

consideration to objective, facilities, consideration to objective, facilities, time, money and effort. Normally

time, money and effort. Normally confined to one department, one’s confined to one department, one’s engagement. Limited compared to engagement. Limited compared to procedure. Greater output achieved procedure. Greater output achieved when tasks carefully defined.

when tasks carefully defined.

Various techniques available for Various techniques available for methods improvement .

methods improvement .

IMM – BUS230

2.4: TYPES OF PLANS

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••ProjectsProjects –– a type of plan in actions a type of plan in actions integrated into units and designed integrated into units and designed to bring a stated objectives. A

to bring a stated objectives. A scheme for investing resources scheme for investing resources

large or small. A definable activities, large or small. A definable activities, critical to organization, contribution critical to organization, contribution to profits. Like a policy, procedures to profits. Like a policy, procedures also affects project selection, need also affects project selection, need details on capital expenditure,

details on capital expenditure, budgeting and techniques.

budgeting and techniques.

IMM – BUS230

2.4: TYPES OF PLANS

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••BudgetsBudgets –– express organizational express organizational or department objectives in

or department objectives in financial or non

financial or non--financial quantities. financial quantities.

Anticipate operating results versus Anticipate operating results versus time, as basis to measure

time, as basis to measure

performance as plans turn into performance as plans turn into

accomplishment. May be prepared accomplishment. May be prepared by various groups such as sales, by various groups such as sales,

production, purchasing, advertising, production, purchasing, advertising, materials, personnel, cost, etc.

materials, personnel, cost, etc.

IMM – BUS230

2.4: TYPES OF PLANS

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••Perception of OpportunityPerception of Opportunity ––

organization needs social factors.

Important awareness opportunity Important awareness opportunity before actual planning or a real before actual planning or a real starting point.

starting point.

•• Establishing objectivesEstablishing objectives –– first first to be determined. These will set to be determined. These will set the pattern of actions. Spelled out the pattern of actions. Spelled out to key areas and set for sections to key areas and set for sections and department, clearly specified and department, clearly specified and measurable.

and measurable.

IMM – BUS230

2.5: STEPS IN PLANNING

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••Establishing planning Establishing planning premises

premises –– premises affects premises affects planning as political factors, planning as political factors, ethical standards, government ethical standards, government controls, fiscal policy, price,

controls, fiscal policy, price, demand and availability.

demand and availability.

Information gathered then analyze Information gathered then analyze to make forecast and determine to make forecast and determine limitation within the proposed limitation within the proposed action.

action.

IMM – BUS230

2.5: STEPS IN PLANNING

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Principles of Management, Principles of Management,

M. Govindarajan, S. Natarajan, M. Govindarajan, S. Natarajan, PHI Learning Private Limited, PHI Learning Private Limited, 2008.

2008.

http://www.mindtools.com/pages/

article/newSTR_91.htm, 24/3/10 article/newSTR_91.htm, 24/3/10

IMM – BUS230 References:

References: