MANAGEMENT PLANNING AND CONTROL

CHAPTER NO 2

The steps in planning process

Everything in history which has been planned was done in a highly predictable manner

Whatever you do whether launching a new product, a company, career or etc all these when planned goes through the following 6 steps

Six planning steps

1. Establish Goal or Objective2. Define limits3. Develop options4. Evaluate options 5. Choose the best option(S)6. Implement or Recycle to a more

specific level

Step no 1Establish Goals or Objectives

Define what you want to have happen before you build a plan to make it happen.

The first stage is to establish or make objectives and goals

Goals are more global and vast ideas Objectives are more specific and

precise Objectives are measurable and

specific They are mean to an end

Effective Goals are one that can be used successfully by a manager for planning.

Effective goals need to be specific, measurable and valid

Specific means that the goals details exactly what is to be accomplished

Measurable is that a manager can tell whether or not a goal Is achieved or not.

Valid means that the goal is actually something that needs to happen in order for the larger plan

Step no 2Define your limit

Limits are parameters or conditions While defining limits you need to ask questions:

1. Time line2. Money3. Facilities and machinery availability4. Technological capabilities to be tapped5. Human resources to be used6. Skill set you already have7. Necessary resources8. Factor affecting the progress towards the goals

One needs to list the limits as well1. Don’t overdo the limits , too many

limits can reduce the options for creative thinking

Step 3Develop your options

This is inductive(creative part of planning) Come up with good list of options from

which to choose to come up with a good plan

You have to come up with the adequate list of options for instance:

a) It has been developed with enough thought that you have included several different options

b) The differences between options should be more than just cosmetic

Step no 4Evaluate your options

Deductive (data gathering and analytical) part of planning process)

Here you will do analysis by looking at the pros and cons of each options

Collect maximum data on each option

Step 5Choose the Best Options

After evaluating in the forth step you now have clear view as to what should be chosen.

You should narrow down on all the options and alternatives and then weigh each option then

You will probably choose the option with calculated risk

And now it’s the time to put the choice into effect

Step no 6Implement or Recycle to a more specific level

This step is also called EITHER/OR If the decision required no further

thought of great consequence, you can implement it

But if it does you need to supplment it with more lower level plans

BROAD OBJECTIVES

MEDIUM OBJECTIV

ES

MEDIUM OBJECTIV

ES

Specific Objective

Specific Objective

Specific Objective

Specific Objectiv

e

KINDS OF PLANS

1. Strategic Plan means broad VS operational or Tactical Plans (Specific).

2. long Range plan (At least a year or more) VS

Short Range (ten Secs to one year).3. Standing Plans (such as policies

rules and procedure) VS Single use plan(One time plan)

STEPS IN CONTROL PROCESS

1. ESTABLISH STANDARD2. MEASURING PERFORMANCE3. COMPARING THE PERFORMANCE TO

THE STANDARDS AND EVALUATING WHETHER OR NOT THEY ARE BEING MET

4. ANALYZE THE CAUSE OF AND CORRECT THE DEVIATION FROM STANDARD

STEP NO 1ESTABLISH STANDARD

Standards represent criteria for performance. A standard acts as reference line or a basis of

appraisal of actual performance. Standards should be set precisely and preferable

in quantitative terms. Setting standard is closely linked and is and

integral part of the planning process. Standards are used or bench marks by which

performance is measured in the control operations at the planning stage, planning is the basis of controlAll sorts of events require control

Step no 2Measure performance

Measurement of Performance after establishing the standards, the second step is to measure actual performance.

Management should not depend upon the guess that standards are being met measurement of performance against standards should ideally be done on a forward looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions

Step no 3 Compare Performance to standards and evaluate

Comparing Performance with Standards Appraisal of performance or comparing of actual performance with pre-determined standards is an important step in control process. Comparison is easy where standards have been set in quantitative terms as in production and marketing.

In other cases, where results are intangible and cannot be measured quantitatively direct personal observations, inspection and reports are few methods which can be used for evaluation.

The evaluation will reveal some deviations from the set standards. The evaluator should point out defect or deficiencies in performance and investigate the causes responsible for these.

Step no 4Analyze Causes of and correct deviations

Taking Corrective Actions Managers should know exactly where in the assignment of individual or group duties, the corrective action must be applied.

Managers may correct deviations by redrawing their plans or by modifying their goals. Or they may correct deviations by exercising their organizing functions through reassignment or clarification of duties.

They may correct, also, by additional stapling or better selection and training of subordinates

DIFFERENT KINDS OF CONTROL

Self Controlling and closed-Loop e.g thermostat in an aircon, it means this has automated corrective system

Control system which has no automated corrective system are called Open Loop system.

Different Types of Management Tools

Tool: A tool is an aid to accomplish a task

Tool not properly designed will not be able to achieve a task

Tools are of 5 types1. CONCEPTS2. MODELS3. PHYSICAL4. INDUCTIVE5. DEDUCTIVE

1. CONCEPTS(are ways of things that provide a structure for analysis)

2. MODELS(are simplification of derstand reality3. PHYSICAL (they are things such as

computers, they help in understanding the concepts and the models

4. INDUCTIVE (they help us move from specific and general. They are also called creative aids

5. DEDUCTIVE( they are objective and analytical, moving us from general to specific.