Transcript Contemporary Planning Techniques

June 4, 2009
Overview of Contemporary
Planning
 Planning holds a vital place in the working of any
organization
 Long-term
 Short-term
 Involves assessing the following:
 Past performance
 Current position
 Future expectations
 Strengths and weaknesses
 Environmental conditions
Techniques Used for Planning
Management by Objectives
 Management by Objectives
Contemporary, popular, and advanced
 Methodology
 Clear defined goals and strategies are formulated at the
top most level of management
 Communicated as guidelines for planning to middle
and lower managerial levels
 Managers set their goals based on corporate goals
 Provides autonomy to managers

Techniques Used for Planning
PERT & CPM
 PERT and CPM
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
PERT = Program Evaluation and Review Technique
CPM = Critical Path Method
 network techniques used in the planning process
 used for scheduling time bound project, which need
proper coordinated and varied complex processes
 breaks the projects into related number of activities
and arranges the activities according to the time of
execution
 The shortest time to finish the process is
determined and applied
Techniques Used for Planning
PERT & CPM (cont.)
 PERT and CPM
Suitable for production and manufacturing
based organization
 Strict enforcement by the managers
 Outcomes
 Not only help in effective planning, but also
in building management and selfleadership skills in employees
 Help in bringing out their creativity,
knowledge and initiative taking abilities

Recommendations for
Managers
 The managers should initially select overriding objectives
 The subordinate objectives should comply with the overriding



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objectives
The managers should allow their subordinates to fix their own
results in order, which satisfy their own goals
Certain kind of training should be given on how to go about with
this kind of participative decision making
The work culture should be made more compatible and friendly
Creativity and innovation should be encouraged
Conclusion
 Planning is vital to the success of any organization
 Planning involves a lot of work
 It is essential that effective technique should be selected
based on an organization's resources and needs
 All business techniques of planning are effective if they are
implemented effectively
 Organizations should build an organizational culture
suitable for the planning technique before executing it
References
 Chary, S. N. (2006). Production and Operations Management (3rd
Ed.). Tata McGraw-Hill.
Lewis, M. & Slack, N. (2002). Operations Management: Critical
Perspectives on Business and Management Routledge.
Galloway, L.(2007). Organization and Management: Part I:
Business Organization; Part II. Alexander Hamilton
institute Management by Objectives. (2009). Retrieved June
3, 2009, from www.mgmtuplink.com/smallbusiness/management/mbo/
Management by Objectives. (ND). Retrieved June 3, 2009, from
www.mindtools.com/pages/article/newTMM_94.htm
Pert Diagram and CPM Pert History (2005). Retrieved June 3,
2009, from
www.envisionsoftware.com/articles/Pert_Chart.html