Contemporary Planning Techniques
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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
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
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