Showing posts with label planning. Show all posts
Showing posts with label planning. Show all posts

Thursday 1 December 2016

THE PLANNING PROCESS







1.    Understanding challenge. No planning is without reason. It is often a reaction to new circumstances or preparation for a situation seen as possible in the future. Whatever the case, a good appreciation of the challenges gives a firm start to planning. 
      
     Challenges in business include how to take full advantage of an opportunity, overcome a problem or avoid it, and simply plot a course of operation.

2.     Setting objectives. Understanding well the situation calling for planning is followed by setting clearly-defined objectives which act as the specific targets to aim at.

3.   Weighing objectives relative to environment. A situation analysis is done to decide how different factors, internal and external, favour or do not favour achievement of the objectives.

4.     Making alternative plans. Different plans are formulated as possible routes. A key ingredient of this stage is providing for acquisition of resources that are likely to make attaining the goals possible, as suggested by step 3.

5.      Choosing best plan. The best of the alternative plans is now selected.

6.   Reviewing stages 1 to 5. A scrutiny of steps 1 to 5 is done to minimise chances of major errors or omissions.

7.      Applying plan.The adopted plan is now carried out.

                                                           
                                                                                                                               Rupert Chimfwembe
                                                                                                                                  1 December, 2016

Tuesday 29 November 2016

THE DECISION-MAKING PROCESS: A Proposal







A decision is a choice of action from among at least two possibilities. When you have a decision to make, and the task is proving not so straightforward – so many things to consider, and the possibility that a wrong decision could be costly, for example – you may have to adopt a formal, structured approach like what is suggested here. It is a seven-step, yet relatively simple, decision-making framework.

1.     Define the required decision. What decision do you really want to make? If the resolution is not clearly stated, the answer at the end of the process may not sufficiently match the problem you had at the start. That is, there is a difference between making a decision as to how to increase sales over a period of six months and as regards how to increase sales by ten percent over a period of six months.

It could further help to state the task with a focus on deciding rather than on the problem. In other words, the sentence how do we increase sales by ten percent over a six-month period? might be better than one that says sales are ten percent less than they are supposed to be over a six-month period.

The former (sentence) urges you on in the direction of finding a solution. It could help you keep your sights on what is to be done, as it not only identifies the problem but also calls you to action in a specific direction. The latter, while indeed also pointing out the problem, tends to blur the all-important need for a deed

2.  Gather pertinent facts and figures. Good decisions normally come from a good body of information. It is important to have a healthy understanding of the issues related to the challenge faced. Without relevant knowledge, it might be difficult doing what is required in step 3.

3.   Propose possible solutions. This step involves making a good list of interchangeable decisions that solve the problem in their own way.

4.     Select the best suggestion. The question here is, how effectively and efficiently does each of the alternative decisions listed in (3) address the challenge?

A useful approach is rating the suggested solutions from strongest to weakest. To do this, you need to identify the most important aspects of the solution. That means recognising the specific needs the solution must especially satisfy. To make this clearer, let us go back to our example of increasing sales by ten percent over a time span of six months.

Some key need areas would likely be:
-         What costs does each alternative solution entail?
-         How much effort on the part of the sales team is required in each case?
-         Can the ten percent targeted increase actually be surpassed?

The significance of each of such considerations should always be in sight, for a fuller perspective.

5.   Revisit steps 1 to 4. Just in case a key issue was somehow not factored in, or the required decision was not well-framed, it is necessary to review the first four stages. This can prevent unnecessary, expensive mistakes.

6.    Implement the chosen decision. The selected option can now be put in motion. It becomes necessary, sometimes, to adopt combinations of two or more decisions.

7.     Evaluate the effect. How well does the decision you have picked solve the problem? If not so well, could implementation be the reason? If the implementation looks flawless, you may have to check the first four steps once again.

By the way
Indeed, we said decision-making could be a simple, seven-step process. The reality, it must be said, is that human judgment is not always sober and based on information on the table. Decision-making can be influenced by such powerful internal and external forces as intuition, emotion and amount of time available.

                                     Rupert Chimfwembe
                                      21 November, 2016


Thursday 31 December 2015

MANAGEMENT FUNCTIONS







Not all managers have the word ‘manager’ in their title. Management titles come in such forms as Co-ordinator, Administrator, Director, Superintendent, Team Leader, Supervisor and, indeed, Manager.
The term ‘manager’ or its derivative is often combined with other words. Examples include Country Manager, Product Manager, Sales Manager and Managing Director.
And so, given the variety of titles, how does one recognise a manager?

The Four Key Functions of a Manager

It is possible to tell that one is a manager by examining the principle tasks that they perform.
Researchers have been able to identify four main activities a manager is regularly carrying out. They are planning, organising, leading and controlling. And what exactly do these tasks involve? Let us look at each in turn.

Planning. Planning is the management function that involves setting organisational objectives and goals and selecting the most appropriate method of achieving them from among different possible solutions.
Typical organisational objectives include achieving certain levels of profit and profitability, company growth, and production and productivity.
Planning is the first management activity that happens.
Organising. To organise is to structure and allocate resources (among them human, physical, financial and informational) as well as drive their utilisation toward attainment of the objectives and goals of an organisation in the best way possible. Organising immediately follows planning.
An important part of organising is creating an organisational chart and establishing reporting lines.
While many consider organising as including the activity of finding the right human resources for each job, some give staffing as an independent, fifth, management function. (Indeed, achieving the aims of the organisation requires the right people).
Leading. Leading means influencing others in a way that makes them most enthusiastic about, and focused on, converting the plans of the organisation to reality.
The manager as leader needs to have a clear vision of the chosen direction of the institution they work for and an effective, empathetic way of communicating with others.
Controlling. Controlling is about ensuring that any deviation from what has been planned is identified and corrective action is taken.
The control process consists of:
·        Establishing performance standards
·        Monitoring performance
·        Measuring actual results against desired outcomes
·        Taking corrective courses of action
Sometimes, in the control process, managers do have to make changes to the plans themselves to make them more realistic or simply update them in line with new situations.

Henri Fayol’s Five Functions of Management
Henry Fayol’s pioneering work of the early twentieth century uncovered the management functions.
Fayol identified five separate tasks, namely, planning, organising, commanding, co-ordinating and controlling. In modern literature, though, one will note that co-ordinating is often not included, considered generally an integral part of the others.         

Management Skills
There are three types of skills that managers need to have to successfully perform the four major functions. They are:
1.     Conceptual. These help a manager mentally picture situations and, where necessary, devise appropriate solutions.

2.     Human. Human skills concern ability to interact with others and exert the positive influence that leads to successful implementation of the objectives in the plans.

3.     Technical. Technical Skills are practical abilities in a particular field, such as marketing, accounting and engineering. Technical skills not only help a manager fully understand the job he/she, sub-ordinates and others do but also are often a key problem-solving tool. Education and training are principal sources of technical skills.


Henry Mintzberg’s 10 Management Roles
In the 1970’s, Henry Mintzberg closely studied five managers in an attempt to capture their every class of activity. The result was the list below of ten roles he saw as mainly played by a person in a management position:
·        Figurehead
·        Leader
·        Liaison
·        Disseminator
·        Monitor
·        Spokesperson
·        Entrepreneur
·        Disturbance-handler
·        Resource allocator
·        Negotiator
In many ways, the ten roles would look like a breaking up of the four fundamental functions earlier given. Not surprisingly, then, it would seem difficult for a manager to play the ten roles well if any of the three types of skills is absent. 

Conclusion: The Manager in Action
Even though the four major functions of a manager are given in a sequential order, what happens in a manager’s office and around it is hard to predict.
The manager normally shifts from any one of the functions to any of the others free of any written rules. So, in one moment the manager will be planning; and in the next controlling. In the next, they will be organizing; and will then move back to controlling, or on to providing leadership.  
In both profit-making and not-for-profit entities, the four main functions looked at here are essential components of the work of a manager.