Derivative plans are sub-sections of the operating plan. The division of overall plan into derivative plans is necessary for effective execution. Derivative plans are essentially required to support the basic or general plan and explain the many details involved in reaching a broad major plan.
Henri Fayol, a famous management theorist also called as the Father of Modern Management, identified three basic managerial skills - technical skill, human skill and conceptual skill. Technical Skill Knowledge and skills used to perform specific tasks. Accountants, engineers, surgeons all have their specialized technical skills necessary for their respective professions. Managers, especially at the lower and middle levels, need technical skills for effective task performance. Technical skills are important especially for first line managers, who spend much of their time training subordinates and supervising their work-related problems. Human Skill Ability to work with, understand, and motivate other people as individuals or in groups. According to Management theorist Mintzberg, the top (and middle) managers spend their time: 59 percent in meetings, 6 percent on the phone, and 3 percent on tours.…
As the plans are frozen and prioritized, timelines for completing associated tasks need to be finalized. At this stage, resource allocation and the line of authority and responsibility also needs to be established. The manager should consider the abilities of staff members and allocate the best fit resource for the job. Also the timelines for completion should be realistic and fair. This step in the planning process is important as it brings coordination in the activities of different departments. The timings and sequence of operations must be communicated to the concerned departments, managers and staff for implementation of the plan.
Once alternative courses of action have been identified, each alternative has to be analyzed and evaluated in the light of its strength and weakness and its fitment in achieving the organizational goals. While evaluating alternatives, managers should consider facts like the costs involved, how resource intensive it is, the time frame for completion, the gestation period, return on investment, etc. Major challenges of effective evaluation can be uncertainty about the future and risk. Various intangible factors which are not within the control of the management like market changes, socio-economic-political factors, etc. Also have a bearing. At this stage, managers can use operations research, and mathematical as well as computing techniques to predict and analyze alternatives.
The next step is to search for and find out alternatives that will guide the fulfillment of the objectives established. At this stage, managers need to plan on how to move from their current position towards their decided future position. Managers may find many alternatives, however, dropping the less desirable ones and narrowing on the few desired alternatives is what will help in identifying the best fit solution. The manager can take the help of quantitative techniques, research, experimentation, and experience to determine various alternatives.
The first step of the management planning process is to identify goals specific to the organization and also for each department unit. A comprehensive planning effort to be successful requires that managers in each department be involved in the planning process. Thus objectives and goals which will direct the future course of the organization must be clear, concise and specific. At this stage, the planning process should include a detailed overview of each goal, including the reason for its selection and the anticipated outcomes of goal-related projects. The objectives thus established govern the framework for every major department, which in turn, control the objectives of subordinate departments and so on down the line.
Planning is the fundamental process in management which moves gradually and a step- by-step approach is usually adopted. It involves the determination of objectives and outlines the future actions needed to achieve these objectives. The above diagram represents the planning process.
Operational plans are short-term (less than a year) plans developed to create specific action steps that support the strategic and tactical plans. They are usually developed by the manager to fulfill his or her job responsibilities. They are developed by supervisors, team leaders, and facilitators to support tactical plans. They govern the day-to-day operations of an organization. Operational plans can be: - Standing plans - Drawn to cover issues that managers face repeatedly, e.g. policies, procedures, rules. - Ongoing plans - Prepared for single or exceptional situations or problems and are normally discarded or replaced after one use, e.g. programs, projects, and budgets.
Tactical plans describe the tactics that the managers plan to adopt to achieve the objectives set in the strategic plan. Tactical plans span a short time frame (usually less than 3 years) and are usually developed by middle level managers. It details specific means or action plans to implement the strategic plan by units within each division. Tactical plans entail detailing resource and work allocation among the subunits within each division.
Strategic plans define the framework of the organization’s vision and how the Organization intends to make its vision a reality. It is the determination of the long-term objectives of an enterprise, the action plan to be adopted and the resources to be mobilized to achieve these goals. Since it is planning the direction of the company’s progress, it is done by the top Management of an organization. It essentially focuses on planning for the coming years to take the organization from where it stands today to where it intends to be. The strategic plan must be forward looking, effective and flexible, with a focus on accommodating future growth. These plans provide the framework and direction for lower level planning.
