Management Planning

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Management Planning

• Staffordshire University

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Objectives

• At the end of this lecture you should
• Be able to differentiate the information needs at
  different levels within the organisation
• Appreciate how information is needed for
  strategic planning

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Management Functions

• Plan
• Control
• Motivate
• Organisation and co-ordination

Decision Making - requires information
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Management Levels
Outward looking, uncertainty, long-range
Strategic
Wide ranging, short-term, work towards
organisations objectives
Tactical
Predictability, rules, certainty
Operational
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Strategic Information Needs

• Senior managers plan objectives and assess
  whether objectives are being met or not
• Overall profitability of the organisation
• Profits of sub-systems
• Future market prospects
• Total cash needs
• Total manning levels
• Capital equipment costs

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Tactical Information Needs

• Used by middle management to decide how the
  resources of the business should be employed and
  to monitor how they are being and have been
  employed
• Productivity measurements
• Budgetary control
• Variance analysis
• Manning levels
• Profit results
• Labour turnover
• Short term purchasing

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Operational Information Needs

• Used by front-line managers to ensure specific
  tasks are planned and carried out properly
• Payroll processing
• Chemical process
• Organisation of specific groups of personnel

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Planning Strategy

• A plan is a detailed method by which a thing can
  be done
• A strategy is the course of action, including
  resources required, to achieve an objective
• Techniques for analysing the current situation
  and business strategy include
• Business Strategy Analysis
• Critical Success Factor Analysis
• SWOT analysis strength, weakness, opportunity,
  threat
• Value Chain Analysis
• Business Modelling ERD, DFDs

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CSF Analysis Process
Understand mission objectives
Determine CSFs for each objective
Conduct a SWOT for each CSF
Consolidate across objectives and identify
information dependencies
Develop measures
Results guides for Executive Information System
Result outline plan of IS requirements
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Formal Strategic Planning
Establish strategic direction
Define strategy
Achieve strategy
feedback
Define mission and objectives. Assess situation
and options and select
Strategic planning of options selection
Implement action
Informal strategic planning
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What strategy lead to the success of McDonalds?

• Marketing Ronald McDonald
• Consistency appearance, menu
• People oriented fast food, cheap, appealing,
  clean, all ages

How did IT help?

• Control within shops
• CAD to work our materials needed
• Freshness of goods stock control
• Wages
• JIT

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Conclusions

• Management information needs vary depending upon
  the level of management
• Information Systems provide vital information to
  form strategies and implement strategies