Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc.

publishing as Prentice Hall

9A-1
Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
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Assessing the Environment
Environmental scanning - the screening of
large amounts of information to anticipate
and interpret changes in the environment.
Competitor intelligence - an environmental
scanning activity by which organizations
gather information about competitors.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-3
Forecasting Techniques
Forecasts - predictions of outcomes.
Quantitative forecasting - forecasting that
applies a set of mathematical rules to a series
of past data to predict outcomes.
Qualitative forecasting - forecasting that uses
the judgment and opinions of knowledgeable
individuals to predict outcomes.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-4
Exhibit PM-1: Forecasting Techniques

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-5
Exhibit PM-1: Forecasting Techniques (cont.)

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-6
Benchmarking
Benchmarking - the search for the best
practices among competitors or non-
competitors that lead to their superior
performance.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-7
Exhibit PM-2: Steps in Benchmarking

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
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Allocating Resources
Resources - the assets of the organization
including financial, physical, human,
intangible, and structural/cultural.
Budget - a numerical plan for allocating
resources to specific activities.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-9
 Exhibit PM-3: Types of Budgets

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-10
Exhibit PM-4: How to Improve Budgeting

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-11
Scheduling
Scheduling - detailing what activities have to
be done, the order in which they are to be
completed, who is to do each, and when they
are to be completed.
Gantt chart - a scheduling chart developed by
Henry Gantt that shows actual and planned
output over a period of time.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-12
 Exhibit PM-5: A Gantt Chart

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-13
Scheduling (cont.)
Load chart - a modified Gantt chart that
schedules capacity by entire departments or
specific resources.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-14
 Exhibit PM-6: A Load Chart

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-15
Scheduling (cont.)
PERT network - a flowchart diagram showing the
sequence of activities needed to complete a project
and the time or cost associated with each.
Events - end points that represent the completion of
major activities in a PERT network.
Activities - the time or resources needed to progress
from one event to another in a PERT network.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-16
Scheduling (cont.)
Slack time - the amount of time an individual
activity can be delayed without delaying the
whole project.
Critical path - the longest sequence of
activities in a PERT network.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-17
 Exhibit PM-7: Steps in
Developing a PERT Network

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-18
 Exhibit PM-7: Steps in Developing
a PERT Network (cont.)

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-19
 Exhibit PM-8: Events and Activities in
Constructing an Office Building

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-20
 Exhibit PM-9: PERT Network for
Constructing an Office Building

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-21
Breakeven Analysis
Breakeven analysis - a technique for
identifying the point at which total revenue is
just sufficient to cover total costs.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-22
 Exhibit PM-10: Breakeven Analysis

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-23
Linear Programming
Linear programming - a mathematical
technique that solves resource allocation
problems.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-24
 Exhibit PM-11: Production Data for
Cinnamon-Scented Products

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-25
Exhibit PM-12: Graphical Solution to a
Linear Programming Problem

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-26
Project Planning
Project - a one-time-only set of activities that
has a definite beginning and ending point in
time.
Project management - the task of getting a
projects activities done on time, within
budget, and according to specifications.
Scenario - a consistent view of what the
future is likely to be.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
9A-27
Exhibit PM-13: Project Planning Process

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
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Terms to Know
Environmental scanning Load chart
Competitor intelligence PERT network
Forecasts Events
Quantitative forecasting Slack time
Qualitative forecasting Critical path
Benchmarking Breakeven analysis
Resources Linear programming
Budget Project
Scheduling Project management
Gantt chart Scenario
Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
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