12. Introduction
“Cybernetic Controls”
The Explanation of “Cybernetic Control”
In organizations a cybernetic system can
either be an information system or
control system contingent.
“A cybernetic system would be an
information and decision-support system”
17. Introduction
Planning Control
• What is Planning?
“Decision making in advance or we can
say planning is looking ahead and
chalking out future courses of action to
be followed.”
20. Planning Control
“Long Range Planning”
• What is Long Range Planning?
“the goals and actions for the medium
and long run are established.”
“This has a more STRATEGIC focus”
21. Planning Control
“Long Range Planning”
• “Strategic planning is an organization's
process of defining its strategy, or
direction, and making decisions on
allocating its resources to pursue this
strategy.”
• Simply put, strategic planning
determines where an organization is
going over the next year or more
22. Planning Control
“Long Range Planning”
• A Variety of Strategic Planning Models:
Goal Base
Planning
Issues Based
Strategic
23. Planning Control
“Long Range Planning”
• Strategic planning involves both analysis
of the past (using data cost, revenue,
etc.) and forecast of the future
• Strategic planning provides a
framework for the more detailed
planning that takes place in the planning
cycles that follow.
24. Six Iterative Steps
of Strategic Plan Process
Develop a Corporate Vision, Mission, Objective
Understand the firm’s present position, SWOT
Decide on a corporate diversification strategy
that identifies what business the firm
Decide on a strategy for each SBU
26. The Purpose of Strategic Plan
“For Organization”
Clearly define the
Purpose of Organization
Communicate the Goals
Develop a sense of
Ownership
A Base of Progress that
can be Measured
28. Planning Control
“Action Planning”
What is Action Planning?
“Action planning is a sequence of steps
that must be taken, or activities that
must be performed well, for a strategy to
succeed”
32. Planning Control
“Action Planning”
• Main Step in Preparing “Action Planning”
Have a Clear Objective
List of Benefit (Goals)
Step by Step Clearly
Arrange the Steps in Logical
35. Budgeting
• The process of budgeting is initiated
with the establishment of specific
targets of performance
• followed by executing plans to achieve
such desired goals and from time to
time comparing actual results with the
targets of performances/goals.
36. Budgeting
• Strategic planning also has a relation to
budgeting because they both involve a
planning but they have different
activities in two processes.
• The budgeting process focuses on a
single year
37. Budgeting
• Strategic planning focuses on activities
that extend over a period of several years.
Strategic planning precedes budgeting
and provides the framework within which
the annual budget is developed.
38. The Uses of Budgeting
Fine Turning the Strategic
Plan
Coordination
Assigning Responsibility
Basis for performance
Evaluation
41. Budget Limitation
Budget based on Estimate
Budget must be adjusted to changes
Budget can be useful by Management
Can not replace the management
Function
42. Principal Terms of Successful
Budget Program
Healthy Corporate Organization
Adequate Accounting Systems
Research and Analysis
Support from Executive
43. The Uses of Budgeting
• “The budget acts as an effective
management tool”
• by providing a means of identifying and
allocating limited resources (Revenues),
and monitoring their use (Expenditures).
44. The Uses of Budgeting
• “The budget also is used to help prevent
the company from overspending.”
• “Budget reports provide management with
information on operations”
• Allowing the organization to monitor and
control spending and revenue collection
while they are in progress.
