CLEP Principles of Management 1

Sales forecasting is probably the most important for

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Sales forecasting is probably the most important for operational planning. With Sales forecasting, a company tries to predict the demand for its products or services, is often most directly involved in operational and production planning. There are several methods of sales forecasting. A popular approach is market research, where customers are questioned, and their answers are used to forecast demand. This is known as market research--asking the customers what they think. The counterpart to planning is spontaneous order . There are two types of plans--standing and single-use. Standing plans include rules, procedures, and policies--plans that are always in effect. Single-use plan is broad and long-term, and may be made up of short-term projects. This describes a program, a single-use plan which usually covers a specific time period. Single-use plans include programs, projects, and budgets. (Contingency) A single-use plan is an operational plan that is only used one time as it is designed to deal with a non-recurring occasion or situation. First-level managers, such as team leaders and supervisors, enact operational plans as a means by which to achieve their job responsibilities. Operational plans directly support the tactical plans designed by middle-level managers. A rolling plan is a variant of a single-use plan--it involves a long term plan which is updated at regular intervals A contingency plan is part of the operational planning process, and involves anticipating what could go wrong, and preparing for it. The decision-making part of the planning process consists of two parts--problem solving and decision-making. Decision-making can be broken up into two parts-- problem solving, and then the actual decision-making. Problem-solving is where the problem is defined, and possible courses of action are identified. 93.
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94. Human Resource Planning , an organization must decide on whether to adopt a policy of promoting from within, or to simply promote the best candidates it can find. The advantage of promoting from within is that it increases morale. The big advantage of a policy of promoting from within the organization is that it is good for employee morale. Other than that, it puts the organization at a disadvantage because it severely restricts the pool of qualified, potential candidates for a position. HR Planning boils down to determining the personnel needs for a company--i.e. the kind, skills, and number of people needed in the future, and how to meet this need. HR is simple--determining the personnel needs for a company. Manpower planning is the planning portion of the staffing function, and involves determining the kind of people which will be required in the future, and how to insure that they will be available 95.
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