Subject: Administrative Function I M.A.

Silvia Patricia López Soto

Unit II Planning as an administrative function

Topics:
2.1 Importance of Planning
2.2 Forecasting as part of planning
2.3 Principles of Planning
2.4 Types of planning
2.5 Planning process:
2.5.1. Environment Analysis
2.5.2 Organizational Philosophy
[Link] Vision
[Link] Mission
[Link]. Values
[Link] Objectives
[Link] institutional policy
2.5.3 Strategies
2.5.4 Policies and rules
2.5.5 Processes and procedures
2.5.6 Programs
2.5.7 Budgets

The second unit addresses:

The conceptualization of planning, its importance, the types of plans, the

Principles and postulates, the process of planning in the administrative function
Business and its current application to open management systems.

Performance criteria:

Reach indicators (4.8) Value of

indicator
(4.9)

a) Adapts to complex situations and contexts. Formal attire 5%

Tuesday and Thursday

b) Makes contributions to the academic activities developed. Attendance and 5%

participation
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

c) Proposes and/or explains solutions or procedures not seen in class: delivery 5%

the mind map

d) Introduce resources and experiences that promote a mindset of delivery 5%

activities on the platform

Incorporates interdisciplinary knowledge and activities into their learning. 5%

Deliver the research activity of the strategic plan

f) Performs their work in an autonomous and self-regulated manner complying with 5%

100% with evidence of learning activities

30%

Performance levels (4.10):

Performance Level of Reach indicators Valuation

performance numerical

Excellent Meets 5 indicators. (A, B, C, D, E) 92-100

Notable Complies with 4 indicators. (A, B, E) and with one 80-91

of (C or D)
Competition
Achieved Bueno Meets 3 or 4 indicators. (A, B, and E) or 75-79
(A, E, C and D)

Sufficient Meets 3 indicators. (That include A and 70-74

E)

Insufficient The minimum percentage is not met NA

Competition
the conceptual, procedural evidence
not reached
and attitudinal.

Evaluation matrix (4.11):

Evidence of learning % Indicator of Evaluation Method

(product/process) (4.11) scope (4.12)
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

A B C D E Instrument P C A

Group dynamics 10
X Lista de cotejo X
%

Conduct an investigation 10
of a strategic plan %
X Rubric x

Mind map of the 2nd 20

unitPlanning as % X Checklist X
administrative function

Perform one Philosopher30

organizational personal
Visión, Misión, Valores,
Personal political objectives, Checklist x
strategies rules
procedures
programs, budgets.

70
TOTAL
%

Unit tracking (4.12)

PERÍODO PLANEADO

START FIN

18 FEBRUARY 2023 10 MARZO 2023

 Subject: Administrative Function I M.A. Silvia Patricia López Soto

2.1 Introduction.
Planning as an administrative function.

Planning provides the foundation for effective action that results from the ability to
theadministrationto anticipate and prepare for the changes that could affect the
objectivesorganizational, is the basis for integrating thefunctionsadministrativeand it is

necessary to control theoperaciones ofthe organization.

Definition of planning

Before starting any administrative action, it is essential to determine the

results that it aims to achievegrupo social, as well as future conditions
and the necessary elements for it to work effectively. This only is
it can be achieved through planning. Lacking these foundations implies
gravesrisks, waste of efforts and resources, and an administration by
fortuitous and improvised.

For these reasons, planning precedes the other stages of the process.
administrative, since planning involves making the choice of the most suitable decisions
about what is to be done in the future. Planning establishes the foundations for
determine the risk element and minimize it. The efficiency in execution depends on
a large part of adequate planning, and good results are not achieved by themselves
the same: it is necessary to plan them in advance. Before issuing a definition of the
planning, some published by the most recognized authors will be analyzed, in order to
obtain the common elements to said concept.

Concept:

Planning consists of setting the courseconcretethe course of action that must be followed,
establishing theprinciplesthey will have to guide it, the sequence of operations
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

to carry it out, and the determination of times and numbers necessary for its
realization." A. Reyes Ponce.

Determination of the set of objectives to be achieved in the future and the

necessary steps to achieve them throughtechniquesyprocedures
defined 'Ernest Dale.'

"Planeación es la selectionand the relationship of facts, as well as the formulation and use of
assumptions regarding the future in the visualization and formulation of activities
proposals that are believed to be necessary to achieve the expected results
George R. Terry.

Planning is the first step of the administrative process through which

define a problem, past experiences are analyzed and plans are drawn up
programsJ. A. Fernández Arenas.

"La planeación consiste en determinar los objetivos y formular policies,

procedures andmethodsto achieve them 'L. J. Kazmier.

"Systemthat begins with the objectives, develops policies, plans,

procedures, and has amethodoffeedbackofinformationfor
adapt to anythingchangeen las circunstancias"Burt K. Scanlan.

Method by which theadministratorgo to the future and discover the alternatives

courses of action, from which it establishes the objectives" Joseph L. Massie.

Planning is the process of deciding the actions that must be taken.

future, generally the planning process consists of considering the
different alternatives in the course of actions and decide which of them is the
better "Robert N. Anthony.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

2.2 Concept and importance of planning.

IMPORTANCE:

Without plans, managers cannot know how to organize people and the
resources; they may not even have a clear idea of what they need
organize. Without a plan, they cannot lead with confidence or expect others to
continue. And without a plan, the managers and their followers have very few
probabilities of achieving their goals or knowing when and where they are
deviating from its path. Control becomes a useful exercise. With
frequency, the wrong plans affect the health of the whole organization. This is the
reason why the commercial press (The Wall Street Journal, Fortune, and others)
dedican tanta atención a las estrategias organizativas, a los planes que los
main administrators develop to meet the overall goals of a
organization. Its readers are shareholders who use this information to
judge the current performance of the organization and its prospects for future success

Planning is as important as doing, because:

Efficiency, a work of order, cannot come from chance, from improvisation.

Just as in the dynamic part the center is to plan, if managing is 'to do
through others," it is first necessary to make plans about the way in which
that action must be coordinated.
The objective would be fruitless if the plans did not detail it, so that it can be
to be carried out fully and effectively; what was discovered in the forecast
as possible and convenient, it is refined and corrected in the planning.
Every plan tends to be economical; unfortunately, not always.
it seems, because every plan takes time which, due to its distance
realization, it may seem unnecessary and unproductive.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

All control is impossible if it is not compared with the prior plan. Without plans
work is done blindly.

2.3 Forecasting as part of planning.

Without plans, the managers cannot know how to organize the people and the
resources; they may not even have a clear idea of what they need
organize. Without a plan, they cannot lead with confidence or expect others to
go on. And without a plan, the managers and their followers have very few
probabilities of achieving your goals or knowing when and where they are
desviando de su camino. El control se convierte en un ejercicio fútil. Con
frequency, erroneous plans affect the health of the entire organization. This is the
reason why the commercial press (The Wall Street Journal, Fortune, and others)
they dedicate so much attention to organizational strategies, to the plans that the
main managers develop to meet the overall goals of a
organization. Its readers are shareholders who use this information to
judge the current performance of the organization and its possibilities for future success.

Forecasting involves looking into the future and answers the question: what can
to be done? It is a necessary basis for planning as it sets objectives and outlines the
selection of courses of action. The principle of foresight occurs when a plan
reveals such consistency that seeks to minimize its errors. This is achieved
when it is based on previous experiences and studies. Compliance with this
the principle clears the projection into the future.

As a comparison, we can say that forecasting is an iceberg and the

Planning is the tip of the iceberg, what can be seen, given that forecasting
it requires a global vision of the future and planning on how to achieve that
future. That is to say, forecasting serves as the basis of planning.
2.4 Principios de la planeación.

2.4Principles of Planning
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

a) Principle of Precision

Plans should not be made with generic statements, but with the utmost care.
possible precision, because they are intended to govern concrete actions.

b) Principle of Flexibility

Within precision, all bread must leave room for possible changes that
may arise due to the unpredictable or circumstances that have changed
from the origin.

c) Principle of Unity

The plans must be of such a nature that the existence of a

a single plan for each function, which will be integrated and coordinated in such a way
that constitute a single general plan.

2.5 Types of Planning

There is a diversity of types of planning. These refer to the

Planning by itself can be employed in the regional aspect. Some
they are:

Operational planning

Operational planning refers basically to the prior allocation of

the specific tasks that people must perform in each of their
operational units. The most outstanding characteristics of planning
operational are: it occurs within the guidelines suggested by planning
strategic and tactical; it is led and executed by lower-ranking leaders
hierarchical; deals with normally programmable activities; follows procedures
and rules defined with precision; covers short periods; its parameter
the main thing is efficiency.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

2. Strategic planning

Strategic planning is a process that lays the foundation for a

long-term integrated action, establishes a continuous decision-making system
decisions, identifies specific courses of action, formulates indicators of
follow-up on the results and involves social and economic agents
locals throughout the entire process. The administrators consider the
Organizing a total unit and asking themselves what should be done in the long term.
time frame to achieve organizational goals.

As a general trend in current planning, planning is found

strategic. This type of planning contains elements that could make that
one considers it a method; considering that it refers to both the approach
from the direction, like to the process.

Another important aspect is that it considers that a plan must

to operationalize (a fundamental element to make a plan work) and furthermore
hace énfasis en la efectividad del mismo (finalidad de todo plan).

According to George A. Steiner, strategic planning cannot be

separation of administrative functions such as: organization, direction,
motivación y control. Además, este tipo de planeación está proyectada al logro de
the institutional objectives of the company and have as their basic purpose the
establishment of general action guidelines for it.

This type of planning is conceived as the process of deciding

about the objectives of an organization, about the resources that will be used, and
the general policies that will guide the acquisition and management of such
resources, considering the company as a whole entity.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

Another fundamental element within strategic planning is that its

The main parameter is effectiveness.

Fernández Güell believes that the instruments of his evaluation are more
used in Strategic Planning are:
• Sistema de indicadores para evaluar el progreso de los programas y proyectos
strategic.
System of indicators to evaluate the degree of impact of the implementation
of the actions of the Strategic Plan on the socioeconomic development of the
city.
• Indicator system to evaluate the evolution of eternal factors to the
city and to explore future scenarios.
Annual seminars to conduct a global assessment of the progress of the Plan.

All these instruments, according to the same author, must allow for a
answer to the following questions:
What has been done in each of the specific measures?
What has not been done and what measures have lost their validity?
What has not been done but is still relevant?
What new proposals seem appropriate?
Has the city consolidated itself in economic dynamism?
Has the city improved in quality of life?
Has the social balance of the city prospered?

3 Tactical Planning

Part of the guidelines suggested by strategic planning and

refers to the issues concerning each of the main areas of
activity of companies and the more effective use of resources that have been
applied for the achievement of specific objectives.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

2.6 Planning Process

2.6.1 Environment Analysis.

Develop the analysis of the results obtained last year. What are the
short and long-term goals achieved? What are the sales goals that are
have they fulfilled? What are the profit margins so far? What is
the company's operating budget? What is the contribution of each
product to the utilities?

In this part, an analysis of the obtained results should be made, in the

previous exercise, using the collected data. (You can add any other
related information that you consider relevant

How is the service participation?

How is the profitability of the service?
Is the market for the service growing or not?
What is our primary target market?
How are the service costs?
• ¿Cómo están los márgenes del servicio?
• ¿Cómo están los precios del servicio?
How are sales? Conduct a sales analysis. It will be very useful.
determine the seasonal rhythm of the service.
How were the budgets managed? Were they met?
How are we doing in the distribution system?
Was the advertising effective? What did we achieve?

Additionally, this tool is very useful as it helps in creating or designing.

best strategies to create a solid and competitive company, in order to
to face in this globalized world.

It is recommended to design the SWOT analysis

2.6.2 Organizational Philosophy.

What is Philosophy?

The concept of philosophy is the love of wisdom, that is, the search for
verdadero conocimiento. Es bueno considerar cuál es el valor de la filosofía y
why it must be studied. It is all the more necessary to consider this issue in the face of
the fact that many, under the influence of science or business
practical people tend to doubt that philosophy is anything more than an occupation
 Materia: Función Administrativa I M.A. Silvia Patricia López Soto

innocent, but frivolous and useless, with distinctions that break from being so subtle and
controversies about subjects whose understanding is impossible.

1. PHILOSOPHY OF THE COMPANY

o In the business world, we encounter a series of things daily.
unlimited messages, both advertising and those that invite us
to acquire, to belong, to prefer, and to try.
oThis work is constant and generally moves at giant steps. But
behind all the back and forth and the struggle to achieve positioning, there is
the business philosophy.

2.6.3Vision

Vision is the administrative capacity to place the company in the future.

where we wish to be in five years. For example a school of
computing can aim to be the best in its field in five years
years.

The vision is the situation in which the organization intends to find itself.
in a long-term future. For example, I want my company to be a leader in
sales of covers in a certain region, with qualified human resources and
an excellent relationship with the community in five or ten years.

Unavisión expresses the aspirations and fundamental values of a

organization, appealing to the emotions and intelligence of its members.

The vision, according to Mintzberg, is the definition of the reason for being of the

organization.

Paredes defines the vision of the future as: the broad and sufficient statement
Where does your organization want to be in 3 to 5 years? It is a set of
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

general ideas that provide the framework of what an organization is

and wants to be in the future.

The vision for the future points the way, gives direction, it is the chain or the bond that connects in

the organization the present and the future. This describes the character and the concept of
the future activities of the organization

The answer to the question, what do we want the organization to be in the

next years?, It is the vision of the future, it establishes what the organization

think about what to do, and for whom it will be done, as well as the central philosophical premises

For the drafting of the future vision, the following must be taken into account
elements:

It must be formulated by leaders.

Dimension of time
Integrator: shared between the management group and the collaborators
Wide and detailed
Positiva y alentadora
It should be as realistic as possible.

Communicate enthusiasm
Project dreams and hopes
Incorporate common values and interests
Use a noble, graphic, and metaphorical language.
Achieve synergy
It must be disseminated internally and externally
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

2.6.4Mission

Mission

Purposes or Missions - The mission or purpose identifies the basic function or task.
of a company or any part of it. Any kind of operation
organized has purposes or missions. In each social system, companies
they have a basic function or task assigned to them by society.

The mission is the reason, purpose, end, or reason for the existence of a
company or organization because it defines: 1) what it intends to fulfill in its environment or

sistema social en el que actúa, 2) lo que pretende hacer, y 3) para quién lo va a

to do; and it is influenced at specific moments by some elements such as: the
history of the organization, the preferences of management and/or the owners,
the external factors or environment, the available resources, and their capabilities
distinctive.

The mission is an important element in the planning process because it is based on

she who formulates detailed objectives that will guide the company
organization. Therefore, it is essential for marketers, entrepreneurs,
entrepreneurs and executives in general, understand what the concept of mission is, and better
still, what are the different concepts proposed by various experts on the subject of
business, marketing, and definition of terms, so that they have a clearer perspective
complete and applicable of the same.

For this reason, this article includes the concepts proposed by

various authors to adequately answer the question:

What is the concept of mission applied to companies or organizations?

The Concept of Mission:

 Subject: Administrative Function I M.A. Silvia Patricia López Soto

O. C. Ferrel and Geoffrey Hirt, authors of the book "Introduction to Business"

In a Changing World, the mission of an organization is its overall purpose.

For Enrique Franklin, in his book 'Organization of Companies', he mentions that:

this statement (the mission) serves the organization as a guide or frame of reference for
orient their actions and link the desired with the possible.

According to Professor Rafael Muñiz González, author of the book 'Marketing in the 21st century'

XXI, the mission defines the reason for the company's existence, conditioning its activities.

present and future, provides unity, sense of direction, and guidance in decision-making
strategic decisions.

In addition, according to the mentioned author, the mission provides a clear vision when it comes to

definir en qué mercado esta la empresa, quiénes son sus clientes y con quién esta
competing; therefore and at their discretion, "without a clear mission it is impossible to practice the

strategic direction.

According to Stanton, Etzel, and Walker, authors of the book 'Fundamentals of Marketing', the

mission of an organization "states which clients it serves, what needs it meets and
What types of products does it offer? For its part, a mission statement indicates, in terms
general, the limits of the organization's activities. Complementing this
definition, the authors comment that currently, the companies that adhere to
concept of marketing, expressing submission based on the customer, in such a way that it reflects

the needs they aim to satisfy and the benefits they provide.

According to Jack Fleitman, author of the book 'Successful Business', the concept of

mission is usually defined as the way in which leading entrepreneurs and executives
they decide to make their vision a reality.

Finally, (and it is convenient to take it into account) the Encyclopedic Dictionary

Ocean defines the term mission as the 'work that a person or collective feels'
driven to carry out.
 Materia: Función Administrativa I M.A. Silvia Patricia López Soto

In summary, the concept of mission can be defined as follows: 'Purpose

general or reason for being of the company or organization that states which clients it serves,
what needs it satisfies, what types of products it offers, and in general, what are the
limits of their activities; therefore, it is what all those who make up the company
your organization feels compelled to take action in the present and future to make it a reality
la visión del empresario o de los ejecutivos. Por ello, la misión es el marco de referencia
that guides its actions, links the desired with the possible, conditions the activities
presentes y futuras, proporciona unidad, sentido de dirección y guía en la toma de
strategic decisions.

However, it is worth noting that for the mission to fulfill its important function, it must
to have the ability to "move" people (owners, investors, employees,
clients and suppliers) to be an active part of what is the reason for being or general purpose
of the company or organization. To do this: 1) It must define the main fields of
company's competition, 2) it must be motivating, 3) it must be guided by a vision,
4) should emphasize the main policies that the company wants to uphold and 5) should
to provide the company direction for the next 10 or 20 years.

The organizational mission as 'a lasting statement of purposes that

distinguishes an institution from other similar ones." It is a compendium of the reason for being of a
organization, essential for determining objectives and formulating strategies.

A good institutional mission must reflect the expectations of its clients. It is the client
and only the client who decides what an organization is.

The mission must be primarily broad in its scope to allow for the study and the
generation of a wide range of feasible objectives and strategies without stifling creativity
of the people.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

The mission describes the nature and the field to which the organization is dedicated, in other
Terms is the answer to the question: What is the purpose of the organization?

The main components that must be considered in the structuring of the

mission, are the following:

clients - who are the clients of the institution?

Products or services - what are the most important products or services of the
institution and in what form should they be delivered?

Markets - Does the institution compete geographically?

Concern for survival and improvement.

Concern about public image - what public image does it aspire to?
institution?

2.6.5Objectives

Objectives

Objectives - Objectives or goals are the ends to which the activity is directed: they are
the results to be achieved. They represent the end towards which one is heading
organization, the integration of personnel, management and control.

The company's objectives are its basic plan, a department

It can also have its own objectives. Naturally, its goals contribute
to achieve the company's objectives, but the two groups of goals can be
completely different.

Classification of objectives:
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

Strategic or general: they encompass the entire company and are established in the long term.

deadline.

Tactical or departmental: they refer to an area or department of the

company, are established in the short or medium term.
Operational or specific ones are established at more specific levels or sections of the
Company and invariably are in the short term.

2.6. Strategies

The strategies are generalized provisions for the actions to be taken to comply with
general objectives, if there are no clear and well-defined objectives, there will surely be no existence

an appropriate strategy to achieve them, besides, the strategies that are proposed
they must consider the use of necessary resources to develop the
activities that will lead to the results and must take into account how they
they will obtain these resources and how they will be applied to increase the probabilities of
success.

For many years, the military used strategy with the significance of a grand plan.
made to thelightof what it was believed an opponent would do or not do. Although this
class of plan usually has a competitive scope, it has been increasingly employed
as a term that reflects broad global concepts of the functioning of a company.
Often, strategies denote, therefore, a general program of action and an attempt.
of efforts and resources to achieve broad objectives.

Anthony defines them as the result of "...the process of deciding on objectives of the
organization, about the changes to these objectives and policies that must govern the
acquisition, use and organization of these resources.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

Chandler defines a strategy as 'the determination of fundamental purposes to

long-term and the objectives of a company, and the adoptionof thecoursesaction and
distributionof the necessary resources to carry out these purposes.

The purpose of strategies, then, is to determine and communicate through a

system of major objectives and policies, adescriptionof what is desired to be the
company. The strategies show the direction and theemploymentGeneral resources and of
efforts. They do not attempt to outline exactly how the company must fulfill its
objectives, since this is the task of a huge number of programs of
support for adults and minors.

Origins of the Strategies

To better understand thenatureIt is advisable to analyze the origins of the strategy.

According to them, they are classified as formulated, consulted, implicit, and imposed.
externally.

Formulated

The source morelogicof the strategies is the highest level ofthe administration, who them
formula with the express purpose of guiding the operations of its subordinates and/or
subordinates.

Consulted
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

In practice, most strategies have their origin

in inquiries made about specific and special cases,
that for their absolution they rise along thescalehierarchical.

Implicit

Sometimes strategies originate from what is common practice within a

company. Thepersonalof a company will consider what usually happens or is
get used to it, likepoliticsof the company.

Externally imposed

To a large extent and increasingly, strategies are set externally to the company,
for thegovernmenttheunionsand the trade associations.

Uses and purposes

Planning, to be extremely practical and effective, must take into account

adapt to the reactions of the people it affects. A given decision, which
it could be optimal, it may be somewhat inconvenient and therefore discarded when the
actions of those who oppose her should not be taken into consideration. Therefore,
It is necessary to establish strategies in planning.

The 'strategy' will be the courses of action that are implemented after having made in
consideration of unpredictable contingencies regarding which provisions are available
information fragmented, y about everything
the conduct of the others.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

The strategy has a time dimension. Some decisions are irreversible.

while others change when the opportunity or need arises for it to be so.

The basic difference between strategy and tactics lies in the following aspects: first
place, the strategy refers to the organization as a whole, as it seeks to achieve
global organizational objectives, while the tactics refer to one of its
components (department, or units, in isolation); therefore, it seeks to achieve the
objectives by department. The strategy is made up of many tactics
simultaneous and integrated with each other. Secondly, the strategy refers to objectives to
long term, while tactics refer to medium and short-term objectives.
For the implementation of the strategy, many tactics are needed that follow one another.
neatly in time. Thirdly, the strategy is defined by the high
direction, while the tactic isresponsibilityfrom the management of each department
or unity of the company.

Strategy systems

The identification of the main strategies should lead to the identification, and
subsequently the evaluation of sub-strategies. All strategies must be divided into
substrategies to achieve a successful implementation.

Development of tactical plans

From strategic planning, the company can develop tactical plans.

say, begins to break down the strategic planning into several tactical plans, or
tactical planes. It is necessary that these last ones are integrated and coordinated in such a way

adequate in strategic planning.

 Subject: Administrative Function I M.A. Silvia Patricia López Soto

Study of the environment

The first point is to determine the scope andlimitsof the economic system,
political, social, and cultural aspects of the company. This has definitive implications on the
formulation of a strategy.

2.6.7Planning Process: Policies and Rules

Policies - They are also plans in the sense that they are general statements or ways
to understand that guide or channel thought or action in decision-making,
these delimit the area within which a decision must be made and ensure that
agree and contribute to the objectives. They are statements or interpretations
general principles that guide or channel thought in decision making.

Policies define an area within which a decision will be made and

they ensure that this is consistent with a goal and contributes to achieving the
same. Policies help to decide issues before they become
problems make it unnecessary to analyze the same situation every time that
other plans are presented and unified, allowing managers to delegate
authority and maintain control over what their subordinates do.

Rules - Clearly explain the required actions or the actions that are not
they must carry out, without allowing discretion in this. They are the kind of plan most
simple. The rules differ from procedures in that they guide action.
without specifying a timeframe. The procedure could be considered as
a series of rules. The rule may or may not be part of a procedure. The
the essence of a rule is that it reflects an administrative decision that is held
what to carry out or what should not be carried out a certain action.

It is necessary to ensure that there is a distinction between rules and policies. The purpose of the
policies are to guide decision-making by identifying areas in which managers
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

They can use their discretion. The rules, although they are also guidelines, do not allow
flexibility in its application.

2.6.8Planning Process: Procedures

Procedures:

They are plans that establish a required method of managing activities

future. They are guides for action more than for thought, detailing the way
exactly in which certain activities must be carried out. They are sequences.
chronological actions required. The procedures cross the lines of the
departments. For example, in an industrial company the procedure for
handling the orders securely will involve the sales department, the
finance, to the accounting department, to the production department and the
Department of Transportation.

The procedures must be communicated to the people who will be involved.

in them. A very effective way is to represent the procedure in a
flowchart.

2.6.9Planning Process: Programs

A scheme in which the sequence of specific activities is established:

they must be carried out to achieve the objectives and the required time for
carry out each of its parts and all those events involved in its
achievement.

The importance of the programs is that:

They provide information and indicate the progress status of the activities.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

They keep the activities organized, serving as a control tool.

Identify the people responsible for carrying them out, as they
determina un programa para cada centro de responsabilidad.
Determine the resources they need.
Costs are decreasing.
They guide workers on the activities that need to be carried out.
specifically.
They determine the start and end time of activities.
Only the activities that are necessary are included.
They avoid duplication of efforts.

Guidelines:

They must participate in its formulation: both the program manager,

like those who will intervene in the execution.
The determination of the resources and the period to complete it must be
related to the possibilities of the company
The approval of the development and execution of the program must be communicated to
all those who are involved in it.
They must be feasible.
Prevent programs from conflicting with each other.
They must be established in writing, graphically represented, and be precise and easy.
understanding.
The program must be adaptable to modifications or changes that are
present, likewise, the consequences that will operate must be considered in
the future.

2.6.10Planning Process: Budgets

Budgets

It is a statement of the expected results, expressed in terms

numeric. It can be considered as a program translated into numbers. The
The budget can be expressed in financial terms or in terms of hours.
of work, product units, machine hours, or any other term
measurable numerically. The budget is necessary for control but not
It can serve as a standard of control sensitive to unless it reflects the plans.
 Subject: Administrative Function I M.A. Silvia Patricia López Soto

Generally, a budget implements a program but it can be

in itself a program.

La preparación de un presupuesto depende de la planeación, el presupuesto

it is the fundamental planning instrument of many companies and the
requires the prior compilation of a numerical cash flow.
expenses and income, capital expenditures, use of labor or hours
expected machine. One of the main advantages of the elaboration of
budgets compel managers to plan.

It is a written scheme of all or some of the phases of the company's activity.

expressed in economic (monetary) terms, along with the verification
subsequent to the implementations of said plan.

Features:

It is a scheme, therefore, it is prepared in a formal, orderly document.

systematically.
It is expressed in quantitative terms.
It is general because it must be established for the whole company.
It is specific because it can refer to each of the areas of the
organization.
It is designed for a specific period.