P LA N N IN G
PLANNING TECHNICAL ACTIVITIES
Prepared by:
Abitona, Christian
Aclan, Florenzo Miguel
Andal, Vincent Louie
Atienza, Twinkle Faith
Barbosa, Gilbertson
V3A
If planning an organization is to be
pursued vigorously, PLANNING will
constitute the MOST important activity.
Managers who plan are afforded with the
opportunity to carefully analyze situations
which directly contribute to effective
decision-making.
TH E N ATU RE O F PLAN N IN G
PLANNING is undertaken to
MINIMIZE mistakes in decision
making.
PLAN output of planning
provides methodical way of
achieving desired results.
without the plan some minor tasks
ma be afforded major attention
which may later on, hinder the
accomplishment of objectives.
PLANNING DEFINED
Nickles and others
the management function that involves
anticipating future trends and determining the
best strategies and tactics to achieve
organizational objectives.
- relates the future to what could be decided
now.
PLANNING DEFINED
Aldag and Stearns
the selection and sequential ordering of tasks
required to achieve an organizational goal.
- centers on the activity required to accomplish
the goals.
PLANNING DEFINED
Cole and Hamilton
deciding what will be done, who will do
it, where, when and how it will be done,
and the standards to which it will be
done.
-provides a better guide on how to
effectively perform this vital activity
PLANNING DEFINED
For our purpose, it will suffice to
define planning as selecting the best
course of action so that the desired
result may be achieved. It must be
stressed that the desired result takes
first priority and the course of action
chosen is the means to realize the
goal.
P LA N N IN G AT V A R IO U S
M A N A G EM EN T LEV ELS
Planning Activities Undertaken At
Various Levels:
1. Top Management Level Strategic
Planning
2. Middle Management Level
Intermediate Planning
3. Lower Management Level
Operational Planning
Strategic Planning
The Process of determining the major
goals of the organization and the policies
and strategies for obtaining and using
resources to achieve those goals.
Intermediate Planning
The process of determining the
contributions that subunits can make with
allocated resources.
Operational Planning
The process of determining how specific
task can best be accomplished on time
with available resources.
TH E P LA N N IN G P R O C ESS
Planning Process
The development of goals, strategies,
task lists and schedules required to
achieve the objectives of a business.
The planning process is a fundamental
function of management and should
result in the best possible degree of
need satisfaction given the resources
available
The Planning Process
Planning involves the following:
1. setting organizational, divisional,
or unit goals
2. Developing Strategies or tactics to
reach those goals
3. determining resources needed
4. setting standards
Exam ple ofG oals,By O rganizationalLevel
Organizational Level Example of Goal
Company To attain a return of
25%
Buenavista
Construction
Corporation
To increase the number
Division of projects undertaken by
the company
Project
Managem
etDivision
To increase the number
Unit
of project engineers
Goals my be defined as:
Precise statement of results sought,
quantified in time and magnitude,
where possible
D eveloping Strategies or Tactics to
reach goals
After determining the goals, the next
task is to devise some means to
realize them. The ways to realize the
goals are called strategies.
Strategy a course of action aimed at
ensuring that the organization will
achieve its objectives
Tactic a short-term action taken by
management to adjust to negative
internal or external influences
D eterm ining Resources N eeded
To satisfy strategic requirements, a
general statement of needed
resources will suffice.
Setting Standards
a quantitative or qualitative
measuring device designed to help
monitor the performances of people,
capital goods, or processes
TYPES O F PLAN S
Functional Area Plans
Plans with Time Horizon
Plans According to Frequency of Use
FU N CTIO N AL AREA PLAN S
Plans classified in terms of functional areas
such as:
1. Marketing plan
Written document or blueprint for
implementing and controlling an organizations
marketing activities related to a particular
marketing strategy.
FU N CTIO N AL AREA PLAN S
2. Production plan
Written document that states the quantity of
output a company must produce in broad
terms and by product family.
FU N CTIO N AL AREA PLAN S
3. Financial plan
A document that summarizes the current
financial situation of the firm, analyzes
financial needs, and recommends a direction
for financial activities.
FU N CTIO N AL AREA PLAN S
4. Human resource management
plan
Document that indicates the human resource
needs of a company detailed in terms of
quantity and quality and based on the
requirements of the companys strategic plan.
PLAN S W ITH TIM E H O RIZO N
1. Short-range plans
Plans intended to cover a period of less than
one year.
First-line supervisors are mostly concerned
with these plans.
PLAN S W ITH TIM E H O RIZO N
2. Long range plans
Plans covering a time span of more than one
year.
These are mostly undertaken by middle and
top management.
PLANS ACCORDING TO FREQUENCY OF USE
Standing plans
Single-use plans
PLAN S ACCO RD IN G TO FREQUENCY O F USE
Standing Plans
plans used again and again, and
they focus on managerial situations
that recur repeatedly.
PLAN S ACCORDING TO FREQ UEN CY O F USE
Classification of Standing Plans
1. Policies they are broad guidelines to
aid managers at every level in making
decisions about recurring situations or
function.
PLAN S ACCO RD IN G TO FREQ UEN CY O F USE
Classification of Standing Plans
2. Procedures they are plans that
describe the exact series of actions to be
taken in a given situation.
PLAN S ACCO RD IN G TO FREQ UEN CY O F USE
Classification of Standing Plans
3. Rules they are statements that
either require or forbid a certain
action.
PLAN S ACCORDING TO FREQ UEN CY O F USE
Single-Use Plans
plans specifically developed to
implement courses of action that
are relatively unique and are
unlikely to be repeated.
PLAN S TO FREQ U EN CY O F U SE
ACCORDN
IG
Classification of Single-use Plans
1. Budget
A plan which sets forth the projected
expenditure for a certain activity and
explains where the required funds will
come from.
(Weston and Brigham)
PLAN S ACCO RD IN G TO FREQ UEN CY O F USE
Classification of Single-use Plans
2. Program
- designed to coordinate a large set
of activities
PLAN S ACCO RD IN G TO FREQ UEN CY O F USE
Classification of Single-use Plans
3. Project
- A single use plan that is usually
more limited in scope than a
program and is sometimes prepared
to support program.
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S
The Contents of the Marketing Plan
William Cohen maintains that the following must be
included in the marketing plan;
1. The Executive Summary
2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S
The Contents of the Production Plan
1. The amount of capacity the company
must have
2. How many employees are required
3. How much material must be purchased
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S
The Contents of the Financial Plan
1. An analysis of the firms current financial
condition
2. A sales forecast
3. The capital budget
4. The cash budget
5. The set of pro forma (projected) financial
statements
6. The external financing plan
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S
The Contents of the Human Resources
Plan
1. Personnel requirements of the
company
2. Plans for recruitment and selection
3. Training plan
4. Retirement plan
PARTS O F TH E STRATEG IC
PLAN
The strategic plan must contain the
following:
1. Company or corporate mission**
2. Objectives or goals
3. Strategies
** refers to the strategic statement that identifies why an
organization exists, its philosophy of management, and its
purpose as distinguished from other similar organizations in
terms of products, services, and markets.
MAKING PLANNING EFFECTIVE
Planning is done so that some desired
results may be achieved. At times, failure
in planning occurs.
MAKING PLANNING EFFECTIVE
Planning is done so that some desired
results may be achieved. At times, failure
in planning occurs.
M AKIN G PLAN N IN G EFFECTIVE
Planning may be successful if the
following are observed
1. Recognize the planning barriers
2. Use aids to planning
Planning
Planning barriers according to Plunkett and
Attner, are follows:
1. Managers inability to plan
2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of
the future
Planning
6. Too much reliance on the planning
department
7. Concentrating on only the controllable
variables
Among the aids to planning may be used are:
1. Gather as much information as possible
2. Develop multiple sources of information
3. Involve others in the planning process