PLANNING TECHNICAL ACTIVITIES ■ The first task of the engineer manager is to provide a sense of

direction to his firm, to his division, or to his unit. The setting of

THE NATURE OF PLANNING goals provide an answer to the said concern. If everybody in the
firm is aware of the goals, there is a big chance that everybody
■ A plan which is the output of planning, provides a methodical way
will contribute his share in the realization of such goals.
of achieving desired results.
GOALS
■ In the implementation of activities, plan serves as useful guide.
- defined as “ precise statement of results sought, quantified in
PLANNING DEFINED
time and magnitude, where possible.”
PLANNING:
Developing strategies or tactics to reach those goals
Nickels and Others : “ the management function that involves
■ The ways to realize the goals are called strategies and these will
anticipating future trends and determining the best strategies and tactics to
be the concern of top management.
achieve organizational objectives.”
STRATEGY
Aldag and Stearns: “the selection and sequential ordering of tasks
required to achieve on organizational goals.” - defined as a “ course of action aimed at ensuring that the
organization will achieve its objectives.”
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 Example of strategy:
done.”
The decision of a construction firm’s management to diversify its
For our purpose, it will suffice to define planning as selecting the business by engaging also in the trading of construction materials and
best course of action so that the desired result maybe achieved. It must be supplies.
stressed that the desired result takes first priority and the course of action
chosen is the means to realize the goal. TACTICS

PLANNING AT VARIOUS MANAGEMENT LEVELS - is a short-term action taken by management to adjust to

negative internal or external influences.
Planning activities undertaken at various levels are as follows:
Example of tactics:
o TOP management level – STRATEGIC Planning
An example of tactic is the hiring of contractual workers to
o MIDDLE management level – INTERMEDIATE Planning augment the company’s current workforce.

o LOWER management level – OPERATIONAL Planning Determining resources needed

STRATEGIC PLANNING -When particular sets of strategies or tactics have been devised,
the engineer manager will, then, determine the human and nonhuman
- It refers to the process of determining the major goals of the resources requirements will be determined.
organization and the policies and strategies for obtaining and using
resources to achieved those goals. -To satisfy strategic requirements, a general statement of needed
resources wil suffice.
- In strategic planning, the whole company is considered,
specifically its objectives and current resources. Setting standards

- The output of strategic planning is the strategic plan which - defined as “ a quantitative or qualitative measuring device designed to
spells out “the decision about long range goals and the course of action to help monitor the performances of people, capital goods, or processes.”
achieve these goals.”
TYPES OF PLANS
INTERMEDIATE PLANNING
1. FUNCTIONAL AREA PLANS
INTERMEDIATE Planning:
TYPES OF FUNCTIONAL AREA PLAN
- refers to the “ process of determining the contributions that
subunits can make with allocated resources.”  Marketing Plan

- it is designed to support the strategic plan. - the written document or blueprint for implementing and
controlling an organization’s marketing activities related to a particular
OPERATIONAL PLANNING marketing strategy.

OPERATIONAL Planning:  Production Plan

- refers to “ the process of determining how specific tasks can - written documents states the quantity of output a company
best be accomplished on time with available resources.” must produce in broad terms and by product family.

- this type of planning is responsibility of lower management.  FINANCIAL PLAN

- It must be performed in support of the strategic plan and the - a document summarizes the current financial situation of the
intermediate plan. firm, analyzes financial needs and recommends a direction for financial
activities.
THE PLANNING PROCESS
 HUMAN RESOURCE MANAGEMENT PLAN
The process of planning consists of various steps depending on
the management level that performs the planning task. Generally, however, - a documents that indicates the human resource needs of a
planning involves the following: company detailed in terms of quantity and quality and based on the
requirements of the company’s strategic plan.
1. Setting Organizational, Divisional or Unit Goals
2. PLANS WITH TIME HORIZON
2. Developing strategies or tactics to reach those goals
Plans with time horizon consist of the following:
3. Determining resources needed
 SHORT RANGE PLANS
4. Setting standards
- plans intended to cover a period of less than one year.
Setting Organizational, Divisional or Unit Goals
 LONG RANGE PLANS
 - plans covering a time span of more than one year. Contents of Human Resources Plan

3. PLANS ACCORDING TO FREQUENCY OF USE The human resources plan must be contain the following:

According to frequency of use, plans may be classified as: 1. Personnel requirements of the company

 STANDING PLANS – used again and again, and they focus on 2. Plans for recruitment and selection
managerial situations that recur repeatedly.
3. Training plan
Standing plans may be further classified as follows:
4. Retirement plan
1. POLICIES – they are broad guidelines to aid managers at every
level in making decisions about recurring situations or function. PARTS OF THE STRATEGIC PLAN

2. PROCEDURES – they are plans that describe the exact series of The strategic plan must contain the following:
actions to be taken in a given situation.
1. Company or corporate mission
3. RULES – they are statements that either require or forbid a
2. Objective or goals
certain action.
3. Strategies
 SINGLE- USE PLANS – these plans specifically developed to
implement courses of action that are relatively unique and are
unlikely to be repeated.
Company of corporate mission refers to the
strategic statement that identifies why an organization
Single-use plans may be further classified as follows: exists, its philosophy of management, and its purpose
1. BUDGET – according to Weston and Brigham, is “a plan which as distinguished from other similar organizations in
sets forth the projected expenditure for a certain activity and terms of products, services, and markets.
explains where the required funds will come from. MAKING PLANNING EFFECTIVE

2. PROGRAM – is a single-use plan designed to coordinate a large Planning is done so that some desired results may be achieved. At
set of activities. times, however in planning occurs.

3. PROJECT- is a single used plan that is usually more limited in Planning may be made successful if the following are observed:
scope than a program and is sometimes prepared to support a
program. 1. Recognize the planning barriers

PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS 2. Use of aids to planning

THE CONTENT OF THE MARKETING PLAN The planning barriers, according to Plunkett and Attner, are as
follows:
The structure and content of marketing plans vary depending on
the nature of the organizations adapting them. Willian Cohen maintains that 1. Manager’s inability to plan
the following must be included in the marketing plan.
2. Improper planning process
1. The Executive Summary – which presents an overall view of the
marketing project and its potential. 3. Lack of commitment to the planning process

2. Table of Contents 4. Improper information

3. Situational Analysis and Target Market 5. Focusing on the present at the expense of the future

4. Marketing objectives and goals 6. Too much reliance on the planning department

5. Marketing strategies 7. Concentrating on only the controllable variables.

6. Marketing Tactics Among the aids to planning that may be used are:

7. Schedule and Budget 1. Gather as much information as possible

8. Financial Data and Control 2. Develop multiple sources of information

The Content of the Production Plan 3. Involve others in the planning process

The production plan must contain the following:

1. The amount of capacity the company must have

2. How many employees are required

3. How much material must be purchased

The Content of Financial Plan

The components of the financial are follows.

1. An analysis of the firm’s current financial condition as indicated

by an analysis of the most recent statements

2. A sales forecast

3. The capital budget

4. A cash budget

5. A set of pro forma (or projected) financial statements

6. The external financing plan