Learning Activity Sheets

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LEARNING ACTIVITY SHEETS IN ORGANIZATION AND MANAGEMENT

THE BUSINESS PLAN

LEARNING COMPETENCY WITH CODE

• Discuss the nature and levels of planning and types of plans

(ABM_AOM11-Ia-b-6) Quarter 1 WeeK 6

BACKGROUND INFORMATION FOR LEARNERS

In this topic, you wil begin to study planning, the first management function,
which sets an organization’s agenda. Establishing plans based on set goals will
provide direction to the organizations’ activities and thus, reduce uncertainties and
wastage. Planning is an extremely complex process since it requires a systematic
method for recognizing and analyzing the elements of the organization’s external
environment and matching them with the firm’s internal environments factors and
capablities.

Definition and Nature of Planning

• Planning is the first management function and a very essential component of
management.

• Planning is a process that involves the setting of the organization’s goals,

establishing strategies for accomplishing those goals, and developing plans of action
means that manager intend to use to achieve organizational goals.

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Nature of Planning
• Planing provide direction to all the organization’s human resources- both
managers as well as employees. If they know what their firm or their work
unit is trying to achieve and what activities they should engage in to be
able to contribute to the achievement of the firm’s set vission, mission,
goals and objectives they would coordinate their actions and collaboarate
well with one another.
• Planning is important because it reduces uncertainty; it compels manager
to consider future events that may affect their company.
• Minimizing of wastes will result if there is proper coordination of activities
due to planning; negative practices, ineffectiveness, and inefficiencies
could b easily be detected and can corrected.
• Establishing goals and standards during may be used for controlling
another necessary managerial function.
Without planning, goals, and standards will be absent and controlling will
not be possible.

Difference between Goal and Plans

Goals are target or desired ends that management wants to reach, while
plans are the actions or means that administrators/managers intend to use to
achieve organizational goals. In short goals serve as the foundation of planning.
Goals precede plans because knowing the desired targets is a must before
establishing plans for reaching them.

Types of Plans
Organizational plans can be generally desdribed in terms of
comprehensiveness, length of time covered or time frame, specificity, and frequency
of use.
Comprehensiveness refers to the completesness of planning coverage; for
example: it may start from plans that cover the entire organization, called strategic
plans, up to operational plans that apply to a particular operational area only.
A plan maybe long-term, or covering more than three years, or short-term,
covering one year or less. Top-level management usually sets the long-range plans,
while low-level management focuses on short term goals.
Specificity - refers to very detailed, clearly defined plans wherein objectives
are clearly stated and could be easily be understood. Simple language must be used
in order to facilitate understanding of the plan.

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 Frequency of use refers to the number of times or instances a plan maybe
used. For example, strategical plans have single use, while operational plans are
usually standing or are used frequently or for several times.
Strategic plans - plans that establish the organization’s overall goals and
apply to the entire firm; they are broad in scope and are the reponsibility of the CEO,
president, and general manager of the company.
Operational plans – plans that apply to a particular unit area only; their
scope is narrow; achievement of company goals may not be achieved if operational
plans are not clear.
Long-term plans – plans that go beyond three years; everyone must
understand the organization the organization’s long-term plans to avoid confusion
that may divert the organization members’ attention.
Short-term plans – plans that cover one year or less; such plans must lead
toward the attainment of long-term goals and are the responsibility of the
unit/department heads.
Directional plans – plans that are flexible or give general guidelines only;
although flexible and general, these plans must still be related to the strategic plans.
Specific plans – plans that are clearly stated and which have no room for
interpretation; language used must be very understandable.
Single-use plans – plans used of stated once only as this applies to the
entire organization; refer to the operational plans of the firm.
Standing plans – plans that are ongoing; provide guidance for different
activities done repeatedly; refer to the identified activities of operational plans.

Steps in Planning

Planning is a process and, as such, involves steps-from carrying out its

purpose, seting of goals/objectives, and determining what should be done to
accomplish them. Schermerhorn (2008) gave five steps in the planning process.
1. Define your goals/objectives by identifying desired outcomes/results in
very specific ways.
2. Determine where you stand in relation to set goals/objectives; know your
strength and weaknesses
3. Develop premises regarding future conditions; anticipate future events,
generate alternative “scenarios” for what may happen; identify for each
scenario thing that may help or hinder progress toward your
goals/objectives;
4. Analyze and choose among action alternatives; list and carefully evaluate
possible actions.
5. Implement the plan and evaluate results; take corrective action and revise
plans as needed.

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 idea – plan – action
Planning, when done carewfully, can lead an individual to success.
Planning at Different Levels in the firm
Different levels in the firm are all engaged in planning; however, all the
resulting plans must be related to one another and directed towards the same goals.
Planning at the different levels of management include strategic planning, tactical
planning, and operational planning.
Top-Level Managemeny Planing
(Strategic Planing)

Top-level managers are responsible for organization’s strategic planning

which involves making decsion about the organization’s long-term goals and
strategies. CEOs, company presidents, must develop and execute the said strategic
plan. They do not formulate or execute the plan on their own; a management team
supports and helps top-level managers in carrying out the task.

Middle-level management Planning

(Tactical Planning)

Tactical planning refers to a set of procedures for changing or transforming

broad strategic goals and plans into specific goals and plans that are applicable and
needed in one unit/portion if the organization. It focused on major actions that mut be
done by a unit in order to contributes its share for the achievement of the strategic
plan.

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 Planning Hierarchy

Frontline/Lower-level Management Planning

(Operational Planning)

Operational planning involves idnetifying the specific procedures and

processes required at the lower levels of the organization. This is also involves
routine tasks repeatedly done by the organization’s lower level units.

Integrating Strategic, Tactical, and Operational Planning

The present organizational planning is not as rigid as hierarchical planning
earlier discussed in this topic. Managers in different hierarchical levels of the
organization may contribute their ideas or suggestion in developing the strategic
plan, a task originally assigned to the senior executives. Also, frontline managers
may make decision that could influence strategy formulation in the higher levels. All
plans, however, must be directed towrd the achievement of the organizational
strategic goals. Finally, CEOs or company presidents must see to it that all
communication lines in their organization are open, that there is excellent

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dissemination of information to all levels, and they are aware of everything that is
happenning in their firm.

REFERENCES

Books
Darr, K. (2013). Introduction to Management and Leadership Concepts, Principles
and Practices, Jones and Bartlett Learning, Retrieved from:
https://www.google.com.et
Mintzberg, H. (1989). MINTZBERG ON MANAGEMENT. Reprinted by permission of
Free Press, a division of Simon & Schuster, Inc.
Robbins, S., Robbins, S. P. and Coulter, M. (2012). Management -11th ed, Pearson.
Retrieved from: www.pearsonhighered.com
Websites
Smyth, D. (2019). The Roles of Business Organizations in Economic Development.
Retrieved from:https://bizfluent.com/info-7745795-roles-business-organizations-
economic-development.html
https://www.managementstudyhq.com/functions-of-management.html
https://www.slideshare.net/LalaineCazar/nature-and-concept-of-
management?from_action=save
https://www.wisdomjobs.com/e-university/principles-of-management-and-
organisational-behaviour-tutorial-366/evolution-of-management-thought-12679.html
https://www.mindtools.com/pages/article/management-roles.htm
https://study.com/academy/lesson/five-stages-of-economic-development.html
https://pnl-law.com/blog/forms-of-business-sole-proprietorship-partnership-
corporation/
https://www.cda.gov.ph/resources/issuances/philippine-cooperative-code-of-
2008/republic-act-9520
https://bizfluent.com/info-7745795-roles-business-organizations-economic-
development.html
https://www.freepik.com/free-vector/team-leader-managing-
project_5562411.htm#page=1&query=manager in business management position=4
https://www.freepik.com/free-vector/urban-buildings-with-cityscape-
scenery_4794860.htm#page=1&query= BUSINESS ENVIRONMENT position=33
https://www.freepik.com/premium-vector/business-people-communicating-office

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 ACTIVITY PROPER

Activity 1: Independent Activity

Direction: give your own idea and write your answer in a yellow paper.

1. What are the bases for describing organizational plans?

2. Name atleast five types of plans. Which in your opinion, is the hardest to
prepare?
3. Which plan is described to be short-term, specific, and narrow? Explain your
answer.
4. Name the five steps in planning is there a particular step that could be
bypassed or eliminated? Explain your answer.

Activity 2: Independent Acitivity

Now that you have learned to plan at different levels in the firm, in your own opinion,
which among the three level managers carry the biggest responsibility in the
planning and decision making? Depend your answer.

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Activity 3: Independent Acitivity
Give examples of Strategic, Tactical, and Operational plan

Rubrics (if necessary)

4 Expert – Piece is extraordinary, and very informative and well organized
3 Accomplished – Piece has an interesting style, and somewhat informative and
organized.
2 Capable – Piece has little style, gives some new information but poorly organized.
1 Beginner - Piece has no style and, and gives no new information and very poorly
organized

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 REFLECTION

As a student, what are your insights abouth this lesson?

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ANSWER KEY

(Upside down format/flip vertical)

activity 1, 2, and 3
Answer may vary in

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