Org and Management
Org and Management
IN THIS CHAPTER, you will begin to study planning, the first management function, which sets an
organization's agenda.
As you read and study this chapter, concentrate on the following objectives, and at the end of the
chapter be able to:
•Planning provides direction to all of the organization's human resources both managers as well as
employees.
•Planning is important because it reduces uncertainty, it compels managers to consider future events
that may affect their company.
•Minimizing of wastes will result if there is proper coordination of activities due to planning.
•Establishing goals and standards during planning may be used for controlling, another necessary
managerial function.
Without planning, goals and standards will be absent and controlling will not be possible.
It is safer to say that the relationship between planning and performance is mainly due to association of
systematic planning.
Finally, the planning-performance relationship could also be associated with the time spent in preparing
and executing a formal organizational or individual plan.
Definition of Terms
Planning - is a process that involves the setting and establishing strategies of the organization's
goals,and developing plans of action or means.
Goal-setting - the identification of targets or desired ends that management wants to reach
Vision - a mental image of what the organization will be in the future, as desired by the company
management and employees
Goals are the targets 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.
2. In your own opinion, is there a clear relationship between planning and performance? Explain.
Exercise
1. Set goals or targets for a fast food business List them down.
2. Look ahead, list down possible future changes in the fast food business in which you made these goals
for in exercise number one.
Comprehensiveness refers to the completeness of planning coverage. The more comprehensive the
plan is, the better, as this could completely guide both the employer and employee toward the fast
achievement of company goals.
A plan may be 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 lower-level management focuses on
short-term goals.
Specificity refers to very detailed, clearly defined plans wherein objectives are clearly stated and could
easily be understood.
Frequency of use refers to the number of times or instances a plan may be used.
Strategic plans-plans that establish the organization's overall goals and apply to the entire firm.
Operational plans - plans that apply to a particular unit area only; their soupe narrow, achievement of
company goals may not be achieved if operatamial plats are not clear
Long-term plans-plans that go beyond three years, everyone must understand the organization's long-
term plans to avoid confusion that may divert the organization member's 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.
Specific plans-plans that are clearly stated and which have no room for interpretation.
Single-use plans-plans used or 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.
Definition of Terms
Organizational Plan-a comprehensive plan for the entire organization covering time frame. specific
purpose, frequency of use and others.
Strategic Plan-plans that establish the organization's overall goals and apply to the entire firm.
Operational Plan-plans that apply to a particular unit area only; their scope is narrow and prepared by
lower level managers.
Steps in Planning
2. Determine where you stand in relation to set goals/objectives; know your strengths and weaknesses.
5. Implement the plan and evaluate results; take corrective action and revise plans as needed.
2. Narne at least 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.
Different levels in the firm are all engaged in planning, however, all the resulting plans must be related
to one another and directed toward the same goals. Planning at the different levels of management
include strategic planning, tactical planning, and operational planning
Strategic planning starts with defining the organization's goals/objec tives, the major targets related to
the maintenance of the organization's stability, and its organizational culture, values, and growth
improving its productivity, profitability, effectiveness, and efficiency, among others.
Tactical planning refers to a set of procedures for changing or transform- ing broad strategic goals and
plans into specific goals and plans that are applicable and needed in one unit/portion of the
organization. It is focused on major actions that must be done by a unit in order to contribute its share
for the achievement of the strategic plan.
Bateman and Snell (2008) stated that an effective strategy provides a basis for answering five broad
Questions about how organizations will meet its goats/objectives:
Definition of Terms
Strategic Planning-is top-level planning which involves making decisions about the organization's long
term goals.
Tactical Planning-is middle-level management planning which refers to procedures and transformation
of strategic goals/plans with specific goals.
Operational Planning-is lower level management planning which involves routine tasks repeatedly done
by the firm's lower level units.
The present organizational planning is not as rigid as the hierarchical planning earlier discussed in this
chapter. Managers in different hierar chical levels of the organization may contribute their ideas or
suggestions in developing the strategic plan, a task originally assigned to the senior executives. Also,
frontline managers may make decisions that could influ ence strategy formulation in the higher levels.
All plans, however, must be directed toward the achievement of the organization's strategic goals.
Finally, CEOs or company presidents must see to it that all commu- nication lines in their organization
are open, that there is excellent dis- semination of information to all levels, and they are aware of
everything that is happening in their firm.
1. hame and define the three planning types that take place in the three hierarchical levels of
managerial planning.
2. If the strategic goal of your organization is the improvement of its profitability, what routine tasks
could be included in your operational planning? Name some of these tasks.