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Org and Management

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Org and Management

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frenzjharen
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© © All Rights Reserved
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Lesson 1: Planning

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:

1. discuss the nature of planning;

2. compare and contrast the different types of plans;

3. describe planning at different levels of the firm;

4. apply appropriate planning techniques and tools; and

5. formulate a decision from several alternatives.


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

The following present the importance of planning:

•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.

Relationship of Planning to Individual and Organizational Performance


It would not be advisable to judge that organizations or individuals who formally plan have better
performance compared to those who do not plan.

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

Mission - basic purpose of an organization and range of their operations

Objectives - steps needed in order to attain desired ends

Difference between Goals and Plans

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.

Fast Learning Review

1. How important is planning to organization managen

2. In your own opinion, is there a clear relationship between planning and performance? Explain.

3. Which comes first, goal-setting or planning? Explain your answer.

4. Explain the relationship between planning and controlling..

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.

Lesson 2: Types of Plans


Organizational plans can be generally described in terms of comprehensiveness, length of time covered
or time frame, specificity, and frequency of use.

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.

Different types of planning include the following:

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.

Directional plans-plans that are flexible or give general guidelines only.

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

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 strengths and weaknesses.

3. Develop premises regarding future conditions.

4. Analyze and choose among action alternatives.

5. Implement the plan and evaluate results; take corrective action and revise plans as needed.

Fast Learning Review

1. What are the bases for describing organizational plans?

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.

Lesson 3: 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 toward the same goals. Planning at the different levels of management
include strategic planning, tactical planning, and operational planning

Top-level Management Planning (Strategic Planning)


As earlier mentioned, top-level managers are responsible for the orga nization's strategic planning which
involves making decisions about the organization's long-term goals and strategies. CEOs, company
presidents, or the organization's senior executives develop and execute the said strategic plan. They,
however, do not formulate or execute the plan on their own, a management team supports and helps
top-level managers in carrying out these tasks.

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.

Middle-level Management Planning (Tactical Planning)

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:

1. Where will we be acttre?

2. How will we get there?

3. How will we witt in the marketplace?


4. How fast will we move and in what sequence will we make changes?

5. How will we obtain financial retums?

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.

Frontline/Lower-level Management Planning (Operational Planning)


Operational planning involves identifying the specific procedures and processes required at the lower
levels of the organization. This also volves routine tasks or tasks repeatedly done by the organization's
tower level units.

Integrating Strategic, Tactical, and Operational Planning

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.

Fast Learning Review

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.

3. Describe present-day organizational planning. Is it rigid or flexible? Explain your answer.

4. Explain the relationship between planning and communication

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