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Chapter 3 Planning

This document discusses planning at various levels of management and the planning process. It defines planning and describes strategic, intermediate, and operational planning. The planning process involves setting goals, developing strategies, determining resources, and setting standards. The document also discusses different types of plans including functional area plans, plans with time horizons, and plans according to frequency of use. It provides details on the contents of various functional plans like marketing, production, financial, and human resource plans. The strategic plan typically includes the company mission, objectives, and strategies. The document concludes with barriers to effective planning and aids to overcome those barriers.

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337 views26 pages

Chapter 3 Planning

This document discusses planning at various levels of management and the planning process. It defines planning and describes strategic, intermediate, and operational planning. The planning process involves setting goals, developing strategies, determining resources, and setting standards. The document also discusses different types of plans including functional area plans, plans with time horizons, and plans according to frequency of use. It provides details on the contents of various functional plans like marketing, production, financial, and human resource plans. The strategic plan typically includes the company mission, objectives, and strategies. The document concludes with barriers to effective planning and aids to overcome those barriers.

Uploaded by

simonatics08
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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PLANNING

TECHNICAL ACTIVITIES

REPORTERS:
JUDITH C. CAETE
CHRISTINE A. LLOVIA
(BSCHE -4A)

THE NATURE OF PLANNING

A plan, which is the output of planning, provides

a methodical way of achieving desired results.

PLANNING DEFINED
management function that involves anticipating future trends

and determining the best strategies and tactics to achieve


organizational objectives.
(Nickels)
the selection and sequential ordering of tasks required to

achieve an organizational goal


(Aldag and Stearns)
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.


(Cole and Hamilton)

PLANNING AT VARIOUS MANAGEMENT LEVELS

1. Top management level strategic planning


2. Middle management level intermediate

planning
3. Lower management level operational planning

STRATEGIC PLANNING
refers to the process of determining the major goals

of the organization and the policies and strategies for


obtaining and using resources to achieve those goals.
the whole company is considered, specifically its
objectives and current resources.
the output of strategic planning is the strategic plan
which spells out the decision about long rangegoals and the course of action to achieve these goals.

INTERMEDIATE PLANNING
refers

to the process of determining the


contributions that subunits can make with
allocated resources.

the goals of a subunit are determined and a plan is

prepared to provide a guide to the realization of the


goals.

OPERATIONAL PLANNING
refers to the process of determining how specific

tasks can best be accomplished on time with


available resources.
this must be performed in support of the strategic

plan and the intermediate plan.

THE PLANNING PROCESS


1. Setting organizational, divisional, or unit goals.
2. Developing strategies or tactics to reach those goals.
3. Determining resources needed.
4. Setting standards.

Setting Organizational, Divisional, or Unit Goals

the first task of the engineer manager is to provide

a sense of direction to his firm, to his division, or to


his unit.
goals may be defined as the precise statement of

results sought, quantified in time and magnitude,


where possible.

Developing Strategies or Tactics to Reach Goals


The ways to realize the goals are called strategies

and these will be the concern of the top


management. The middle and lower management
will adapt their own tactics to implement their plans.
a strategy may be defined as a course of action
aimed at ensuring that the organization will achieve
its objectives.
a tactic is a short term action taken by management
to adjust to negative internal or external influences.
the decision about short-term goals and the courses
of action are indicated in the tactical plan.

Determining Resources Needed

The quality and quantity of resources needed must

be correctly determined. Too much resources in


terms of either quality or quantity will be wasteful.
Too little will mean loss of opportunities for
maximizing income.

Setting Standards
The standards for measuring performance may be

set at the planning stage. When actual performance


does not match with the planned performance,
corrections may be made or reinforcements given.
a standard may be defined as a quantitative or

qualitative measuring device designed to help


monitor the performances of people, capital goods,
or processes.

TYPES OF PLANS

Functional Area Plans


Marketing Plan this is the written document or blueprint for
implementing and controlling an organizations marketing activities
related to a particular marketing strategy.
Production Plan this is a written document that states the quantity of
output a company must produce in broad terms and by product
family.
Financial Plan it is a document that summarizes the current financial
situation of the firm, analyzes financial needs, and recommends a
direction for financial activities.
Human resource management plan it is a document that indicates the
human resource needs of a company detailed in terms of quantity and
quality based on the requirements of the companys strategic plan.

Plans With Time Horizon


Short- range plans these are plans intended to

cover a period of less than one year. First-line


supervisors are mostly concerned with these plans.
Long-range plans these are 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


A. Standing Plans
- these are plans that are used again and again, and they
focus on managerial situations that recur repeatedly.
Policies they are broad guidelines to aid managers at
every level in making decisions about recurring
situations or function.
Procedures they are plans that describe the exact
series of actions to be taken in a given situation.
Rules they are statements that either require or forbid
a certain action.

B. Single Use Plans


- these plans are specifically developed to
implement courses of action that are relatively
unique and are unlikely to be repeated.
Budget is a plan which sets forth the projected
expenditure for a certain activity and explains
where the required funds will come from.
Programs is a single-use plan designed to
coordinate a large set of activities.
Project is a single-use plan that is usually more
limited in scope than a program and is sometimes
prepared to support a program.

PARTS OF THE VARIOUS


FUNCTIONAL AREA PLANS

Contents of the Marketing Plan


(William Cohen)
1. The Executive Summary which presents an overall
view of the marketing project and its potential.
2. Table of Contents
3. Situation Analysis and the Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control

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

The Contents of the Financial Plan

1. An analysis of the firms current financial condition


as indicated by an analysis of the most recent
statements
2. A sales forecast
3. The capital budget
4. The cash budget
5. A set of pro formula (or projected) financial
statements
6. The external financing plan

Contents of the Human Resource Plan

1. personnel requirements of the company


2. plans for recruitment and selection
3. training plan
4. retirement plan

PARTS OF THE STRATEGIC PLAN


1. Company or corporate mission
2. Objectives or goals
3. Strategies

- Company of corporate mission 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.
Planning may be successful if the following are
observed:
1. Recognize the planning barriers
2. Use of aids to planning

Planning Barriers According to Plunkett and


Attner
1.
2.
3.
4.
5.
6.
7.

Managers inability to plan


Improper planning process
Lack of commitment to the planning process
Improper information
Focusing on the present at the expense of the
future
Too much reliance on the planning department
Concentrating on only the controllable variables

Aids to Planning
Gather as much information as possible
2. Develop multiple sources of information
3. Involve others in the planning process
1.

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