Chapter Three: Planning Technical Activities NATURE OF PLANNING There are many instances when managers are overwhelmed

by various activities which at times becloud his judgement. To minimize mistakes in decision-making, planning is undertaken. Strategic Planning 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 is called the strategic plan which spells out the decision about ling-range goals and the course of action to achieve these goals.

PLAN Output of planning, provides a methodical way of achieving desired results. - In the implementation of activities, the plan serves as a useful guide. - Without the plan, some minor tasks may be afforded major attention which may, later on, hinder the accomplishment of objectives

Intermediate Planning Process of determining the contributions that sub-units can make with allocated resources. The goals of a sub-unit are determined and plan is prepared to provide a guide to the realization of the goals. Designed to support the strategic plan.

PLANNING The management function that involves anticipating future trends and determining he best strategies and tactics to achieve organizational objectives. Nickels 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 The selecting and sequential ordering of tasks required to achieve an organization goal. Aldag and Stearns -

Operational planning Process of determining how specific tasks can be best be accomplished on time with available resources. Must be performed in support to the strategic plan and the intermediate plan.

THE PLANNIG PROCESS Setting organizational, divisional, or unit goals. Provide a sense of direction to the engineer managers firm, his division, or to his unit, If everybody in the firm, division, or unit, is aware of the goals, there is a big chance that everybody will contribute his/her share in the realization of such goals.

PLANNING AT VARIOUS MANAGEMENT LEVELS Planning Activities Levels: Top Management Level Strategic Planning Middle management level Intermediate Planning Lower management level Operational Planning

Chapter Three: Planning Technical Activities Developing strategies or tactics to reach those goals Strategies and these will be the concern of top management while the middle and lower management will adapt their own tactics to implement their plans. human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the companys strategic plan. Time Horizon Plans Short-range these are plans intended to cover a period of less than a year. Long-range these are plans covering a time span of more than one year.

Determining resources needed When particular sets of strategies or tactics have been devised, the engineer manager will, then determine the human and non-human resources required by such strategies or tactics. The quality and quantity of resources needed must be correctly determined.

Frequency of Use Plans Standing Plans plans that are used again and again, 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 action to be taken in a given situation. Rules they are statements that either require or forbid a certain action.

Setting standards The standards for measuring performance may be set at the planning stage. When the actual performance does not match with the planned performance, corrections may be made or reinforcements given.

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 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 needs, and recommends a direction for financial activities. Human Resource Management Plan it is the document that indicates the

Single-Use Plans plans that are specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated. Budgets plans which set forth expenditures for activities and explains where the required funds will come from. Programs single-used plans designed to coordinate a large set of activities. Projects plans that are usually more limited in scope than programs and is sometimes prepared to support a program

Chapter Three: Planning Technical Activities PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS The Contents of the Marketing Plan 1. 2. 3. 4. 5. 6. 7. 8. The Executive Summary Table of Contents Situational Analysis and Target Market Marketing Objectives and Goals Marketing Strategies Marketing Tactics Schedules and Budgets Financial Data and Control

The 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 a 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 forma (or projected) financial statements. 6. The external financing plan. Contents of the Human Resources Plan Personnel requirements of the company. Plans for recruitment and selection. Training Plan. Retirement Plan.