GROUP IV: CHAPTER III

PLANNING TECHNICAL ACTIVITIES

TECHNICAL ACTIVITIES
- Requires effective planning if objectives and goals are to be realized
PLAN
Output of planning
Provides a methodical way of achieving desire results
Serves as a useful guide
PLANNING
According to Nickels and others
The management function that involves anticipating future
trends and determining the best strategies and tactics to achieve
organizational objectives.
According to Aldag and Stearns
The selection and sequential ordering of tasks required to
achieve an organizational goal.
According to Cole and Hamilton
Deciding what will be done, who will do it, when and how it will
be done, and the standards to which it will be done.

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
Process of determining the major goals of the organization and the
policies and strategies for obtaining and choosing resources to achieve
those goals.
INTERMEDIATE PLANNING
the process of determining the contributions that subunits can make
with allocated resources
OPERATIONAL PLANNING
the process of determining how specific task can best be
accomplished on time with available resources
PLANNING PROCESS
1. Setting organizational, divisional, or unit goals
Goals the precise statement of results sought, quantified in
time and magnitude, where possible.
2. Developing strategies or tactics to reach goals
Strategy a course of action aimed at ensuring that the
organization will achieve its objectives.
Tactics short term action taken by management to adjust to
negative internal or external influences.
3. Determining resources needed
-when particular sets of strategies or tactics have been devised,
the engineer manager will, then, determine the human resources required
by such strategies or tactics.
4. Setting standard
Standard- a quantitative or qualitative measuring device
designed to help monitor the performance of people, capital goods, or
processes.
TYPES OF PLANS
1. Functional Area Plans
Marketing Plan
o The written document or blueprint for implementing and
controlling an organizations marketing activities related to a particular
marketing strategies.
Production Plan
o It is a written document that states the quantity of output a
company must produce in broad terms and by product family.
Financial Plan
o It is a document that summarizes financial needs, and
recommends a direction for financial activities.
Human Resource Management Plan
o It is a document that indicates the human resource needs of a
company detailed in terms of quantity and quality and based on the
requirements of the companies strategic plan.
2. Plans With Time Horizon
Short range plans
o This are plans intended to cover a period of less than one year
Long range plans
o This are plans covering a time span of more than one year
3. Plans According to Frequency of Use
Standing Plans
o This are plans that are used again and again, and they focused
on managerial situations that secure 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 described the exact series of
actions to be taken in a given situation.
 Rules they are statements that either require or forbid a
certain action.
Single Use Plans
o This plans are specifically developed to implement courses of
action that are relatively unique and are unlikely to be repeated
Budgets
Programs
Projects

Parts Of The Various Functional Area Plans

The Contents of the Marketing Plan
- William Coben maintains that the following must be included in the
marketing plans.
The Executive Summary
Table of Contents
Situational Analysis and Target Market
Marketing Objective and Goals
Marketing Strategies
Marketing Tactics
Schedules and Budgets
Financial Data and Control
The Contents of the Production Plan
The amount of capacity the company must have
How many employees are required
How much materials must be purchased
The Contents of Financial Plan
An analysis of the firms current financial conditions as
indicated by an analysis of the most recent statement
A sale forecast
 The capital budget
The cash budget
A set of pro forma(or projected) financial statement
The external financial plans
Contents of the Human Resources Plans
Personnel requirements of the company
Plans for recruitment and selection
Training plan
Retirement plan

Parts of the Strategic Plan

Company or Corporate Mission
Objectives or Goals
Strategies

Making Planning Effective

Recognize the planning barriers
-according to Plunkett and Attner
Manager 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
Use of aids to planning
Gather as much information as possible
Develop multiple sources of information
Involve others in the planning process