Planning Technical Activities

If managing an organization is to be pursued vigorously, planning will constitute the most

important activity. Managers who plan are afforded with the opportunity to carefully analyze the
situations which directly contribute to effective decision-making.
The engineer manager, regardless of his management level, will have to devote some of his
planning. The higher the management level the engineer manager is in, the more sophisticated
his planning activity becomes. Why and how is so shall discussed in this chapter.

The Nature of Planning

There are many instances when managers are overwhelmed by various activities which at times
becloud his judgment. This must be expected since anybody who is confronted by several
situations happening simultaneously will loose sight of the more important concerns. To
minimize mistakes in decision making planning is undertaken.
A plan, which is the 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.
An example of the difficulty of not having a plan is illustrated below.
The management of an engineering firm was able to identify the need to hire additional three
employees. The manager proceeded to invite applicants, screen them and finally hired three of
them. When the hiring expense report was analyzed, it involved more than double the amount
spent by the other firms in hiring the same number of people.
When an inquiry was made, it was found out that manager committed some errors of judgement.
For instance, he used an expensive advertising layout in a newspaper when a simple message
will do.
Also, it was found out that the absence of a hiring plan contributed to the high cost of hiring.

Planning Defined
Various experts define planning in various ways, all of which are designed to suit specific
purposes.
Planning according to Nickels and others refers to” the management function that involves
anticipating future trends and determining the best strategies and tactics to achieve organizational
objectives.” This definition is useful because it relates the future to what could be decided now.
Aldag and Stearns, on the other hand, define planning as “the selection and sequential ordering
of tasks required to achieve an organization goal. “ The definition centers on the activity to
accomplish the goals.
The definition of Cole and Hamilton provides a better guide on how effectively perform this vital
activity. Planning according to them is “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.
For our purpose, it will suffice to define planning as selecting the best course of action so that the
desired result may be achieved. It must be stress that the desired result takes first priority and the
course of action chosen is the means to realize the goal.

Planning at Various Management Levels

Since engineer managers could be occupying positions in any of the various management levels,
it will be the useful for them to know some aspects of planning undertaken at the different
management levels.
 Planning activities undertaken at various levels are as flows:
1. Top management level- strategic planning
2. Middle management level- intermediate planning
3. Lower management level- operational planning

Strategic Planning
The term strategic planning refers to the process of determining the major goals of the
organization and the policies and the strategies for obtaining and using resources to achieve those
goals. The top management of any firm is involved in this type of planning.
In strategic planning the whole company is considered, specially its objectives and current
resources.
The output of strategic planning is the strategic plan which spells out “the decision about long-
range goals and the course of action to achieve the goals.”

Intermediate Planning
Intermediate planning refers to “the process determining the contributions that subunits can make
with allocated resources.” This type of planning is undertaken by middle management.
Under intermediate planning, the goals of a subunit are determined and a plan is prepared to
provide a guide to the realizations of the goals. The intermediate plan is design to support the
strategic plan.
Operational Planning
The term operational planning refers to “the process of determining how specific task can best be
accomplished on time with available resources.” This type of planning is a responsibility of
lower management. It must be performed in support of strategic plan and intermediate plan.

Figure 3.1 Types of Planning

Management Level Planning Horizon

Chief Executive officer, Strategic planning

Top Management
President, Vice (one to ten years)
Presidents, General
Manager, Division Heads

Functional Managers, Intermediate Planning

Middle Management
Product Line Managers, (six Months to two years)
Department Heads

Lower Management Unit Managers Operational planning

(One week to one year)
First Line Supervisors
Figure 3.2.The organization and types of planning undertaken

President/General
Manager

Marketing Manager Production Finance Personnel Manager

Manager Manager

Responsible for Responsible for Responsible for Responsible for

INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
PLANNING PLANNING PLANNING PLANNING

Industrial Factory Quality

Engineering Manager Control
Manager Manager

Responsible for Responsible for Responsible for

OPERATIONAL OPERATIONAL OPERATIONAL
PLANNING PLANNING PLANNING

The Planning Process

The process of planning consists of various steps depending on the management level that
performs the planning task. Generally, however, planning involves the following:
1. Setting organizational, divisional, or unit goals
2. Developing strategies or tactics to reach those goals
3. Determining resources needed and
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 (if he is the
chief executive), to his division (if he heads a division), or to his unit (if he is a supervisor). The
setting of goals provides an answer to the said concern. If everybody in the firm (or division or
unit, as the case may be) is aware of the goals, there is a big chance that everybody will
contribute hid=s share in the realization of such goals.
Goals may be defined as the “precise statement of the results sought, quantified in the time and
magnitude, where possible. Examples of goals are provided in Figure3.3
Figure 3.3 Examples of Goals, By Organization Level

Organizational Level Example of Goal

COMPANY
To attain a return on investment
of 25%

Buena Vista
Construction
Corporation
To increase the number of
DIVISION
projects undertaken by the
company
Project
Management
Division
To increase the number of
UNIT project Engineers

Personnel
services
unit

Developing Strategies or Tactics To Reach Those Goals

After determine the goals, the next task is to devise some means to realize them. The ways to
realize the goals are called strategies and these will be the concern of 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.”
An example of strategy is as follows:
The decision of construction firm’s management to diversify its business by engaging also in the
trading of construction materials and supplies.
When the above mentioned strategy is implemented, it may help the constructions firm realized
substantial savings in the material and supply requirements used in their construction activities.
The firm will also have greater control in the timing of deliveries of materials and supplies.
A tactic is a short-term action taken by management to adjust to negative internal or external
influences. They are formulated and implemented in support of the firm’s strategies. The
decision about the short-term goals and the courses of action are indicated in the tactical plan.
An example of a tactic is the hiring of contractual workers to augment the company’s current
workforce.

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 requires by such strategies or tactics. Even if the
resource requirements are currently available, they must be specified.
The quantity and quality of resources needed must be correctly determined. Too much in terms
of either quality or quantity will be wasteful. Too little will mean loss of opportunities for
maximum income.
To satisfy strategic requirements, a general statement of needed resources will suffice. The
specific requirements will be determined by the different units of the company.
To illustrate:
Suppose the management of a construction firm has decided, in addition to its current
undertaking, to engage in the trading of construction materials and supplies.
A general statement of required resources will be as follows: A new business unit will be
organized to deal with the buying and selling of construction materials and supplies. The amount
of 50 million pesos shall be set aside to finance the activity. Qualified persons shall be recruited
for the purpose.

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
reinforcement 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.
An example of a standard is the minimum number of units that must be produced by the worker
per day in a given work situation.

Types of Plans
Plans are different types. They may be classified in terms of functional areas, time horizon and
frequency of use.

Functional Area Plans

Plans may be prepared according to the needs of the different functional areas. Among the types
of functional area plans are the following:
1. Marketing plan- this is the written document or blueprint for implementing and controlling an
organization’s marketing activities related to particular marketing strategy.
2. Production plan- this is the written document that states the quantity of output of a company
must be produced in broad terms and by product family.
3. Financial plan- it is a document that summarizes the current financial situation of the firm,
analyzes financial needs and recommends a directions for financial activities.
4. Human resource management plan-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
company’s strategic plan.

Plans With Time Horizon

Plans with time horizon consist of the following:
1. Short-range Plan- these are plans intended to cover a period of less than one year. First-line
supervisors are mostly concerned with these plans.
2. Long-range plan- 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
According to frequency of use, plans may be classified as:
1. Standing plans and
2. Single use plans.

Standing Plans: These are plans that are used again and again, and they focus on managerial
situations that recur repeatedly.
Standing plans may be further classified as follows:
1. Policies- They are broad guidelines to aid managers at every level in making decisions about
recurring situations or functions.
2. Procedures- they are plans that describe the exact series of actions to be taken in a given
situation.
3. Rules- they are statements that either require or forbid a certain action.

Single-Use Plans: these plans are specifically developed to implement courses of action that
are relatively unique and are unlikely to be repeated.
Single-use plans may be further classified as follows:
1. budgets
2. programs, and
3. projects.
A budget, according to Weston and Brigham, is “a plan which sets forth the projected
expenditure for a certain activity and explains where the required funds will come from.”
A program is a single-use plan designed to coordinate a large set of activities.
A project is a single-use plans 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

The engineer manager may be familiar with engineering plans, knowing the details from
beginning to end. However, the ever present possibility of moving from one management level to
the next and from one functional area to another presses the engineer manager to be familiar as
well with other functional area plans.
The Contents of Marketing Plan
The structure and content of marketing plans vary depending on the nature of the
organizations adapting them.

Figure 3.4 Types of Plan

Types of plans

Functional Plans with Time Plans with varied

Area Plans Horizon frequency of use

Marketing Short-range
Plan Plan

Production Long-range
Plan Plan

Financial Plan

Standing Single-use
Plan Plan
Human
Resources
Plan

Policies Procedures Rules

Budget Program Project

William Cohen maintains that the following must be included in the marketing plan:
1. The Executive Summary- Which Presents an overall view of the marketing project and its
potential.
2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control

The Contents of the Production Plan

The production plan must contain the Following:
1. The amount of capacity the company must have
2. How many Employees are required?
3. How much material must be purchased?

The Content of Financial Plan

The components of the financial plan are follows:
1. An analysis of the firm’s 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

The human resources plan must contain the following:
1. Personnel requirements of the company
2. Plans for recruitment and selection
3. Training plan
4. Retirement plan
Parts of the Strategic Plan
The strategic plan must contain the following:
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. At times, However failure in
planning occurs.
Planning may be successful if the following are observed:
1. Recognize the planning barriers
2. Use of aids to planning
The planning barriers, according to plunkett and attner, are follows:
1. Managers inability to plan
2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information’
5. Focusing on the present at the expense of the future
6. Too much reliance on the planning department
7. Concentrating on only the controllable variables
Among the aids to planning that may be used are:
1. Gather as mush information as possible
2. Develop multiple sources of information
3. Involve others in the planning Process

CONCLUSION
Technical activities, like other activities, require effective planning, I,e. if objectives and goals
are to be realized.
A plan is a methodological way of achieving results.
Planning is undertaken at various management levels.
Various steps are required in the planning process depending on the management level.
Plans may be classified in terms of functional areas, time horizon, and frequency of use.
Plans consist of various parts that the engineer manager must be familiar with.
Plans can be made effective by recognizing the planning barriers and making use of aids to
planning.