Definitions

1. Plan - an organized course of action to achieve a common goal. It is a bridge of the

present to future.
2. Planning - is a process of deciding what to do, how to do it, when to do it, and who will
do it to achieve the desired future. It involves the activities like forecasting, policy making,
programming, scheduling, establishing standards, and budgeting.

Characteristics of Planning
1. Planning is interconnected with the other functions of management.
2. It is a rational process of choosing the right action from among alternatives.
3. It is a vital process that needs to be modified in accordance with the environment of the
business organization.
4. It is adaptable or flexible.
5. It encompasses all functions of management.
6. It contributes to the achievement of goals and objectives of the organization.
7. It foresees future uncertainties of the organization.
8. It guarantees an increase in efficiency.
9. It initiates cost reduction.

Importance of Planning
1. Planning minimizes uncertainties.
2. Planning gives direction to the management in the achievement of objectives.
3. Planning eliminates conflicts among managers, hence, provides proper coordination.
4. Planning helps in proper utilization of resources, thus, it facilitates economical operation.
5. Planning provides standards for effective and efficient facilitation of control.
6. Planning eliminates overlapping of authorities and activities.
7. Planning helps in effective decision making.
8. Planning develops ideas in innovation.

LESSON 2: TYPES OF PLANS

Definitions
1. Strategy - a careful plan or method for achieving a particular goal.
2. Tactics - ways or means to accomplish an end.
3. Single-use Plans - plans for a particular project and used only once.
4. Standing/Ongoing Plans - plans that are prepared once but can be used over a period
of years. It can be amended when necessary.

Types of Plans
1. Strategic Plan - a long term (5 to 20 years) that overviews the whole picture of the
business including its vision, mission and values. This plan is proposed and performed by
top-level managers such as CEOs or presidents.
2. Tactical Plan - a short term plan (1 to 5 years) that includes the breaking down of the
strategies on how to accomplish the objectives of the long term plan. This is performed
by middle managers.
3. Operational Plan - explains the daily operational activities of the organization. It includes
the time frame in achieving the tactical plan. This plan is made by line or lower-level
managers.
4. Contingency Plan - a systematized means of identifying what goes wrong in a particular
situation or event.

Steps in Planning
1. Define the existing condition of the organization.
2. Determine the SMART (Specific, Measurable, Attainable, Realistic, Time-bound)
objectives.
3. Write a statement of Planning Premises.
4. Determine alternative courses of action.
5. Evaluate alternative courses of action.
6. Select the course of action.
7. Establish support or derivative plans.
8. Determine time and sequence of activities.
9. Pursue the participation of personnel in the implementation chosen alternatives.
10. Determine the strategy and implementation.
11. Provide follow-up and feedback.
Definition
Levels of Management - the hierarchy of management positions.

Levels of Management
1. Top Management - Composed of Board of Directors (representatives of shareholders)
and Chief Executive Officers who are also called General Managers; and the Managing
Director or President (selected by BOD). Their role includes:
a. Identifying objectives and plans of the organization
b. Gathering available resources
c. Decision making, planning, and organizing
d. Preparing strategic plans
2. Middle Management - comprises Branch Managers, Department Heads, and Junior
Executives (or assistants of branch managers/department heads). Their jobs include:
a. Preparation of tactical plans.
b. Implementation of policies and plans formulated and disseminated by top
managers.
c. Coordination of activities in the department.
d. Communication of information and recommendation of things, ideas, policies,
etc. that are beneficial to the organization.
3. Lower Level Management (first line management or operative/supervisory level) -
composed of foremen and supervisors. Among their tasks are:
a. Preparing operational plans.
b. Disseminating information/decision from management to the workers.
c. Assigning and guiding workers of their particular tasks.
d. Monitoring workers’ performance and notifying the right authority of their
demands and difficulties.
e. Recommending promotion, if necessary.
f. Ensuring that the quality standard and the target quota are met.