PLANNING TECHNICAL ACTIVITIES

THE NATURE OF PLANNING

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
accomplishments of objectives.

PLANNING DEFINED
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 ad Stearns, on the other hand, define planning as “the selection and sequential
ordering of tasks required to achieve an organizational goal.” This definition centers on the
activity required to accomplish the goals.

The definition of Cole and Hamilton provides a better guide on how effectively perform
thus 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 stressed 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 useful for them to know some aspects of planning undertaken at
the different management levels.

Planning activities undertaken at various levels are as follows:

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 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 the whole family is considered, specifically
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 action to achieve these goals.”

Parts of the Strategic Plan

1. Company or corporate mission

2. Objectives or goals

3. Strategies

Company or 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.

Intermediate Planning

Intermediate planning refers to the “process of 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 realization of the goals. The intermediate plan is designed to
support the strategic plan.

Operational planning

The term operational planning refers to “the process of determining how specifics tasks
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 the strategic plan and
the intermediate plan.
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 provide 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 his share in the realization of such goals.

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

After determining 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 a strategy is as follows:

The decision of a 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 construction firm
realize substantial savings in the material and supply requirements used in their construction
activities. The firm will also have a 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 firms strategies.
The decision about 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 nonhuman resources required by such strategies or tactics.
Even if the resource requirements are currently available, they must be specified.

The quality and quantity of resources needed must be correctly determined. Too much
resource in terms of either quality or quantity will be wasteful. Too little will mean loss of
opportunities for maximizing 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 undertakings, 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 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
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.”

An example of a standard is the minimum number of units that must be produced by a

worker per day in a given work situation.

TYPES OF PLANS
Plans are of 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 a particular marketing
strategy.
2. Production plan – this is the written document that states the quantity of output a
company must produce 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 direction 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 Horizons

Plans with time horizon consist of the following:

1. 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.

2. 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

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 function.

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 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 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

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 to a functional area to another presses the engineer manager to be
familiar as well with other functional are plans.

The Contents of the Marketing Plan

The structure and content of marketing plans vary depending on the nature of the
organizations adapting them. 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. Schedule 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 Contents of the Financial Plan

The components of the financial plan are as 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

MAKING PLANNING EFFECTIVE

Planning is done so that some desired results be achieved. At times, however, failure in
planning occurs.

Planning may be made successful if the following are observed:

1. Recognition of the planning barriers

2. Use of aids to planning

 The planning barriers, according to Plunkett and Attner, are as follows:

1. Manager’s inability to plan

2. Improper planning process
3. Lack of the commitment to the planning process
4. Improper information
5. Focusing in the present at 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 much information as possible

2. Develop multiple sources of information
3. Involve others in the planning process

SUMMARY

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.

REFERENCE:

Medina, R.G. 1999. Engineering Management, 1st Edition. Rex Book Store