Engineering Management

PLANNING
 Module IV
PLANNING
Part I
• Explain the nature and purpose of planning
• Define the function of planning
• Identify the planning at various levels of management
• Identify the classifications and types of plans
• Identify the different planning tools
PLANNING
https://d3bxy9euw4e147.cloudfront.net/oscms-prodcms/media/documents/PrinciplesofManagement-OP_rU5O3X1.pdf
What is Planning?
The process of stating
objectives and then
determining the most
effective activities or
accomplishments
necessary to
reach/achieve stated
objectives

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 NATURE OF PLANNING

CONTRIBUTION TO PRIMACY AMONG EFFICIENCY OF

OBJECTIVES THE MANAGERS TASK PERVASIVENESS RESULTING PLANS

• Planning is goal • It involves choice • It is persuasive • It is a continuous

oriented • It is an integrated process
• It is a primary process • It includes effective
function and efficient
• It is a mental dimensions
activity
• It is forward
looking
• It is flexible

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LEVELS OF
MANAGEMENT

Refers to a line of
demarcation between
various managerial
positions

Determines a chain of
command, the amount of
authority and status
enjoyed by any managerial
position

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Top Level of Management
-board of directors, chief executive or managing
director.

Middle Level of Management

- branch managers and departmental managers
constitute middle level

Lower Level of Management

- also known as supervisory / operative level of
management. It consists of supervisors, foreman,
section officers, superintendent etc.
Strategic Plan (Top Management)
Strategic planning lays out the long-term, broad goals that a business or individual wants to achieve.
strategic plan provides the general idea of how to reach a goal.

Tactical Plan (Middle Management)

tactical plan outlines the short-term steps and actions that should be taken to achieve the goals described
in the strategic plan.

Operational Plan (Lower Management)

Operational Plan DOES present highly detailed information specifically to direct people to perform the
day-to-day tasks required in the running the organization.
 Setting Goals
-Provide a sense of direction
PLANNING PROCESS -Goals may be defined as “the precise statement of
results sought, quantified in time and magnitude, where
possible”

Developing Strategies/Tactics
-Ways to realize said goals
-Strategy may be defined as “a course of action aimed at
ensuring the organization will achieve its objectives”
-Tactic is a short-term action taken by the management to
adjust negative internal or external influences

Determining Resources Needed

-To satisfy strategic requirements, a general statement of
needed resources will suffice.

Setting Standards
-Standard may be defined as “a quantitative or
qualitative measuring device designed to help monitor
the performances of people, capital goods or process”.

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Types of Plans
• Functional Areas
• Time Horizon
• Frequency of Use
 Functional Area Plans
Marketing Plan Business document outlining your marketing strategy
and tactics.

Written document that states the quantity of output

Production Plan the company must produce while maximizing the
company’s resources.

It summarizes the current financial situation of the

Financial Plan firm, analyzes financial needs and recommends a
direction for financial activities.

It indicates the human resource needs of a company,

Human Resource Management Plan detailed in terms of quality and quantity and based on
the company’s strategic plans.
Contents of a Marketing Plan
1. Executive Summary

2. Table of Contents

3. Situational Analysis and Target Market

The structure and content of a
marketing plan vary depending on the 4. Marketing Objectives and Goals
organizations that are adapting them. 5. Marketing Strategies

6. Marketing Tactics

7. Schedules and Budgets

8. Financial Data and Control

Contents of a Production Plan

1. The amount of capacity a company must have

2. How many employees are required

3. How much material must be purchased

Contents of a Financial Plan

1. An analysis of the firm’s current financial

condition

2. Sales Forecast

3. Capital Budget

4. Cash Budget

5. A set of projected financial statements

6. The external financing plan

Contents of a Human Resources Plan

1. Personnel requirements of the company

2. Plans for recruitment and selection

3. Training plan

4. Retirement plan
Plans with Time Horizon
Short-Range Plans Plans which are intended to cover a period of less than
a year.

Plans which cover a time period of more than a year.

Long-Range Plans
Plans According to Frequency of Use
Standing Plans Plans which are used repeatedly.

Plans that are developed to implement courses of

Single-Use Plans action which are relatively unique and unlikely to be
repeated.
STANDING PLANS

1. Policies
– Broad guidelines to aid managers at every level in making decisions about recurring situations or function.

2. Procedures
– Plans that give the exact series of actions to be taken at a given situation.

3. Rules
– Statements that either require or forbid a certain action.
SINGLE-USE PLANS

1. Budgets
– A plan which sets forth projected expenditures for an activity and explains where the required funds will
come from.

2. Program
– Single-use plan designed to coordinate a large set of activities.

3. Project
– A plan which is usually more limited in scope than a program and is usually prepared to support a program.
PARTS OF THE STRATEGIC PLAN
1. 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 market.

2. Objectives or Goals

3. Strategies
 END.
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REFERENCES
• https://www.betterteam.com/
• https://www.cprime.com/
• https://www.americasjobexchange.com/engineering-manager-job-description
• https://devops.com/how-to-become-a-great-engineering-manager/
• https://onlinemasters.ohio.edu/blog/6-strengths-for-modern-engineering-managers/
• https://www.iedunote.com/
• https://ugcportal.com/raman-files/Developement-of-Management-Thoughts.pdf
• https://www.investopedia.com/
• https://www.business.com/articles/human-relations-management-theory-basics/
• https://www.yourarticlelibrary.com/organization/what-are-the-important-steps-involved-in-
staffing-process-5-steps/8677
• https://upraise.io/blog/types-performance-appraisal/
• Management by Stephen P. Robbins & Mary Coulter
• Publisher: 2010 Pearson Education
• https://www.slideshare.net/NardiinObada/ch-5-social-responsibility-and-managerial-ethics