SENIOR HIGH SCHOOL

Organization and
Management
Quarter 1 – Module 5
Nature of Planning, Types and
Levels of Plans

Department of Education ● Republic of the Philippines

Organization and Management
Alternative Delivery Mode
Quarter 1 – Module 5: Nature of Planning, Types and Levels of Plans
First Edition, 2020

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SENIOR HIGH SCHOOL

i
 Organization and
Management
Quarter 1 – Module 5
Nature of Planning, Types and Level of Plans

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 TABLE OF CONTENTS

Page No.

OVERVIEW
What I Need To Know 1
Things to Remember To Get Through 1

Lesson 1- NATURE OF PLANNING, TYPES AND LEVELS OF PLANS

What I Need To Know 3

What I Know 3
What’s In
What's New 5
What Is It 6
What's More 11
What I Have Learned 13
What I Can Do
Assessment 13
Additional Activities

References 16

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 WHAT I NEED TO KNOW

This learning module of Organization and Management for Senior High School
students is designed to provide learners with a better understanding of the nature,
types and levels of planning.
In this module, the students are taught the importance of planning in achieving
the business desired goal at the same time in minimizing damages in cases of
business uncertainties.
After studying this module, you will be able to:
1. discuss the nature of planning,
2. discuss the types and levels of plans, and
3. formulate effective plans for a specific business endeavor.

THINGS TO REMEMBER TO GET THROUGH

To learn and benefit from this module, follow the following steps:

1. Read the module title and the module introduction to get an idea of what the
module covers. Specifically, read the first two sections of this module
carefully. The first section tells you what this module is all about while the
second section tells you of what you are expected to learn.

2. Never move on to the next page unless you have done what you are
expected to do in the previous page. Before you start each lesson, read first
the INSTRUCTIONS.

3. Work on the activities. Take note of the skills that each activity is helping
you to develop.
4. Take the Post-Test after you are done with all the lessons and activities in
the module.

5. Meet with your teacher. Ask him/her about any difficulty or confusion you
have encountered in this module.

6. Finally, prepare and gather all your outputs and submit them to your teacher.

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 7. Please write all your answers of the tests, activities, exercises, and others
on your separate activity notebook.

GOOD LUCK AS YOU BEGIN THIS MODULE!

NATURE OF PLANNING,
LESSON 2
1
TYPES AND LEVELS OF
PLANS
Competency:
a. Discuss the nature and levels of planning and types of plans. ABM_AOM11-Ie-
g10-11-12

WHAT I NEED TO KNOW

At the end of this lesson, the learners are expected to:

1. discuss the nature and levels of planning,
2. identify the types of plans, and
3. formulate effective plans for a specific business endeavor.

WHAT I KNOW

Instructions: Recall what you learned about planning. Read and answer the following
statements. Write the letter of your answer in a yellow paper.

1. Which of the following is the primary function of management?

a. planning b. managing c. organizing d. controlling
2. What type of plan is created when changes occur due to unexpected events in
order to achieve the company's goal?
a. tactical plan c. contingency plan
b. operational plan d. disaster plan
3. This includes the formulation of on-going plans that explains the specific
operation of the organization.
a. strategic plan c. tactical plan
b. operational plan d. contingency plan
4. It represents the company’s “dream” on what will it become in the future.
a. vision b. mission c. goals d. plans
5. The following are responsible for strategic planning, EXCEPT:
a. CEOs b. President c. Staff d. Senior Executives

6. To be able to sell 100 pieces face masks daily, is an example of?

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 a. plan b. goal c. strategy d. idea
7. It identifies the purpose of why the organization existed.
a. vision b. mission c. plan d. goals
8. They are accountable to the top-level management for their branch/department
functions.
a. operational-level management c. frontline-level management
b. strategic-level management d. middle-level management

9. If plans are the actions or ways that the administrator/managers will be using
to achieve the organization’s aim, what is goal?
a. targets desired at the start of allotted timeline in which the management
wanted to reach
b. targets desired at the end of the allotted timeline in which the
management wanted to reach
c. company’s future action plans that are unsure and might fail
d. company’s present plans that are unsure and might fail

10. Which of the following belong to top-level management planning?

a. Rank and File c. Supervisor
b. Branch Manager d. Chief Executive Officer

11. Which of the following statement is TRUE about the nature of planning?
a. Without planning, there will be no standards set and goals to be
achieved, thus, controlling will not be possible.
b. Without planning, the company can be successful in the future.
c. Planning reduces uncertainty because it requires managers to stick to
the plan no matter what.
d. Planning compel the managers to decide directly and easily.

12. It is also known as supervisory / operative level of management.

a. top-level management c. lower-level management
b. middle - level management d. intermediate-level management

13. They assist, motivate and guide the lower-level managers for them to perform
better and accomplish the business objective.
a. top-level management c. lower-level management
b. middle - level management d. intermediate-level management

14. The following are examples of lower-level management EXCEPT:

a. supervisors b. foreman c. section officers d. branch managers

15. It is responsible in decision-making and overseeing the company’s long term

plan goals at the same time crafting strategies on how to attain the goal.
a. top-level management c. lower-level management
b. middle-level management d. front-line level management

WHAT’S
4 IN
 Based on what you have learned in the previous module, give at least 2
examples of profit business organizations and 2 non-profit organizations that can be
found in the Philippines.

Based on your own observation, do you think these organizations are

successful? Why or why not? What are the possible reasons behind? Take note of
your answer.

WHAT’S NEW

Activity 1. Provided below is a cross word. Fill in the missing letters to get the correct
answers. Write your answer in the space provided for.

5
1
O P - M A A E M E T

6
A O

N P
2
C O T N G E C Y

N A
3
O A T
4
I D L

V 5
 WHAT IS IT

Definition of Terms

Planning - is a process wherein the organization sets its goal, creates strategies to
attain the goal at the same time developes action plans or ways to achieve the desired
goal the organization is into

Vision - represents the company’s “dream” on what will it become in the future
Mission - identifies the purpose on why the organization existed. This includes the
company’s product and services, its target market and how the company wanted to
address the customer’s needs and satisfaction.

Goals - are specific targets or desired ends that the management wanted to attain but
usually attained over a long period of time.

Objectives - refer to the action/steps needed in order to achieve the desired goal

Never have a plan; it’ll just get in

your way.
- MartinRubin

Do you agree with this quote?

Do you think things will just get in your way?
What if it will not?
What will happen then?

Are you willing to take the risk of not getting the things you want because you
fail to plan?

How important is planning?

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Planning is like having a map and a compass with you. Even if you are in the middle
of nowhere, if you have your map and your compass, you can reach your destination
without wasting much time in roaming around. For instance, in the direction you are
in, you may encounter problems, but you can still find another way out.

Planning is definitely important because establishing plans based on the set goals will
provide direction to the organization’s undertakings and will decrease the percentage
of indecisions.

Planning is an extremely complex process since it requires a systematic method of

recognizing and analyzing the elements of the organization’s external environment
and matching with the firm’s internal environment’s factors and capabilities.

In an environment full of uncertainty, you need to understand that you can formulate
assumptions based on forecasts of what is expected in the future and decide what to
do, how to do it, when to do it and many more.

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Nature of Planning
How does Goals and Plans Differ?
GOALS
These are the targets desired at
the end of the allotted timeline in
which the management wanted to
reach
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PLANS
These are the actions or ways
that the administrator/managers
will be using to achieve the
organization’s goal.
For example:

The goal of “Fishda” store is to sell 1,000 pieces of sardines for the month of
August 2020.
To achieve this goal, they plan to divide the sales target into 4 weeks which will
require them to sell at least 250 pieces per week or 36 pieces per day.
Additionally, they will not only rely on the walk-in buyers in their store. They also
plan to post and advertise their product in Facebook and other social media platforms
since online selling is effective nowadays.
Lastly, they will offer free delivery for a minimum purchase of 10 pieces.

Whenever a company sets its goal, the management will then strategize and
make action plans that are best suited to achieve the goal.
If the management fails to come-up with an effective plan especially when other
factors arise, tendency is, the goal will not be achieved.
Thus, effective planning is very important and crafting strategies is crucial for
this requires efficient and effective decision-making.

Are you a member of any organization

in your community? If yes, what are
the plans of your organization as a
whole?

Organizational plans can be generally described in terms of comprehensiveness,

length of time covered or timeframe, specificity and frequency of use.

Comprehensiveness refers to the completeness of planning coverage.

Specificity refers to very detailed, clearly defined plan wherein objectives are
clearly stated and could easily be understood. Simple language must be used
in order to facilitate understanding of the plan.

Frequency – refers to the number of times or instances a plan may be used. For
example, strategical plans have single use, while operational plans are usually
standing or are used frequently or several times.

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TYPES OF PLANS

STRATEGIC PLAN
•plans that establish the organization's overall goals and apply to the entire firm
based on the company's vision, mission and values as a whole
•indicates the important decisions made within a business
•Are usually broad in scope and are the responsibility of the organization's CEO,
president and general manager of the company.
OPERATIONAL PLAN
•plans that are applied to a particular unit area only and the scope is narrow
•also includes the formulation of on-going plans that explains the specific operation of
the organization
•a company's goal may not be achieved if the operational plans are not clear
•on-going plans can be in any of these forms:
•Policy - a set of principles that guide managers in addressing a particular issue

•Rule - a regulation which describes and regulates the functions of an organization

•Procedure - a step-by-step process in accomplishing a task or achieving an
objective
TACTICAL PLAN
•is the support of strategic plan because it includes approaches that will be used in
performing the strategic plan
•translate broader plans into functional goals for each area or department
•tactical planning is short-term and is focused
CONTINGENCY PLAN
•is created when changes occur due to unexpected events in order to achieve the
company's goal
•As the popular phrase goes " Just in case Plan A will fail, you still have Plan B, C
and so on.

As you can see in the illustration above, there is a hierarchy of plans that starts
from the top which is the organization as a whole (strategic plan), then another plan
which will be executed by the specific unit/department (operational plan) who will be
working on the plans to achieve the organization’s goal. If the plan fails due to
unexpected changes, there should be another option (contingency plan).

Steps in Planning (Schermerhorn, 2008)

1. Define your goals/objectives by identifying desired outcomes /results in very
specific ways.
2. Determine where you stand in relation to set goals/objectives; know your
strengths and weaknesses.
3. Develop premises regarding future conditions; anticipate future events,
generate alternative “scenarios” for what may happen; identify for each
scenario things that may help or hinder progress toward your goals/objectives.
4. Analyze and choose among action alternatives; list and carefully evaluate
possible actions and choose the alternative most likely to accomplish
goals/objectives.

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 5. Implement the plan and evaluate results; take corrective action and revise plans
needed.

Different Levels of Planning

Management Level Characteristics
The top-management
Top-level Management teams are mostly experts
Planning in the field/industry they
(strategic planning) are in. These people are
experienced in the
 CEO business for a long period
 presidents of time.
 vice-president
 board of directors They can communicate
 senior executives. well, charismatic and most
importantly, have a sense
of responsibility and
accountability in carrying
out their task.
Responsibilities
Responsible in decision-
making and overseeing
the company’s long term
plan goals at the same
time crafting strategies on
how to attain the goal.
They formulate the plan,
however, they do not
execute the plan on their
own, instead, a
management team
supports and helps them
in carrying out the task.

It is the in-between Implements the

Middle-level Management
leadership level of a organizational plan in
Planning
ranked organization, accordance with the
(Tactical Planning)
being subordinate to the company’s policies and
senior management but objectives of the top
 general managers
above the lowest levels of management
 branch managers
operational staff.
 department
Defines and discusses the
managers
It is accountable to the information and policies
top-level management for from the top management
their branch/department’s down to the lower
functions. management

Since the middle Assists, motivates and

managers work with both guides the lower-level
top-level managers and managers for them to
first-level managers, they perform better and
tend to have excellent accomplish the business
interpersonal skills objective
relating to communication,

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 motivation, and
mentoring.
Frontline/Lower –level It is also known as assign jobs and tasks to
Management Planning supervisory / operative various workers
(Operational Planning) level of management.
guide and instruct workers
 supervisors Those whose work has to of their day-to-day
 foreman be largely with personal activities
 section officers oversight and direction of
 superintendent operative employees supervise the quality as
well as quantity of
Concerned with direction production
and controlling function of
management maintain good relation in
the organization

image-builders of the
enterprise because they
are in direct contact with
the workers

prepare periodical reports

about the performance of
the workers

WHAT’S MORE

Activity 2. Determine what level of management planning does the following belong.
Shade the box that corresponds with the correct answer.

Top-level Middle-level Lower –level

Management Management Management
Planning Planning Planning
Mr. Anton Dela Cerna, the
marketing head of Alaska
company
Miss Santos who reports to Mr.
Ramoso, the president

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 An IT expert who runs his own
company

Top-level Middle-level Lower –level

Management Management Management
Planning Planning Planning
Ms. Torres who discusses the
company’s policies to the newly
hired employee
Madame Gomez who can
communicate well, charismatic
and
has a sense of responsibility and
accountability in carrying out her
task
Miss Vacalares, the one who
supervises the production unit
Mr. Palacios, a member of the
board of directors
Erik, the in-charge of quality and
quantity control of ABC
company
Mr. Khu who leads the operational
planning of his unit
Danica Lopez, the one who
assists, loves to inspire and
motivate
her teammates to do their job

WHAT I HAVE LEARNED

If given a chance to open your own business, what would it be? After choosing,
list down your goal/s and plans for your business .Use the given format below:

Name of business: Nature of Business:

Plans
Timeframe Goal/s (actions or means to
use in achieving the
goal)

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 WHAT I CAN DO

Try to identify at least 3 existing sari-sari stores in your locality. What types of plan/s
you think they applied for their business to succeed? Do you think, these plans are
effective? Why or Why not? Explain your answer.
Types of Effective or
Name of Store Plans Not Effective Explanation
Used

ASSESSMENT

With the best of your knowledge, complete the following statements:

1. Planning is important because ________________________________________
___________________________________________________________________
_________________________________________________________in achieving
the goal of the company.
2. If your plan A / first plan _________________________, an alternative plan should
be available.
3. An example of planning is _________________________________________
_________________________________________________________________

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_____________________________ for you to pass your scheduled examination.
4. There are 3 levels of planning, namely; __________________________,
____________________________ and ___________________________________.

5. The four types of plans are; ___________________, _______________,

_____________, ________________. Among the four types of plans, the hardest to
prepare is _____________________
_________________because___________________________________________
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________

ADDITIONAL ACTIVITIES

Try to reflect and list down the plans you made in achieving your goals as a student.

You are now done with the lesson for Module 5.

Congratulations and keep going!!!
It’s time to proceed to Module 6.

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REFERENCES:

Helena Ma. F. Cabrera, PhD, Anthony DC. Altarejos, PhD, and Riaz Benjamin, 2016,
Organization and Management, Textbook, Quezon City, Philippines:Vibal
Group, Inc.

Internet Sources:

https://courses.lumenlearning.com/boundless-management/chapter/management-
levels-and-types/
https://www.managementstudyguide.com/management_levels.htm

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 3. B
4. A
5. C
6. B
7. B 17
8. D
9. B
10.D
11.A
12.C
13.B
14.D
15.A
WHAT’S NEW – Activity 1
1. Top Management
2. Contingency
3. Goal
4. Middle
5. Planning
6. Operational
WHAT’S MORE – Activity 2
1. Middle - Level Management Planning
2. Middle - Level Management Planning
3. Top - Level Management Planning
4. Middle - Level Management Planning
5. Top - Level Management Planning
6. Lower - Level Management Planning
7. Top - Level Management Planning
8. Lower - Level Management Planning
9. Lower - Level Management Planning
10.Middle - Level Management Planning
WHAT I HAVE LEARNED
- Answer may vary
WHAT I CAN DO
- Answer may vary
ASSESSMENT
1. Answer may vary
2. Answer may vary but possible answers are: will fail, is not suitable.
3. Answer may vary
4. Top level , Middle level and Lower level Management Planning
ANSWER KEY:
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Office Address: Masterson Avenue, Upper
Oro City, Cagayan de Oro, Lalawigan ng Misamis Oriental
Telefax:
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