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Math 12-ABM Org Mgt-Q1-Week-7

Organizational Management (Bulacan State University)

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PLANNING TECHNIQUES, TOOLS

AND THEIR APPLICATIONS
for Organization and Management
Senior High School (ABM)
Quarter 1 / Week 7

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FOREWORD

This Self-Learning Kit for Organization and Management is

designed specifically for ABM students in the Senior High School.
This is about understanding the different planning techniques and
its applications. It includes definition of terms, example situations,
and its applications to organization.
It is aligned with the K to 12 Curriculum of the Department of
Education following the prescribed MELCs (Most Essential Learning
Competencies.
This is designed to be more comprehensive for learners even
in studying at home.
What Happened?
This part contains review of prior knowledge that has a great
contribution to the focused topic of this module. This also contains
preliminary activities that will awaken the prior knowledge of the
learners and will motivate them to learn.
What I Need to Know? (Discussion)
This section discusses the different planning techniques.
Forecasting, scenario planning, contingency planning,
benchmarking, and participatory planning are emphasized in this
section. Also, in this part of the SLK, the steps, examples, and other
contributive data that will help learners understand more the topic
is also included.
What I Have Learned? (Evaluation/Post Test)
The exercises found in this section are guaranteed to
develop analytical skills and to check the understanding of the
learners about the topic in this module.

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OBJECTIVES:
K: Identify the different techniques and tools.
S: Create planning techniques and tools.
A: Appreciate the application of appropriate planning
tools and techniques

LEARNING COMPETENCY:

Apply appropriate planning techniques and tools

(ABM_AOM11-Ie-g- 13)

I. What Happened

QUICK REVIEW

We all know that there are three levels of management, the top-level,
the middle-level, and the lower/frontline level of management.
Each of these levels do have a specific type of planning that they
need to deal with:

TOP LEVEL – STRATEGIC PLANNING

• Involves making decisions about the organization’s long-term goals

MIDDLE LEVEL – TACTICAL PLANNING

• Refers to the procedures and transformation of strategic goals/ plans
with specific goals

LOWER LEVEL – OPERATIONAL PLANNING

• Involves routine tasks repeatedly done by a firm’s lower level units

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Pre-test:
A. Identify the missing letters to complete the specific task that goes
under strategic, tactical, and operational planning that are done by
the top-level, middle-level, and lower-level management respectively.

I__D__VI__UA__ O__J__C__I__ES

__R__A__ __ZA__ __ON __ __ __E__TI__ES

__R__A__ __ZA__ __ON __O__ __S

D__ __ __R__M__N__ __ __J__ __T__V__S

D__V__S__ __N O__ __ __CT__V__S

__R__ __N__Z__ __I__N M__ __ __I__N

B. Matching type.
Match the answers of column A to the choices in Column B. Write the
letter of the correct answer in your activity notebook.

Column A Column B
1. External comparisons a. Contingency plans
2. Search for best practice b. Benchmarking
3. Collaborative planning c. Forecasting
4. Predicting what to happen d. Participatory planning
5. Buffer or Extra plans

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II. What You Need To Know

DISCUSSION

What are planning techniques?

Planning techniques are those methods or processes followed by

planners in preparing or evaluating their plans, programs, and policies. For
effective planning in today’s dynamic environment, different techniques and
tools must be used, such as forecasting, contingency planning, scenario
planning, benchmarking, and participatory planning. Here are the definition
and examples of some planning techniques and tools.

A. Forecasting

Forecasting is making predictions of what is likely to happen in the

future. It shows that the managers know something of future happenings

even before things actually happen.

Forecasting is the process of estimating the relevant events of future,

based on the analysis of their past and present behavior.

The future cannot be probed unless one knows how the events have
occurred in the past and how they are occurring presently. The past and
present analysis of events provides the base helpful for collecting information
about their future occurrence.

Forecasting may be defined as the process of assessing the future

normally using calculations and projections that take account of the past
performance, current trends, and anticipated changes in the foreseeable
period ahead.

Forecasting provides a logical basis for determining in advance the

nature of future business operations and the basis for managerial decisions

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about the material, personnel and other requirements. Whenever the

managers plan business operations and organizational set-up for the years
ahead, they have to consider the past, the present and the prevailing
economic, political and social conditions.

• Forecasting is the basis of planning.

When a business enterprise tries to look into the future in a systematic and
concentrated way, it may discover certain aspects of its operations requiring
special attention.

However, it must be recognized that the process of forecasting involves an

element of guesswork and the managers cannot stay satisfied and relaxed
after having prepared a forecast.

Remember:

The forecast will have to be constantly monitored and revised—

particularly when it relates to a long- term period. The managers should try to
reduce the element of guesswork in preparing forecasts by collecting the
relevant data using the scientific techniques of analysis and inference.

On the basis of the definition, the following features of forecasting can be

identified:
1. Forecasting relates to future events.

2. Forecasting is needed for planning process because it devises the future

course of action.

3. It defines the probability of happening of future events. Therefore, the

happening of future events can be precise only to a certain extent.

4. Forecasting is made by analyzing the past and present factors which are
relevant for the functioning of an organization.

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5. The analysis of various factors may require the use of statistical and
mathematical tools and techniques.

Steps in Forecasting:
The process of forecasting generally involves the following steps:
1. Developing the Basis:
The future estimates of various business operations will have to be
based on the results obtainable through systematic investigation of the
economy, products and industry.

2. Estimation of Future Operations:

On the basis of the data collected through systematic investigation into
the economy and industry situation, the manager has to prepare
quantitative estimates of the future scale of business operations. Here
the managers will have to consider the planning premises.

3. Regulation of Forecasts:
It has already been indicated that the managers cannot take it easy
after they have formulated a business forecast. They have to constantly
compare the actual operations with the forecasts prepared in order to
find out the reasons for any deviations from forecasts. This helps in
making more realistic forecasts for future.

4. Review of the Forecasting Process:

Having determined the deviations of the actual performances
from the positions forecast by the managers, it will be necessary to
examine the procedures adopted for the purpose so that
improvements can be made in the method of forecasting.

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Techniques of Forecasting:
There are various methods of forecasting. However, no method
can be suggested as universally applicable. In fact, most of the
forecasts are done by combining various methods.

B. CONTINGENCY PLANNING

• Business contingency plan is a course of action that your organization

would take if an unexpected event or situation occurs. Contingency
can be:
➢ Positive- surprise influx of money
➢ Negative- fire, flood, data breach, major network failure

• Contingency plans are an important part of your overall business

continuity strategy because they help ensure your organization is ready
for anything.
• Many large businesses and government organizations create multiple
sets of contingency plans so that a variety of potential threats are well-
researched and their appropriate responses are fully practiced before
a crisis hits.
• Contingency planning can be thought as a proactive strategy while
crisis management is more of a reactive strategy.

➢ Contingency plan- helps to ensure you are prepared for what

may come
➢ Crisis management plan- empowers you to manage the
response after the incident occurs.

• Contingency factors

➢ may offer alternative courses of action when the unexpected

happens or when things go wrong

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➢ called “trigger points” indicate when the prepared alternative

plan should be implemented.

C. Scenario Planning

• Scenario planning is making assumptions on what the future is going to

be and how your business environment will change overtime inlight of
that future.

• Scenario planning is identifying a specific set of uncertainties, different

“realities” of what might happen in the future of your business.

Illustrative Examples:

a. Farmers use scenarios to predict whether the harvest will be

good or bad, depending on the weather. It helps them
forecast their sales but also their future investments.

b. Military institutions use scenario planning in their operations to

cope with any unlikely situations, anticipating the
consequences of every event. In this case, scenario planning
can mean the difference between life and death.

• Scenario planning is also a contingency planning, but it is a long-term

version of the latter. Several future states of affairs must be identified,
and alternative plans must be prepared in order to meet the changes
or challenges in the future.

• Some examples of changes or challenges that may arise in future

scenarios are:

c. environmental pollution

d. human rights violations

e. climate and weather changes

f. earthquake damages to communities, and others

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D. Benchmarking

It refers to another planning technique that generally involves

external comparisons of a company’s practices and technologies with
those of other companies.

Purpose:

Its main purpose is finding out what other people and

organizations do well and then plan how to incorporate these
practices in the company’s operations.

Techniques:

➢ External benchmarking- to achieve superior performance

➢ Internal benchmarking- to encourage employees working in different

wok units to learn and improve by sharing one another’s best
practices.

Three Ways to Use Benchmarking:

Benchmarking, whether internal or external, is used in three

keyways. They are:

• Process benchmarking

This is all about better understanding your processes, comparing

performance against internal and external benchmarks, and finding
ways to optimize and improve your processes. The idea is that, by
understanding how top performers complete a process, you can find
ways to make your own processes more efficient, faster and more
effective.

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• Strategic benchmarking.

This compares strategies, business approaches and business

models in order to strengthen your own strategic planning and
determine your strategic priorities. The idea is to understand what
strategies underpin successful companies (or teams or business units)
and then compare these strategies with your own to identify ways you
can be more competitive.

• Performance benchmarking

This involves collecting information on how well you’re doing in

terms of outcomes and comparing these outcomes internally or
externally. This can also refer to functional performance benchmarking,
such as benchmarking the performance of the HR team or the
marketing team.

E. PARTICIPATORY PLANNING
• Participatory planning is:
➢ an urban planning paradigm that emphasizes involving the
entire community in the strategic and management
processes of urban planning; or, community-level planning
processes, urban or rural
➢ often considered as part of community development
➢ aims to harmonize views among all of its participants as well
as prevent conflict between opposing parties
➢ marginalized groups have an opportunity to participate in the
planning process
➢ a planning process that includes the people who will be
affected by the plans and those who will be asked to
implement them in all planning steps.
• Positive results of PARTICIPATORY Planning:
➢ Creativity
➢ Increase acceptance

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➢ Understanding of plans
➢ Commitment to the success of plans

III. What Have I Learned

POST TEST: Answer the following questions.

Write your answers in your activity notebook.

1. What are the useful planning tools and techniques that are currently
used in many organizations?
2. Which is a better planning tool: forecasting or benchmarking?
Explain your answer.
3. Why are trigger points important in contingency plans?
4. Name some examples of changes and challenges, other than those
mentioned in this lesson, that may occur in future scenarios.
5. Plan a certain event, it can be a special occasion in your life, using
forecasting. List down all the importance details.

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DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

JOELYZA M. ARCILLA, EdD

Assistant Schools Division Superintendent

MARCELO K. PALISPIS, EdD

Assistant Schools Division Superintendent

NILITA L. RAGAY, EdD

OIC - Assistant Schools Division Superintendent
CID Chief

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ELISA L. BAGUIO, EdD

Division Education Program Supervisor – MATHEMATICS

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

CHONA V. BONTIGAO
Writer

CHRISTY BLEZEILLE L. POCONG

Illustrator/Lay-out Artist
_________________________________
ALPHA QA TEAM
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD TOLENTINO
DIDITH T. YAP

BETA QA TEAM
ELIZABETH A. ALAP-AP
EPIFANIA Q. CUEVAS
NIDA BARBARA S. SUASIN
VRENDIE P. SYGACO
MELBA S. TUMARONG
HANNAHLY I. UMALI

ENHANCEMENT TEAM
BB. BOY JONNEL C. DIAZ
JEE LIZA T. INGUITO
SALVADOR G. AGUILAR JR

DISCLAIMER

The information, activities and assessments used in this material are designed to provide accessible learning modality to the
teachers and learners of the Division of Negros Oriental. The contents of this module are carefully researched, chosen, and evaluated to
comply with the set learning competencies. The writers and evaluator were clearly instructed to give credits to information and illustrations
used to substantiate this material. All content is subject to copyright and may not be reproduced in any form without expressed wri tten
consent from the division.

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REFERENCES

Planning Techniques. n. d. Retrieved from

https://www.sciencedirect.com/topics/socialsciences/planni
ng-technique

Forecasting. n. d. Retrieved from

https://www.yourarticlelibrary.com/management/forecastin
g/forecasting-roles-steps-and-techniques-management-
function

What is a business contingency plan. n.d. Retrieved from

https://www.rockdovesolutions.com/blog/what-is-a-business-
contingency-plan-how-to-create-one

Cabrera, H., Altarejos, A. and Benjamin, R. 2016. Organization And

Management. Pasig: Vibal Group.

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SYNOPSIS AND ABOUT THE AUTHOR

SYNOPSIS ANSWER KEY

This Self Learning Kit

(SLK) is all about planning
techniques and its
applications.
This SLK covers the
different planning
techniques and examples
of situations that these
techniques can be
applied.
This SLK helps one
understand why planning
techniques are used in
many organizations and
how helpful these
techniques are for the
success of the firm.

AUTHOR
CHONA V. BONTIGAO received her Certificate of Professional
Education last March 2016 at St. Francis College of Guihulngan,
Guihulngan City, Negros Oriental. She was a graduate of
Bachelor of Science in Business Administration major in
Management Accounting at Asian College of Science and
Technology Dumaguete City last 2006. She is currently pursuing
her Master’s Degree major in Educational Management at Far
East Advent School of Theology International, Inc., in
Kabangkalan City, Negros Occidental. She is currently teaching
at Jimalalud National High School, Jimalalud Negros Oriental
handling Accountancy, Business and Management (ABM)
subjects. She is also the Career Guidance/ Guidance
coordinator of the said school.

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