SHS

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Organization and Management SHS

Quarter 1 Module 6 - Planning: Different Types of Plans, Techniques and

Tools

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Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

Development Team of the Module

Writer: Glenda C. Bas

Editors: Elsa B. Regalado
Meriam L. Camila
Jinky A. Villareal
Reviewer: Jinky A. Villareal
Illustrator: Ryan B. Cerillo
Layout Artist: Glenda C. Bas
Cover Art: Jed Adra

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 PLANNING: DIFFERENT TYPES OF PLANS,
TECHNIQUES AND TOOLS

Today you are about to understand

the different types of planning as well as
the planning techniques and tools which
enable us to know what we need to do and
how are we going to do it through planning.

And, these are the things that you are about

to learn as you go through with the module:
compare and contrast the different types
of plans;
identify the different tools and techniques
of planning in an organization; and
identify application of the tools and
techniques in an organization.

Planning is somehow the blueprint or map to reach certain destination of our

wants.

Corporate Planning it evolves from the goals and strategies created by

Divisional Planning is concerned in the process of determining the scope of

Functional/Unit Planning it is the lowest level of planning which concerns the

individual departments of its set of feasible action plans to implement the division
plan.

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 Scenarios refer to the written description of a set of events suitable to occur in
the future that bears on organizational effectiveness.

Nominal Group Technique is a technique usually applied to a group of

knowledgeable people with different backgrounds and experiences whose
pooled skills and judgment are needed to identify desirable goals and strategies.

Simulation Planning Models is a computer simulation modeling which is used

to assist in the development of long and medium and short range plans.

Now, let us see how far

you know by answering the
questions below.

Direction: Read the statement carefully. Encircle the letter of your answer
corresponding to the correct word/s being described by the statement.

1. It is a type of planning that the line supervisors focus on planning for day to day
and month to month activities.
A. Corporate Planning C. Divisional Planning
B. Functional/Unit Planning D. Strategic Planning

2. This is said to be the blue print of activities in the business on what to be done
and when it is to be done.
A. Planning C. Directing
B. Organizing D. Controlling

3. A plan that deals with the ill-structured or non-repetitive problems and become
obsolete when the goal has been achieved.
A. Standing Plan C. Focus
B. Procedures D. Single-use plan

4. Sometimes referred as strategic planning for it covers the entire scale of

organizational activities from production up to sales and accounting.
A. Planning C. Corporate Planning
B. Divisional Planning D. Functional Planning

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5. The thinnest element; usually orders dealing with what is appropriate or not in
terms of behavior of members of an organization.
A. Strategies C. Policies
B. Rules D. Procedures

6. It is
managers to prevent the occurrence of unexpected events.
A. Nominal Group C. Simulation Planning Model
B. Scenarios D. Procedures

7. These are a group of knowledgeable persons who shared ideas on the matter at
hand for innovation, idea generation and creativity needed in the business.
A. Nominal Group C. Strategies
B. Simulation Planning Model D. Scenarios

Activity #1

Direction: Write down your greatest dreams in life in the thinking bubble below. How
are you going to reach your goal?

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 In life, we are confronted with so many things that we need to
plan out in order to accomplish them as desired. Therefore, planning is
somehow our blueprint or map to reach certain destination of our
wants.

According to David Halt, planning is the process of def

Objectives and how it will achieve them like
. In an organization, planning is not solely done by the top management
but by other levels in the organization as well to be prepared of what might arise in
the future.

Planning can be done in a formal or informal way. Formal Planning uses

systematic criteria and rigorous investigation to establish objectives, decide on
activities and formally document organizational expectation while Informal Planning
uses intuitive ideas in deciding and on the activities needed to achieve them without
rigorous and systematic investigation. Some managers use formal while the others
use informal planning, but still it is safer and wiser to use formal plan to avoid, or at
least, lessen the errors that the organization will face.

Planning is a process that involves techniques and tools and comes from
different types such as corporate, divisional or business, unit or functional
plans.

Type of Plan Organizational Time Focus Elements Repetitiveness

Level

Corporate Executive Level Long Total Strategies, Standing plans

Planning range Organization
planning Policies

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Divisional Middle- Long Divisional or Strategies, Standing plans
Planning Management range Business
Level planning, Policies,

Medium Procedures
range
planning

Unit Planning First-Line Short Unit, Policies, Standing plans

Management range Function or
planning Department Procedure,

Rules

For further understanding about

the Different Types of Plan
according to its Dimension,
read the discussion below.

Corporate Planning or Strategic planning, it evolves from the goals and

management and they are usually long
term in nature. It covers the entire organizational activities. Thus, it sets the
foundation of the organization in terms of all plans, policies and strategies.

Divisional or Business Planning also referred to as Tactical planning

concerns the process of determining the divisional actions that will satisfy the
-goal within its defined area or
responsibility and establish policies and budget to attain these goals.

Functional or Unit Planning or commonly called as Operational planning is the

lowest level of planning. At this level, department managers or first-line
supervisors develop a set of feasible action plan and focus on planning for a day
to day activity to implement the division plans. This uses short-range actions and
adheres to planned schedules and budgets.

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 Time Frame or Length of the planning horizon can be long range, medium
range or short range planning.
Long range deals with decisions for broad technological and
competitive aspects of the organization which might extend up to
fifteen years.
Medium or intermediate range deals with plans that are more
detailed compare to long range since the time span shorter and
concerns the specific and basic functions of the organization.
This is between two to five years.
Short Range is an extension of long range planning and usually
extends to about one year and includes more specific plans with
respect to plant location, work methods, inventory and controls
employee training and the like.

Elements. There are different planning elements that are involved in the
planning process which depends upon the activity involved.

Strategies involve choices of particular actions by the

organization to achieve stated goals.

Policies limit the behavior or organizational members

towards achieving the goals. They are guidelines of
the organization that are useful in decision making.

Procedures are narrower in terms of application in the

organization. It only tends to involve departmental
activities such as hiring procedures and payment
procedures.

Rules are the thinnest element; these are usually

orders with what is appropriate or not in terms of
behavior of members in organizations. These are strict
advices for employees with specific functions like rules
on wearing uniform in the workplace, rules on deadline,
etc.

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 Repetitivenessplans
Repetitiveness planscan
canbe
becharacterized
characterizedbybythe
thedegree
degree
ofof sameness
sameness with
with which
which they
they are
are used
used byby the the
organization.
organization.

Standingplans
Standing plansare
arethose
thosedeveloped
developedbyby
theorganization
the organizationtotodirect
directactivities
activitiesthat
that
willoccur
will occurfrequently
frequentlyovertime.
overtime.

Single-useplans
Single-use plans deals
deal with with ill-
ill-structured
orstructured or non-repetitive
non-repetitive problems problems
to fit ato
fit a specific
specific situation
situation and mayandnotmay be not be
used
any more when goal has been achieved.

Focus refers to the concentration of a given plan in an

organization. It clarifies the function of a particular area where there is
more attention needed.

Think of a business that you desire to

own or to manage. Be able to supply the
needed data below. !

Activity #2 My Business

Proposed Business/Name of the Business:

______________________________________________________________
__________________________________________________________

Nature of the Business: (Description/Introduction of your business)

______________________________________________________________
_________________________________________________________
______________________________________________________________
__________________________________________________________

Tagline:
______________________________________________________________
__________________________________________________________

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Social benefits:
______________________________________________________________
__________________________________________________________
______________________________________________________________
__________________________________________________________

Planning Tools and Techniques

Due to fast changing environment, managers need to develop and adapt tools
and techniques that can be used for more effective and accurate plan in the
organization.

Scenarios refer to written description of a set of events suitable to occur in

what if
situation. Scenarios are intended to raise awareness in managers and to prevent
surprises. Alternate scenarios serve to broaden the outlook of managers to the
external forces that shape the future of the organization and sensitize them their
vulnerabilities and the opportunities that lie within other possible futures.

Nominal Group Technique it is a technique that is particularly useful for

planning task or elements that require a high degree of innovation, idea generation,
and creativity. The technique is usually applied to a group of knowledgeable people
with different backgrounds and experiences whose pooled skills and judgment are
needed to identify desirable goals and strategies.

Simulation Planning Models refer to computer simulation modeling by which

planners construct sophisticated models of an organization showing desired, reality-
based characteristics. With the aid of computer, managers can test certain
hypothesis on a wide range of decision at a much lower cost and with greater speed.
Computer simulation in planning is a quantitative modeling techniques developed to
test alternatives courses of action based on historical facts and managerial
assumptions. With the continuing knowledge and sophistication of computer usage,
simulation models in planning activities will become one of the dominant techniques
in the future.

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Practice Task 1

True or False. Write True if you believe that the statement is correct and
False if not. Indicate your answer in the space provide for.

____________1. Informal planning makes use of systematic criteria and rigorous

investigation.
____________2. Rules are the thinnest elements, these are usually order with what is
appropriate or not.
____________3. Divisional Planning is also referred as Tactical planning which established
.
____________4. Short range plan deals with decisions regarding the broad technological
and competitive aspects of the organization over a period of time.
_____________5. A standing plan is non-repetitive plan that cannot be used again in a
certain situation.
_____________6. Simulation Planning Models make use of a group of knowledgeable
people with different background and experience where their ideas and judgement greatly
contribute in the achievement of the desired goal of the organization.
_____________7.
in the past that raise awareness to managers to prevent happening in the future.

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Practice Task 2

Direction: Match column A with column B by connecting a line from the statements
in A to the corresponding word/s in B.

Column A Column B

1. These ought to know what is to be done A. Unit Planning

and when it is to be done.
B. Standing Plan
2. A plan that occurs frequently over time;
can be used several times as needs arises.
C. Planning
3. A type of plan that is also referred as
Strategic Planning. D. Simulation Planning
Models
4. It is a tool in planning that utilizes
computer simulation modelling.
E. Corporate Planning
5. It is also a type of plan that is also known
as Operation Planning which line supervisor F. Rules
focuses on day to day & month to month
activities.
G. Strategies
6. It is characterized by the degree of
sameness with which they are used by the H. Repetitiveness
organization.
7. Concerns choices of particular actions by
the organization to achieved stated goals.

You are now about to

complete the module by answering the
final test prepared for you.

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Post Test:

Direction: Encircle the letter from the given options that matches the statement.

1. A plan that is used in non-repetitive problems and become obsolete when the
goal has been achieved.
A. Single-use plan C. Standing plan
B. Strategic Planning D. Unit Planning

2. It is also known as strategic planning for it covers the entire scale of organizational
activities from production up to sales and accounting.
A. Corporate Planning C. Unit Planning
B. Divisional Planning D. Planning

3. It is a type of planning that the line supervisors focus on planning for day to day
and month to month activies.
A. Corporate Planning C. Unit Planning
B. Planning D. Strategic Planning

4. Other managers uses these

the occurrence of unexpected events in the future.
A. Scenarios C. Simulation Planning Model
B. Nominal Group Technique D. Procedures

5. This said to be the blue print of activities in the business on what to be done and
when it is to be done.
A. Organizing C. Planning
B. Directing D. Controlling

6. A technique that uses group of knowledgeable person who shared ideas on the
matter at hand for innovation, idea generation and creativity needed in the business.
A. Scenarios C. Strategies
B. Nominal Group Techniques D. Simulation Technique Model

7. These are the thinnest element; these are usually orders dealing with what is
appropriate or not in terms of behavior of members of an organization.
A. Rules C. Policies
B. Strategies D. Procedures

8. A nature of planning that uses systematic criteria, rigorous investigation and

careful analysis.
A. Functional Planning C. Formal Planning
B. Corporate Planning D. Informal Planning
9. This is characterized by the degree of sameness with which they are used by the
organization.
A. Elements C. Focus
B. Repetitiveness D. Time

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10. This planning usually extend to about one year and include more specific plans
with respect to plant location, work methods, inventory controls and employee.
A. Time C. Short range plan
B. Long range plan D. Middle/Intermediate range

Based from the nature of your business, please supply the data below which
concerns with the three basic economic problems:

a. What to produce? (introduce your product/s)

b. How to produce? (ways to produce your product/s)
c. For whom to produce? (who are your target customers?)

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