Module 4

Republic of the Philippines
PALAWAN STATE UNIVERSITY

Bachelor Of Secondary Education
CCRD-QUEZON
Litera Literacy
Traini
cy
Environmental
Awareness
Numeracy
Service
ng
Values
NSTP II
“A Challenge to Make a
Difference”
JEN ALBERT P.
GENER NSTP 2/LTS 2: Literacy Training Service 2
Ms. Jen Albert P. Gener- Instructor 1
Instructor
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Chapter 4
PLANNING
INTRODUCTION
Planning is the process of thinking about the activities required to achieve a desired goal. It is the
first and foremost activity to achieve desired results. In this chapter, you will learn why planning is important
and the essential characteristics of a sound plan.
Ms. Jen Albert P. Gener- Instructor NSTP 2/LTS 2: Literacy Training Service 2 2
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Factors Why Planning is Important

❖ Increases efficiency - Planning makes optimum utilization of all available resources. It
helps to reduce wastage of important resources and avoids their duplication. It aims to give
highest returns at the lowest possible cost. Planning thus increases the overall efficiency.
Efficient firms maximise outputs from given inputs, and so minimise their costs. By
improving efficiency a business can reduce its costs and improve its competitiveness.
Ex. An increase in productivity from 20 tables to 25 tables, without any increase in costs,
means the firm has improved efficiency.
Source: https://www.google.com/search?q=Increases+efficiency&sxsrf=APq-WBuwq-
_InRUoGUiNs9mhauMRR4DREw:1649036399023&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiw9qOmo_n2AhUD-
2EKHTc3DZkQ_AUoAXoECAEQAw&biw=1366&bih=657&dpr=1#imgrc=PJEEEfCr9R48NM&imgdii=mAOwITe_APUeaM
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❖ Reduces business – related risks – There are many risks involved in any modern
business. Planning helps to forecast these businesses – related risks. It also helps to take
the necessary precautions to avoid these risks. Thus, planning reduces business risks.
7 tips for reducing expenses in your business
1. Make a plan
You need to evaluate where your business is now and where you want to take it in the
future. A well thought-out road map is essential to properly forecast expenses and provide
for contingencies.
“For instance, if you intend to pursue a new market next year, you have to build the related
expenses into your forecast,” Brison says.
2. Track expenses diligently

You have to understand your historic costs before planning for the future. This requires
gathering data in an effective and efficient way.
“Tracking your costs shouldn’t be an afterthought, it needs to be an integral part of your
ongoing operations,” Brison says.
3. Benchmark against your industry

Establish metrics that are meaningful to your business and comparable to those used by
other companies in your industry.
“If you see you’re spending more in certain categories, then drill down, investigate why and
take appropriate action to reduce those costs to industry norms.”
4. Manage variable costs

Look at your company’s past variable expenses and calculate what percentage of sales
they represent. Historic percentages provide both a good indictor of potential future costs
and a benchmark to use in keeping those costs in line with selling activity.
5. Get tough on fixed costs

People tend to become complacent about fixed costs because they are generally recurrent
and often reflect long-standing relationships with suppliers. But you should periodically test
the market to see if you can get a better deal from competing suppliers.
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“It’s good practice to get two or three quotes regularly,” Brison says. “Whether it’s by putting
out a request for proposal (RFP) or a less formal method, it’s important to send out the
message that you are always watching your costs.”
6. Invest in technology
Explore new technologies that may help your business improve efficiency, increase
productivity and reduce costs.
For example, many companies are now using cloud computing systems as opposed to in-
house hardware that can be relatively expensive to buy and maintain.
7. Offer incentives to staff

Make people accountable for costs and establish appropriate rewards for employees who
find ways to reduce expenses. This helps to create a zero waste culture within your
organization. It also helps motivate staff members charged with implementing expense-
reduction initiatives to stay on task and be creative.
“I like to explain overall expense management in three Rs: Research, review and respond,”
Brison says. “It basically boils down to careful planning (research), making tweaks and
adjustments as they’re needed (review) and rolling up your sleeves to do the necessary and
ongoing hard work to achieve the plan (respond).”
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❖ Facilitates proper coordination – Often, the plans of all departments of an organization

are well coordinated with each other. Similarly, the short – term, medium term, and long –
term plans of an organization are also coordinated with each other. Such proper
coordination is possible only because of efficient planning.
Question
How does planning help coordination, facilitate decision making and promote creativity?
Solution
A) Facilitates proper coordination: Often, the plans of all departments of an organization are
well coordinated with each other. Similarly, the short-term, medium-term and long-term
plans of an organization are also coordinated with each other. Such proper coordination is
possible only because of efficient planning.
B) Helps in decision-making: A manager makes many different plans. Then the manager
selects or chooses the best of all available strategies. Making a selection or choosing
something means to take a decision. So, decision-making is facilitated by planning.
C) Encourages creativity and innovation: Planning helps managers to express their creativity
and innovation. It brings satisfaction to the managers and eventually success to the
organization.
Source: https://www.google.com/search?q=Facilitates+proper+coordination+&tbm
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❖ Aids in organizing – Organizing means to bring together all available resources.

Organizing cannot be done without planning. This is because planning tells us how much
resources are required, when it is required, so on. This means that planning aids in
organizing.
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❖ Gives right direction – It means to give proper information, accurate instructions and right
guidance to the subordinates. Direction cannot be done without planning. This is because
planning tells us what to do, how to do it and when to do it. therefore, planning helps to give
right direction.
COMMON If you point someone in the right direction, you give them some information to
help them achieve something. I hope what I say in this book will point sufferers of the
disease in the right direction and will enable others to avoid getting it.
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❖ Keeps good control – In control, the actual performance of an employee or member is

compared with the plans, and deviations (if any) are found out and corrected. It is
impossible to achieve such control without right planning. Therefore, planning becomes
important to keep a good control.
Keeps good control: With control, the actual performance of an employee is compared with
the plans, and deviations (if any) are found out and corrected. It is impossible to achieve
such control without the right planning.
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❖ Helps to achieve objectives – Every organization has certain goals or objectives or

targets. It keeps working hard to fulfil these objectives. Planning helps an
organization/community to achieve these objectives but with some ease and promptness.
Planning also helps an organization to avoid doing some random activities.
How to Help Organizations Achieve Their

Objectives
by Steve Milano
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Setting goals without specific plans to reach them is like taking an address with you on a
trip without looking up the directions to get there. Goals and objectives are important to
help take small businesses to the next level, but each department’s strategy should be
supported by specific tactics. Creating to-do lists and project plans will help you meet the
goals you set for your company.
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Set Specific Objectives

The more specific you can make your goals, the easier it will be to develop plans to
achieve them. For example, setting a goal of increasing sales is too general to help you
plan the strategies and tactics to do so. Even setting an objective of increasing sales by
15 percent is too vague. More specific goals would include increasing online sales,
increasing sales among a specific target customer group, increasing sales of specific
items in your product line or increase sales through the use of a referral or rebate
program.
Create Individual Plans
For each objective you set, create a step-by-step plan to reach it. For example, if your
goal is to increase online sales, create a plan that includes updating your website pages,
improving your online order processing software, boosting your social media and search
engine optimization efforts and creating advertising and promotions specifically targeted to
get customers to your website.
Track Results
Setting an end date for reaching your objective is only one deadline that’s important in
achieving goals. Set chronological benchmarks that help you track your results. This will
help you determine whether you are meeting your short-term goals or whether you need
to adjust your strategies and tactics. Hold weekly department meetings and review
monthly sales, production and financial reports.
Motivate Stakeholders
What’s good for the company is obviously good for employees, but if meeting a goal puts
extra money into an individual’s pocket, your key staff will be more motivated to get and
stay involved in helping you meet your objectives. Create a bonus system that rewards
workers who help you reach your goal. Be specific about how and when bonuses will be
paid, and set the benchmarks low enough that there is no question employees will earn
the bonus if you succeed. When creating a bonus program, set your budget by taking the
attitude that you want to pay the maximum because it’s worth it, in terms of the benefits
you’ll receive.
Use Experts
Don’t be afraid to admit you don’t know everything. Hire consultants who can help you
develop tactics for achieving your objectives. You don’t need to hire contractors long-term.
Meet with financial, sales, marketing, human resources, production and information
technology experts to review your goals, set realistic objectives and create specific plans
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for reaching them. This might require buying new equipment or software or training your
staff to handle added responsibilities.
❖ Motivates the personnel – a good plan provides various financial and non – financial
incentives to both managers and employees. These incentives motivate them to work hard
and achieve the objectives of the organization. Thus, planning through various incentives
helps to motivate the personnel of an organization.
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Motivated employees don't need to be told how to get things done, they take initiatives, are
eager to take up additional responsibilities, are innovative and go-getters. Motivated
employees ensure: There is a positive atmosphere within the organization. Co-workers are
happy and feel safe at work.
❖ Encourages creativity and innovation – Planning encourages leaders to express and/or

use their creativity and innovation. This brings satisfaction to the leaders and success to the
organization/community.
Smart, creative people brainstorming together can lead to new ideas as people are
introduced to diverse perspectives and pushed to think more deeply. Another benefit of
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collaboration is that people with different skills and knowledge can figure out creative ways
to combine their assets to solve problems.
❖ Helps in decision making – A leader makes many different plans. Then the leader selects
or chooses the best of all available plans. Doing a selection or choosing something means
to take a decision. So, decision making is facilitated by planning.
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Why good decision making helps
People make decisions all throughout their day, most of which are straightforward and don’t
require much thought. However, when situations are more complicated and have longer
term impacts, it’s easy to feel unsure or hesitant.
When faced with a tough decision it’s common to feel:
 overwhelmed
 stressed or anxious
 wound up
 pressured
 confused
 distracted
 tired
Because indecision can have a negative impact on how you’re feeling, it’s important to learn
strategies for making positive decisions in tough situations. While you may not be able to
guarantee the outcome of a decision before you make it, at least you can know you put a lot
of careful thought into it.
Tips for making decisions
Step 1. Don’t let stress get the better of you. It’s easy to feel stressed out and anxious when
you’re facing a tough choice. You might tend to rush your decisions without thinking them
through, or you avoid making a decision at all because the stress has put you off your
game. If you’re feeling anxious about a decision, try to manage your stress so that it doesn’t
cloud your thinking. Go for a walk on the beach. Hit up a yoga class or hang out with
friends.
Step 2. Give yourself some time (if possible). It’s hard to think clearly under pressure, and
sometimes your first idea isn’t always your best one. Give yourself the chance to sit on a
problem for a while so that you can process your options and feel confident about the
course of action you choose.
Step 3. Weigh the pros and cons. When faced with a big decision, sometimes we lose sight
of the big picture. Write a list of pros and cons for each course of action and then compare
them. Sometimes the cons aren’t nearly as bad as we imagine them to be, or the pros might
make your options more obvious.
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Step 4. Think about your goals and values. It’s important to be true to ourselves and what
we value in life. When you factor into a decision the things that are important to you, the
best option might become obvious. At any rate, you’re more likely to end up with an
outcome you’re happy with.
Step 5. Consider all the possibilities. Making a decision can result in several different
outcomes and not all of them may be obvious. When considering each option, don’t just list
the positives and negatives; write down any likely consequences.
Step 6. Talk it out. It can be helpful to get another person’s perspective on your issue,
particularly if they’ve faced a similar decision in their own life.
Step 7. Keep a diary. If you feel like you’re on a bit of an emotional rollercoaster, it might
help to keep track of your feelings by writing them down.
Step 8. Plan how you’ll tell others. If you think someone may have a bad response to your
decision, think through what their reaction is likely to be. Put yourself in their shoes to help
you think of a good way to manage the situation.
Step 9. Rethink your options. If you’re up against a lot of pressure over a decision, or there
are some new factors to consider, look over your options again. You might decide that your
original decision is still the best one, but give yourself the option of changing course. If a
decision no longer feels right for you, go through these steps again to figure out a better
solution.
What is sound plan?

A sound plan should have the following characteristics: Primacy: Planning is an important
managerial function that usually precedes other functions. Obviously, without setting the
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goals to be reached and the lines of actions to be followed, there is nothing to organize, to
direct, or to control in the enterprise.
ESSENTIAL CHARACTERISTICS OF A SOUND PLAN
✓ It should be based on clearly defined objectives.
✓ It must be simple and easily understandable.
✓ It should be flexible or adaptable to changing conditions.
✓ It must be balanced in all respects and should be reasonably comprehensive.
✓ It should provide standards for the evaluation of performance and actions.
✓ It should be economical, permit optimum use of available resources before creating new
authorities and new resources.
✓ It should be practicable or feasible and unambiguous. It should be precise as to its
nature and scope. ✓ It should be prepared with the consultation of concerned persons.
✓ Different plans must be properly integrated and harmonized with one another so as to
ensure unity or consistency in plans.
✓ It should provide for proper analysis and classification of actions.
REFERENCES
Book
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• NSTP 2 lesson book. Quilang A.B. et.al; Pg. 39 – 45

Web Search
• Retrieved from: https://images.app.goo.gl/goL16mtVbqUmAoYVA\

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Republic of the Philippines

PALAWAN STATE UNIVERSITY

Factors Why Planning is Important

2. Track expenses diligently

3. Benchmark against your industry

4. Manage variable costs

5. Get tough on fixed costs

7. Offer incentives to staff

❖ Facilitates proper coordination – Often, the plans of all departments of an organization

❖ Aids in organizing – Organizing means to bring together all available resources.

❖ Keeps good control – In control, the actual performance of an employee or member is

❖ Helps to achieve objectives – Every organization has certain goals or objectives or

How to Help Organizations Achieve Their

Set Specific Objectives

❖ Encourages creativity and innovation – Planning encourages leaders to express and/or

Why good decision making helps

When faced with a tough decision it’s common to feel:

Tips for making decisions

What is sound plan?

ESSENTIAL CHARACTERISTICS OF A SOUND PLAN

✓ It should be based on clearly defined objectives.

✓ It must be simple and easily understandable.

✓ It should be flexible or adaptable to changing conditions.

✓ It must be balanced in all respects and should be reasonably comprehensive.

✓ It should provide standards for the evaluation of performance and actions.

• NSTP 2 lesson book. Quilang A.B. et.al; Pg. 39 – 45

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