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Revised Module 5 Q1 Organizationa and Management
Revised Module 5 Q1 Organizationa and Management
&
MANAGEMENT
Quarter 1 -Module 5
Planning
Jesilo O. Crisostomo
Compiler/Contextualizer
Organization and Management - Grade 11
Quarter 1 – Module 5: Planning
Republic Act 8293, section 176 states that: No copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the government
agency or office wherein the work is created shall be necessary for exploitation of such
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the payment of royalties.
Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
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materials from their respective copyright owners. The publisher and authors do not
represent nor claim ownership over them.
Editors / Reviewers:
Alice Ganar, Anna Hazel Vasaya, John Paul Kapuno, Joy Andilab,
Remus C. Mariñas, Daisy Von Dy and Florenda Geyroza
Illustrator:
Jesilo O. Crisostomo- Teacher 1- Apas National High School
Management Team:
RHEA MAR A. ANGTUD, EdD
Schools Division Superintendent
VANESSA L. HARAYO,LLB
EPS-in-charge of LRMS
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First Quarter, Week 5 - Module 5
Planning
_____________________________________________________________________________________________
Content Standard : The learners have an understanding on the importance of
planning concepts and business success.
Performance Standard : The learners shall be able to formulate effective plans for a
specific business endeavor.
Competency/Code : Discuss the nature of planning.
: Compare and contrast the different types of plans.
: Describe planning at different levels in the firm.
(ABM_AOM11-Ie-g-10) (ABM_AOM11-Ie-g-11)
(ABM_AOM11-Ie-g-12)
_____________________________________________________________________________________
What I Know
Multiple Choice: Choose the letter of the correct answer and write it on a separate
sheet of paper.
________1. It is an intellectual process of thinking resorted to decide a course of action
which helps achieve the pre-determined objectives of the organization in the
future.
a. Leading c. Organizing
b. Planning d. Staffing
________3. It is a written document that states the quantity of output a company must
produce in broad terms and by product family.
a. Marketing Plan c. Human Resource Plan
b. Financial Plan d. Production Plan
________4. It is a document that summarizes the current financial situation of the firm,
analyzes financial needs and recommends a direction for financial activities.
a. Marketing Plan c. Human Resource Plan
b. Financial Plan d. Production Plan
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________5. It is a document that indicates the manpower needs of a company in terms
of quantity and quality and based on the requirements of the company’s
strategic plan.
a. Marketing Plan c. Human Resource Plan
b. Financial Plan d. Production Plan
________9. These are plans that are used again and again, and they focus on
managerial situation that recur repeatedly.
a. Standing Plan c. Program Plan
b. Budget Plan d. Single-Use Plan
_______10. These plans are specifically developed to implement courses of action that
are relatively unique and are unlikely to be repeated.
a. Standing Plan c. Program Plan
b. Budget Plan d. Single-Use Plan
After going through this module, you are expected to be able to:
Discuss the nature of planning
Compare and contrast the different types of plans
Describe planning at different levels in the firm.
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Lesson
Nature of Planning
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Planning is the first and foremost function of management. It is an intellectual
process of thinking resorted to decide a course of action which helps achieve the pre-
determined objectives of the organization in the future. It is also the fundamental
function of management and all other functions like leading, staffing, organizing, and
controlling must reflects planning function of management. It is most important for
higher level, but this function is performed by managers at their respective jobs.
What’s In
Image 1.
There is a meaning embedded in there: Planning is just an abstract act until
you execute the plan. It is in this line also that the greatest waste in this world is
working without plan. To plan effectively, we must first appreciate the fundamental
nature of planning. We need to understand the purpose, environment, and
characteristics of the process. Planning are complicated like recipes. There are lot of
ingredients you need to keep track and place in the right order.
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ACTIVITY: Plan Your Day
Instruction: Below is an activity table wherein you need to input your daily activity.
Fill-out the table to guide you in accomplishing your daily goal. You may copy the
template on a separate sheet for your answers.
The activity above is a simple process that starts with careful consideration of
what you want to achieve and ends with a lot of hard work to do it. There are some
very well-defined steps that transcend the specifics of each goal. Knowing these steps
will allow you to formulate goals than you can accomplish.
What’s New
M Make it Measurable How will you know when you have accomplished
your goal?
A Make it Attainable How can the goal be accomplished?
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Goal setting is a powerful process of thinking that managers want to
accomplish, and these goals need to be SMART! SMART is an acronym and process for
evaluating, whether the goals you set, and the plans you put into motion for your
business or activities are complete. According to this device, business goals should
always be Specific, Measurable, Attainable/Achievable, Relevant/Realistic and Time-
bound.
What Is It
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2. Primacy of planning
Planning is the primary management function, the one that precedes is the
basis for organizing, influencing, staffing, leading, and controlling functions of
managers. This can be shown in Figure 1.
What kind of
organization structure?
Furnishing standards of
control
3. Pervasiveness of Planning
Planning is a function of all managers, although the character and breadth of
planning will vary with their authority and with the nature of policies and plans
outlined by their superiors. It is virtually impossible to circumscribe the area of
choice where they can exercise no discretion, and unless they have some
planning responsibility, it is doubtful that they are truly managers.
4. Efficiency of Plans
The efficiency of a plan is measured by the amount it contributes to the
purpose and objectives as offset by the costs and other unsought consequences
required to formulate and operate it. A plan can contribute to the attainment of
objectives, but at too high or unnecessarily high costs. This concept of
efficiency implies the normal ratio of inputs and outputs in terms of pounds,
labor hours, or units of production to include such value as individual and
group satisfactions.
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The Importance of Planning
Why Planning is important? Now, let us understand why planning is important
for Organization.
1. Increases efficiency – Planning makes optimum utilization of all available
resources. It helps to reduce the wastage of valuable resources. It aims to
give the highest returns at the lowest possible cost. Thus, it increases the
overall efficiency.
2. Reduce business-related risks – There are many risks involved in any
modern business. Planning helps to forecast these business-related risks
and take the necessary precautions to prepare for future uncertainties in
advance. Thus, it reduces business risks.
3. Facilitates proper coordination – Planning in 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.
4. Aids in Organizing – Organizing means to bring together all available
resources. Organizing is not possible without planning since planning tells
us the number of resources required and when are they needed. It means
that planning aids in organizing in an efficient way.
5. Gives the right direction - Direction means to give proper information,
accurate instructions, and useful guidance to the subordinates. Giving the
right direction is impossible without planning. Planning tells us what to do,
how to do it and when to do it.
6. Keeps good control – The actual performance of an employee is compared
with the plans and deviations. It is impossible to achieve such control
without the right planning. Therefore, planning becomes necessary to keep
good control.
7. Helps to achieve objectives – Every organization has certain objectives or
targets. It keeps working hard to fulfill these goals. Planning helps an
organization to achieve these aims, but with some ease and promptness.
Planning also helps an organization to avoid doing some random activities.
8. Motivates personnel – A god 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.
9. Encourages creativity and innovation – Planning helps managers to
express their creativity and innovation. It brings satisfaction to the managers
and eventually a success to the organization.
10. Helps in decision-making – A manager makes different plans. Selecting or
choosing something means to take a decision. Decision-making is facilitated
by planning.
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Planning function has four important goals:
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Types of Plans
Plans are of different types. They may be classified in terms of functional areas,
time horizon, and frequency of use.
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1. Functional Area Plans. Plans may be prepared according to the needs of the
different functional areas. Among the types of functional area plans are the
following:
a) Marketing Plan – is a written document or blueprint for implementing and
controlling an organization’s marketing activities related to a strategy.
b) Production Plan – is a written document that states the quantity of output a
company must produce in broad terms and by product family.
c) Financial Plan – is a document that summarizes the current financial situation
of the firm, analyzes financial needs, and recommends a direction for financial
activities.
d) Human Resources Plan – is a document that indicates the human resource
needs of a company detailed in terms of quantity and quality and based on the
requirements of the company’s strategic plan.
2. Plans with Time Horizon. Plans with time horizon of the following:
a) Short-Range Plans – are plans intended to cover a period of less than one year.
First line supervisors are mostly concerned with these plans.
b) Long-Range Plans – are plans to cover a time span of more than one year.
Middle and top management mostly undertake these.
3. Plans with Varied Frequency of Use. According to frequency of use, plans may be
classified as:
a) Standing Plans. These are plans that are used again and again, and they focus
on managerial situation that recur repeatedly. Standing plans may be further
classified as follows:
i. Policies – refer to broad guidelines used by managers to help make
decisions and take actions on specific circumstances.
ii. Procedures – are plans that describe the exact series of actions to be
taken in each given situation.
iii. Rules – are statements that either require or forbid a certain action.
b) Single-Use Plans. These plans are specifically developed to implement courses of
action that are relatively unique and are unlikely to be repeated. Single-use
plans may be further classified as follows:
i. Budget Plan – sets forth the projected expenditures for a certain activity
and explains where the required funds will come from.
ii. Program Plan – is designed to coordinate a large set of activities.
iii. Project Plan – is usually more limited in scope than a program plan and
is sometimes prepared to support a program.
Planning at Different Levels in the Firm
Different level in the firm are all engaged in planning. The resulting plans must
be related to one another and directed toward the same goals. Bateman and Snell
(2008) stated that an effective strategy provides a basis for answering 5 broad
questions about how organizations will meet its goals/objectives.
Below are the five (5) broad questions of Bateman and Snell:
1) Where will we be active?
2) How will we get there?
3) How will we win in the marketplace?
4) How fast will we move and in what sequence will we make changes?
5) How will we obtain financial returns?
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The Three Levels of Management
The three levels of management provide a separation between the managerial
positions of the organization. The administrative rank of an organization worker
determines the extent of authority, the status enjoyed, and the chain of command that
can be controlled by the worker.
1) Top-Level Management/Administrative level
They coordinate services and are keen on planning.
They control the management goals and policies and the ultimate source
of authority of the organization.
They are accountable to the shareholders for the performance of the
organization.
Top-level management is made up of the Board of Directors, the Chief
Executive Officer (CEO), the Chief Financial Officer (CFO), and the Chief
Operating Officer (COO) or the President and the Vice President.
2) Middle Level of Management
They are subordinates of the top-level management and are responsible
for the organization and direction of the low-level management.
They oversee the employment and training of the lower levels.
They coordinate the responsibilities of the sub-unit of the firm and
access the efficiency of lower-level managers.
Middle-level managers are semi-executives and are made up of the
departmental managers and branch manager. They could be divided into
senior and senior middle-level management if the organization is big.
3) Lower Level of Management
They are the first line of managers as they feature at the base of the
operations.
They are the intermediary and they solve issues amidst the workers and
are responsible for the maintenance of appropriate relationships within
the organization.
They organize the essential machines, tools, and other materials required
by the employees to get their job done.
Lower level managers are made up of the foreman, the line leader, the
shift leader, the section head, the head nurse, and supervisors.
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2) Tactical Planning – Middle Level Management Planning
It is a set of procedures for changing or transforming broad strategic
goals and plans into specific that are applicable and needed in one
unit/portion of the organization.
It is focused on major actions that must be done by a unit to contribute
its share for the achievement of the strategic plan.
3) Operational Planning – Frontline/Lower-Level Management Planning
Identify specific procedures and processes required at the lower levels of
the organization.
It also involves routine tasks or tasks repeatedly done by the
organization lower level units.
CEO’s or company presidents must see that all communication lines in their
organization are open, excellent dissemination of information to all levels, and
that they are aware of everything that is happening in the firm.
What’s More
_________2. A management level that strategizes the plans of the enterprise and align
competent managers to the Department or middle level to carry them out.
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_________3. A management level that carries out the plans of the organization
according to policies and directives laid down by the top-level
management
_________7. A management level that ensures quality and is responsible for the
production quantity.
_________8. A management level that communicate the goals and objective of the firm
laid down by the higher level.
_________10. A management level that give periodic reports of the workers to the
higher-level managers.
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What I Can Do
For Example
Skilled Delivery of Products Delighted
services customers
Repeat
Business
Process
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ACTIVITY 2. The Planner
Instruction: Below is an actual process in one of the food processing plant in Cebu.
Being one of the front-line managers, plan the following words for you to achieve the
required customer output.
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Assessment
Multiple Choice: Choose the letter of the correct answer and write it on a separate
sheet of paper.
________1 . It is a set of procedures for changing or transforming broad strategic goals
and plans into specific that are applicable and needed in one unit/portion
of the organization.
a. Strategic Planning c. Operational Planning
b. Tactical Planning d. Organizational Planning
________2. These plans are specifically developed to implement courses of action that
are relatively unique and are unlikely to be repeated.
a. Standing Plan c. Program Plan
b. Budget Plan d. Single-Use Plan
________3. It is a written document that states the quantity of output a company must
produce in broad terms and by product family.
a. Marketing Plan c. Human Resource Plan
b. Financial Plan d. Production Plan
________5. These are plans that are used again and again, and they focus on
managerial situation that recur repeatedly.
a. Standing Plan c. Program Plan
b. Budget Plan d. Single-Use Plan
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________8. It is a document that summarizes the current financial situation of the firm,
analyzes financial needs and recommends a direction for financial activities.
a. Marketing Plan c. Human Resource Plan
b. Financial Plan d. Production Plan
_______11. refer to broad guidelines used by managers to help make decisions and
take actions on specific circumstances.
a. Policies c. Project
b. Procedures d. Rule
_______12. It is a plan that describe the exact series of actions to be taken in each
given situation.
a. Policies c. Project
b. Procedures d. Rule
_______14. It is a plan that intends to cover a period of less than one year.
a. Short-Range Plan c. Budget Plan
b. Long-Range Plan d. Limited Plan
_______15. It is a plan that intends to cover a time span of more than one year.
a. Short-Range Plan c. Budget Plan
b. Long-Range Plan d. Lay-way Plan
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Answer Key
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References:
Textbook:
(Roberto G. Medina, Business Organization and Management. Rex Bookstore. Chapter
6. Planning)
Online sources:
(idiotREET, (2012). Definition and nature of planning. August 20, 2020,
http://tpcbbapm.blogspot.com/2012/08/definition-nature-of-planning.html)
(Planning- Nature, Elements, Processes and Approach. August 20, 2020
https://bbamantra.com/planning-elements-process-approach)
(Narayana Rao, (2019). Nature and Purpose of Planning. August 21, 2020,
http://nraomtr.blogspot.com/2011/12/nature-and-purpose-of-planning-review.html)
(Basic Concept of Planning, August 21, 2020,
http://www.pathways.cu.edu.eg/subpages/downloads/Planning_Chapter_1.pdf)
(Baculi Thricia, (2018). Planning at Different Levels of the Firm. August 21, 2020,
https://prezi.com/p/f1llxol0vjk_/chapter-3-lesson-3-planning-at-different-levels-in-
the-firm/)
(Sonia Kukreja, Levels of Management. August 23, 2020,
https://www.managementstudyhq.com/levels-of-management-and-functions.html)
(SMART Planning. (2015), September 15, 2020, https://www.iclasspro.com/blog-
article/business-management/smart-planning-defining-better-goals-for-your-business)
(Gaurave Akrani, (2012). Importance of Planning, September 15, 2019,
https://kalyan-city.blogspot.com/2012/02/importance-of-planning-why-planning-
is.html)
Illustrations:
(Basic Concept of Planning, August 21, 2020,
http://www.pathways.cu.edu.eg/subpages/downloads/Planning_Chapter_1.pdf
(Roberto G. Medina, Business Organization and Management. Rex Bookstore. Page 82)
Image:
Image 1, https://www.brainyquote.com/quotes/margaret_thatcher_382871
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