You are on page 1of 50

P LA N N IN G

PLANNING TECHNICAL ACTIVITIES

Prepared by:

Abitona, Christian
Aclan, Florenzo Miguel
Andal, Vincent Louie
Atienza, Twinkle Faith
Barbosa, Gilbertson
V3A

 If planning an organization is to be
pursued vigorously, PLANNING will
constitute the MOST important activity.
Managers who plan are afforded with the
opportunity to carefully analyze situations
which directly contribute to effective
decision-making.

TH E N ATU RE O F PLAN N IN G

 PLANNING – is undertaken to
MINIMIZE mistakes in decision
making.
 PLAN – output of planning
 provides methodical way of
achieving desired results.
 without the plan some minor tasks
ma be afforded major attention
which may later on, hinder the
accomplishment of objectives.

PLANNING DEFINED

 Nickles and others

 “the management function that involves
anticipating future trends and determining the
best strategies and tactics to achieve
organizational objectives.”

- relates the future to what could be decided
now.

PLANNING DEFINED

 Aldag and Stearns

 “the selection and sequential ordering of tasks
required to achieve an organizational goal.”

 - centers on the activity required to accomplish
the goals.

and the standards to which it will be done.”  -provides a better guide on how to effectively perform this vital activity . who will do it. when and how it will be done. where.PLANNING DEFINED  Cole and Hamilton  “deciding what will be done.

it will suffice to define planning as selecting the best course of action so that the desired result may be achieved. . It must be stressed that the desired result takes first priority and the course of action chosen is the means to realize the goal.PLANNING DEFINED  For our purpose.

P LA N N IN G AT V A R IO U S M A N A G EM EN T LEV ELS .

Planning Activities Undertaken At Various Levels:  1. Top Management Level – Strategic Planning  2. Middle Management Level – Intermediate Planning  3. Lower Management Level – Operational Planning .

Strategic Planning  The Process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. .

.Intermediate Planning  The process of determining the contributions that subunits can make with allocated resources.

.Operational Planning  The process of determining how specific task can best be accomplished on time with available resources.

.

.

TH E P LA N N IN G P R O C ESS .

task lists and schedules required to achieve the objectives of a business. The planning process is a fundamental function of management and should result in the best possible degree of need satisfaction given the resources available .Planning Process  The development of goals. strategies.

or unit goals  2. setting standards . Developing Strategies or tactics to reach those goals  3. divisional. determining resources needed  4. setting organizational.The Planning Process  Planning involves the following:  1.

Exam ple ofG oals.By O rganizationalLevel Organizational Level Example of Goal Company To attain a return of 25% Buenavista Construction Corporation To increase the number Division of projects undertaken by the company Project Managem etDivision To increase the number Unit of project engineers .

 Goals my be defined as:  “Precise statement of results sought. where possible” . quantified in time and magnitude.

The ways to realize the goals are called strategies. the next task is to devise some means to realize them.  Strategy “a course of action aimed at ensuring that the organization will achieve its objectives” .D eveloping Strategies or Tactics to reach goals  After determining the goals.

 Tactic “a short-term action taken by management to adjust to negative internal or external influences” .

a general statement of needed resources will suffice.D eterm ining Resources N eeded  To satisfy strategic requirements. .

Setting Standards  “a quantitative or qualitative measuring device designed to help monitor the performances of people. or processes” . capital goods.

TYPES O F PLAN S  Functional Area Plans  Plans with Time Horizon  Plans According to Frequency of Use .

FU N CTIO N AL AREA PLAN S  Plans classified in terms of functional areas such as: 1. . Marketing plan  Written document or blueprint for implementing and controlling an organization’s marketing activities related to a particular marketing strategy.

FU N CTIO N AL AREA PLAN S 2. Production plan  Written document that states the quantity of output a company must produce in broad terms and by product family. .

Financial plan  A document that summarizes the current financial situation of the firm. analyzes financial needs. . and recommends a direction for financial activities.FU N CTIO N AL AREA PLAN S 3.

Human resource management plan  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.FU N CTIO N AL AREA PLAN S 4. .

PLAN S W ITH TIM E H O RIZO N 1.  First-line supervisors are mostly concerned with these plans. . Short-range plans  Plans intended to cover a period of less than one year.

Long –range plans  Plans covering a time span of more than one year.PLAN S W ITH TIM E H O RIZO N 2.  These are mostly undertaken by middle and top management. .

PLANS ACCORDING TO FREQUENCY OF USE  Standing plans  Single-use plans .

and they focus on managerial situations that recur repeatedly.PLAN S ACCO RD IN G TO FREQUENCY O F USE  Standing Plans  plans used again and again. .

.PLAN S ACCORDING TO FREQ UEN CY O F USE  Classification of Standing Plans 1. Policies – they are broad guidelines to aid managers at every level in making decisions about recurring situations or function.

.PLAN S ACCO RD IN G TO FREQ UEN CY O F USE  Classification of Standing Plans 2. Procedures – they are plans that describe the exact series of actions to be taken in a given situation.

PLAN S ACCO RD IN G TO FREQ UEN CY O F USE  Classification of Standing Plans 3. . Rules – they are statements that either require or forbid a certain action.

PLAN S ACCORDING TO FREQ UEN CY O F USE  Single-Use Plans  plans specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated. .

PLAN S TO FREQ U EN CY O F U SE ACCORDN IG  Classification of Single-use Plans 1. Budget “A plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from.” (Weston and Brigham) .

PLAN S ACCO RD IN G TO FREQ UEN CY O F USE  Classification of Single-use Plans 2.designed to coordinate a large set of activities . Program .

A single use plan that is usually more limited in scope than a program and is sometimes prepared to support program. .PLAN S ACCO RD IN G TO FREQ UEN CY O F USE  Classification of Single-use Plans 3. Project .

PARTS O F TH E VARIO US FUN CTIO N AL AREA PLAN S .

Marketing Strategies 6. Marketing Objectives and Goals 5. 1. Situational Analysis and Target Market 4. Schedules and Budgets 8. Table of Contents 3. Financial Data and Control . Marketing Tactics 7. The Executive Summary 2.PARTS O F TH E VARIO US FUN CTIO N AL AREA PLAN S The Contents of the Marketing Plan  William Cohen maintains that the following must be included in the marketing plan.

How many employees are required 3.PARTS O F TH E VARIO US FUN CTIO N AL AREA PLAN S The Contents of the Production Plan 1. The amount of capacity the company must have 2. How much material must be purchased .

The cash budget 5. The set of pro forma (projected) financial statements 6. An analysis of the firm’s current financial condition 2. The capital budget 4. The external financing plan .PARTS O F TH E VARIO US FUN CTIO N AL AREA PLAN S The Contents of the Financial Plan 1. A sales forecast 3.

Training plan 4.PARTS O F TH E VARIO US FUN CTIO N AL AREA PLAN S The Contents of the Human Resources Plan 1. Retirement plan . Personnel requirements of the company 2. Plans for recruitment and selection 3.

” . Company or corporate mission** 2. Strategies ** refers to the “strategic statement that identifies why an organization exists.PARTS O F TH E STRATEG IC PLAN  The strategic plan must contain the following: 1. Objectives or goals 3. services. and its purpose as distinguished from other similar organizations in terms of products. its philosophy of management. and markets.

failure in planning occurs. .MAKING PLANNING EFFECTIVE Planning is done so that some desired results may be achieved. At times.

At times.MAKING PLANNING EFFECTIVE Planning is done so that some desired results may be achieved. . failure in planning occurs.

M AKIN G PLAN N IN G EFFECTIVE  Planning may be successful if the following are observed 1. Use aids to planning . Recognize the planning barriers 2.

Improper information 5. Focusing on the present at the expense of the future . Manager’s inability to plan 2. are follows: 1. Lack of commitment to the planning process 4.Planning  Planning barriers according to Plunkett and Attner. Improper planning process 3.

Involve others in the planning process . Gather as much information as possible  2.Planning  6. Too much reliance on the planning department  7. Concentrating on only the controllable variables  Among the aids to planning may be used are:  1. Develop multiple sources of information  3.