CHAPTER 3: PLANNING

TECHNICAL ACTIVITIES
$ 86, 400
IF MANAGING AN PLAN:
ORGANIZATION IS THE OUTPUT OF
TO BE PURSUED PLANNING,
VIGOROUSLY, PROVIDES A
PLANNING WILL METHODICAL WAY
CONSTITUTE THE OF ACHIEVING
MOST IMPORTANT DESIRED RESULTS. IT
ACTIVITY. SERVES A USEFUL
GUIDE.

PLANNING
 PLANNING DEFINED:
the management function that involves anticipating future trends and
determining the best strategies and tactics to achieve organizational
objectives

Nickels

the selection and sequential ordering of tasks required to

achieve an organizational goal

Aldag and Stearns

deciding what will be done, who will do it, where, when and
how it will be done and the standards to which it will be done

Cole and Hamilton

 PLANNING
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 coarse of action chosen is the
means to realize the goal
PLANNING AT VARIOUS MANAGEMENT
LEVELS:
 PLANNING AT VARIOUS MANAGEMENT
LEVELS:
Top Management Level
Strategic Planning
CEO, Presidents, VP
Middle Management Level
Intermediate Planning
Functional Managers, Dept Head
Lower Management Level
Operational Planning
Unit Managers, First Line Supervisors
refers to the process of determining the
major goals of the organization and the
policies and strategies for obtaining and
using resources to achieve those goals
refers to the process of determining
the contributions that sub-units can
make with allocated resources
refers to the process of
determining how specific tasks
can best be accomplished on
time with available resources
  SETTING ORGANIZATIONAL,
DIVISIONAL, OR UNIT GOALS
THE  DEVELOPING STRATEGIES OR TACTICS
PLANNING TO REACH GOALS

PROCESS  DETERMINING RESOURCES NEEDED

 SETTING STANDARDS
SETTING ORGANIZATIONAL,
DIVISIONAL, OR UNIT GOALS

The first task of the engineer manager is to provide a sense of direction

to his firm, to his division, or to his unit.

GOALS may be defined as the “precise statement of results sought,

quantified in time and magnitude, where possible”.
DEVELOPING STRATEGIES OR
TACTICS TO REACH GOALS

STRATEGY may be
The ways to realize
defined as “a course
the goals are called
of action aimed at
STRATEGIES and
ensuring that the
these will be the
organization will
concern of top
achieve its
management.
objectives”.
 DEVELOPING STRATEGIES OR
TACTICS TO REACH GOALS

TACTIC is a short-term action taken by management to

adjust to negative internal or external influences.
DETERMINING
RESOURCES
NEEDED

 To satisfy strategic
requirements, a general
statement of needed
resources will suffice.
SETTING STANDARDS

 STANDARD may be defined as “a quantitative or

qualitative measuring device designed to help monitor the
performances of people, capital goods, or processes”.
 TYPES OF PLANS

Plans with Time Plans with Varied

Functional Frequency of Use
Area Plans Horizon
Standing Single-use
Long- Plan
Marketing Plan
range
Plan Budget
Plan Policies
Production
Plan Procedures Program
Short-
Financial range
Plan Rules Project
Plan
Human
Resources
Plan
FUNCTIONAL AREA PLANS

1. Marketing Plan – the written document or blueprint for

implementing and controlling an organization’s marketing activities
related to a particular marketing strategy.

2. Production Plan – a written document that states the quantity of

output a company must produce in broad terms and by product family.
FUNCTIONAL AREA PLANS

3. Financial Plan – a document that summarizes the current financial situation of the
firm, analyzes financial needs, and recommends a direction for financial activities.

4. Human Resource Management Plan – 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.
 PLANS WITH TIME HORIZON

01 02
Short-range plans are plans Long-range plans are plans
intended to cover a period of covering a time span of
less than a year. more than a year.
Policies are broad guidelines to aid
managers at every level in making
decisions about recurring situations or
functions.

Procedures are plans that describe the

exact series of actions to be taken in a
STANDING
given situations. PLANS

Rules are statements that either require

or forbid a certain action.
 SINGLE-USE PLANS

• BUDGETS- A PLAN WHICH SETS FORTH THE PROJECTED

EXPENDITURE FOR A CERTAIN ACTIVITY AND EXPLAINS
WHERE THE REQUIRED FUNDS WILL COME FROM.
• PROGRAMS- DESIGNED TO COORDINATE A LARGE SET OF
ACTIVITIES.
• PROJECT- A SINGLE-USE PLAN THAT IS USUALLY MORE
LIMITED IN SCOPE THAN A PROGRAM AND IS SOMETIMES
PREPARED TO SUPPORT A PROGRAM.
 THE CONTENTS OF THE MARKETING PLAN

The Executive summary

PARTS OF
THE VARIOUS
FUNCTIONAL Table of contents
AREA PLANS
Situational Analysis and Target Market

Marketing objectives and goals

 THE CONTENTS OF THE MARKETING PLAN

Marketing Strategies
PARTS OF
THE VARIOUS
FUNCTIONAL Marketing Tactics
AREA PLANS
Schedule and Budgets

Financial Data and Control

The Contents of the Production Plan

Amount of capacity the How many employees How much material

company must have are required must be purchased
 Analysis of the firm’s current financial condition as
indicated by an analysis of the most recent statement

A sales forecast
The
Contents of The capital budget

the financial The cash budget

Plan A set of pro forma (or projected financial statements

The external financing plan

 Personnel requirement of the company

Contents of Plans for recruitment and selection

the Human
Resources Training plan
Plan
Retirement plan
 Company or corporate
mission
Parts of the
Strategic Objectives or goals
Plan
Strategies
Making Planning
Effective
 Recognize the planning barriers

 Use of the aids to planning

Planning Barriers

Lack of
Improper
Manager’s commitment to Improper
planning
inability to plan the planning information
process
process

Focusing on the Too much Concentrating

present at the reliance on the on only the
expense of the planning controllable
future department variables
Aids to Planning

Gather as much information as possible

Multiple sources of information

Involve others in the planning process