PRINCIPLES OF ORGANIZATION AND MANAGEMENT

PLANNING

FRANCIS GENE A. MANLANTAO, MBM

Subject Instructor
 OBJECTIVES
• Define the key terms of planning;
• Identify the importance types of planning;
• Explain thoroughly the strategic, tactical and
operational planning process; and
• Apply the various tools and techniques in
situational analysis.
FAMOUS LINES ABOUT PLAN
WHAT IS PLANNING?
• Is one of the management function that
deal with setting goals and charting how to
achieved them.
• It is a management function that helps in
coping with uncertainty by formulating
future courses of action to achieve specified
results.
IMPORTANCE OF PLANNING
1. It gives a sense of direction and purpose.
2. It provides competitive advantage by
anticipating actions.
3. It assists progress checking.
4. It helps get participation and coordination.
5. It helps cope with uncertainty.
QUALITIES OF AN EFFECTIVE
PLAN
• UNITY
-One plan at a time should be use to achieve a goal. Using
several plans at the same time for a particular goal would
only cause confusion and disorder.
• CONTINUITY
-Planning is a continuing process. Managers build and
refine plans based on previous plans. They modify plans at
all level to harmonize them in one broad framework.
• ACCURACY
-All available relevant information must be
considered and should be utilized in planning.
• FLEXIBLE
-The planning process should be adjustable
enough to fit situational changes. Managers must
not stick to a static plan.
 TYPES OF PLAN
• STANDING PLAN
-they represent operational strategies to guide repetitive activities in
accomplishing the organizational objectives. These includes policies,
procedures and rules.

POLICIES: are general guidelines to be followed when making the decisions.

PROCEDURES: are sequence of predetermined actions or methods to be
observed in order to achieved objectives or solve recurring problems.
RULES: state precisely what should or should not be done.
• SINGLE-USE PLANS
- these are programs and budgets developed for handling non
repetitive situations. They are developed and used for a specific
purpose and probably will not be used again in the activity or
project.
Program: is a set of activities designed to accomplish an objective
over a specified time period. Ex. Scholarship program, expansion
of facilities, development of new product and etc.
Budget: is the financial plan for the program. It is intended to
guide in controlling the expenses incurred in several activities of
the program for a specific period of time.
• CONTINGENCY PLAN
- this is also known as “ scenario plans” are
alternative plans (multiple forecasts) to be used if
uncontrollable events occur. It is one of the most
widely used plan techniques. It is planning tool
that raises the quality of the planning process and
can bring real benefits to the organization.
GOALS AND ACTION PLAN
• GOAL
-also known as an OBJECTIVE, is a specific
commitment to attain a measurable outcome
within a stated period of time.
-the goal must be followed by an action
plan which is the course of action needed to
attain the stated goal.
CHARACTERISTIC OF AN
EFFECTIVE GOAL (SMART)
1.SPECIFIC
2.MEASURABLE
3.ATTAINABLE
4.RESULTS-ORIENTED
5.TIME-BOUND
THE PLANNING MISSION
STATEMENT
PROCESS
VISION
STATEMENT

PLANNING LEVELS

STRATEGIC TACTICAL OPERATIONAL

PLANNING PLANNING PLANNING
a. MISSION
• Is the organization’s reason for existence. It
answers the questions: “Why we are here?”
or “What is our reason for being?”. Only a
clear definition of the mission and purpose
of the organization makes possible clear and
realistic.
 EXAMPLE: CKC Mission
We commit ourselves to:
• live the values of faith, excellence & service;
• promote the culture of unity, respect and responsibility;
• develop more appropriate researches, programs,
strategies and practices to form globally competent
professionals; and
• strengthen involvement in providing services to the poor
and advocacy on relevant social issues
b. VISION
• Is the long term goal describing what an
organization’s wants to become. It reflects
the organization’s clear sense. It answers
the questions “What do we want to
become?” or “What do we want to do to
achieved what we want?”
EXAMPLE: CKC Vision

• We, the Ignacian-Marian Community, living

the Spirituality of humble servanthood,
provide quality Christian education towards
transforming persons into humble and
responsible leaders of the church and
society.
c. STRATEGIC PLANNING
• determines the organization’s long term goals
for the next 5 years with the resources they
expect to have available. They need to pay
attention to the inside and outie environment,
being alert for the opportunities and problems
confronting the organization.
REASONS WHY TO FORMULATE
STRATEGIC PLANS:
1.They can provide direction
momentum.
2.They encourage new ideas.
3.They develop a sustainable
competitive advantage.
Establishing Grand Strategy
•ENVIRONMENTAL SCANNING
(Environmental/Situational Analysis)
•FORECASTING
MICHAEL PORTER’S FACTORS OF
COMPETITIVE ENVIRONMENT
1. Level of rivalry among organizations in the
same industry.
2. Treat of potential new competitor.
3. Treat of substitute products and services.
4. Power of suppliers
5. Power of customers
THE SWOT ANALYSIS
• Is a strategic planning tool in studying the realistic condition of the
organization in relation to its internal and external environment.
S (STRENGTH)
-It is something that a company is good at doing.
-It is a quality that produces a competitive advantage for the company.
-A characteristic is said to be a strength if it belongs to the internal
environment and is expected to affect company operations positively. High
technical expertise, superior financial resources, good management-labor
relations, a well-developed and carefully thought out vision and mission,
effective advertisements, clean corporate image and reputation, and
outstanding leadership are good examples of strengths that a company may
possess.
W (WEAKNESSES)
-Is something that a company lacks.
-It is a quality that puts the company at a
disadvantage.
-Below par financial performance, poor product
quality and availability, uncooperative workers, low
employee morale, duplication of work, frequent
machine breakdowns, inconsistent policies, and poor
planning are examples of weaknesses.
O (OPPORTUNITIES)
-Is a factor in the external environment that is
expected to work favorably towards company
operations.
-Improvements in the economy, high barriers to
entry, high population growth rate, increase in
purchasing power, stable political leadership, and
strong confidence of investors are examples of
opportunities.
T (THREATS)
-Is a factor in the external environment that is
expected to have a negative effect on company
operations.
-Political unrest, the presence of substitute
products, dumping of low priced items from
ASIAN neighbors, piracy, and a pending oil price
hike are examples of threats.
FORECASTING
• Is a mental picture of the future. Forecasting is to
be made after SWOT Analysis. This involves two
types, trend analysis-refers to a theoretical
prediction using a progression of historical data
and contingency planning refers to the prediction
of several hypothetical future conditions and
present anticipated options, solutions, strategies
or budgets,
d. TACTICAL PLANNING
• allows middle managers determine what
contributions their department can make
with their given resources for the next 6
months to two-years.
MICHAEL PORTERS FOUR
COMPETITIVE STRATEGIES
1. Low Cost Leadership
2. Low Cost Focus
3. Differentiation
4. Focus Differentiation
Product Life Cycle
• Introduction
• Growth
• Maturity
• Decline
e. OPERATIONAL PLANNING
• determines how to accomplish specific tasks
with available resources within the next 1
week to one year.
 FUNCTIONAL STRATEGIES
• MARKETING STRATEGIES
-strategies formulated under marketing department
are more concerned with the 4Ps of marketing:
Product, Promotion, Place and Price.
• OPERATION STRATEGY
-strategies or system processes regarding
productions of products or services that provide
customer value are primarily made by the operations
or productions department.
• HUMAN RESOURCE STRATEGY
-the Human Resource department is in charge the
formulating strategies related to all functional
departments concerning recruitment, selecting,
training, evaluating, and compensating employees that
are needed by each department.
• FINANCE STRATEGY
-the finance department is primarily responsible the
organization’s cash flows-resources and uses of funds.
They are also responsible for keeping records of
transactions, developing budgets and reporting
financial statements.
• OTHER FUNCTIONAL DEPARTMENT
-Research and Development department,
which is responsible in innovating or developing
new products and services; Security department,
which is responsible for the safety and protection
of customers and resources; or IT department,
which is responsible for monitoring and
evaluating, feedback retrieving to provide reliable
and relevant information.
In Summary:

THANK
YOU