Lesson 6:

Nature, Levels and Types of

Planning
“If plan A failed, there are still
25 letters extra in the alphabet
that you can choose from.”
According to Newman, “Planning is deciding in
advance, what to is to be done, that is a plan is a
projected course of action.”
➢ So planning is thinking ahead as to the future
course of action.
➢ It is also acceptable to say that planning is the
process of thinking
before doing.
• Henry Fayol defines planning as “deciding the best
alternatives among
others to perform different managerial operations to
achieve the predetermined goals.”
 Definition and Nature of Planning
• Planning is the process of determining objectives and organizational goals,
establishing strategies for accomplishments those goals and developing,
integrating coordinated activities in the organizations to achieve those goals. It is
also the crucial and essential part of management. Planning is important for the
following reasons:
• Planning is important. It provides direction to all of the organization’s human
resources; managers and employees; and it reduces uncertainty and minimizes
waste of time, effort and resources; and establishing goals and standards during
planning may be used for controlling, another managerial function.
• Without planning, goals and standards will not be present and controlling will not
be possible since there will be no standard to compare or assess work effort with.
 Difference between Goals and Plans

• Goals are targets that management desires to reach; the

desired results or objectives that members in an organization
are pursuing.
• Plans are best described as steps and actions that are
required to achieve goals.
 Levels of Planning

1. CORPORATE LEVEL-referred to as a grand

strategy bearing in mind that it constitutes that level of
decisionmaking which dictates the activities of all the
other levels. A leader inthis case provides a mission and a
vision which is duly needed in theorganization towards
accomplishing the set goals and objectives.
 Levels of Planning
2. BUSINESS LEVEL-At business level, Anderson and Joglekar
(2005) stated that all businesses enterprises can be classified under
certain organizations that work within certain industries. These
businesses develop strategies which work at their level and that which
reflect their currentposition and the amount of resources they have or
need in respectto the competitive environment they are operating
 Levels of Planning
3. Functional Level -of a business organization is actually indicted with
the responsibility of assuring that each and every single part of an
organization is run in the moist professionalmanner. Anyhow, this level
of operation is known to discharge themandate of ensuring that the
various departments of an organizationare aligned with each other in
terms of the set aims and objectiveswhich must be achieved within a
given period of time.
Types of Plans
1. Organizational Plans can be
generally described in terms of
comprehensiveness, length of time
covered or time frame, specificity, and
frequency of use.
2. Strategic plans establish the
organization’s overall goals and apply to the
entire team; The CEO, president or the
general manager of the firm are the one
responsible for the scope of this plan which
is broad in nature.
The components of a strategic plan are:
• Vision – Where does the organization want to be five years from
now? This is how the company wants to be envisioned.
• Mission – is a more realistic overview of the company’s aim and
ambitions. Why does the company exist? What does it aim to
achieve?
• Values – How do you want to inspire the world? How do you want
to be known?
3. Operational plans are plans that apply only to
a particular unit or area and narrow in scope.
4. Long-term plans are plans that go beyond
three years.
5. Short term plans are plans that cover a year
or less.
6. Directional plans are plans that are
flexible or give general guidelines only.
7. Specific plans are plans that are clearly
stated and which have no room for
interpretation. Language used must be simple
and understandable.
8. Single-use plans are plans used or
stated once only as they apply to the entire
organizations.
9. Standing plans are plans that are
ongoing or to the identified activities of
operational plans.
 Steps in Planning

1. Setting an organization’s overarching mission and

vision
2. Setting strategic goals and plans
3. Taking the strategic goals and plans and putting them
into practice in everyday operations
4. Implementing and monitoring the goals and plans
Levels of Planning in the Firm
Different levels in the firm are:
1. Top-level Management Planning (Strategic Planning)
starts with defining the organization’s
goals/objective, the major targets related to the
maintenance of the organization’s stability, and it’s
organizational culture, values, and growth improving
it’s productivity, profitability, effectiveness and
efficiency
2. Middle-level Management Planning
(Tactical Planning) refers to set of procedures
for changing or transforming broad strategic
goals and plans into specific goals and plans
that are applicable and needed in one
unit/portion of the organization.
3. Frontline/Lower-level Management Planning
(Operational Planning) involves identifying the
specific procedures and processes required at
the lower levels of the organization. It also
involves
routine tasks or tasks repeatedly done by the
organization’s lower-level units.
QUIZ
Direction: Read each item carefully and choose the letter of the best
answer. Write your answer in your activity notebook.
1. Which of the following is incorrect?
A. planning is the part of the management process that attempts to define the
organization’s future
B. the approach to planning can differ greatly from manager tomanager
C. planning is a onetime event
D. planning is thinking out in advance the sequence of actions to accomplish a
proposed course of action
2. What are the two basic components of planning?
A. goals and decisions C. plans and decision
B. goals and plans D. goals and actions
3. “Planning is deciding in advance, what is to be done; that is a plan is
a projected course of action.” Who is this position held by?
A. Henry Fayol C. Weirich and Koontz
B. Newman D. Frederick W. Taylor
4. Questions such as “What is our business?” and “Who is the customer?”
are generally answered in a company’s?
A. Vision C. Objective
B. Mission D. Values
5. What are the three levels of planning?
A. corporate, business, functional C. low, middle, high
B. central, regional, divisional D. high, average, belo
Direction: Read each item carefully and choose the letter of the best
answer. Write your answer in your activity notebook.
6. What is the most basic of all managerial functions?
A. planning C. staffing
B. organizing D. controlling
7. What is the type of plan that gives you a place to record your mission,
vision and values, as well as your long-term goals and the action plan
you’ll use to reach them?
A. strategic plan C. operational plan
B. tactical plan D. contingency plan
8. “Planning is deciding in advance, what is to be done; that is a plan is
a projected course of action.” Who is this position held by?
A. Henry Fayol C. Weirich and Koontz
B. Newman D. Frederick W. Taylor
9. These plans were made when something unexpected happens or
when something needs to be changed.
A. Strategic Plan C. Operational Plan
B. Tactical Plan D. Contingency Plan
10. A level of planning that focuses on support functions which are
possessed by a business enterprise.
A. Strategic Level C. Corporate Level
B. Functional Level D. Business Level
Direction: Read each item carefully and choose the letter of the best
answer. Write your answer in your activity notebook.
1. Which of the following is incorrect?
A. planning is the part of the management process that attempts to define the
organization’s future
B. the approach to planning can differ greatly from manager tomanager
C. planning is a onetime event
D. planning is thinking out in advance the sequence of actions to accomplish a
proposed course of action
2. What are the two basic components of planning?
A. goals and decisions C. plans and decision
B. goals and plans D. goals and actions
3. “Planning is deciding in advance, what is to be done; that is a plan is
a projected course of action.” Who is this position held by?
A. Henry Fayol C. Weirich and Koontz
B. Newman D. Frederick W. Taylor
4. Questions such as “What is our business?” and “Who is the customer?”
are generally answered in a company’s?
A. Vision C. Objective
B. Mission D. Values
5. What are the three levels of planning?
A. corporate, business, functional C. low, middle, high
B. central, regional, divisional D. high, average, belo
Direction: Read each item carefully and choose the letter of the best
answer. Write your answer in your activity notebook.
6. What is the most basic of all managerial functions?
A. planning C. staffing
B. organizing D. controlling
7. What is the type of plan that gives you a place to record your mission,
vision and values, as well as your long-term goals and the action plan
you’ll use to reach them?
A. strategic plan C. operational plan
B. tactical plan D. contingency plan
8. “deciding the best alternatives among
others to perform different managerial operations to achieve the predetermined
goals.” Who is this position held by?
A. Henry Fayol C. Weirich and Koontz
B. Newman D. Frederick W. Taylor
9. These plans were made when something unexpected happens or
when something needs to be changed.
A. Strategic Plan C. Operational Plan
B. Tactical Plan D. Contingency Plan
10. A level of planning that focuses on support functions which are
possessed by a business enterprise.
A. Strategic Level C. Corporate Level
B. Functional Level D. Business Level
Written Work 1
How does planning benefit an organization?
What potential problems exist in planning?

Performance Task 2
Pretend that you are a manager of a fast-food
company, prepare a strategic, tactical, and
operational plan in order to achieve your company’s
goal.