PLANNI

NG
GROUP 2
DEFINITION AND
NATURE OF
PLANNING
DEFINITION AND NATURE OF
PLANNING
• Planning provides direction to all of the organization’s
human resources — both managers as well as employees.

• Planning is important because it reduces uncertainty; it

compels managers to consider future events that may
effect their company.
DEFINITION AND NATURE OF
PLANNING
• Minimizing of wastes will result if there is proper
coordination of activities due to planning.

• Establishing goals and standards during planning may be

used for controlling, another necessary managerial
function.
 RELATIONSHIP OF PLANNING
TO INDIVIDUAL AND
ORGANIZATIONAL PERFORMANCE
 IS THERE A CLEAR
RELATIONSHIP
BETWEEN PLANNING AND
PERFORMANCE?
DIFFERENCE BETWEEN GOALS AND
PLANS
• Goals are the targets or desired ends that
management wants to reach

• Plans are the actions or means that

Administrators/ Managers intend to use to
achieve organizational goals
TYPES OF PLANS
 PLANS CAN BE GENERALLY DESCRIBED IN
TERMS OF:
PLANS

COMPREHENSIVE TIME- SPECIFICI FREQUENCY

OF
NESS FRAME TY USE
TYPES OF PLANNING

Strategic plans – plans that establish

the organization’s overall goals and
apply the entire firm; they are broad in
scope and are the responsibility of the
CEO, president and general manager of
the company.
TYPES OF PLANNING
Operational plans – plans that apply
to a particular unit area only; their
scope is narrow; achievement of
company goals may not be achieved if
operational plans are not clear.
TYPES OF PLANNING

Long-term plans – plans that go beyond

three years; everyone must understand
that organization’s long-term plans to
avoid confusion, that may divert the
organization member’s attention.
TYPES OF PLANNING

Short-term plans – plans that cover

one year or less; such plans must
lead toward the attainment of long-
term goals and are the responsibility
of the unit/department heads.
TYPES OF PLANNING

Directional Plans – plans that are

flexible or give general guidelines
only; although flexible and general,
these plans must still be related to the
strategic plans.
TYPES OF PLANNING

Specific plans – plans that are

clearly stated and which have no
room for interpretation; language used
must be very understandable.
TYPES OF PLANNING

Single-use plans – plans used or

stated once only as this applies to the
entire organization; refer to the
operational plans of the firm.
TYPES OF PLANNING

Standing plans – plans that are ongoing;

provide guidance for different activities
done repeatedly; refer to the identified
activities of operational plans.
 STEPS IN
PLANNING
STEPS IN PLANNING
1. Define your goals/objectives by identifying
desired outcomes/results in very specific ways.

2. Determine where you stand in relation to set

goals/objectives; know your strengths and
weaknesses

3. Develop premises regarding future conditions

STEPS IN PLANNING

4. Analyze and choose among action

alternatives; list and carefully evaluate
possible actions and choose the alternative
most likely to accomplish goals/objectives.

5. Implement the plan and evaluate results

 PLANNING AT
DIFFERENT
LEVELS IN THE
FIRM
 TOP LEVEL MANAGEMENT
PLANNING
(STRATEGIC PLANNING)
Top Level Managers are responsible
for the organization’s strategic
planning which involves making
decision’s about the organization’s
long-term goals and strategies.
 TOP LEVEL MANAGEMENT
PLANNING
(STRATEGIC PLANNING)
STRATEGIC PLANNING starts with defining
the organizations goals/objectives, the major
targets related to the maintenance of trhe
organizations stability, and its organizational
culture, values and growth improving its
productivity, profitability, effectiveness,
efficiency among others
 MIDDLE-LEVEL MANAGEMENT
PLANNING
(TACTICAL PLANNING)
Tactical Planning refers to a 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.
 FRONTLINE/LOWER-LEVEL MANAGEMENT
PLANNING (OPERATIONAL PLANNING)

Operational planning involves identifying

the specific procedures and process required
at the lower levels of the organization. This
also involves routine tasks or tasks
repeatedly done by the organization’s lower
level units.
PLANNING TECHNIQUES
AND TOOLS AND THEIR
APPLICATIONS
 PLANNING TECHNIQUES AND
TOOLS AND THEIR APPLICATIONS
FORECASTING Making assumptions about what will happen in
the future.

CONTIGENCY PLANNING
Identifying alternative courses of action that can be implemented
to meet the needs of changing circumstances.

“Trigger Ponts” – Indicate when the prepared alternative plan

should be implemented.
 PLANNING TECHNIQUES AND
TOOLS AND THEIR APPLICATIONS
SCENARIO
A long-term vision of contingency Planning.
- Identifying Alternative Future Scenarios.
- Plans made for each future scenario.

Examples of Changes:
1. Environmental Pollution
2. Climate and weather changes
3. Earthquake Damages and Others
 PLANNING TECHNIQUES AND
TOOLS AND THEIR APPLICATIONS

BENCHMARKING
 Use of external comparisons to better evaluate
current performance and identify possible
actions for the future.
 PLANNING TECHNIQUES AND
TOOLS AND THEIR APPLICATIONS
TYPES OF BENCHMARKING:

» INTERNAL BENCHMARKING – Internal benchmarking is

a process in which a company or an organization looks
within its own business to try and determine the best practice
or methodology for conducting a particular task.

» EXTERNAL BENCHMARKING
- is simply comparing one organization to another
 PLANNING TECHNIQUES AND
TOOLS AND THEIR APPLICATIONS

PARTICIPATORY PLANNING
 Is a planning process includes the people who
will be affected by the plans and those who will
be asked to implement them in all planning
steps.
DECISION
MAKING
TYPES OF DECISIONS

A decision is a choice among possible

alternative actions. Like planning, decision-
making is a challenge and requires careful
consideration for both types of decisions,
TYPES OF
DECISIONS
TYPES OF DECISIONS

Structured or programmed decision

 a decision that is repetitive and can be
handled using a routine approach
TYPES OF DECISIONS

Unstructured or nonprogrammed decisions

 applied to the resolution of problems that
are new or unusual, and for which
information is incomplete.
 TYPES OF
DECISION
-MAKING
CONDITIONS
TYPES OF DECISION- MAKING
CONDITIONS
Certainty Conditions
 ideal conditions in deciding problems; there
are situations in which a manager can make
precise decisions because the results of all
alternatives are known.
TYPES OF DECISION- MAKING
CONDITIONS

Risk or uncertainty conditions

 a more common condition in deciding
problems.
STEPS IN DECISION
MAKING
STEPS IN DECISION
MAKING
➡ Step 1 – Identify the problem.

➡ Step 2 – Identify the Decision Criteria

➡ Step 3 – Allocate Weights to the Criteria

➡ Step 4 – Develop Alternatives

STEPS IN DECISION
MAKING
➡ Step 5 – Analyze the alternatives

➡ Step 6 – Select an Alternatives

➡ Step 7 – Implement the Chosen

➡ Step 8: Evaluate Decision Effectiveness

-THE
END-
GROUP
2
 RS:
SAIPHODEN C. DIMAKUTA
ANGEL GRACE L. ELIODRA
CRISTINE J. NADELA
BAINARIE E. OMBAR
AL-SODAIZ L. AMEROL
JAEVA GAILE D. JUMAO-AS
CHARISH O. BRAGA
SHAIK GARETH R. GAFOOR
NIÑA RICA YVETTER C. ARON
ARJAY P. GERALLA
ALEXA CAMASO
GWYNETH CALUNSAG