PLANNING

NATURE OF PLANNING
There are many instances when managers are overwhelmed by various activities which at times be
cloud his judgement. This must be expected since any body who is confronted by several situations
happening simultaneously will loose sight of the more important concerns.. To minimize mistakes in
decision-making, planning is undertaken.
A plan, which is the output of planning, provides a methodical way of achieving desired results.
In the implementation of activities , the plan serves as a useful guide. Without the plan, some minor
tasks maybe afforded major attention which may, later on, hinder the accomplishment of objectives.

When an inquiry was made, it was found out that the manager committed some errors of
judgement. For instance, he used an expensive advertising layout in a newspaper when a simple
message will do.
Also, it was found out that the absence of hiring plan contributed to the high cost of hiring
 • Refers to the management
function that involves
anticipating future trends
anddetermining the best
strategies and tactics to achieve
organizational objectives.
• The selection of sequential
Planning ordering of tasks required to
achieve an organizational goal.
• 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.
 PARTS OF STRATEGIC PLANNING

01 02
Company or corporate Objectives or goal
mission-it-identifies why an
organization exist, its
philosophy of management,
and its purpose as
distinguished from other
similar organization in terms of
product, services and market

03
Strategies
5. Steps Taken for Planning:

Establishing Objectives

Establishing Planning Premises

Determining Alternative Courses

Evaluating Alternative Courses

Selection from the Alternatives

Planning at
various
management
levels
• 1.Top management level- strategic
planning
• 2.Middle management level-
intermediate planning
• 3.Lower management level-
operational planning
 STRATEGIC
PLANNING
● 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 goal.
Parts of Strategic Planning

1.Company or corporate mission-it-identifies why an organization exist, its philosophy

of management, and its purpose as distinguished from other similar organization in
terms of product, services and market.
2.Objectives or goal
3.Strategies
INTERMEDIATE
PLANNING
Refers to the process of determining the contributions
that sub units can make with allocated resources.
Under this, the goals of sub units are determined and a
plan is prepared to provide a guide to the realization of
the goals, this plan is designed to support the strategic
plan.
Operational Planning

Refers to the process of determining how

specific tasks can best be accomplished on
time with available resources, In this type
lower management is responsible
 THE PLANNING PROCESS

1. Setting organizational, divisional or unit goals

• the head of the firm must set or provide a sense of
direction to his firm.
• In this situation, if every body is aware of the goal,
then there is a greater chance that everybody will
contribute or participate.
 What is Goal?

is a precise statement of result

sought, quantified in time and
GOAL magnitude where possible
 * provide to realize the goals
2. Developing * Establishing strategies and tactics in regards

strategies or to the objective.

tactics to reach * strategy is defined as a course of action

aimed at ensuring that the organization will
goal achieve its objective.

* Tactic is shorter term by management to

adjust to negative internal or external influence.
3. Determining
• In this process, it is important to
Resources the head to control the materials needed.
Needed Too much material is wasteful, too little is
a loss of opportunities for maximizing
income.
 • Standard is defined as a
quantitative or qualitative
device designed to help
4. Setting standard
monitor the performance of
people , capital goods or
processes.
 01 Functional Plan

02 Plans with time horizon

Types Of Plan

03 Plans according to frequency of use

 TYPES OF FUNCTIONAL PLAN

• Marketing plan- the

written document or 2. Production plan- this is 3. Financial plan- it is a 4. Human resource management
blueprint for a written document that plan- it is a document that
document that summarizes the
implementing and indicates the human resource
states the quantity of current financial situation of
controlling an needs of a company detailed in
output a company must the firm, analyzes financial
organizations terms of quantity and quality based
produce in broad terms needs and recommends a
marketing activities on the requirements of the
and by product family. direction for financial company’s strategic plans
related to a particular
activities
marketing strategy
Classification of
plans with time a. Short range plans- these are plans intended
horizon to cover a period of less than one year. First
line supervisors are mostly concerned with
these plans.

b. Long range plans- these are plans

covering a time span of more than one
year. These are mostly undertaken by
middle and top management
Classification of plans
according to frequency
a. Standing plan- plans that are used again and
of use
again and they focused on managerial
situations that recur repeatedly.

b. Single use plans- these plans are

specifically develop to implement
courses of action that are relatively
unique and are unlikely to be repeated
 Standing plans maybe classified as follows

Why do I want to What should I do to What small milestones should I

work on this? achieve my goal? achieve to be closer to my goal?

• Rules- they are statements

• Policies- they are broad
guidelines to aid managers at
every level in making a
decision recurring situations
or functions
• Procedures- they are plans that either require or forbid a
that describe the exact series certain action.
of action taken in a given
situation
 Classification of single use plans

• Budgets- is a plan which sets
forth the projected
expenditure for a certain
activity and explains where
the required funds will come
from.
• Program- is a single use • Projects- is a single use plan
that is usually more limited
plan designed to
in scope than a program and
coordinate a large set of is sometimes prepared to
activities. support a program
Parts of the various
functional area
plans
CONTENTS OF MARKETING PLAN

• a.Executive summary- present the overall view of the

marketing project and its potential.
• b.Table of contents
• c.Situational analysis and target market
• d.Marketing objectives and goals
• e.Marketing strategies
• f.Marketing tactics
• g.Schedules and budgets
• h.Financial data and control
CONTENTS OF PRODUCTION PLAN

• The amount of capacity the company must have

• How many employees are required
• How much material will be purchased
CONTENTS OF FINANCIAL PLAN

• a.The analysis of the firms current financial condition as

indicated by an analysis of the most recent statement
• b.A sales forecast
• c.The capital budget
• d.The cash budget
• e.The set of pro forma (projected) financial statements
• f.The external financing plan
CONTENTS OF HUMAN
RESOURCE PLAN

• a.Personnel requirements of the company

• b.Plans for recruitment and selection
• c.Training plan
• d.Retirement plan
MAKING PLAN EFFECTIVE

• 1.Recognize the planning barriers

• a. managers inability to plan
• b. improper planning process
• c. lack of commitment to the planning process
• d. improper information
• e. focusing to the present at the expense of the future
• f. too much reliance on the planning department
• g. concentration on the onlyvariables
 2. Use of aids to
planning

• a. Gather as much information as possible

• b. Develop multiple sources of information
• c. Involve others in the planning
• •Technical activities, like other activities, require effective planning, if
objectives and goals are to be realized.
• •A plan is a methodological way of achieving results
• •Planning is undertaken at various management level
• •Various types are required in the planning process depending on the
management level
• •Plan consists of various parts that the engineer manager must be
familiar with.
END