PLANNING

CHAPTER 4

NEEDS TO PLAN
It must first be understood. Everything is
constantly changing.Whether the manager
will be able to control or controlled

PLAN
A method for doing or making
something and consisting of a goal
and a course of action
A minimum
How you will do
How you will do it
By when youll get it done

GOALS:
A specific result to be achieved
Result of a plan

OBJECTIVE
Is a specific result toward which
effort is directed.

PLANNING
Is the process of setting the objectives
to be accomplish. is never ending activity.

IMPORTANCE OF PLANNING
People plan because they want their
actions to be both effective and efficient.
Effective

an activity is effective if it achieves its objectives.

Efficient
if it is undertaken with the
Expenditure of the least amount of
resources.

PLANNING PROCESS
1. Identification of Opportunities and Threats
collecting and analyzing relevant external information which
defines opportunities or threats to the firms business.
2. Evaluation of Present Situation
in the planning process is to evaluate the companys present
situation in order to determine the gap between the desired level of
performance and its present level of performance.
3. Setting Goals and Objectives
the formulation of company objectives may be done in different
ways.
the first stage is the statement of purpose or the reason for being for
the organization, the second stage is the statement scope of activities it
will undertake to achieve the purpose, and third stage the statement of
objectives, clarifies the level of performance to be achieve in these
acivities.

4.

Determining Planning Premises

assumptions about the future which form

an important basis for the strategic
choices as well as the detailed plans.
.

5. Evaluating Alternatives
*the identification of the of opportunities
and threats in the first stage
of planning process
*considers internal factors
*the consideration of the both external
and internal factors relates the firms
Internal capabilities and resources

6. Programming
translates broad plans to specific activities
to be undertaken by an enterprise
that extend over a period of several years.

7. Budget preparation
is the translation of programs to
financial and other quantitative data.
The budget is monetary amounts like
units sold or produced.

FORMAL PLANNING IN
BUSINESS ORGANIZATIONS
Among large business organizations such as
the San Miguel Corporation or the
Philippine National oil company, strategic
planning and the preparation of the annual
company budget are usually performed In a
formal matter.

Formal planning system

is one which the process, participants,
outputs, formats and calendar of
the planning activities are explicitly
defined

GENERAL APPROACHES IN TO FORMAL

PLANNING

top-down approach
initiative is taken by the upper level executives of he
organization,
who formulates a unified, coordinated plan, usually with
the advice of
lower level manager.

Interactive approach
a compromise between the bottom-up and the topdown methods.

Dual Approach
plan is dependently formulated both at the
corporate and business levels.

CLASSIFICATION AND
TYPES OF PLAN
(a) Plans classified according to time or duration
includes:
1. Long range planning
2. Intermediate Range Planning
3. Short Range Planning

(b) Plans Classified according to business

function or use are:
1. Sales plan
2. Production plan
3. Personal Plan
4. Finance plan
5. All plans concerning any other major functions

MAJOR OF KINDS OF
PLANNING
1.Strategic planning
it is a long range of planning which focused
on the entire business operations.
2. Tactical planning
a short range planning the emphasizes the
current operations of various parts of the
organizations.

3.

Operational Planning

it provides the specific as to how the strategic

plan will be attained.

Types of Operational Plan

1. Single use plan
develop to carry out a course of action that is
not to be repeated in the future. Single use plan are
usually within a relatively short period such as:

Programs
consist of listing activities intended to carry out
policies attain the objectives of the organization.
Project
a plan which pertains to a discrete activity unit.
Scheduling
it is the function of determining how soon an
operation or project should begin.
Budget
is translation of a set of activities into quantitative
figures.
Forecasting
is an attempt to foretell future trends, or condition from
known facts and to prepare for the expected changes in
industry.

2.

Standing plans
are established et of decisions used by managers
to deal with recurring organizational activities.
Types of standing plan
1. policies
2. rules
3. procedures.

3. On-going Plans
is used for continuing situations problem and
activities which are similar and consistent.

Planning at the Different Levels of

Management in Organization

Top level managers

perform long range of planning.

Middle Level Managers

are concerned with the planning of the specific
objectives of implementing the general goals of top
level management.

First level Managers

are responsible for the scheduling of workers
and developing the procedures for doing.