P LA N N IN G

PLANNING TECHNICAL ACTIVITIES

Prepared by:

Abitona, Christian
Aclan, Florenzo Miguel
Andal, Vincent Louie
Atienza, Twinkle Faith
Barbosa, Gilbertson
V3A
 If planning an organization is to be
pursued vigorously, PLANNING will
constitute the MOST important activity.
Managers who plan are afforded with the
opportunity to carefully analyze situations
which directly contribute to effective
decision-making.
TH E N ATU RE O F PLAN N IN G

PLANNING is undertaken to
MINIMIZE mistakes in decision
making.
PLAN output of planning
provides methodical way of
achieving desired results.
without the plan some minor tasks
ma be afforded major attention
which may later on, hinder the
accomplishment of objectives.
PLANNING DEFINED

Nickles and others

the management function that involves

anticipating future trends and determining the
best strategies and tactics to achieve
organizational objectives.

- relates the future to what could be decided

now.
PLANNING DEFINED

Aldag and Stearns

the selection and sequential ordering of tasks

required to achieve an organizational goal.

- centers on the activity required to accomplish

the goals.
PLANNING DEFINED

Cole and Hamilton

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.

-provides a better guide on how to

effectively perform this vital activity
PLANNING DEFINED

For our purpose, it will suffice to

define planning as selecting the best
course of action so that the desired
result may be achieved. It must be
stressed that the desired result takes
first priority and the course of action
chosen is the means to realize the
goal.
P LA N N IN G AT V A R IO U S
M A N A G EM EN T LEV ELS
Planning Activities Undertaken At
Various Levels:
1. Top Management Level Strategic
Planning
2. Middle Management Level
Intermediate Planning
3. Lower Management Level
Operational Planning
Strategic Planning

The Process of determining the major

goals of the organization and the policies
and strategies for obtaining and using
resources to achieve those goals.
Intermediate Planning

The process of determining the

contributions that subunits can make with
allocated resources.
Operational Planning

The process of determining how specific

task can best be accomplished on time
with available resources.
TH E P LA N N IN G P R O C ESS
Planning Process

The development of goals, strategies,

task lists and schedules required to
achieve the objectives of a business.
The planning process is a fundamental
function of management and should
result in the best possible degree of
need satisfaction given the resources
available
The Planning Process

Planning involves the following:

1. setting organizational, divisional,
or unit goals
2. Developing Strategies or tactics to
reach those goals
3. determining resources needed
4. setting standards
Exam ple ofG oals,By O rganizationalLevel

Organizational Level Example of Goal

Company To attain a return of

25%

Buenavista
Construction
Corporation
To increase the number
Division of projects undertaken by
the company
Project
Managem
etDivision

To increase the number

Unit
of project engineers
 Goals my be defined as:

Precise statement of results sought,

quantified in time and magnitude,
where possible
D eveloping Strategies or Tactics to
reach goals
After determining the goals, the next
task is to devise some means to
realize them. The ways to realize the
goals are called strategies.

Strategy a course of action aimed at

ensuring that the organization will
achieve its objectives
 Tactic a short-term action taken by
management to adjust to negative
internal or external influences
D eterm ining Resources N eeded

To satisfy strategic requirements, a

general statement of needed
resources will suffice.
Setting Standards

a quantitative or qualitative
measuring device designed to help
monitor the performances of people,
capital goods, or processes
TYPES O F PLAN S

Functional Area Plans

Plans with Time Horizon
Plans According to Frequency of Use
 FU N CTIO N AL AREA PLAN S
Plans classified in terms of functional areas
such as:

1. Marketing plan

Written document or blueprint for

implementing and controlling an organizations
marketing activities related to a particular
marketing strategy.
FU N CTIO N AL AREA PLAN S
2. Production plan
Written document that states the quantity of
output a company must produce in broad
terms and by product family.
FU N CTIO N AL AREA PLAN S
3. Financial plan
A document that summarizes the current
financial situation of the firm, analyzes
financial needs, and recommends a direction
for financial activities.
FU N CTIO N AL AREA PLAN S
4. Human resource management
plan
Document that indicates the human resource
needs of a company detailed in terms of
quantity and quality and based on the
requirements of the companys strategic plan.
 PLAN S W ITH TIM E H O RIZO N
1. Short-range plans
Plans intended to cover a period of less than
one year.
First-line supervisors are mostly concerned
with these plans.
PLAN S W ITH TIM E H O RIZO N
2. Long range plans
Plans covering a time span of more than one
year.
These are mostly undertaken by middle and
top management.
PLANS ACCORDING TO FREQUENCY OF USE

Standing plans
Single-use plans
PLAN S ACCO RD IN G TO FREQUENCY O F USE

Standing Plans
plans used again and again, and
they focus on managerial situations
that recur repeatedly.
PLAN S ACCORDING TO FREQ UEN CY O F USE

Classification of Standing Plans

1. Policies they are broad guidelines to

aid managers at every level in making
decisions about recurring situations or
function.
PLAN S ACCO RD IN G TO FREQ UEN CY O F USE

Classification of Standing Plans

2. Procedures they are plans that

describe the exact series of actions to be
taken in a given situation.
PLAN S ACCO RD IN G TO FREQ UEN CY O F USE

Classification of Standing Plans

3. Rules they are statements that

either require or forbid a certain
action.
PLAN S ACCORDING TO FREQ UEN CY O F USE

Single-Use Plans
plans specifically developed to
implement courses of action that
are relatively unique and are
unlikely to be repeated.
PLAN S TO FREQ U EN CY O F U SE
ACCORDN
IG

Classification of Single-use Plans

1. Budget

A plan which sets forth the projected

expenditure for a certain activity and
explains where the required funds will
come from.
(Weston and Brigham)
PLAN S ACCO RD IN G TO FREQ UEN CY O F USE

Classification of Single-use Plans

2. Program

- designed to coordinate a large set

of activities
PLAN S ACCO RD IN G TO FREQ UEN CY O F USE

Classification of Single-use Plans

3. Project

- A single use plan that is usually

more limited in scope than a
program and is sometimes prepared
to support program.
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S
The Contents of the Marketing Plan
William Cohen maintains that the following must be
included in the marketing plan;

1. The Executive Summary

2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S

The Contents of the Production Plan

1. The amount of capacity the company

must have
2. How many employees are required
3. How much material must be purchased
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S

The Contents of the Financial Plan

1. An analysis of the firms current financial

condition
2. A sales forecast
3. The capital budget
4. The cash budget
5. The set of pro forma (projected) financial
statements
6. The external financing plan
PARTS O F TH E VARIO US FUN CTIO N AL AREA
PLAN S

The Contents of the Human Resources

Plan

1. Personnel requirements of the

company
2. Plans for recruitment and selection
3. Training plan
4. Retirement plan
PARTS O F TH E STRATEG IC
PLAN
The strategic plan must contain the
following:

1. Company or corporate mission**

2. Objectives or goals
3. Strategies

** refers to the strategic statement that identifies why an

organization exists, its philosophy of management, and its
purpose as distinguished from other similar organizations in
terms of products, services, and markets.
MAKING PLANNING EFFECTIVE

Planning is done so that some desired

results may be achieved. At times, failure
in planning occurs.
MAKING PLANNING EFFECTIVE

Planning is done so that some desired

results may be achieved. At times, failure
in planning occurs.
M AKIN G PLAN N IN G EFFECTIVE

Planning may be successful if the

following are observed
1. Recognize the planning barriers
2. Use aids to planning
Planning

Planning barriers according to Plunkett and

Attner, are follows:

1. Managers inability to plan

2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of
the future
Planning
6. Too much reliance on the planning
department
7. Concentrating on only the controllable
variables

Among the aids to planning may be used are:

1. Gather as much information as possible
2. Develop multiple sources of information
3. Involve others in the planning process