Plannin
Planning
Planning
Acc According ording to Nito Nickels ckels and others, and others, refers refers to to “the manag“the management functionement function that involves
that involves anticipating fanticipating future trends and determining the bestuture trends and determining the best
strategies and tactics to achieve organizational objectives”.
strategies and tactics to achieve organizational objectives”.
Adlag Adlag and Stearns, defand Stearns, define planning as “ the selection and sequentialine planning as “ the selection and sequential
ordering of
ordering of task required to achieve an organizational gtask required to achieve an organizational goal”oal”
Acc According tording to Co Cole ole and Hamilton and Hamilton is “is “deciding wdeciding what what will be done, ill be done, whowho will d
will do it o it ,where, ,where, when when ,and ho,and how it w it will be will be done, done, and thand the e standarstandards ds toto
which
Planning At Various Management Levels
Planning activities undertaken at various levels are as follows: 1. Top Management Levels Strategic Planning
2. Middle Management Levels Intermediate Planning 3. Lower Management Levels Operational Planning
Strategic Planning
The term 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 achieved those goals. The top management of any firm involved in this type of planning.
The output of strategic planning is the strategic plan which spells out “the decision about long-range goals and the course of action to
achieved these goals.
Intermediate Planning
Intermediate planning refers to “the process of determining the
contributions that subunits can make with allocated resources. This type of planning is undertaken by middle management
Under intermediate planning, the goals of a subunit are determined
and a plan is prepared to provide a guide to the realization of the goals. The intermediate plan is designed to support the strategic plan.
Operational Planning
The term operational planning refers to “ the process of determining
how specific tasks can best be accomplished on time with available
resources”. This type of planning is a responsibility of lower
management. It must be performed in support of the strategic plan and the intermediate plan.
The Planning Process
1. Setting Organizational, divisional, or unit goals.
2. Developing Strategies or tactics to reach those goals.
3. Determining Resources Needed
4. Setting Standards
Setting Organizational, Divisional, or Unit Goals
The first task of the engineer manager is to provide a sense of
direction to his firm(If he is the Chief Executive), to his division (If he Heads a Division), or to his unit ( If he is a Supervisor). The setting of goals provide answer to the said concern. If everybody in the firm(or Division or Unit, as the case may be) is aware of the goals, there is a big chance that everybody will contribute his share in the realization of such goals.
The Planning Process
Goals may be defined as the “precise statement of results sought,
Developing Strategies or Tactics
to Reach Goals
After determining the goals, the next task is to devise some means to realize them. A
strategy
may be defined as “a course of action aimed at ensuring that the organization will achieve its objectives.”A
tactic
, on the other hand, is a short-term action taken bymanagement to adjust negative internal or external inf luences. They
are formulated and implemented in support of the firm’s strategies.
Determining Resources Needed
After implementing strategies or tactics, the engineer manager will, then, determine the human & nonhuman resources required by such strategies or tactics.
Determining Resources Needed
The quality and quantity of resources needed must be correctly
determined. Too much resources in terms of either quality or quantity will be wasteful. Too little will mean loss of opportunities for
maximizing income.
To satisfy strategic requirements, a general statement of needed resources will suffice.
Setting Standards
The standards for measuring performances may be set at the planning stage. When actual performance match with the planned performance, corrections may be made or reinforcements given.
A standard may be defined as “a quantitative or qualitative measuring
device designed to help monitor the performances of people, capital
Types of Plans
Plans are of different types. They may be classified in terms of functional areas, time horizon, and frequency of use.
Functional Area Plans
1. Marketing plan – this is the written document or blueprint for
implementing & this is a written document that states the quantity
of output a company controlling an organization’s marketing activities
related to a particular marketing strategy.
2. Production plan –must produce in broad terms & by product family.
3. Financial plan – it is a document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities.
4. Human resource management plan – a document that indicates the human resource needs of a company detailed in terms of quantity and
Plans with Time Horizon
1. Short-range plans – are plans intended to cover a period of less than one year. First-line supervisors are mostly concerned with these plans. 2. Long-rang plans – are plans covering a time span of more than one year. These are mostly undertaken by middle and top management.
Plans Accord
ing to Frequency of Use
1. Standing Plans – These are plans that are used again and again, and they focus on managerial situations that recur repeatedly.
a. Policies – they are broad guidelines to aid managers at every
level in making decisions about recurring situations or function. b. Procedures – are plans that describe the exact series of actions
to be taken in a given situation.
Plans According to Frequency of Use
2. Single-Use Plans – plans are specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated.
a. budgets
b. programs, and c. projects.
A
budget
, according to Weston and Brigham, is “a plan which setsforth the projected expenditure for a certain activity and explains where the required funds will come from.
A
program
is a single-use plan designed to coordinate a large set of activities.A
project
is a single-use plan that is usually more limited in scope than a program and is sometimes prepared to support a program.Various Functional Area Plans
Marketing Plan Production Plan Financial Plan
Marketing Plan
Contents of Marketing Plan:
The Executive Summary Table of contents
Situational Analysis and Target Market Marketing Objectives and Goals
Marketing Strategies Marketing Tactics
Schedules and Budgets
Production Plan
Contents of Production Plan:
The amount of capacity the company must have How many employees are required
Financial Plan
Contents of Financial Plan:
An analysis of the firm’s current financial conditions as indicated by an
analysis of the most recent statements sales forecast
Capital budget Cash budget
A set of pro forma(or projected) financial statements The external financing plan
Human Resources Plan
Contents of Human Resources Plan:
Personal requirements of the company Plans for recruitment and selection
Training plan Retirement plan
Strategic Plan
The Strategic Plan must contain the ff:
Company or corporate mission Objectives or goals
Making Planning Effective
Planning is done so that some desired results may be achieved. Sometimes failure in planning occurs.
Planning may be made successful if the following are observed:
Recognize the planning barriers Use of aids to planning
Planning Barriers according to Plunkett and Attner
Manager’s inability to plan Improper planning process
Lack of commitment to the planning process Improper information
Focusing on the present at the expense of the future Too much reliance on the planning department
Aids to Planning
Gather as much information as possible Develop multiple sources of information Involve others in the planning process
