A plan, which is the output of

planning, provides a

methodical way of achieving

desired result.

In the implementation of

activities, the plan serves as a

useful guide.

Various expert defined planning in various ways, all of

which are designed to suit specific purposes.

“The management function that involves

anticipating future trends and determining the best

strategies and tactics to achieve organizational

objectives.”

- Nickels and others

“The selection and sequential ordering of tasks

required to achieve an organizational goal.”

- Aldag and Stearns

“Deciding what will be done, who will do it , when,

where and how it will be done, and the standards

to which it will be done.

-Cole and Hamilton

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 goals.

Intermediate Planning – refers to “the process of determining the contributions and subunits can make with allocated resources.”

Operational Planning – refers to “the process of determining how specific tasks can best be accomplished on time with available resources.”

Chief

Executive

Officer,

President, Vice

President,

General

Manager,

Division Heads

Functional Managers,

Product Line Managers,

Department Heads

Unit Managers,

First Line Supervisor

MANAGEMENT LEVEL PLANNING HORIZON

Intermediate Planning

(six months to two years)Middle

Management

Lower

Management

Strategic Planning

(one to ten years)

Top

Management

Operational Planning

(one week to one year)

Types of Planning

PRESIDENT/

GENERAL MANAGER

MARKETING MANAGER

PRODUCTION MANAGER

FACTORY MANAGER

INDUSTRIAL ENGINEERING

MANAGER

QUALITY CONTROL MANAGER

FINANCE MANAGER

PERSONNEL MANAGER

responsibleforINTEMEDIATEPLANNING

responsibleforINTEMEDIATEPLANNING

responsibleforINTEMEDIATEPLANNING

responsibleforINTEMEDIATEPLANNING

responsibleforOPERATIONALPLANNING

responsibleforOPERATIONALPLANNING

responsibleforOPERATIONALPLANNING

responsibleforSTRATEGIC PLANNING

The process of planning consists of various

steps depending on the management

level that performs the planning task.

1. setting organizational, divisional, or unit

goals.

2. developing strategies or tactics to reach

those goals.

3. determining resources needed and

4. setting standards.

Goals may be defined as the “precise

statement of results sought, quantified in

time and magnitude, where possible.”

Strategies may be defined as “a course

of action aimed at ensuring that the

organization will achieve its objectives.”

Standard may be defined as “a

quantitative or qualitative measuring

device designed to help monitor the

performance of people, capital goods,

or processes.”

COMPANY

DIVISION

UNIT

Dimagiba

Construction

Corporation

Project

Management

Division

Personnel

Services

Unit

To attain a return

on investment of 25%

To increase the number

of projects undertaken

by the company

To increase the number

of projects engineers

ORGANIZATIONAL LEVEL EXAMPLE OF GOAL

Plans may be prepared according to the needs of the different

functional areas.

1. Marketing Plan – this is the written document or blueprint

for implementing and controlling an organization’s

marketing strategies activities related to a particular marketing strategy.

2. Production Plan – this is a written document that states the

quality of output a company must produce in broad terms

and by product family

3. Financial Plan – it is a document that summarize the current

financial situation of the firm, analyzes financial activities.

4. Human Resources Management Plan – it is a document

that indicates the human resource needed of a company detailed in terms of quantity and quality and based on the

requirements of the company’s strategic plan.

The Executive summary – which presents an over view of the marketing project and its potential.

Table of Contents

Situational Analysis and Target Market

Marketing Objectives and Goals

Marketing Strategies

Marketing Tactics

Schedules and budgets

Financial Data and Control

The amount of capacity the company

must have

How many employees are required

How much material must be purchased.

An analysis of the firm’s current financial condition as indicated by analysis of the most recent statements

A sales forecast

The capital budget

The cash budget

A set of pro forma (or project) financial statements

The external financing plan

Personnel requirements of the company

Plans for recruitment and section

Training plan

Retirement plan

Plans with time horizon consist of the following:

1. Short-range plans – these are plans intended to cover a period of less than one year. First-line supervisors are mostly concern with these plans.

2. Long-range plans – these are plans covering a time span of more than one year. These are mostly undertaken by middle and top management.

According to frequency use, plans may be

classified as:

1. Standing plans – are use again and

again, and they focus on managerial

situations that recur repeatedly.

2. Single-use plans – are specifically

developed to implement courses of

action that are relatively unique and

unlikely to be repeated.

STANDING PLANS maybe further classified

as follows:

1. Policies – they are broad guidelines to

aid managers at every level in making

decisions about recurring situations or

functions.

2. Procedures – they are plans that

describe the exact series of actions to

be taken in a given situation.

3. Rules – they are statements that either

require or forbid a certain action.

SINGLE-USE PLANS may be further classified as follows.

1. Budget – according to Weston and Brigham, is “a plan which set forth the project expenditure for a certain activity and explains where the required funds will come from.

2. Program – is a single-use plan designed to coordinate a large set of activities.

3. Project – is a single-use plan that is usually more limited in scope than a program and is sometimes prepared to support a program.

Planning is done so that some desired

results may be achieved. At times,

however, failure in planning occurs.

Planning may be made successful if thefollowing are observed:

Recognize the Planning Barriers

Use of Aid to Planning

Managers 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

Concentrating on only the controllable variables

Gather as much information as possible

Develop multiple sources of information

Involve others in the planning process