(4) nature of planning
DESCRIPTION
PlanningTRANSCRIPT
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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.
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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
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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.”
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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
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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
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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.
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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.”
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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
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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.
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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
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The amount of capacity the company
must have
How many employees are required
How much material must be purchased.
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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
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Personnel requirements of the company
Plans for recruitment and section
Training plan
Retirement plan
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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.
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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.
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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.
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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.
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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
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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
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Gather as much information as possible
Develop multiple sources of information
Involve others in the planning process