CHAPTER 3 PLANNING DEFINED

PLANNING TECHNICAL ACTIVITIES -NICKLES The management functions that involves

THE NATURE OF PLANNING anticipating future trends and determining the best strategies
PLANNING DEFINED and tactics to achieve organizational objectives
PLANNING AT VARIOUS MANAGEMENT ALDAG AND STEARNS -- The selection and sequential
LEVELS ordering of tasks required to achieve an organizational goal
THE PLANNING PROESS -COLE AND HAMILTON- Deciding what will be done,
TYPES OF PLANS who will do it, where, when and how it will be done, and the
MAKING PLANNING EFFECTIVE standards to which it will be done.
For our purpose, planning is selecting the best course of
If an engineer have a higher management level, the more action so that the desired results may be achieved
sophisticated his planning activity becomes PLANNING AT VARIOUS MANAGEMENT LEVELS
THE NATURE OF PLANNING
To minimize mistakes in decision making, PLANNING is
undertaken
A plan provides a methodical way of achieving desired results
and it is a useful guide.
NATURE OF PLANNING
Planning is a goal oriented.
Pervasiveness of planning.
Planning should be efficient. TOP MANAGEMENT LEVEL
Planning should help in economy. Strategic Planning--refers to the process of
Planning helps in coordination. determining the major goals of the organization and
Planning helps in flexibility. the policies and strategies for obtaining and using
Planning is a primary function. resources to achieve those goals.
Planning is all-pervasive. MIDDLE MANAGEMENT LEVEL
Planning is a continuous process. Intermediate Planning --refers to "the process of
Planning is forward looking. process of determining the contributions that subunits
Planning involves choice. can make with allocate resources".
Planning is directed toward efficiency. LOWER MANAGEMENT LEVEL
According to KOONTZ and ODONNELL, there are 4 basic Operational Planning --refers to "the process of
principles for the understanding of the nature of planning determining how specific tasks can best be
accomplished on time with available resources ."

1Primacy of Planning

2..Pervasiveness of Planning
3.. Contribution to objectives
4.. . Efficiency of Planning

THE PLANNING PROCESS
The planning process is
a fundamental function of management and should result in
the best possible degree of need satisfaction given the
resources available.
Planning involves the following:
setting organizational, divisional, it unit goal
developing strategies or tactics to reach those
goals
determining resources needed and
setting standards
SETTING ORGANIZATIONAL, DIVISIONAL, IT UNIT
GOAL---the task of an engineer manager is to provide a sense
of direction to his firm.
DEVELOPING STRATEGIES OR TACTICS TO
REACH THOSE GOALS
GOALS --may be defined as the precise statement of
results sought, quantified in time and magnitude,
where possible
TACTIC -short term action for the negative
influences
DEVELOPING STRATEGIES OR TACTICS TO
REACH THOSE GOALS
STRATEGY --is a course of action aimed at
ensuring that the organization will achieve its
objectives.
DETERMINING RESOURCES NEEDED
The quality and quantity of resources needed
must be correctly determined
To satisfy strategic requirements, a general
statements of needed resources will suffice
SETTING STANDARDS
* standard --is a quantitative or qualitative measuring
device designed to help monitor the performances of
people, capital goods, or processes.
TYPES OF PLANS
I. FUNCTIONAL AREA PLANS
Marketing Plan--a written document or blueprint for
implementing an organizations marketing activities
Production Plan--the quantity of output a company
must produce in broad terms and by product family
Financial Plan--a document summarizes the current
financial situation of the firm, analyzes financial
needs, and a direction for financial activities
Human Resource--Management Plan---a document
that indicates the human resources needs of a
company detailed in terms of quantity and quality
based on the requirements
II. PLANS WITH TIME HORIZON
Short-Range
plans intended to cover a period of less than one year
Long-Range
plans covering a time span of more than one year
III. PLANS ACCORDING TO FREQUENCY OF USE
A.) STANDING PLANS
POLICIES -broad guidelines about recurring
situations or function
PROCEDURES -plans that describe the exact series
of actions to be taken in a given situation
RULES -statements that either require or forbid a
certain action
B) SINGLE USE OF PLAN
Budgets--a plan projected expenditure for a certain
activity and explains where the required funds will
come from
Programs--plan designed to coordinate a large set of
activities
Projects--plan that is limited in scope sometimes
prepared to support a program
PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS MAKING PLANNING EFFECTIVE
The Contents of the Marketing Plan The planning barriers, according to Plunkett and Attner, are as
The Executive Summary - which presents an overall follows:
view of the marketing projects and it's potential. Manager's inability to plan
Table of Contents Improper planning process
Situational Analysis and Target Market Lack of commitment to the planning process
Marketing Objectives and Goals Improper information
The Contents of the Marketing Plan Focusing on the present at the expense of the future
Marketing Strategies Too much reliance on the planning department
Marketing Tactics Concentrating on only the controllable variables
Schedules and Budgets Among the aids to planning that may be used are:
Financial Data and Control Gather as much information as possible
The Content of the Production Plan Develop multiple source of information
The amount of capacity the company must have Involve others in the planning process
How many employees are required?
How much material must be purchased?
The Contents of the Financial Plan
An analysis of the firm's current financial condition
as indicated by an analysis of the most recent
statements
A sales forecast
The capital budget
The cash budget
A set of pro forma (or projected) financial statements
The external financing plan
Contents of the Human Resources Plan
Personnel requirements of the company
Plans for recruitment and selection
Training plan
Retirement plan
PARTS OF THE STRATEGIC PLAN
Company or corporate mission
Objectives or goals
Strategies
Company or corporate mission refers to the "strategic
statement that identifies why an organization exists,
its philosophy of management, and it's purpose as
distinguished from other similar organizations in
terms of products, services, and markets