GROUP 2

“Planning Technical
Activities”

REPORTERS:
Mhark Jay L. Bactad
Gilbert N. Ancheta
Philip Austine M. Baldonado
Romeo C. Gaerlan Jr.
 Planning
Nature of Planning
1. Managerial Function:
Planning is a first and foremost
managerial function provides the
base for other functions of the
management, i.e. organizing,
staffing, directing and
controlling, as they are
performed within the periphery
of the plans made.

2. Goal Oriented: It focuses on

defining the goals of the
organization, identifying
alternative courses of action and
deciding the appropriate action
plan, which is to be undertaken for reaching the goals.

3. Pervasive: It is pervasive in the sense that it is present in all the

segments and is required at all the levels of the organization. Although the
scope of planning varies at different levels and departments.

4. Continuous Process: Plans are made for a specific term, say for a
month, quarter, year and so on. Once that period is over, new plans are
drawn, considering the organization’s present and future requirements and
conditions. Therefore, it is an ongoing process, as the plans are framed,
executed and followed by another plan.

5. Intellectual Process: It is a mental exercise at it involves the

application of mind, to think, forecast, imagine intelligently and innovate
etc.
 6. Futuristic: In the process of planning we take a sneak peek of the
future. It encompasses looking into the future, to analyze and predict it so
that the organization can face future challenges effectively.

7. Decision making: Decisions are made regarding the choice of

alternative courses of action that can be undertaken to reach the goal. The
alternative chosen should be best among all, with the least number of the
negative and highest number of positive outcomes.

Planning Defined
 Planning is the fundamental management function, which
involves deciding beforehand, what is to be done, when is it to be done,
how it is to be done and who is going to do it. It is an intellectual
process which lays down an organization’s objectives and develops
various courses of action, by which the organization can achieve those
objectives. It chalks out exactly, how to attain a specific goal.
 Planning is present in all types of organizations, households, sectors,
economies, etc. We need to plan because the future is highly uncertain
and no one can predict the future with 100% accuracy, as the conditions
can change anytime. Hence, planning is the basic requirement of any
organization for the survival, growth and success.

 Nickels

The management function that involves anticipating future trends and

determining the best strategies tactics to achieve organizational goal.

 Aldag and Sterns

The selection and sequential ordering of tasks required to achieve an

organizational goal.
  Cole and Hamilton

Deciding what will be done, who will do it, where, and when and how
it will be done, and the standards to which it will be done.

Importance of Planning

 It helps managers to improve future performance, by establishing

objectives and selecting a course of action, for the benefit of the
organization.
 It minimizes risk and uncertainty, by looking ahead into the future.
 It facilitates the coordination of activities. Thus, reduces overlapping
among activities and eliminates unproductive work.
 It states in advance, what should be done in future, so it
provides direction for action.
 It uncovers and identifies future opportunities and threats.
 It sets out standards for controlling. It compares actual performance
with the standard performance and efforts are made to correct the same.

Levels of Management
The Three main levels of management are:

1. Top level management.

2. Middle level management.

3. Supervisory level, operational or lower level of management.

1. Top Level Management:
Top level management consists of Chairman, Board of Directors,
Managing Director, General Manager, President, Vice President, Chief
Executive Officer (C.E.O.), Chief Financial Officer (C.F.O.) and Chief
Operating Officer etc. It includes group of crucial persons essential for
leading and directing the efforts of other people. The managers working
at this level have maximum authority.

Main functions of Top Level Management are:

(a) Determining the objectives of the enterprise. The top level
managers formulate the main objectives of the organization. They form
long term as well as short term objectives.
(b) Framing of plans and policies. The top level managers also
frame the plans and policies to achieve the set objectives.
(c) Organizing activities to be performed by persons working at
middle level. The top level management assigns jobs to different
individuals working at middle level.
 (d) Assembling all the resources such as finance, fixed assets etc.
The top level management arranges all the finance required to carry on
day to day activities. They buy fixed assets to carry on activities in the
organization.
(e) Responsible for welfare and survival of the organization—
Top level is responsible for the survival and growth of the organization.
They make plan to run the organization smoothly and successfully.
(f) Liaison with outside world, for example, meeting Government
officials etc. The top level management remains in contact with
government, competitors, suppliers, media etc. Jobs of top level are
complex and stressful demanding long hours of commitment towards
organization.
(g) Welfare and survival of the organization.

2. Middle Level Management:

This level of management consists of departmental heads such as
purchase department head, sales department head, finance manager,
marketing manager, executive officer, plant superintendent, etc. People
of this group are responsible for executing the plans and policies made
by top level.
They act as a linking pin between top and lower level
management. They also exercise the functions of top level for their
department as they make plans and policies for their department,
organize and collect the resources etc.

Main functions of middle level management are

(a) Interpretation of policies framed by top management to lower
level. Middle level management act as linking pin between top level
and lower level management. They only explain the main plans and
policies framed by top level management to lower level.
 (b) Organizing the activities of their department for executing the
plans and policies. Generally, middle level managers are the head of
some department. So, they organize all the resources and activities of
their department.
(c) Finding out or recruiting/selecting and appointing the required
employees for their department. The middle level management selects
and appoints employees of their department.
(d) Motivating the persons to perform to their best ability. The
middle level managers offer various incentives to employees so that
they get motivated and perform to their best ability.
(e) Controlling and instructing the employees, preparing their
performance reports etc. The middle level managers keep a watch on
the activities of low level managers. They prepare their performance
appraisal reports.
(f) Cooperate with other departments for smooth functioning.
(g) Implementing the plans framed by top level.

3. Supervisory Level/Operational Level:

This level consists of supervisors, superintendent, foreman, sub-
department executives; clerk, etc. Managers of this group actually carry
on the work or perform the activities according to the plans of top and
middle level management.
Their authority is limited. The quality and quantity of output
depends upon the efficiency of this level of managers. They pass on the
instruction to workers and report to the middle level management. They
are also responsible for maintaining discipline among the workers.

Functions of lower level management are:

(a) Representing the problems or grievances of workers before
the middle level management. The supervisory level managers are
directly linked with subordinates so they are the right persons to
understand the problems and grievances of subordinates. They pass
these problems to middle level management.
(b) Maintaining good working conditions and developing healthy
relations between superior and subordinate. The supervisory managers
provide good working conditions and create supportive work
environment which improve relations between supervisors and
subordinates.
(c) Looking to safety of workers. Supervisory level managers
provide safe and secure work environment for workers.
(d) Helping the middle level management in recruiting, selecting
and appointing the workers. The supervisory level managers guide and
help the middle level managers when they select and appoint
employees.
(e) Communicating with workers and welcoming of their
suggestions. The supervisory level managers encourage the workers to
take initiative. They welcome their suggestions and reward them for
good suggestions.
(f) They try to maintain precise standard of quality and ensure
steady flow of output. The supervisory level managers make sure that
quality standards are maintained by the workers.
(g) They are responsible for boosting the morale of the workers
and developing the team spirit in them. They motivate ‘the employees
and boost their morale.
(h) Minimizing the wastage of materials.
THE PLANNING PROCESS
 Setting Organizational , Divisional, Or Unit Goals

 Developing Strategies,or Tactics To Reach Those Goals

 Resources Needed

 Setting Standard

 Setting Organizational, Divisional, Or Unit Goals

Enginer Manager Task

1. Chief Executive

2. Head Of Division

3. Supervisor

GOALS

- may defined as the “precise statement of results

sought, quantified in the time and magnitude, where
possible.”
 Developing Strategies,or Tactics To Reach Those Goals

Strategy

- defined as “a course of action aimed at ensuring that

organization will achieve its objectives.”

Tactics

- is a short-term action taken by management to adjust

to a negative internal or external influences.

 Determining Resources Needed

To satisfy strategic requirements, a general statement of

needed resources will suffice.

 Setting Standard

Standard
 - may be defined as “ a quantitative or qualitative
measuring device designed to help monitor the performances
of people , capital goods or processes
REFERENCES:

 Engineering Management Book by Roberto Medina

 https://iedunote.com/planning-nature-importance-types
 http://www.yourarticlelibrary.com/management/the-top-3-levels-of-
management-933-words/8602
 https://www.slideshare.net/kathyabaja/planning-at-different-levels-in-
the-firm
 https://www.slideshare.net/garimapatil13/plannning-and-types-of-
planning