Learning Activity Sheets

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LEARNING ACTIVITY SHEETS IN ORGANIZATION AND MANAGEMENT

THE BUSINESS PLAN

LEARNING COMPETENCY WITH CODE

• Apply appropriate planning techniques and tools in business

decision-making
(ABM_AOM11-Ia-b-6) Quarter 1 WeeK 6

BACKGROUND INFORMATION FOR LEARNERS

For effective planning in today’s dynamic environments, different technique

and tools must be used, such as forecastinng, contingency planning, scenario
planning, benchmarking, and participatory planning.

Planning techniques and tools

According to Schermerhorn (2008),
• Forecasting is an attempt to predict what may happen in the future. All
planning types, without exception, make use of forecasting. Business
periodicals publish forecasts such employment and unemployment rates,
increase or decrease of interest rates, stock market data, GNP/GDP data,
and others. Forecasts used may either be quantitative or qualitative.
Opinions of prominent economists are used in qualitative forecasts while
mathematical calculations and statistical analyses of survey/researches
are used in quantitative forecasts. Forecasts are predictions and may be
inaccurate at times, due to errors of human judgement.

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 Forecasting

Determining the direction of future trends

Contingency factors may offer alternative courses of action when the

unexpected happens or when things go wrong.
• Contingency plans must be prepared by managers, ready for
implementation when things do not turn out as they should be. Contin-
gency factors called “trigger points” indicate when the prepared
alternative plan should be implemented. Meanwhile, planning for future
states of affairs is a long-term version of contingency planning and is also
known as scenario planning. Several future states of affairs must be
identified, and alternative plans must be prepared in order to meet the
changes or challenges in the future. This is a big help for organizations
because it allows them to plan ahead and make necessary adjustments in
their strategies and operations. Some examples of changes or challenges
that may arise in future scenarios are environmental pollution, human
rights violations, climate and weather changes, earthquake damages to
communities, and others.

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 Some organizations use a gantt chart to properly schedule production
processes and allocate resources
• Benchmarking is another planning techniques that generally involves
external comparisons of company’s practices and technologies with those
of other companies. Its main purpose is to find out what other people and
organization do well and then plan how to incorporate these practices into
the company’s operations. A common benchmarking technique is to
search for best practices used by the other organizations that enabled
them to achieve superior performance. This is known as external
benchmarking. Internal benchmarking is also practice by some
organizations when they encourage all there employees working in their
different work units to learn and improve by sharing one another’s best
practices.

• Participatory planning is a planning process that includes the people

who will be affected by the plans and those who will be asked to
implement them in all planning steps. Creativity, increased acceptance

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 and understanding of plans, and commitment to the success of plans are
the positive results of this planning technique.
Decision-making
Management is decision-making. All managers and workers/employees in
organizations makes decisions or make choices that affect their jobs and the
organization they work for. This topic focus on how they make decisions by
going through th steps of decision-making process.

Types of Decisions
A decision is a choice among possible alternative actions. Like planning
decion-making is a challenge and requires careful consideration for both types
of decisions, namely:
• Structured or programmed decision – a decision that is repetitive and
can be handled using a routine approach.
▪ Such repetitive decision applies to resolving structured problems
which are straightforward, familiar, and easily defined. For example,
a restaurant customer complains about dirty utensils the waiter has
given him. This is not unusual situation, and, therefore, standarized
solutions to such a problem may be readily available.
• Unstructured or nonprogrammed decision – applied to the resolution of
probems that are new or unusual, and for which informationis incomplete.
▪ Such nonprogrammed decisions are prescribed to be unique,
nonrecurring and need custom-made decisions. For example, a
hotel manager is asked to make decision regarding the building of a
new hotel branch in another city to meet the demands of
businessmen there. This is an unstructured problem and, therefore
needs unstructured and nonprogrammed decisions to resolve it
The steps in Decision Making process
1. Identify the Problem. The problem may be defined as a puzzling
circumstance or a discrepancy between an existing and a desired condition.
2. Identify the Decision Criteria. These are important or relevant to resolving
the identified problem.
3. Allocate Weights to the Criteria. This is done to give the decision maker the
correct priority in making the decision.
4. Develop Alternatives.This step requires the decision maker to list down
possible alternatives that could help resolve the identified problem.
5. Anlyze the Alternatives. Alternatives must be carfully evaluated by the
decision maker using the criteria identified in Step 2.
6. Select an Alternative. This is the process of choosing the best alternative or
the one which has the highest total points in step 5.

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 7. Implement the Chosen Alternative. This step puts the decision into action.
Changes in the environment must be observed and assessed, especially in
cases of long-term decisions, to see if the chosen alternative is still the best
one.
8. Evaluate Decision Effectivieness. This is the last step and involves the
evaluation of the outcome or result of the decision to see if the was resolved.
If the problem still exists, the manager has to assess what went wrong and, if
needed, repeat a step or the whole process.

REFERENCES

Books
Darr, K. (2013). Introduction to Management and Leadership Concepts, Principles
and Practices, Jones and Bartlett Learning, Retrieved from:
https://www.google.com.et
Mintzberg, H. (1989). MINTZBERG ON MANAGEMENT. Reprinted by permission of
Free Press, a division of Simon & Schuster, Inc.
Robbins, S., Robbins, S. P. and Coulter, M. (2012). Management -11th ed, Pearson.
Retrieved from: www.pearsonhighered.com
Websites
Smyth, D. (2019). The Roles of Business Organizations in Economic Development.
Retrieved from:https://bizfluent.com/info-7745795-roles-business-organizations-
economic-development.html
https://www.managementstudyhq.com/functions-of-management.html
https://www.slideshare.net/LalaineCazar/nature-and-concept-of-
management?from_action=save
https://www.wisdomjobs.com/e-university/principles-of-management-and-
organisational-behaviour-tutorial-366/evolution-of-management-thought-12679.html
https://www.mindtools.com/pages/article/management-roles.htm
https://study.com/academy/lesson/five-stages-of-economic-development.html
https://pnl-law.com/blog/forms-of-business-sole-proprietorship-partnership-
corporation/
https://www.cda.gov.ph/resources/issuances/philippine-cooperative-code-of-
2008/republic-act-9520
https://bizfluent.com/info-7745795-roles-business-organizations-economic-
development.html
https://www.freepik.com/free-vector/team-leader-managing-
project_5562411.htm#page=1&query=manager in business management position=4
https://www.freepik.com/free-vector/urban-buildings-with-cityscape-

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 ACTIVITY PROPER

Activity 1: Independent Activity

Direction: give your own idea and write your answer in a yellow paper.
1. What are the useful planning tools and techniques that are currently used in
many organizations? Define each.
2. Which is a better planning tool: forecasting or benchmarking? Explain your
answer.
3. Why “Trigger points” important in contigency plan
4. Enumerate the steps involved in decision making, which is the most imporatnt
step? Explain your answer
Activity 2: Independent Acitivity
Now that you have learned the different planning tools and techniques
1. Give at least five business forecasts that may occur here in the Philippines three
years from now. Use either qualitative or quantitative forecasting.
2. How can planning through benchmarking be used by the owner/manager of a five
star hotel? Explain your answer.

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Activity 3: Independent Acitivity
Present a plan to put up a small buiness using the planning tools discussed.

Rubrics (if necessary)

4 Expert – Piece is extraordinary, and very informative and well organized
3 Accomplished – Piece has an interesting style, and somewhat informative and
organized.
2 Capable – Piece has little style, gives some new information but poorly organized.
1 Beginner - Piece has no style and, and gives no new information and very poorly
organized

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 REFLECTION

As a student, what are your insights abouth this lesson?

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ANSWER KEY

(Upside down format/flip vertical)

activity 1, 2, and 3
Answer may vary in

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