MODULE 4

PLANNING AND
ORGANIZING TECHNICAL
ACTIVITIES

GROUP 1: EE14
Members:

Avanzado, Pamela Abigail B.

Cardinal, Aquimar L.

Cometa, Mary Joy M.

 PLANNING TECHNICAL ACTIVITIES
THE NATURE OF PLANNING:

• There are many instances when managers are overwhelmed by various activities which at
times becloud his judgement. This must be expected since anybody who is confronted by
several situations happening simultaneously will lose sight of the more important concerns.
To minimize mistakes in decision making, planning is undertaken.

• A plan, which is the output of planning, provides a methodical way of achieving desired
results. Without the plan, some minor tasks maybe afforded major attention which may
later on, hinder accomplishment of objectives.

What is Planning?

• It is deciding what will be done, who will do it, where, when, and how will it be done, and
the standards to which it will be done.
• It is also the management function that involves anticipating future trends and determining
the best strategies and tactics to achieve organizational objectives.
• Goal must be realized which is the desired result so that it will be taken as a priority.
Planning is the means to realize this goal.

PLANNING AT VARIOUS MANAGEMENT LEVEL:

Planning activities undertaken at various level are as follows:

1. Top management level – Strategic Planning

• The term 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.
Parts of Strategic Planning:
✓ President
✓ General Manager
2. Middle management level – Intermediate Planning

• Intermediate planning refers to the process of determining the contributions that subunits can

make with allocated resources.

Parts of Intermediate Planning:
✓ Marketing Manager
✓ Production Manager
✓ Finance Manager
✓ Personnel Manager

3. Lower management level – Operational Planning

• Operational planning refers to the process of determining how specific task can be best

accomplished on time with available resources.

Parts of Operational Planning:
✓ Industrial Engineering Manager
✓ Factory Manager
✓ Quality Control Manager
THE PLANNING PROCESS:

Generally, planning involves the following:

1. Setting organizational, divisional, or unit goals

• The first task of engineer manager is to provide a sense of direction to his firm, to his division,
or to his unit. The setting of goals provides an answer to the said concern. If everybody in
the firm is aware of the goals, there is a big chance that everybody will contribute his share
in the realization of such goals.

2. Developing strategies or tactics to reach those goals

• After determining the goals, the next task is to devise some measures to realize them. The

ways to realize the goals are called strategies and these will be concern of top management.

3. Determining resources needed

• The quality and quantity of resources needed must be correctly determined. Too much

resources in terms of either quality or quantity will be wasteful.

4. Setting standard

• A standard may be defined as a quantitative or qualitative measuring device designed to help

monitor the performance of people, capital goods, or processes.

TYPES OF PLANS:
Classification of Plans:
1. Functional Area Plan –
➢ Marketing Plan – The executive summary – overall
✓ Table of Contents

✓ Situational Analysis and Target Market

✓ Marketing Objectives and Goals

✓ Marketing Strategies

✓ Marketing Tactics

✓ Schedules and Budget

✓ Financial Data and Control

➢ Production Plan – The production plan must contain the following:

✓ The amount of capacity the company must have

✓ How many employees are required

✓ How many materials must be purchased

➢ Financial Plan – An analysis of the firm’s current financial condition as indicated

by an analysis of the most recent statements

✓ Sales forecast
✓ Capital budget
✓ Cash budget
✓ A set of pro forma (or projected) financial statements
✓ External financing plan

➢ Human Resource Plan – Personnel requirement of the company

✓ Plans for recruitment and selection
✓ Training Plan
✓ Retirement Plan
2. Plans with time horizon

➢ Short range plans – plans intended to cover a period of less than one year
➢ Long range plans – plans covering a time span of more than one year

3. Plans According to Frequency Use

➢ Standing Plans
✓ Policies
✓ Procedures
✓ Rules
➢ Single-use Plans
✓ Budget
✓ Program
✓ Project

MAKING PLANNING EFFECTIVE:

Planning may be made successful if the following are observed:
➢ Recognize the planning barriers
➢ Use of aids to planning

The planning barriers:

➢ Manager’s 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 only on the controllable variable
Aids to planning that may be used are:
➢ Gather as much information as possible
➢ Develop multiple sources
➢ Involve others in the planning process
 ORGANIZING TECHNICAL ACTIVITIES
REASONS FOR ORGANIZING:

• Organizing is undertaken to facilitate the implementation of plans.

➢ In effective organizing, steps are undertaken to breakdown the total job into
more manageable man-size jobs

What is Organizing?

• Organizing is a management function which refers to "the structuring of resources and

effective manner".

• Structure is the arrangement or relationship of positions within an organization.

• The result of organizing process is the structure.

PURPOSE OF THE STRUCTURE:

• It defines the relationships between tasks and the authority for individuals and departments.
• It defines formal reporting relationships, the number of levels in the hierarchy of the
organization, and the span of control.

• It defines the groupings of individuals into departments into organization.

• It defines the system to effect coordination of effort in both vertical (authority) and
horizontal (tasks) directions.

CONCERNS WHEN STRUCTURING AN ORGANIZATION:

1. Division of Labor – determining the scope of work and how it is combined in a job
2. Delegation of authority – the process of assigning various degrees of decision-making
authority to subordinates
3. Departmentation – the grouping of related jobs, activities, or processes into major
organizational sub-units
4. Span of control – the number of people who report directly to a given manager
5. Coordination – the linking of activities in the organization that serves to achieve a common
goal or objective
FORMAL ORGANIZATION:

• It is the structure that details lines of responsibilities, authority, and position

Formal Structure defined by management:

1. Organizational Chart - It is the diagram of the organization's official positions and formal
lines of authority.
2. Organizational Manuals - It provides written description of authority relationships, details
the functions of major organizational units, and describes job procedures
3. Policy Manuals - it describes personnel activities and company policies.

Informal Groups:

• Instances when members of organization form a group with friendship as a principal reason

of belonging.

Reasons in Forming Group:

TYPES OF ORGANIZATIONAL STRUCTURE

1. Functional Organization - This is a form of departmentalization in which everyone

engaged in one functional activity, such as engineering or marketing, is grouped in one unit
Advantage:
➢ The grouping of employees who perform task permit economies of scale and
efficient resource use.

Disadvantage:

➢ Communication and coordination between departments are often poor.

2. Product or Market Organization - This refers to the organization of a company by
divisions that brings together all those involved with a certain type of product or customer
Advantage:
➢ The organization is flexible and responsive to change.

Disadvantage:

➢ There is high possibility of duplication of resources across divisions.

3. Matrix Organization - It is an organizational structure in which each employee reports to

both a functional or division manager and to a project or group manager.
Advantage:
➢ There is more efficient use of resources than the divisional structure.

Disadvantage:

➢ There is frustration and confusion from dual chain of command.

TYPES OF AUTHORITY

1. Line Authority - A manager to tell subordinates what to do and then see that they do it

• Performs tasks that reflects the organization’s primary goal and mission.
• In construction firm, it negotiates and secures contracts for the firm
2. Staff Authority - A staff specialist's right to give advice to a superior Examples:
➢ Those perform strategic planning
➢ Labor relations
➢ Research
➢ Accounting
➢ Personnel

Classification:
• Personal Staff
• Specialized Staff

3. Functional Authority - A specialist's right to oversee lower-level personnel involved in that

specialty, regardless of where the personnel are in the organization

• Given to a person or a work group to make decisions related to their expertise even if these
decisions concern other department

• Given to budget officers of the organizations

THE PURPOSE OF COMMITTEE:

What is committee?

• A committee is a formal group of persons formed for a specific purpose

Classifications:

✓ Ad hoc Committee
✓ Standing Committee