Professional Documents
Culture Documents
And Nature of Planning
And Nature of Planning
AND NATURE
OF PLANNING
Planning
Planning is the first management function and for a good reason. It is a
crucial and essential part if management and it is important for the following
reasons:
Planning provides direction to all of the organization’s human resources -
both managers and employees.
Planning is important because it reduces uncertainty; it compels
managers to consider future events that may affect their company.
Planning
Planning is the first management function and for a good reason. It is a
crucial and essential part if management and it is important for the following
reasons:
Minimizing of wastes will result if there is proper coordination of
activities due to planning; negative practices, ineffectiveness, and
inefficiencies could be easily detected and can be corrected or
eliminated.
Establishing goals and standards during planning may be used for
controlling, which is another necessary managerial function.
Goals vs Plans
Goals are the targets of desired ends that management want reach, while
plans are the actions or means that administrators/managers intend to use
to achieve organizational goals. In short, goals serve as the foundation of
planning; goals precede plans because knowing the desired targets is a must
before establishing plans for reaching them.
TYPES OF
PLANS
Types of Plans
Plans that establish the organization’s overall goals and apply to the
entire firm; they are broad in scope and are the responsibility of the CEO,
president, and general manager of the company.
Operational plans
Plans that apply to a particular unit area only; their scope is narrow;
achievement of company goals may not be achieved if operational plans
are not clear.
Long-term plans
These are plans that are in-between 1-3 years which are normally
formulated by Middle Level Managers.
Short-term plans
Plans that cover one year or less; such plans must lead toward the
attainment of long-term goals and are the responsibility of the
unit/department heads. These are normally formulated by Low Level
Managers.
Directional plans
Plans that are flexible or give general guidelines only; although flexible
and general, these plans must still be related to the strategic plans.
Specific plans
Plans that are clearly stated and which have no room for interpretation;
language used must be very understandable. Such plans require specific
stated objectives and do not contain ambiguity.
Single-use plans
Plans used or stated once only as this applies to the entire organization;
refer to the strategic plans of the firm. A single-use plan is a one-time
plan specifically designed to achieve a particular goal that, once
achieved, will most likely not recur in the future. There are two important
types of single-use plans: programs and projects.
Single-use plans
Programme
Programmes are detailed statements about a project which outlines
the objectives, policies, procedures, rules, tasks, human and physical
resources required and the budget to implement any course of action.
In programme minutes details like procedures, rules, budgets, are
worked out within the broad policy framework.
Single-use plans
Project
A project is a plan that organizes a set of limited-scope activities that
do not need to be divided into several major parts in order to reach a
significant nonrecurring goal.
Standing plans
Plans that are ongoing; provide guidance for different activities done
repeatedly. The three types of standing plans are:
Policy
Procedure
Methods
Standing plans
Policy
A policy is a guideline that establishes parameters for making
decisions. Policies are general statements that guide thinking or
channelize energies towards a particular direction.
Standing plans
Procedure
Procedures are routine steps on how to carry out activities to
accomplish a particular task. They give detailed guidelines for the
exact manner in which any work is to be performed. Procedures are
specified in a chronological and sequential order to be followed in
particular circumstances.
Standing plans
Methods
The procedure gives the sequence in which the task is to be
accomplished while methods provide the prescribed ways or manner
in which a task has to be performed considering the objective of the
task.
Standing plans
Methods
An appropriate method is selected for a specific task. For example, to
impart training to employees at various level orientation programmes,
lectures and seminars can be used for top-level management, job
training methods and work-oriented methods for supervisory level and
on the job training methods for workers.
PLANNING AT
DIFFERENT
LEVELS OF THE
FIRM
Top-level Management Planning
(Strategic planning)
Top level managers are responsible for the organization’s strategic
planning which involves making decisions about the organization’s long-
term goals and strategies. They, however, do not formulate or execute the
plan on their own; a management team supports and helps top-level
managers in carrying out these tasks.
Top-level Management Planning
(Strategic planning)
Strategic planning starts with defining the organization’s
goals/objectives, the major targets related to the maintenance of the
organization’s stability, and its organizational culture, values, and growth
improving its productivity, profitability, effectiveness, and efficiency,
among others.
Middle-level Management Planning
(Tactical Planning)
Tactical planning refers to a set of procedures for changing or
transforming broad strategic goals and plans into specific goals and plans
that are applicable and needed in one unit/portion of the organization. It
is focused on major actions that must be done by a unit in order to
contribute its share for the achievement of the strategic plan.
Frontline/Lower-level Management Planning
(Operational Planning)