CHAPTER 3

Planning
Technical
Activities
The Nature of
Planning
• A plan, which is the output
of planning, provides a
methodical way of achieving
desired results. In the
implementation of activities,
the plan serves as a useful
guide.
Planning Defined
• Planning, according to Nickels and others,
refers to ‘’the management function that
involves anticipating future trends and
determining the best strategies and tactics
to achieve organizational objectives’’.
• On the other hand, Aldag and stearns,
define planning as ‘’ the selection and
sequential ordering of tasks required to
achieve an organizational goal.
• According to Cole and Hamilton Planning is
‘’deciding what will be done, who will do it ,
where , when and how it will be done, and
the standards to which it will be done’’.
Planning at Various Management Levels

1 2 3
Top management Middle Lower management
level- strategic management level – level- Operational
planning intermediate planning
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 the

Strategic goals.
• The output of strategic planning is strategic plan which spells

Planning out ‘’ the decision about long-range goals and the course of
action to achieve these goals.
Intermediate
Planning
• Intermediate planning refers to
‘’the process of determining the
contributions that subunits can
make with allocated resources.
• Under intermediate planning ,
the goals of subunit are
determined and a plan is
prepared to provide a guide to
the realization of the goals.
Types of Planning

MANANGEMENT LEVEL PLANNING HORIZON

Chief
Executive
Top officer, Strategic planning
Management President, (one to ten years)
Vice President,
General Manager

Middle Functional Manager, Intermediate planning

Management Product Line Manager, (Six months to two years)
Department Heads

Lower Unit Managers Operational planning

Management First Line Supervisors (one week to one year)
Operational
Planning

• The process of determining

how specific tasks can best be
accomplished on time with
available resources.
• This type of planning is a
responsibility of lower
management.
 THE PLANNING
PROCESS
The process of planning consists of
various steps depending on the
management level that performs the
planning tasks.

Planning involves the following:

1. Setting organizational, divisional,
or unit goals.
2. Developing strategies or tactics
to reach those goals.
3. Determining resources needed
and
4. Setting standards.
Setting Organizational,
divisional, or Unit Goals
The first task of the engineer manager is to
provide a sense of direction to his firm.

Goals
Defined as the ‘’precise statement of results
sought, quantified in time and magnitude ,
where possible.
Examples of goals, By Organizational Level
ORGANIZATIONAL LEVEL EXAMPLE OF GOAL

To attain a return on
COMPANY investment of 25%

Buenavista Construction
Corporation

To increase the number

DIVISION of projects undertaken by
the company
Project Management
Division

To increase the
UNIT number of project
ebgineers
Personal Services
Unit
Developing Strategies or
Tactics to Reach Goals

After determining the goals, the next task is to devise some

means to realize them. The ways to realize the goals are called
strategies.

Strategy
Defined as ‘’ a course of action aimed at ensuring that the
organization will achieves its objectives.
Tactic
A short-term action taken by management to adjust to negative
internal or external influences.
Tactical Plan
The decision about short-term goals and the courses of action.
 Determining
Resources Needed

• When particular sets of strategies or tactics

have been been devised, the engineer
manager will, then determine the human and
nonhuman resources required by such
strategies or tactics.
• The quality and quantity of resources needed
must be correctly determined. Too much
resources in terms of either quality or quantity
will be wasteful.
• To satisfy strategic requirements a general
statement of needed resources will suffice.
 The Standards for measuring performance
may be set at the planning stage. When
actual performance does not match with
the planned performance, corrections may
be made, or reinforcement given.
Setting
Standards Standard
Defined as ‘’ a quantitative or qualitative
measuring device designed to help
monitor the performance of people, capital
goods, or processes.
TYPES OF PLANS
Plans are of different types. They may be classified in terms of functional areas, time
horizon , and frequency of use.

Functional Area Plans

1. Marketing plan- This is the written document or blueprint for implementing and
controlling an organization’s marketing activities related to a particular marketing
strategies.
2. Production plan- This is a written document that states the quantity of output a
company must produce in broad terms and by product family.
3. Financial plan- It is a document that summarizes the current financial situation of the
firm, analyzes financial needs, and recommends a direction for financial activities.
TYPES OF PLANS
4. Human Resource Management plan- It is a document that indicate the human
resource needs of a company detailed in terms of quantity and quality and based
on the requirements of the company’s strategic plan.
Plan with Time
Horizon
1. Short-range plans- These are
plans intended to cover a period of
less than one year. First- line
supervisors are mostly concerned
with these plans.
2. Long-range plans- These are plans
covering a time span of more than
one year. These are mostly
undertaken by middle and top
management.
 1. Standing plans
2. Single-use plans

Plans Standing Plans- These are plans that are used again
and again. And they focus on managerial situations that

According recur repeatedly.

to Standing plans may be further classified as follows:

1.Policies- They are broad guidelines to aid managers

Frequency at every level in making decisions about recurring

situations or function.

of Use
2.Procedures- They are plans that describe the exact
series of actions to be taken in a given situation.
3.Rules- They are statements that either require or
forbid a certain action.
Plans According to
Frequency of use
Single-Use Plans- These plans are specifically
developed to implement courses of action that are
relatively unique and are unlikely to be repeated.

Single-use plans may be further classified as

follows:
1.Budgets
2.Programs
3.Projects
Parts of the Various
Functional Area Plans
The engineer manager may be familiar with
engineering plans, knowing the details from
beginning to end. However, the ever present
possibility of moving from one management level
to the next and from one functional area to
another presses the engineer manager to be
familiar as well with other functional area plans.
 The Contents of the Marketing Plan
• The structure and content of marketing plans vary depending on the nature of the organizations
adapting

William Cohen maintains that the following must be included in the marketing plan:
1. The Executive Summary-which presents an overall view of the marketing project and its
potential.
2. Table of Contents
3.Situational Analysis and Target Market
4. Marketing Objectives and Goals
5.MarketingStrategies
6.MarketingTactics
7.Schedules and Budgets
8.Financial Data and Control
The Contents of the Production Plan
1. The amount of capacity the company
must have.
2. How many employees are required.
3. How much material must be purchased.

The Contents of the Financial Plan

1. An analysis of the firm's current financial
condition as indicated by an analysis of the
most recent statements.
2. A sales forecast
3. The capital budget
4. The cash budget
5. A set of pro forma(or projected) financial
statements
 The human resources plan must contain
Contents of the following:
the Human 1. Personnel requirements of the
Resources company
2. plans for recruitment and selection
Plan 3. Training plan
4. Retirement plan
PARTS OF THE STRATEGIC
PLAN

The strategic plan must contain the following:

1. Company or corporate mission
2. Objectives or goals
3. Strategies
MAKING PLANNING EFFECTIVE
• Planning is done so that some desired results may be achieved. At times, however, failure in
planning occurs.
Planning may be made successful if the following are observed:
1. Recognize the planning barriers
2. Use of aids to planning
The planning barriers , according to Plunkett and Attner , are as follows:
1. Manager’s inability to plan
2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of the future
6. Too much reliance on the planning department
7. Concentrating on only the controllable variables
Among the aids to planning that may
be used are:

1. Gather as much information as

possible

2. Develop multiple sources of

information

3. Involve others in the planning

process
Thank You For
Listening