PLANNING CHAPTER 4

NEEDS TO PLAN

It must first be understood. Everything is constantly changing.Whether the manager will be able to control or controlled

PLAN A method for doing or making

something and consisting of a goal

and a course of action

A minimum

How you will do

How you will do it

By when you’ll get it done

GOALS:A specific result to be achieved

Result of a plan

OBJECTIVE Is a specific result toward which

effort is directed.

PLANNING Is the process of setting the objectives

to be accomplish. is never ending activity.

IMPORTANCE OF PLANNING People plan because they want their

actions to be both effective and efficient.

Effective

an activity is effective if it achieves its objectives.

Efficient

if it is undertaken with the

Expenditure of the least amount of

resources.

PLANNING PROCESS 1. Identification of Opportunities and Threats

collecting and analyzing relevant external information which defines opportunities or threats to the firms business.

2. Evaluation of Present Situation

in the planning process is to evaluate the company’s present situation in order to determine the gap between the desired level of performance and it’s present level of performance.

3. Setting Goals and Objectives

the formulation of company objectives may be done in different ways.

the first stage is the statement of purpose or the reason for being for the organization, the second stage is the statement scope of activities it will undertake to achieve the purpose, and third stage the statement of objectives, clarifies the level of performance to be achieve in these acivities.

4. Determining Planning Premises

assumptions about the future which form

an important basis for the strategic

choices as well as the detailed plans.

.

5. Evaluating Alternatives

*the identification of the of opportunities

and threats in the first stage

of planning process

*considers internal factors

*the consideration of the both external

and internal factors relates the firm’s Internal capabilities and resources

6. Programming

translates broad plans to specific activities

to be undertaken by an enterprise

that extend over a period of several years.

7. Budget preparation

is the translation of programs to

financial and other quantitative data.

The budget is monetary amounts like

units sold or produced.

FORMAL PLANNING IN BUSINESS ORGANIZATIONS

Among large business organizations such as

the San Miguel Corporation or the

Philippine National oil company, strategic planning and the preparation of the annual

company budget are usually performed In a formal matter.

Formal planning system

is one which the process, participants,

outputs, formats and calendar of

the planning activities are explicitly defined

GENERAL APPROACHES IN TO FORMAL PLANNING

top-down approach

initiative is taken by the upper level executives of he organization,

who formulates a unified, coordinated plan, usually with the advice of

lower level manager.

Interactive approach

a compromise between the bottom-up and the top- down methods.

Dual Approach

plan is dependently formulated both at the corporate and business levels.

CLASSIFICATION AND TYPES OF PLAN

(a) Plans classified according to time or duration includes:

1. Long range planning

2. Intermediate Range Planning

3. Short Range Planning

(b) Plans Classified according to business function or use are:

1. Sales plan

2. Production plan

3. Personal Plan

4. Finance plan

5. All plans concerning any other major functions

MAJOR OF KINDS OF PLANNING

1.Strategic planning

it is a long range of planning which focused on the entire business operations.

2. Tactical planning

a short range planning the emphasizes the current operations of various parts of the organizations.

3. Operational Planning

it provides the specific as to how the strategic plan will be attained.

Types of Operational Plan

1. Single use plan

develop to carry out a course of action that is not to be repeated in the future. Single use plan are usually within a relatively short period such as:

Programs

consist of listing activities intended to carry out policies attain the objectives of the organization.

Project

a plan which pertains to a discrete activity unit.

Scheduling

it is the function of determining how soon an operation or project should begin.

Budget

is translation of a set of activities into quantitative figures.

Forecasting

is an attempt to foretell future trends, or condition from known facts and to prepare for the expected changes in industry.

2. Standing plans

are established et of decisions used by managers to deal with recurring organizational activities.

Types of standing plan

1. policies

2. rules

3. procedures.

3. On-going Plans

is used for continuing situations problem and activities which are similar and consistent.

Planning at the Different Levels of Management in Organization

Top level managers

perform long range of planning.

Middle Level Managers

are concerned with the planning of the specific objectives of implementing the general goals of top level management.

First level Managers

are responsible for the scheduling of workers and developing the procedures for doing.