CHAPTER III

PLANNING

PLANNING TECHNICAL ACTIVITIES

THE NATURE OF PLANNING
PLANNING DEFINED PLANNING AT VARIOUS MANAGEMENT

LEVELS THE PLANNING PROCESS TYPES OF PLANS MAKING PLANNING EFFECTIVE

THE NATURE OF PLANNING

PLAN =>Is the output of planning, provides a methodical way of achieving desired results.

PLANNING DEFINED
PLANNING =>Refers to the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.

PLANNING AT VARIOUS MANAGEMENT LEVELS

TOP MANAGEMENT LEVEL

=Strategic planning MIDDLE MANAGEMENT LEVEL =Intermediate planning LOWER MANAGEMENT LEVEL =Operational planning

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. INTERMEDIATE PLANNING =>Refers to the process of determining the contributions that subunits can make w/ allocated resources. OPERATIONAL PLANNING =>Refers to the process of determining how specific tasks can be accomplished on time w/ available resources.

THE ORGANIZATION AND TYPES OF PLANNING UNDERTAKEN

PRESIDENT/GENERAL MANAGER

MARKETING MANAGER PRODUCTION MANAGER

FINANCE MANAGER

PERSONAL MANAGER

INDUSTRIAL ENGINEERING MANAGER

FACTORY MANAGER

QUALITY CONROL MANAGER

THE PLANNING PROCESS

Setting organizational, divisional, or unit goals
Developing strategies or tactics to reach

those goals Determining resources needed Setting standards

EXAMPLE OF GOALS, BY ORGANIZATIONAL LEVEL

COMPANY BUENAVISTA CONSTRUCTION CORPORATION

DIVISION PROJECT MANAGEMENT DIVISION

UNIT PERSONNEL SERVICES UNIT

TYPES OF PLANS
FUNCTIONAL AREA PLANS MARKETING PLAN -This is the written document or blueprint for implementing and controlling an organizations marketing activities related to a particular marketing strategy. PRODUCTION PLAN -This is a written document that states the quantity of output a company must produce in broad terms and by product family.

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. HUMAN RESOURCE MANAGEMENT PLAN -It is a document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the companys strategic plan

PLANS WITH TIME HORIZON

SHORT-RANGE PLANS

-These are plans intended to cover a period of less than 1 year.

LONG-RANGE PLANS

-These are plans covering a time span of more than 1 year.

PLANS ACCORDING TO FREQUENCY OF USE CLASSIFICATION: Standing plans Single-use plans STANDING PLANS -This are plans that are used again and again. Classifications: Policies procedures Rules

SINGLE-USE PLANS -This plans are specifically developed to implement courses of action that are relatively unique and unlikely to be repeated.

Classifications: Budgets Programs projects

TYPES OF PLANS
TYPES OF PLANS

FUNCTIONAL AREA PLANS

PLANS W/ TIME HORIZON

PLANS W/ VARIED FREQUENCY OF USE

MARKETING PLAN

SHORT-RANGE PLAN

STANDING PLAN

SINGLE-USE PLAN

PRODUCTION PLAN

LONG-RANGE PLAN

POLICIES PROCEDURES RULES

BUDGET PROGRAM PROJECT

FINANCIAL PLAN

HUMAN RESOURCE PLAN

CONTENTS OF MARKETING PLAN

The Executive Summary
Table of contents Situational Analysis and Target Market

Marketing Objectives and Goals

Marketing Strategies Marketing Tactics Schedules and Budgets Financial Data and Control

THE CONTENTS OF THE PRODUCTION PLAN

The amount of capacity the company must have how many employees are required

how much material must be purchased

THE CONTENTS OF THE FINANCIAL PLAN

An analysis of the firms current financial condition as indicated by an analysis of the most recent statements
A sales forecast The capital budget The cash budget

A set of projected financial statements

The external financing plan

CONTENTS OF THE HUMAN RESOURCES PLAN

Personnel requirements of the company Plans for recruitment and selection Training plan Retirement plan

MAKING PLANNING EFFECTIVE

PLANNING MAY BE MADE SUCCESSFUL IF THE FOLLOWING ARE OBSERVED:

Recognize the planning barriers

Use of aids to planning

AIDS TO PLANNING THAT MAY BE USED: Gather as much as information as possible Develop multiple sources of information Involve others in the planning process