PLANNING Christiane Joy Tolentino
Transcript of PLANNING Christiane Joy Tolentino
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PREPARED BY:
KRISTIANNE JOY TOLENTINO
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THE NATURE OF PLANNING
PLANNING DEFINED
PLANNING AT VARIOUS MANAGEMENT LEVELS
THE PLANNING PROCESSMAKING PLANNING EFFECTIVE
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If managing an organization is to bepursued vigorously, planning will constitutethe most important activity. Managers who
plan are afforded with the opportunity tocarefully analyze situations which directlycontribute to effective decision-making.
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There are many instances when managers areoverwhelmed by various activities which at times be cloudhis judgment. This must be expected since anybody who isconfronted by several situations happening simultaneously
will loose sight of the more important concerns. Tominimize mistakes in decision making, planning isundertaken.
A plan, which is the output of planning, provides amethodical way of achieving desired results. In the
implement of activities, the plan serves as a useful guide.Without the plan, some minor tasks may be afforded majorattention which may, later on, hinder the accomplishmentof objectives
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Various experts define planning in various ways, all ofwhich are designed to suit specific purposes.
Planning, according to nickels and others, refers tothe management function that involves anticipatingfuture trends and determining the best strategies andtactics to achieved an organizational objectives. Thisdefinition is useful because it relates the future to whatcould be decided now.
Aldag and stearns, on the other hand, defined
planning as the selection and sequential ordering oftasks required to achieved an organizational goal. Thisdefinition centers on the activity required to accomplishthe goals
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The definition of cole and amilton provides a better guideon how to effectively perform this vital activity. Planinng,according to them 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.For our purpose, it will suffice to define planning as
selectingthe best course of action so that the desired result maybe achieved.
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Since engineer managers could be occupying positionsin any of the various managementlevels, it will be useful forthem to know some aspectsof planning undertaken at thedifferrent management levels.
Planning activities undertaken at various levels are asfollows:
Top management level - strategic planning
Middle management level - intermediate planning
Lower management level - operational planning
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The term strategic planning refers to the process ofdetermining the major goals of the organization and the policiesand strategies for obtaining and using resources to achieve thosegoals. The top managementof any firm is involved in this type of
planning.
The output of strategic planning is the strategic plan whichspells out the decision about long-range goals and the course
of action to achievethese goals.
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Intermediate planning refers to the process of
determining the contributions that subunits can make withallocated resources. This type of planning is undertaken bymiddle management.
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CHIEF EXECUTIVEOFFICER, PRESIDENT,VICE PRESIDENTS,
GENERAL MANAGER,DIVISION HEADS
FUNCTIONAL MANAGERS,PRODUCT LINE MANAGERS,
DEPARTMENT HEADS
UNIT MANAGERS,
FIRST LINE SUPERVISORS
MIDDLE
MANAGEMENT
LOWER
MANAGEMENT
TOP
MANAGEMENTSTRATEGIC PLANNING
( ONE TO TEN YEARS)
INTERMEDIATE PLANNING
(SIX MO. TO TWO YEARS)
OPERATIONAL PLANNING
(ONE WEEK TO ONE YEAR)
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PRESIDENT/
GENERAL
MANAGER
PRODUCTION
MANAGER
INDUSTRIAL
ENGINEERING
MANAGER
FACTORY
MANAGER
FINANCE
MANAGER
QUALITY
CONTROL
MANAGER
MARKETING
MANAGER
PERSONNEL
MANAGER
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The first task of the engineer manager is to provide ofdirecton to his firm (if he is the chief executive), to hisdivision (if he heads the division), or to his unit (if he is asupervisor). The setting of goals provide an answer to the
said concern. If everybody in the firm (or division or unit,as the case may be) is aware of the goals, there is a bigchance that everybody will contribute his sharein therealization of such goals.
Goals may be defined as the precise statement ofresults sought, quantified in time and magnitude, wherepossible
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THE TERM OPERATIONAL PLANNING REFERS TO THE PROCESS OF DETERMINING HOW SPECIFIC TASKSCAN BEST ACCOMPLISHED ON TIME WITH AVAILABLERESOURCES. THIS TYPE OF PLANNING IS A
RESPONSIBILITY OF LOWER MANAGEMENT. IT MUST BEPERFORMED IN SUPPORT OF THE STRATEGIC PLAN ANDTHE INTERMEDIATE PLAN
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The process of planning consists of various stepsdepending on the management level that erforms theplanning tasks. Generally, however, planning involves thefollowing:
Setting organizational, divisional, or unit goals
Developing strategies or tactics to reach those goals
Determining resources needed and
Setting standards
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.
COMPANY
DIVISION
UNIT
TO ATTAIN A RETURNON INVESTMENT OF 25%
TO INCREASE THE NUMBEROF PROJECTS UNDERTAKEN
BY THE COMPANY
TO INCREASE THE NUMBEROF PROJECT ENGINEERS
EXAMPLE OF GOALSORGANIZATION
LEVEL
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After determining the goals, the next tasks is to devisesome means to realize them. The ways to realize the goalsare called strategies and thesewill be the concern of topmanagement. The middle and lower management will
adapttheir own tactics to implement their plans
A tactic is a short-term action taken by managementto adjust to negative internal or external influences. They
are formulated and implemented in support of the firmsstrategies. The decision about short-term goals and thecourses of action are indicated in the tactical plan
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When particular sets of strategies or tactics have beendevised, the engineer manager will, then, determinethehuman and nonhuman resources required by suchstrategies or tactics. Even if the resource requirements arecurrently available, they must be specified.
The quality and quantity of resources needed must becorrectly determined. Too much resources in terms of
either quality or quantity will be wasteful. Too little willmean lossof opportunities for maximizing income.
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A standard may be define as a quantitive or qualitativemeasuring device designed to help monitor the performances ofpeople, capital goods, or processes.
An example of a standard is the minimum number of unitsthat must be produced by a worker per day in a given worksituation.
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FUNCTIONAL AREA PLANS
PLANS ARE OF DIFFERENT TYPE. THEY MAY BECLASSIFIED IN TERMS OF FUNCTIONAL AREAS, TIMEHORIZON, AND FREQUENCY OF USE.
PLANS MAY BE PREPARED ACCORDING TO THENEEDS OF THE DIFFERENT FUNCTIONAL AREAS. AMONGTHE TYPES OF FUNCTIONAL AREA PLANS ARE THE
FOLLOWING:
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MARKETING PLAN- THIS IS THE WRITTEN DOCUMENT OR BLUEPRINTFOR IMPLEMENTING AND CONTROLLING AN ORGANIZATIONSMARKETING ACTIVITIES RELATED TO A PARTICULAR MARKETINGSTRATEGY
PRODUCTION PLAN- THIS IS A WRITTEN DOCUMENT THAT STATESTHE QUANTITY OF OUTPUT A COMPANY MUST PRODUCE IN BROADTERMS AND BY PRODUCT FAMILY
FINANCIAL PLAN- IT IS A DOCUMENT THAT SUMMARIZES THE
CURRENT FINANCIAL NEEDS, AND RECOMMENDS A DIRECTION FORFINANCIAL ACTIVITIES
HUMAN RESOURCE MANAGEMENT PLAN- IT IS A DOCUMENT THATINDICATES THE HUMAN RESOURCE NEEDS OF A COMPANY DETAILEDIN TERMS OF QUANTITY AND QUALITY AND BASED ON THEREQUIREMENTS OF THE COMPANYS STRATEGIC PLAN
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PLANS WITH TIME HORIZON CONSIST OF THEFOLLOWING
1. SHORT-RANGE PLANS- THESE ARE PLANS INTENDED TOCOVER A PERIOD OF LESS THAN ONE YEAR. FIRST-LINESUPERVISORS ARE MOSTLY CONCERNED WITH THESEPLANS.
2. LONG-RANGE PLANS- THESE ARE PLANS COVERING A
TIME SPAN OF MORE THAN ONE YEAR. THESE AREMOSTLY UNDERTAKEN BY MIDDLE AND TOPMANAGEMENT.
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ACCORDING TO FREQUENCY OF USE, PLANS MAY BECLASSIFIED AS:
1. STANDING PLANS
2. SINGLE-USE PLANS
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These are plans that are used again and again, andthey focus on managerial situations that recur repeatedly
Standing plans may be further classified as follows:
I. Policies- they are broad guidelines to aid managers atevery level in making decisions about recurringsituations or function.
II. Procedures- they are plans that described the exact seriesof actions to be taken in a given situation
III. Rules- they are statements that either require or forbid acertain action
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THESE PLANS ARE SPECIFICALLY DEVELOPED TOIMPLEMENT COURSES OF ACTION THAT ARE RELATIVELYUNIQUE AND ARE UNLIKELY TO BE REPEATED.
SINGLE-USE PLANS MAY BE FURTHER CLASSIFIED AS
FOLLOWS:I. BUDGET- A PLAN WHICH SETS FORTH THE PROJECTEXPANDITURE FOR A CERTAIN ACTIVITY AND EXPLAINS
WHERE THE REQUIRED FUNDS WILL COME FROM
II. PROGRAMS- A SINGLE-USE PLAN DESIGNED TOCOORDINATE A LARGE SET OF ACTIVITIES
III. PROJECT - IS ASINGLE-USE PLAN THAT IS USUALLYMORE LIMITED IN SCOPE THAN A PROGRAM AND ISSOMETIMES PREPARED TO SUPPORT A PROGRAM
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THE ENGINEER MANAGER MAY BE FAMILIAR WITHENGINEERING PLANS, KNOWING THE DETAILS FROMBEGINNING TO END. HOWEVER, THE EVER PRESENTPOSSIBILITY OF MOVING FROM ONE MANAGEMENT LEVEL
TO THE NEXT AND FROM ONE FUNCTIONAL ARE TOANOTHER PRESSES THE ENGINEER MANAGER TO BEFAMILIAR AS WELL WITH OTHER FUNCTIONAL AREAPLANS.
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THE STRUCTURE AND CONTENT OF MARKETING PLANSVARY DEPENDING ON THE NATURE OF THE ORGANIZATIONSADAPTING. WILIAM COHEN MAINTAINS THAT THEFOLLOWING MUST BE INCLUDED IN THE MARKETING PLAN
THE EXECUTIVE SUMMARY- WHICH PRESENTS AN
OVERALL VIEW OF THE MARKETING PROJECT AND ITSPOTENTIAL. TABLE OF CONTENTS SITUATIONAL ANALYSIS AND TARGET MARKET MARKETING OBJECTIVES AND GOALS MARKETING STRATEGIES MARKETING TACTICS SCHEDULES AND BUDGETS FINANCIAL DATA AND CONTROL
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THE PRODUCTION PLAN MUST CONTAIN THEFOLLOWING:
THE AMOUNT OF CAPACITY THE COMPANY MUST HAVE
HOW MANY EMPLOYEES ARE REQUIRED
HOW MUCH MATERIAL MUST BE PURCHASED
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The components of the financial plan are as follows
1. The analysis of the firms current financial condition as
indicated by an analysis of the most recent statements2. A select forecast
3. The capital budget
4. The cash budget
5. A set of pro forma (or projected) financial statements6. The external financing plan
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THE HUMAN RESOURCE PLAN MUST CONTAIN THEFOLLOWING:
1. PERSONNEL REQUIREMENTSOF THE COMPANY
2. PLANS FOR RECRUITMENT AND SELECTION
3. TRAINING PLAN
4. RETIREMENTPLAN
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THE STRATEGIC PLAN MUST CONTAIN THE FOLLOWING:
COMPANY OR CORPORATE MISSION
OBJECTIVE OR GOALS
STRATEGIES
COMPANY OF CORPORATE MISSION REFERS TO THESTRATEGIC STATEMENT THAT IDENTIFIES WHY ANORGANIZATION EXISTS, ITS PHILOSOPHY OF
MANAGEMENT, AND ITS PURPOSE AS DISTINGUISHEDFROM OTHER SIMILAR ORGANIZATIONS IN TERMS OFPRODUCTS, SERVICES, AND MARKETS
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PLANNING IS DONE SO THAT SOME DESIRED RESULTSMAY BE ACHIEVED. AT TIMES, HOWEVER, FAILURE INPLANNING OCCURS. PLANNING MAY BE MADE SUCCESSFULIF THE FOLLOWING ARE OBSERVED:
1. RECOGNIZED THE PLANNING BARRIERS
2. USE OF AIDS TO PLANNING
THE PLANNING BARRIERS, ACCORDING TO PLUNKETTAND ATTNER, ARE AS FOLLOWS:
1. MANAGERS INABILITY2. IMPROPER PLANNING PROCESS3. LACK OF COMMITMENT TO THE PLANNING PROCESS4. IMPROPER INFORMATION
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THE PLANNING BARRIERS, ACCORDING TO PLUNKETTAND ATTNER, ARE AS FOLLOWS:
MANAGERS INABILITY
IMPROPER PLANNING PROCESS LACK OF COMMITMENT TO THE PLANNING PROCESS
IMPROPER INFORMATION
FOCUSING ON THE PRESENTAT THE EXPENSE OF THEFUTURE
TOO MUCH RELIANCE ON THE PLANNING DEPARTMENT
CONCENTRATING ON ONLY THECONTROLLABLEVARIABLES
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AMONG THE AIDS TO PLANNING THAT MAY BE USEDARE:
GATHER AS MUCH INFORMATION AS POSSIBLE
DEVELOP MULTIPLE SOURCES OF INFORMATION
INVOLVE OTHERS IN THE PLANNING PROCESS