1. Plan is a specific action proposed to help
the organization achieve its objectives.
Rational managers are crucial to the
development of an organization plan.
› A critical plan of the management of any
organization is developing logical plans
and then taking the steps necessary to
put the plans into action.
› Regardless of how important experience-
related intuition may be to managers
successful management actions and
strategies typically are based on reason.
2. Repetitiveness Time
3. REPETITIVENESS is the extent to which the
extent plan is used over and over again.
› Non-repetitive are plans which are designed for
one situation that is relatively short term in
› Repetitive are plans which are designed to be
used after time for long term recurring situations.
TIME is the length of time the plan covers.
› Strategic plan covers long period of time.
› Tactical plan covers short period of time.
4. SCOPE is the portion of the total
management system at which the plan
› Some plans are design to cover the entire
management system: the organizational
environment, inputs, process and outputs. This
plans are called Master Plan.
› Other plans are designed to cover only a portion
of management system.
› “The greater the portion of the management
system that a plan covers, the broader the plan’s
scope is said to be.
LEVEL is the level of the organization
at which the plan is aimed.
› Top level plans (top management)
› Middle and lower plans (middle and lower
› Plans designed for any level of the organization
have some effect on all other levels since they
5. Standing Plans are used over and over
again because they focus on the
organizational situations that occur
› Policy is a standing plan that furnishes broad
guidelines for taking action consistent.
› Procedure is a standing plan that outlines a
series of related actions.
› Rule is a standing plan that designates
To be effective? They must consistent and
6. Single-Use Plans are used only once- or, at
most, several times--- because they focus on
unique or rare situations within the
› Program is a single-use plan designed to carry out
a special project within an organization.
The project exist to achieve some purpose that, if
accomplished, will contribute to the organization’s
long term success. It is not intended to remain in
existence over entire life.
› Budget is a single-use financial plan that covers a
specified length of time.
It details how fund will be obtained or spent.
They are also Strategies for organizational control.
7. Corporate planning is not integrated into
total management system.
There is a lack of understanding of the
different steps of the planning process.
Managers at different levels in the
organization have not properly engaged
in or contributed to planning activities.
Responsibility for planning is wrongly
vested solely in the planning
8. Management expects that plans
developed will be realized with little
In starting formal planning, too much is
attempted at once.
Management fails to operate by the
Financial projections are confused with
Inadequate inputs are used in planning.
Management fails to grasp the overall
9. Input Planning is the development of
proposed action that will furnish sufficient
and appropriate organizational
resources for established organizational
› Two factors in this area:
1. Plant Facilities Planning
2. Human Resource Planning
10. Plant Facilities
It involves determining the type of
buildings and equipment an
organization needs to reach its
Site selection is a major part of this
determination. It is deciding where
a plant facility should be located.
Foreign Location is one factor that
significantly influences site
It involves reflecting on
organizational objectives to
determine overall human resource
needs; existing human resource
inventory for the net human
resource needs to seek
appropriate members to meet this.
Human resource is another area of
concern to input planners.
Organization objectives can’t be
obtained without appropriate
11. Deciding on a set of variables critical to
obtaining an appropriate site.
Assigning each of these variables a
weight reflecting its relative importance.
Ranking alternative sites according to
12. What types of people does the
organization need to reach its objectives?
How many of each type are needed?
What steps should the organization take to
recruit and select such people?
Can present employees be further trained
to fill needed positions?
At what rate are employees being lost to
› Future needs for human resources are
influenced mainly by employee turnover, the
nature of the present workforce and the rate of
growth of organization.
13. These are techniques managers
can use to help develop plans.
The most important of these tools
14. It is the process of predicting future
environmental happenings that will
influence the operation of the organization.
The importance of forecasting lies his ability
to help managers understand the future
makeup of the organizational
environment, which, in turn, helps them
formulate more effective plans.
It is a imprecise science according to
15. Establish relationships between industry
sales and national economic and social
Determine the impact government
restrictions on the use of chemical
pesticides will have on the growth of
chemical, biological and
electromagnetic energy pest-control
16. Evaluate sales growth potential,
profitability, resource required, and risks
involved in each of its market areas
(commercial, industrial, institutional,
governmental and residential).
Evaluate the potential for expansion of
marketing efforts in domestic
geographical areas as well as in foreign
Determine the likelihood of
technological breakthroughs that would
make existing product line obsolete.
17. Sales Forecast is a prediction of how high or
low sales of the organization’s products or
services will be over the period of time
› It is the key forecast of organizations because it
serves as the fundamental guideline for
› Only after the sales forecast has been
completed can managers can decide.
Sales forecasting is considered the key
18. QUALITATIVE METHOD
› Jury of Executive Opinion Method of sales
forecasting is straight forward. A similar, more
recently developed forecasting
method, called DELPHI METHOD also
gathers, evaluates, and summarizes expert
opinions as the basis for a forecast, but the
procedure is more formal than that for the
jury of executive opinion.
19. The BASIC DELPHI METHOD employ the
Various experts are asked to
answer, independently and in writing, a
series of questions about the future of
sales or whatever other area is being
A summary of all the answers is then
prepared. No expert knows how any
other expert answered the questions.
Copies of the summary are given to the
individuals experts with the request that
they modify their original answers if they
think it necessary
20. Another summary is made of these
modifications, and copies again are
distributed to the experts. This
time, however, expert opinions that
deviated significantly from the norm must
be justified in writing.
A third summary is made of the opinions
and justifications and copies are once
again distributed to the experts.
Justifications in writing for all answers is now
The forecast is generated from all of the
opinions and justifications that arise from
21. > Sales Force Estimation Method
It is a sales forecasting technique
that predicts future sales by
analyzing the opinions of sales
people as a group.
It is considered to be valuable
management tool and is
commonly used in business and
industry throughout the world
22. QUANTITATIVE METHOD
› Moving Average
It utilizes historical data to predict future sales
› Regression Method
predicts future sales by analyzing the historical
relationships between sales and time.
› Product Stages Method
It Predicts future sales by using the product life
cycle better to understand the history and
future of the products.
› Product Life Cycle
It is the five stages through which most
products and services pass.
23. It is the process of formulating a detailed
listing of activities that must be
accomplished to attain an
objective, allocating the resources
necessary to attain the objective, and
setting up and following time tables for
completing the objective.
It is the integral part of every
24. It is a scheduling device developed by
Henry L. Gantt.
It is essentially a bar graph with time on the
It is used for scheduling resources, including
management system inputs such as human
resources and machines.
The main weakness of the Grantt Chart is
that it does not Contain any information
about the interrelationship of tasks to be
25. It is a technique that involved partly from
the Grantt chart, is a scheduling tool that
emphasize the interrelationship of tasks.
It is a network of project activities showing
both the estimate of time necessary to
complete each activity and the sequence
of activities that must be followed to
complete the projects.
This scheduling tool was developed in 1935
for designing and building Polaris
Submarine Weapon System.
26. List all the activities/ events that must be
accomplished for the project and the
sequence in which these activities/
events should be performed.
Determine how much time will be
needed to complete each activity/
Identify the critical path.
› These are specified sets of behaviour within
› These are the completions of major project
CRITICAL PATH OF A PERT NETWORK
› It is the sequence of events and activities
requiring the longest period of time to
complete. This is called critical because a
delay on completing this sequence results in
a delay in completing the entire project.