The document outlines the importance of planning in organizational management, emphasizing its role in setting goals, developing strategies, and coordinating activities. It distinguishes between various types of plans, including strategic, tactical, and operational, and highlights the planning process at different organizational levels. Additionally, it discusses specific planning techniques such as forecasting, contingency planning, and benchmarking to enhance decision-making and adaptability within organizations.

1. Organization
and
Management

2. PLANNING
MANAGEMENT
FUNCTIONS

3. Specific Learning Objectives
▪ Understand the nature and importance of planning;
▪ Compare and contrast the different type of plans;
▪ Describe planning at different levels of the firm;
▪ Apply appropriate planning techniques and tools.
At the end of this chapter the students will able to:

4. “If you fail to plan, you are
planning to fail!”
― Benjamin Franklin

6. When you think of planning in a management role, think about it as
the process of choosing appropriate goals and actions to pursue
and then determining what strategies to use, what actions to take,
and deciding what resources are needed to achieve the goals.
PLANNING

7. ❑ Involves defining the organization’s goals, establishing strategies
for achieving those goals, and developing plans to integrate and
coordinate work activities.
❑ It’s concerned with both ends (what) and means (how).
❑ When we use the term planning, we mean formal planning.
❑ In formal planning, specific goals covering a specific time period
are defined. These goals are written and shared with
organizational members to reduce ambiguity and create a
common understanding about what needs to be done. Finally,
specific plans exist for achieving these goals.
PLANNING

8. ✔Planning provides direction.
✔Planning reduces the risks of uncertainty.
✔Planning reduces overlapping and wasteful activities.
✔Planning promotes innovative ideas.
✔Planning facilitates decision making.
✔Planning establishes standards for controlling.
Importance of
Planning

9. Organizational plans can be generally described in
terms of:
✔Comprehensiveness- the completeness of planning coverage.
✔Length of time covered or time frame- a plan may be long-term or
short-term plans.
✔Specificity- refers to the very detailed, clearly defined plans
wherein objectives are clearly stated and could easily be
understood.
✔Frequency of use- refers to the number of times or instances a
plan may be used.
Types of Plans

10. STRATEGIC PLANS
Plans that apply to the entire organization and establish the
organization’s overall goals
OPERATIONAL PLANS
Plans that encompass a particular operational area of the
organization

11. LONG-TERM PLANS
Plans with a time frame beyond three years.
Everyone must understand the organization’s long-term to avoid
confusion that may divert the organization members’ attention.
SHORT-TERM PLANS
Plans that are cover one year or less; such as plan must lead
the
attainment of long-term goals and are the responsibility of the
unit/department heads.

12. DIRECTIONAL PLANS
Plans that are flexible and set out general guidelines
SPECIFIC PLANS
Plans that are clearly defined and leave no room for
interpretation.
Language used must be very understandable

13. SINGLE-USE PLAN
A one-time plan specifically designed to meet the needs of a
unique situation
STANDING PLANS
Ongoing plans that provide guidance for activities performed
repeatedly

14. ⮚Setting objectives: Objectives may be set for the entire
organization and each department or unit within the
organization.
⮚Developing premises: Planning is concerned with
the future which is uncertain and every planner is using
conjuncture about what might happen in the future.
⮚Identifying alternative courses of action: Once
objectives are set, assumptions are made. Then the next step
would be act upon them.
PLANNING PROCESS

15. ⮚Evaluating alternative courses: The next step is to
weigh the pros and cons of each alternative.
⮚Selecting an alternative: This is the real point of decision
making. The best plan has to be adopted and implemented.
⮚Implement the plan: This is concerned with putting the
plan into action.
⮚Follow-up action: Monitoring the plans are equally
important to ensure that objectives are achieved.
PLANNING PROCESS

16. Planning at Different Levels of the
Firm

17. Different levels in the firm are all
engaged in planning however all the
resulting plans must be related to one
another and directed toward the same
goals.

18. Planning at Different
Levels of the Firm
Strategic Planning
Tactical Planning
Operational Planning

19. STRATEGIC PLANNING
• Involves analyzing competitive opportunities and threats, as
well as the strengths and weaknesses of the organization, and
then determining how to position the organization to compete
effectively in their environment.
• Strategic planning has a long time frame, often three years or
more.
• Strategic planning generally includes the entire organization
and includes formulation of objectives.
• Strategic planning is often based on the organization’s mission,
which is its fundamental reason for existence. An
organization’s top management most often conducts strategic
planning.

20. TACTICAL PLANNING
• Is intermediate-range (one to three years) planning that is
designed to develop relatively concrete and specific means to
implement the strategic plan.
• Middle-level managers often engage in tactical planning.

21. OPERATIONAL PLANNING
• Generally assumes the existence of organization-wide or sub-
unit goals and objectives and specifies ways to achieve them.
• Operational planning is short-range (less than a year) planning
that is designed to develop specific action steps that support
the strategic and tactical plans.

23. Planning Techniques
and Tools

24. FORECASTING
• An attempt to predict what may happen in the future.
• A planning tool that help management in its attempts to cope with
the uncertainty of the future, relying mainly on data from the past
and present and analysis of trends.
• It starts with certain assumptions based on the management’s
experience, knowledge, and judgement.

25. CONTINGENCY PLANNING
• Offer alternative courses of action when the unexpected happens
or when things go wrong. This plan must be prepared by managers
ready for implementation when things do not turn out as they
should be.

26. SCENARIO PLANNING
• Planning for future state of affairs is a long –term version of
contingency planning. Several future states of affairs must be
identified and alternative plans must be prepared in order to meet
the changes of challenges in the future. This is a big help for
organizations because it allows them to plan ahead and make
necessary adjustments in their strategies and operations.

27. BENCHMARKING
• Planning technique that generally involves external comparisons of
company’s practices and technologies with those of other
companies.
• Identifying the best practices (achieved result) of industry leaders
and compairing your own business performance with them.

28. PARTICIPATORY PLANNING
• Planning process that includes the people who will be affected by
the plans and those who will be asked to implement them in all
planning steps.

29. Thank You!
Shaira Bolaños
+639352214043