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The fundamentals in this slide presentation are important in understanding the concept of planning, the various types of plans, and the strategic management process
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3. Nature of Planning
1. goal oriented
business purposes
and objectives
2. the first basic function
performed before
the execution of all
other managerial
functions
6. Importance of Planning
1. offsets uncertainty and
change
• allows organization to
determine the constraints
• select a number of options
for anticipated events in the
future
7. 2. focuses attention on
objectives
unifies different
activities to act as one
party
3. maximizes
efficiency in
operations
consistency of
procedures and methods
10. 1. Establish a goal or set of goals
decisions about what the
organization needs or wants
11. 2. Define the present
situation.
how far is the
organization from its
goals?
3. Identify the aids
and barriers to the
goals
factors that might
create problems and
opportunities
12. 4. Develop a plan or set of actions
for reaching the goal/s
• alternative courses
of action for reaching
the desired goal
• evaluate these
alternatives
13. GOALS
STRATEGIC PLANS
THE HIERARCHY OF ORGANIZATIONAL PLANS
OPERATIONAL PLANS
SINGLE USE PLANS
NON-RECURRING ACTIVITIES RECURRING ACTIVITIES
STANDING PLANS
PROGRAMS
PROJECTS
B
U
D
G
E
T
POLICIES
STANDARD PROCEDURES AND
METHODS
RULES
14. TWO MAJOR TYPES OF PLAN:
A. Strategic Plans - designed to meet the broad
objectives of the organization.
B. Operational Plans - providing the details of
how the strategic plans will
be accomplished.
TWO MAIN TYPES OF OPERATIONAL PLAN:
1. Single Use Plans - are detailed courses of action that
probably will not be repeated in the same
form in the future.
2. Standing Plans - are standardized approaches for
handling recurrent and predictable
situations
15. MAJOR TYPES OF SINGLE-USE PLANS
1. Programs - cover a relatively large set of
activities.
2. Projects - smaller and separate portions
of programs
3. Budget - statements of financial resources
set aside for a specific activity in
a given period of time.
MAJOR TYPES OF STANDING PLANS
1. Policies - general guidelines used for
decision making
2. Standard Procedures - a detailed set of instructions for
performing a sequence of actions
that occurs often or regularly.
3. Rules - statements that a specific action must
or must not be taken.
16. Organizing
determines the activities to
be performed to achieve
organizational objectives
clarifies the types of
work and groups into
manageable work units
17. assigns the work to
individuals and delegates
appropriate authority
contracts a
hierarchy of
decision making
relationships
21. 3. Group related/similar activities
4. Assign activities with appropriate authority
5. Design the hierarchy of relationships
22. FORMAL RELATIONSHIPS IN
ORGANIZATIONS
Line Relationship
- when two organizational units are related to each other by a
relationship of direct command.
President
Vice President
Factory Manager
Assembly Supervisor
23. Staff
- provides advices or services to other units of the
organization
President
Legal Controller
Marketing Production
24. Functional Authority
- a form of limited authority exercised usually
by a staff unit in the organization over another unit,
President
Controller
Accounting
Factory Manager
25. MATRIX ORGANIZATION
- it may operate alongside any other basic type of internal
organization
President/CEO
Project
Manager
Design
Engineering
Prod.
Superintendent
Personnel
and Union
Sales and
Advertising
Treasurer
Staff StaffSupervisor Accounting
Vice-Pres
Engineering
Vice-Pres.
Manufacturing
Vice-Pres
Marketing
Vice-Pres
Industrial
Relations
Vice-Pres
Finance
Staff
26. COMMITTEE ORGANIZATION
- a formal group replaces individual managers at one or
more positions in an organization’s structure
PRESIDENT
Committee
On
New Prod.
Committee
On
Industrial
Committee
On
Research
Vice-Pres
Finance
Vice-Pres
Manufacturing
Staff Staff Staff Production Treasurer
27. CLASSICAL PRINCIPLES
OF ORGANIZATION
• Unity of Command
• Parity of Authority and
Responsibility
• Absoluteness of Responsibility
• Check and Balance
• Principle of Specialization
• Exception Principle
• Span of Control
• Scalar Principle
• Departmentation
28. GROUPING ACTIVITIES IN
AN ORGANIZATION
Grouping by Functions
- grouped according to major functions
PRESIDENT
VP
MARKETING
VP
PRODUCTION
VP
FINANCE
VP
PUBLIC
AFFAIRS
VP
EXTERNAL
RESEARCH
29. GROUPING BY PRODUCT
- divided into several product departments or divisions
GENERAL MANAGER
FLOUR
DIVISIOM
POULTRY
DIVISIOM
ANIMAL
FEEDS
DIVISIOM
DRESSEC
CHICKEN
DIVISIOM
30. GROUPING BY AREA OR TERRITORY
- when the geographic scope of the firm’s operation becomes
large and when the differentiated areas in which a firm operates
become very varied in terms of requirements
GENERAL MANAGER
MINDANAO
BRANCH
M. MANILA
BRANCH
S. LUZON
BRANCH
VISAYAS
BRANCH
N. LUZON
BRANCH
31. GROUPING BY CLIENT
- serves well defined client groups with different
characteristics and requirements in terms of products or services or
both
STORE
MANAGER
MEN’S
DEPARTMENT
LADIES’
DEPARTMENT
CHILDREN’S
DEPARTMENT
32. DELEGATION
-The process of entrusting and transferring responsibility and
-Authority by the top management to the lowest level.
ELEMENTS OF DELEGATION:
• Authority
• Responsibility
• Accountability
33. CENTRALIZED
- decision making
rests only in a few hands and
made by a few
DECENTRALIZED
- represents a
systematic effort to delegate
to lower levels alll authority,
except that which can only be
exercised at the highest
level.
34. Relationship between
Planning and Organizing
organizing as a basic
management function
needs planning
to place it in the right
direction
both planning and
organizing are
dynamic processes
35. Failing to plan is planning to fail.
Do the right things well.
Focus on strategy,implementation and success
Failing to plan is planning to fail.
Do the right things well.
Focus on strategy,implementation and success
Thank youThank you