PRESENTED BY:

ANGELICA JANE GUZMAN

and
JAY BELMONTE
I. The Nature of Planning
A plan, which is the output of planning, provides a
methodological way of achieving desired results.
The plan serves as a useful guide.
Without the plan, some minor tasks may be afforded
major attention which may, later on, hinder the
accomplishment of objectives.
II. Planning Defined
Planning
according to Nickels and others,
refers to the management function that involves anticipating
future trends and determining the best strategies and tactics
to achieve organizational objectives.
according to Aldag and Stearns,
define planning as the selection and sequential ordering of
tasks required to achieve an organizational goal.
according to Cole and Hamilton
define planning as deciding what will be done, who will do
it, where, when and how it will be done, and standards to
which it will be done.
III. PLANNING AT VARIOUS
MANAGEMENT LEVELS
Planning activities undertaken at various levels
are as follows:
1. Top Management Level
- strategic planning
2. Middle Management Level
- intermediate planning
3. Lower Management Level
- operational planning
Strategic Planning
The whole company is considered, specifically its objectives
and current resources. The output of strategic planning is
the strategic plan which spells out the decision about
long-range goals and the course of action to achieve these
goals.
Intermediate Planning
It refers to the process of determining the contributions
that subunits can make with allocated resources. This type
of planning is undertaken by middle management.
Under intermediate planning, the goals of a subunit are
determined and a plan is prepared to provide a guide to the
realization of the goals. The intermediate plan is designed
to support the strategic plan.
MANAGEMENT LEVEL PLANNING HORIZON

Top Strategic Planning

Management (one to ten years)

Middle Intermediate Planning

Management (six months to two years)

Lower
Management
Operational Planning
(one week to one year)
 President/
General
Manager Responsible for
STRATEGIC PLANNING

Marketing Production Finance Personnel

Manager Manager Manager Manager

Responsible for Responsible for

Responsible for Responsible for
INTERMEDIATE INTERMEDIATE
INTERMEDIATE INTERMEDIATE
PLANNING PLANNING PLANNING PLANNING

QUALITY
INDUSTRIAL FACTORY
CONTROL
ENGINEERING MANAGER
MANAGER
MANAGER

Responsible for Responsible for Responsible for

OPERATIONAL OPERATIONAL OPERATIONAL
PLANNING PLANNING PLANNING

THE ORGANIZATION & TYPES OF PLANNING UNDERTAKEN

Operational Planning
refers to the process of determining how specific tasks
can best be accomplished on time with available
resources.
This type of planning is a responsibility of lower
management. It must be performed in support of the
strategic plan and the intermediate plan.
 Setting
IV. organizational
, divisional, or
unit goals

Developing
THE strategies
Setting
standards
PLANNING or tactics
PROCESS to reach
those goals

Determining
resources
needed
Setting Organizational, Divisional,
or Unit Goals
The first task of the engineer manager is to provide a sense
of direction to his firm (if he is the chief executive), to his
division (if he heads a division), or to his unit (if he is a
supervisor). The setting of goals provide an answer to the said
concern.
GOALS may be defined as the precise statement of results
sought, quantified in time and magnitude, where possible.
 BUENAVISTA CONSTRUCTION CORPORATION
COMPANY To attain a return on investment of
25%

PROJECT MANAGEMENT DIVISION

DIVISION To increase the number of projects
undertaken by the company.

PERSONNEL SERVICES UNIT

UNIT To increase the number of project
engineers
 Developing Strategies or Tactics to Reach
Goals
The ways to realize the goals are called strategies and this
will be the concern of top management. The middle and lower
management will adapt their own tactics to implement their
plans.
A strategy may be defined as a course of action aimed at
ensuring that the organization will achieve its objectives.
A tactic is a shortterm action taken by management to adjust
to negative internal or external influences. The decision about
short-term goals and the courses of action are indicated in
the tactical plan.
Determining Resources Needed
The quality and quantity of resources needed must be
correctly determined.
 Setting Standards
A standard may be defined as a quantitative or qualitative
measuring device designed to help monitor the performances of
people, capital goods, or processes.

An example of a standard is the minimum number of units

that must be produced by a worker per day in a given work
situation.
V.
Time horizon

Functional Frequency of
areas use

TYPES
OF
PLANS
Functional Area Plans
plans may be prepared according to the needs of
the different functional areas. Among the types of functional
area plans are the following:
1.Marketing Plan - a written document or blueprint for
implementing and controlling an organizations
marketing activities related to a particular marketing
strategy.
2. Production Plan a written document that states the
quantity of output a company must produce in broad
terms and by product family.
3. Financial Plan a document that summarizes the
current financial situation of the firm, analyzes financial
needs, and recommends a direction for financial
activities.
4. Human resource management plan 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
consist of:
1. Shortrange plans
Are plans intended to cover a period of less than one year.
First-line supervisors are mostly concerned with this plans.

2. Longrange plans
These are plans covering a time span of more than one year. These
are mostly undertaken by middle and top management.

Plans According to Frequency of Use

may be classified as:
1. standing plans
2. single-use plans
Single- Use Plans
are specifically developed to implement courses of action that are
relatively unique and are unlikely to be repeated.
may be further classified as:
1. Budgets according to Weston and Brigham, is a plan which
sets forth the projected expenditure for a certain activity
and explains where the required funds will come from.
2. Programs a single-use plan designed to coordinate a large set
of activities.
3. Projects a single-use plan that is usually more limited in
scope than a program and is sometimes prepared to
support a program.
PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS
the engineer manager may be familiar with
engineering plans, knowing the details from
beginning to end.

The Contents of the Marketing Plan

The structure and content of marketing plans vary
depending on the nature of the organizations adapting them.
William Cohen maintains that the following must be
included in the marketing plan.
1. The Executive Summary- presents an overall view of the marketing project.
2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control
The Contents of the Production Plan
1. the amount of capacity the company must have
2. how many employees are required
3. how much material must be purchased
The Contents of the Financial Plan
its components are:
1. An analysis of the firms current financial condition as
indicated by an analysis of the most recent statements.
2. A sales forecast
3. The capital budget
4. The cash budget
5. A set of pro forma (or projected) financial statements
6. the external financing plan
Contents of the Human Plan
1. Personnel requirements of the company
2. Plans for recruitment and selection
3. Training plan
4. Retirement plan
 Company
or
corporate
Objectives mission
or goals

Strategies

PARTS OF THE
STRATEGIC PLAN
VI. MAKING PLANNING EFFECTIVE
Planning is done so that some desired results may be achieved.
Planning may be made successful if the ff. are observed:
Recognize the planning barriers
Use of aids to planning

Planning barriers according to Plunkett and Attner

Managers inability to plan
Improper planning process
Lack of commitment to the planning process
Improper information
Focusing on the present at the expense of the future
Too much reliance on the planning department
Concentrating on only the controllable variables

Aids to planning that may be used

Gather as much information as possible
Develop multiple sources of information
Involve others in planning process
REMEMBER:
Technical activities, like other activities, require effective
planning, if objectives and goals are to be realized.

A plan is a methodological way of achieving results.