Planning Technical Activities

If managing an organization is to be
pursued vigorously, planning will constitute
the most important activity. Managers who
plan are afforded with the opportunity to
carefully analyze situations which directly
contribute to effective decision-making.
The engineer manager, regardless of
his management level, will have to devote
some of his time to planning. The higher the
management level the engineer manager is
in, the more sophisticated his planning
activity becomes.

THE NATURE OF PLANNING

There are many instances when managers are overwhelmed by various activities which at times
becloud his judgment. This must be expected since anybody who is confronted by several situations
happening simultaneously will loose sight of the more important concerns. To minimize mistakes in
decision-making, planning is undertaken.
A plan, which is the output of planning, provides a methodical way of achieving desired results.
In the implementation of activities, 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.
An example of the difficulty of not having a plan is illustrated below.
The management of an engineering firm was able to identify the need to hire additional
three employee. The manager proceeded to invite applicants, screen them, and finally hired
three of them. When the hiring expense report was analyzed, it involved more than double the
amount spent by other firms in hiring the some number of people.
When an inquiry was made, it was found out that the manager committed some errors of
judgment. For instance, he used an expensive advertising layout in a newspaper when a simple
message will do.
Also, it was found out that the absence of a hiring plan contributed to the high cost of
hiring.

PLANNING DEFINED
Various experts define planning in various ways, all of which are designed to suit specific
purposes.
Planning, according to Nickels and others, refers to “the management function that involves
anticipating future trends and determining the beat strategies and tactics to achieve organizational
objectives." This definition is useful because it relates the future to what could be decided now.
Aldag and Stearns, on the other hand, define planning as "the selection and sequential ordering
of tasks required to achieve an organizational goal. This definition centers on the activity required to
accomplish the goals.
The definition of Cole and Hamilton provides a better guide on how to effectively perform this
vital activity. Planning, 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 selecting the best course of action so that
the desired result may be achieved. It must be stressed that the desired result takes first priority and
the course of action chosen is the means to realize the goal.
PLANNING AT VARIOUS MANAGEMENT LEVELS
Since engineer managers could be occupying positions in any of the various management
levels, it will be useful for them to know some aspects of planning undertaken at the different
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.

Different Level of Management Planning

Management Level Planning Horizon

Chief Executive Officer,

Top Strategic Planning
President, Vice
Management (One to Ten Years)
President, General
Manager, Division Head

Middle
Function Managers, Intermediate Planning
Management Product Line Managers, (Six Months to Two Years)
Department Heads

Lower Operational Planning

Unit Managers, First Line Supervisors (One Week to One Year)
Management

Strategic Planning
The term strategic planning refers to the process of determining the major goals of the
organization and the policies and strategies for obtaining and using resources to achieve those goals.
The top management of any firm is involved in this type of planning.
In 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
Intermediate planning 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.
Operational Planning
The term 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.
The Organization and Types of Planning Undertaken

PRESIDENT/
GENERAL MANAGER
Responsible
for STRATEGIC
PLANNINGS

Marketing Production Finance Personnel

Manager Manager Manager Manager

Responsible Responsible Responsible Responsible

for for for for
INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
PLANNING PLANNING PLANNING PLANNING

Industrial Factory Quality

Engineering Manager Control
Manager Manager

Responsible Responsible Responsible

for for for
OPERATIONAL OPERATIONAL OPERATIONAL
PLANNING PLANNING PLANNING

THE PLANNING PROCESS

The process of planning consists of various steps depending on the management level that
performs the planning task. Generally, however, planning involves the following:
1. Setting organizational, divisional, or unit goals
2. Developing strategies or tactics to reach those goals
3. Determining resources needed and
4. Setting standards.
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 if everybody in the firm (or division or unit, as the case
may be) is aware of the goals, there is a big chance that everybody will contribute his share in the
realization of such goals.
Goals may be defined as the “precise statement of results sought, quantified in time and
magnitude, where possible."
Examples of Goals. By Organizational Level

Organizational Level Example of Goal

Company To attain a return on

investment of 25%

Buena Vista
Construction
Corporation To increase the
Division number of projects
undertaken by the
company
Project Management
Division
To increase the
Unit number of Project
engineer
Personnel Service Unit

Developing Strategies or Tactics to Reach Coals

After determining the goals, the next task is to devise some means to realize them. The ways to
realize the goals are called strategies and these 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 “course of action aimed at ensuring that the organization will
achieve its objectives.
An example of a strategy is as follows:
The decision of a construction firm management to diversity its business by engaging
also in the trading of construction materials and supplies.
When the above mentioned strategy is implemented, it may help the construction firm realize
substantial savings in the material and supply requirements used in their construction activities. The
firm will also have greater control in the timing of deliveries of materials and supplies.
A tactic is a short-term action taken by management to adjust to negative internal or external
influences. They are formulated and implemented in support of the firm's strategies. The decision about
short-term goals and the courses of action are indicated in the tactical plan.
An example of a tactic is the hiring of contractual workers to augment the company's current
workforce.
Determining Resources Needed
When particular sets of strategies or tactics have been devised, the engineer manager will, then,
determine the human and nonhuman resources required by such strategies or tactics. Even if the
resource requirements are currently available, they must be specified.
The quality and quantity of resources needed must be correctly determined. Too much resources
in terms of either quality or quantity will be wasteful. Too little will mean loss of opportunities for
maximizing income.
To satisfy strategic requirements, a general statement of needed resources will suffice. The
specific requirements will be determined by the different units of the company.
 To illustrate:
Suppose the management of a construction firm has decided, in addition to its current
undertakings, to engage in the trading of construction materials and supplies.
A general statement of required resources will be as follows: A new business unit will be
organized to deal with the buying and selling of construction materials and supplies. The amount
of P50 million shall be set aside to finance the activity. Qualified persons shall be recruited for
the purpose.
Setting Standards
The standards for measuring performance may be set at the planning stage. When actual
performance does not match with the planned performance, corrections may be made or
reinforcements given."
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.