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Chapter 3 Planning

Planning is the process of deciding in advance what to do, how to do it, when and who will do it. It bridges the gap from the present situation to achieving goals. Planning involves determining courses of action to achieve certain goals. It has several functions including defining goals, establishing policies to achieve goals, forecasting future events, and making plans operational through activities and budgets. Planning is goal-directed, pervasive, and important for offsetting uncertainty, focusing on objectives, and gaining efficiency. Guidelines for good planning include having specific objectives, facilitating action, constant communication and revision, and allowing assessment and improvement of functions. Planning is done by line managers and specialized planning staff.

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Nicole Castillo Cariño
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44 views18 pages

Chapter 3 Planning

Planning is the process of deciding in advance what to do, how to do it, when and who will do it. It bridges the gap from the present situation to achieving goals. Planning involves determining courses of action to achieve certain goals. It has several functions including defining goals, establishing policies to achieve goals, forecasting future events, and making plans operational through activities and budgets. Planning is goal-directed, pervasive, and important for offsetting uncertainty, focusing on objectives, and gaining efficiency. Guidelines for good planning include having specific objectives, facilitating action, constant communication and revision, and allowing assessment and improvement of functions. Planning is done by line managers and specialized planning staff.

Uploaded by

Nicole Castillo Cariño
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 3

PLANNING
“A goal without a plan is just a wish”
– Antoine de Saint - Exupѐry
PLANNING

Is the process of deciding in


advance what to do, how to do
it, when and who to do it.
PLANNING
Bridges the gap from where we are to
where we want to go.

Planning is an intellectual process to


determine the courses of action to
achieve certain goals.
FUNCTIONS OF PLANNING

1. defining goals and establishing their priorities.


2. stating and implementing policies which direct
activities toward given goals.
3. forecasting future events which can effect
accomplishment of goals.
4. making plans operational through detailed
activities and budgeting.
PLANNING

NATURE IMPORTANCE
 Goal – directed  To offset uncertainty and
change.
 Primacy planning  To focus attention on
objective.
 Pervasiveness of
 To gain economical and
planning efficient operations.
 Efficiency of plans  To facilitate control.
GUIDELINES FOR GOOD
PLANNING
1. A PLAN should hav
e a specific objectiv
e.

2. A GOOD plan shoul


d facilitate action.

3. There is a constant
communication and
revisions to arrive a
t a realistic targets.
GUIDELINES FOR GOOD PLANNING
4. Allows proper assessment on the different functio
ns of management and these should have corresp
onding improvements.

5. Good plans are plans that may be constantly impr


oved, redrafted and replanned.

6. May be delegated to a formal planning staff or gro


up within the company.

7. ALL plans are tentative, they are never final. This


is because good plans are flexible, not rigid.
Who does the PLANNING?
Planning is one of the main functions of
line managers.
Is done by specialized staff set up to
assist in the planning functions (Kast
and Rosenzweig)
The Climate of Planning
LONG - range planning should
be integrated with SHORT -
range planning
Perspectives in Planning
Satisficing – to designate some efforts to
attain some level of satisfaction but not
necessarily to exceed it. (Herbert Simon)

Optimizing – seeks the best policies,


programs and projects by using mathematical
models. Goals are very quantitative.

Adaptizing – still in infant stage but there are


many good points it advocates.
KINDS OF PLANNING
by Robert Anthony
KINDS OF PLANNING
by Robert Anthony
1. STRATEGIC PLANNING – the process of
deciding on the objectives of the
organization.

2. MANAGEMENT CONTROL – process by


which managers assure that resources
are obtained and used effectively and
efficiently in the accomplishment of
organizations objective.
KINDS OF PLANNING
by Robert Anthony
3. OPERATIONAL PLANNING – process of
assuring the specific projects or activities
are carried out effectively and efficiently.
Management Control

1. Formulating budgets.
2. planning staff levels.
3. formulating personnel practices.
4. working capital expenditures.
5. deciding on plant rearrangements.
6. deciding routine investitures.
Operational Planning

1. controlling hiring.
2. monitoring the implementation
policies.
3. controlling credit extension.
4. scheduling production.
Long-Range Planning
 Started by Russians followed by
Chinese and Indians and has been a
practice by most developing countries
today.

 A function of TOP Management


Long-Range Planning
Note: Long-range strategic planning is the process by
which organizations cope with their environment.
They do so by:
1. Analyzing the opportunities and risks of the
environment, sector, or market in which they
operate.
2. Analyzing the resources, capabilities and
distinctive competence of the organization and
choosing a role or a market niche.
3. Defining the priorities, commitments and goals of
the organization.
4. These external opportunities, internal capabilities,
and mission and commitments are matched
against each other to arrive at a set of strategies.
THANK YOU!!!

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