Organizational Management Quarter 1 – Module 6: Discuss the nature and level of planning and types of plans. Organizational Management – Grade 11 Alternative Delivery Mode Quarter 1 – Module 6: Discuss the nature and levels of planning and types of plan. First Edition, 2020 Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the Government of the Philippines. However, prior approval of the government agency or office wherein the work is created shall be necessary for exploitation of such work for profit. Such agency or office may, among other things, impose as a condition the payment of royalties. Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.) included in this module are owned by their respective copyright holders. Every effort has been exerted to locate and seek permission to use these materials from their respective copyright owners. The publisher and authors do not represent nor claim ownership over them. Published by the Department of Education Secretary: Leonor Magtolis Briones Undersecretary: Diosdado M. San Antonio Development Team of the Module Writer : Editor : Reviewer : Illustrator : Layout Artist : Cover Design : Annie Rhose C. Rosales Hazel May S. Barcial Charina C. Dizon Annie Rhose C. Rosales Annie Rhose C. Rosales LRMDS BATAAN Management Team: Schools Division Superintendent : OIC-Asst. Schools Division Superintendent : Chief Education Supervisor, CID : Education Program Supervisor, LRMDS : Education Program Supervisor, AP/ADM : Education Program Supervisor, Mathematics: District Supervisor, Mariveles : Division Lead Book Designer : District LRMDS Coordinator, Mariveles : School LRMDS Coordinator : School Principal : District Lead Layout Artist, Mathematics : District Lead Illustrator, Mathematics : District Lead Evaluator, Mathematics : Romeo M. Alip, PhD, CESO V William Roderick R. Fallorin Milagros M. Peñaflor, PhD Edgar E. Garcia, MITE Romeo M. Layug Danilo C. Caysido Francisco B. Bautista Rogelio M. Olegario Annie Rhose C. Rosales Annie Rhose C. Rosales Ludivina S. Omania Printed in the Philippines by Department of Education – Schools Division of Bataan Office Address: Provincial Capitol Compound, Balanga City, Bataan Telefax: (047) 237-2102 E-mail Address: bataan@deped.gov.ph Organization and Management Quarter 1 – Module 6: Discuss the nature and levels of planning and types of plan Introductory Message For the facilitator: Welcome to the Organizational Management – Grade 11 Alternative Delivery Mode (ADM) Module on The nature and levels of planning and types of plan. This module was collaboratively designed, developed and reviewed by educators both from public and private institutions to assist you, the teacher or facilitator in helping the learners meet the standards set by the K to 12 Curriculum while overcoming their personal, social, and economic constraints in schooling. This learning resource hopes to engage the learners into guided and independent learning activities at their own pace and time. Furthermore, this also aims to help learners acquire the needed 21st century skills while taking into consideration their needs and circumstances. In addition to the material in the main text, you will also see this box in the body of the module: Notes to the Teacher This contains helpful tips or strategies that will help you in guiding the learners. As a facilitator you are expected to orient the learners on how to use this module. You also need to keep track of the learners' progress while allowing them to manage their own learning. Furthermore, you are expected to encourage and assist the learners as they do the tasks included in the module. 1 For the learner: Welcome to the Organizational Management – Grade 11 Alternative Delivery Mode (ADM) Module on The nature and levels of planning and types of plan. The hand is one of the most symbolized part of the human body. It is often used to depict skill, action and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this learning resource signifies that you as a learner is capable and empowered to successfully achieve the relevant competencies and skills at your own pace and time. Your academic success lies in your own hands! This module was designed to provide you with fun and meaningful opportunities for guided and independent learning at your own pace and time. You will be enabled to process the contents of the learning resource while being an active learner. This module has the following parts and corresponding icons: What I Need to Know This will give you an idea of the skills or competencies you are expected to learn in the module. What I Know This part includes an activity that aims to check what you already know about the lesson to take. If you get all the answers correct (100%), you may decide to skip this module. What’s In This is a brief drill or review to help you link the current lesson with the previous one. What’s New In this portion, the new lesson will be introduced to you in various ways such as a story, a song, a poem, a problem opener, an activity or a situation. What is It This section provides a brief discussion of the lesson. This aims to help you discover and understand new concepts and skills. What’s More This comprises activities for independent practice to solidify your understanding and skills of the topic. You may check the answers to the exercises using the Answer Key at the end of the module. What I Have Learned This includes questions or blank sentence/paragraph to be filled in to process what you learned from the lesson. 2 What I Can Do This section provides an activity which will help you transfer your new knowledge or skill into real life situations or concerns. Assessment This is a task which aims to evaluate your level of mastery in achieving the learning competency. Additional Activities In this portion, another activity will be given to you to enrich your knowledge or skill of the lesson learned. This also tends retention of learned concepts. Answer Key This contains answers to all activities in the module. At the end of this module you will also find: References This is a list of all sources used in developing this module. The following are some reminders in using this module: 1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a separate sheet of paper in answering the exercises. 2. Don’t forget to answer What I Know before moving on to the other activities included in the module. 3. Read the instruction carefully before doing each task. 4. Observe honesty and integrity in doing the tasks and checking your answers. 5. Finish the task at hand before proceeding to the next. 6. Return this module to your teacher/facilitator once you are through with it. If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult your teacher or facilitator. Always bear in mind that you are not alone. We hope that through this material, you will experience meaningful learning and gain deep understanding of the relevant competencies. You can do it! 3 What I Need to Know This module is designed and created to help you as an adolescent to be prepared for adult life by means of knowing various developmental tasks according to development stages. This module also helps you to realize how to face the challenges during adolescence and help you to clarify and manage the demands of teen years. At the end of this module, you will be able to: 1. Discuss the nature and levels of planning and types of plans; 2. Compare and contrast the different types of plans; and 3. Describe planning at different levels of the firm; What I Know Read the statement below. Choose the words that you think has a connection to the planning and write it on the box below. ABC Corporation a food industry that specialized in sardines and other canned foods always anticipate things before the occurrence. They have a planning team that keep on targeting their everyday quota and everyday situations. Prior to the lockdown due to Pandemic (COVID19). The board discussed and plan their goals to meet the demand of the public and to prevent the pandemic that can ruin their business. They focus on their strategic plans – these plans establish the organization’s overall goals and apply to the entire firm; they are broad in scope and are the responsibility of the CEO, president and general manager of the company. The President of the Corporation carefully define the goals and objectives to be established during pandemic. When the Enhanced Community Quarantine happens. The Corporation tried their best to stay and focus on their agenda, they stick to their 4 plan, and during their daily meeting they follow the rules of wearing face mask, proper hygiene and social distancing, they discussed the pros and cons as well as they carefully plan for each unit and its called operational plan. They value the health of all the employees as well as the health of their end user, they abide the law while sticking to their plan. Lesson 1 Discuss the nature and levels of planning and types of plans. Planning is the first management function and a very essential component of management. Planning is a process that involves the setting of the organization’s goals. Establishing strategies for accomplishing those goals and developing plans of action or means that managers intend to use to achieve organizational goals. DEFINITION AND NATURE OF PLANNING Planning provides direction to all of the organization’s human resources – both managers as well as employees. If they know what their firm or their work unit is trying to achieve and what activities they should engage in to be able to contribute to the achievement of the firm’s set vision, mission, goals and objectives, they would coordinate their actions and collaborate well with one another. 5 Planning is important because it reduces uncertainty; it compels managers to consider future events that may affect their company. Anticipating changes and their impact will help managers and other workers to react to such changes appropriately. Minimizing of wastes will result if there is proper coordination of activities due to planning; negative practices, ineffectiveness and inefficiencies could be easily detected and can be corrected or eliminated. Establishing goals and standards during planning may be used for controlling, another necessary managerial function. Without planning, goals and standards will be absent and controlling will not be possible. Goal- Setting – the identification of targets or desired ends that management wants to reach. Vision- a mental image of what the organization will be in the way future, as desired by the company management and employees. Mission – basic purpose of an organization and range of their operations. Objectives – steps needed in order to attain desired ends. RELATIONSHIP OF PLANNING TO INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE Is there a clear relationship between planning and performance? Although numerous researchers have shown a generally positive relationship between planning and performance, it would not be advisable, however, to judge that organizations or individuals who formally plan have better performance compared to those who do not plan. There are other environmental factors that also affect individual or organizational performance, thus, result in reducing the impact of planning to performance. This is safer to say that the relationship between planning and performance is mainly due to association of systematic planning with the excellent financial status of the organization and higher return of investments, higher income and profit that could be traced to the excellent performance of its human race. Finally, the planning-performance relationship could also be associated with the time spent in preparing and executing a formal organizational or individual plan. A well-thought-out plan must require a longer period of preparation; its execution or 6 application must also be done for a certain period of time – months or years – before it begins to affect performance. Difference between Goals and Plans Goals are the targets or desired ends that management wants to reach, while plans are the actions or means that administrators/managers intend to use to achieve organizational goals. In short, goals serve as the foundation of planning. Goals precede plans because knowing the desired targets is a must before establishing plans for reaching them. TYPES OF PLANS Organizational plans can be generally described in terms of comprehensiveness, length of time covered or time frame, specificity and frequency of use. Comprehensiveness refers to the completeness of planning coverage; for example; it may start from plans that cover the entire organization, called strategic plans, up to operational plans that apply to a particular operational area only. The more comprehensive the plan is, the better, as this could completely guide both the employer and employee toward the fast achievement of company goals. A plan may be long-term, or covering more than three years, or short-term, covering one year or less. Top-level management usually sets the long-range plans, while lower-level management focuses on short-term goals. Specificity refers to very detailed, clearly defined plans wherein objective are clearly stated and could easily be understood. Simple language must be used in order to facilitate understanding of the plan. Frequency of use refers to the number of times or instances a plan may be used. For example, strategical plans have single use, while operational plans are usually standing or are used frequently or for several times. Referring to set plans is often necessary to ensure that all plans are carried out, thus, hastening the achievement of the organization’s goals. Managers meet many planning challenges as they go about their tasks and direct their company’s affairs. In some organization’s goals. Managers meet many planning challenges as they go about their task and direct their company’s affairs. In some organizations, the planning environment is steady, but in others, it is dynamic, so, different types of plans are made to meet organizational needs. Different types of planning include the following 7 Strategic plans – plans that establish the organization’s overall goals and apply to the entire firm; they are broad in scope and are the responsibility of the CEO, president and general manager of the company. Operational plans – plans that apply to a particular unit area only; their scope is narrow; achievement of company goals may not be achieved if operational plans are not clear. Long-term plans – plans that go beyond three years; everyone must understand the organization’s long-term plans to avoid confusion that may divers the organization members’ attention. Short-term plans – plans that cover one year or less; such plans must lead toward the attainment of long-term goals and are the responsibility of the unit/department heads. Directional plans – plans that are flexible or give general guidelines only; although flexible and general, these plans must still be related to the strategic plans. Specific plans- plans that are clearly stated and which have no room for interpretation; language used must be very understandable. Single-use plans – plans used or stated once only as this applies to the entire organization; refer to the operational plans of the firm. Standing plans – plans that are ongoing; [rovide guidance for different activities done repeatedly; refer to the identified activities of operational plans. What’s In Apply the correct letter to form the right word or words that fits to its meaning. 1. G O _ L S E T _ I N _ - The identification of targets or desired ends that management wants to reach. 2. _ R G A N _ Z A T I O N A _ P _ _ N - A comprehensive plan for the entire organization covering time frame, specific purpose, frequency of use, and others. 3. O _ E R A T I O N _ L only. _L A _ - Plan that apply to a particular unit area 4. _ T A N D _ N _ P L _ N S - Plans that are ongoing; provide guidance for different activities done repeatedly; refer to the identified activities of operational plans. 8 5. D _ R E C T I _ N _ L P _ A N S - Plans that are flexible or give general guidelines only; although flexible and general, these plans must still be related to the strategic plans. 6. _ R E _ U E N C _ may be used. - Of use refers to the number of times or instances a plan 7. S _ R A _ E G _ C P _ A N S – plans that establish the organization’s overall goals and apply tp the entire firm; they are broad in scope and are the responsibility of the CEO, president and general manager of the company. 8. S _ O R _-T _ E R M P _ _ N S – plans that cover one year or less, such plans must lead towards the attainment of long-term goals and are the responsibility of the unit/department heads. 9. _ P _ C I F _ C P _ _ N S - plans that are clearly stated and which have no room for interpretation; language used must be very understandable. 10. S _ I N G _ E – U _ E P _ A S - Plans used or stated once only at as this applies to the entire organization; refer to the operational plans of the firm. Notes to the Teacher Ang modyul na ito ay naghahanda sa mga mag-aaral upang makalikha at mailarawan ang mga hugis ng katawan ayon sa kung paano ito ginagawa o inilalahad sa isang larawan. What’s New CROSSWORD PUZZLE : Answer the question below to form a word and meet with other words to finish this puzzle. 1. Plans that are clearly stated and which have no room for interpretation; language used must be very understandable. 2. Refers to the number of times or instances a plan may be used. 3. Plans that are ongoing; provide guidance for different activities one repeatedly; refer to the identified activities of operational plans. 4. Plans that are flexible or give general guidelines only; although flexible and general, these plans must still be related to the strategic plans. 9 5. Plans that establish the organization’s overall goals and apply to the entire firm; they are broad in scope and are the responsibility of the CEO, president and general manager of the company. What is It STEPS IN PLANNING Planning is a process and, as such, involves steps –from carrying out its purpose, setting of goals/objectives, and determining what should be done to accomplish them. Schermerhorn (2008) gave five steps in the planning process: 1. Define your goals/ objectives by identifying desired outcomes/results in very specific ways. 2. Determine where you stand in relation to set goals/objectives; know your strengths and weaknesses. 3. Develop premises regarding future conditions; anticipate future events, generate alternative “scenarios” for what may happen; identify for each scenario things that may help or hinder progress toward your goals/objectives; 4. Analyze and choose among actions alternatives; list and carefully evaluate possible actions and choose the alternative, most likely to accomplish goals/objectives. 5. Implement the plan and evaluate results; take corrective action and revise plans as needed. 10 PLANNING AT DIFFERENT LEVELS IN THE FIRM Different levels in the firm are all engaged planning; however, all the resulting plans must be related to one another and directed toward the same goals. Planning at the different levels of management include strategic planning, tactical planning and operational planning. Top-level Management Planning (Strategic Planning) As earlier mentioned, top-level managers are responsible for the organization’s strategic planning which involves making decision about the organization’s long-term goals and strategies. CEOs, company presidents, or the organization’s senior executives develop and execute the said strategic plan, They, however, do not formulate or execute the plan on their own; a management team supports and helps top-level managers in carrying out these tasks. Strategic planning starts with defining the organization’s goals/objectives, the major targets related to the maintenance of the organization’s stability, and its organizational culture, values and growth improving its productivity, profitability, effectiveness and efficiency, among others. Middle-level Management Planning (Tactical Planning) Tactical planning refers to a set of procedures for changing or transforming broad strategic goals and plans into specific goals and plans that are applicable and 11 needed in one unit/portion of the organization. I tis focused on major actions that must be done by a unit in order to contribute its share for the achievement of the strategic plan. Strategic Planning Tactical Planning Operational Planning Frontline/Lower-level Management Planning (Operational Planning) Operational planning involves identifying the specific procedures and processes required at the lower levels of the organization. This also involves routine at the lower levels of the organization. This also involves routine tasks or tasks repeatedly done by the organization’s lower level units. Integrating Strategic, Tactical and Operational Planning The present organizational planning is not as rigid as the hierarchical planning. Managers in different hierarchical levels of the organization may contribute their ideas or suggestions in developing the strategic plan, a task originally assigned to the senior executives. Also, frontline managers may make decision that could influence strategy formulation in the higher levels. All plan, however, must be directed toward the achievement if the organization’s strategic goals. 12 Finally, CEOs or company presidents must see to it that all communication lines in their organization are open, that there is excellent dissemination of information to all levels, and they are aware of everything that is happening in their firm. What’s More Arrange in chronological pattern the steps in planning. Write 1 to determine which steps comes first, 2 which comes second, 3 which comes third, 4 next to the third and 5 to the last. Write your answer on the line before the number. __________ Determine where you stand in relation to set goals/objectives; know your strengths and weaknesses. __________ Implement the plan and evaluate results; take corrective action and revise plans as needed. __________ Develop premises regarding future conditions; anticipate future events, generate alternative “scenarios” for what may happen; identify for each scenario things that may help or hinder progress toward your goals/objectives; __________ Define your goals/ objectives by identifying desired outcomes/results in very specific ways. __________ Analyze and choose among actions alternatives; list and carefully evaluate possible actions and choose the alternative, most likely to accomplish goals/objectives. What I Have Learned Rearrange the jumbled letter to form the correct words that fits to the statement’s meaning on every number. Write your answer the underlined world after the statement. T A G C I T E R S A L P N 1. Plans that establish the organization’s overall goals and apply to the entire firm; they are broad in scope and are the responsibility of the organization’s President or Chief Operating Officer and several managers. _______________________. 13 YSPTEICIFC 2. Refers to very detailed, clearly defined plans wherein objectives are clearly stated and could easily be understood. Simple language must be used in order to facilitate understanding of the plan. _______________________. GNINNALP 3. Is a process that involves the setting of the organization’s goals, establishing strategies for accomplishing those goals and developing plans of action or means that managers intend to use to achieve organizational goals. _______________________. S S C O E N M P E V I S N E H E R 4. Refers to the completeness of planning coverage._________________________. ONIISV 5. A mental image of what the organization will be in the future, as desired by the company management and employees._______________________. J C T B V S O E I E 6. Steps needed in order to attain desired ends._______________________. MNSSIIO 7. Basic purpose of an organization and range of their operations. _______________________. SSTNAANADLIPGN 8. Plans that are ongoing; provide guidance for different activities done repeatedly; refer to the identified activities of operational plans._______________________. GNALDPROINZALAATINO 9. A comprehensive plan for the entire organization covering time frame, specific purpose, frequency of use and others. _______________________. LAPNLANOITAREPO 10. Plans that apply to a particular unit area only; their scope is narrow and prepared by lower level managers. _______________________. 14 What I Can Do Write TRUE if the statement is correct and FALSE if the statement is wrong. Write your answer on the blank provided to each number. ____________1. Operational plans are the plans that apply to a particular unit area only; their scope is narrow; achievement of company goals may not be achieved if operational plans are not clear. ____________2. Single-use plans are plans that are ongoing; provide guidance for different activities done repeatedly; refer to the identified activities of operational plans. ____________3. Standing plans are plans used or stated once only as this applies to the entire organization; refer to the operational plans of the firm. ____________4. Long-term plans are plans that go beyond three years; everyone must understand the organization’s long-term plans to avoid confusion that may divert the organization members’ attention. ____________5. Directional plans are plans that are flexible or give general guidelines only; although flexible and general, these plans must still be related to the strategic plans. ____________6. Strategic plans refer to the number of times or instances a plan may be used. ____________7. Organizational plan is a comprehensive plan for the entire organization covering time frame, specific purpose, frequency of use, and others. ____________8. Planning is a process that involves the setting of the organization’s goals, establishing strategies for accomplishing those goals and developing plans of action or means that managers intend to use to achieve organizational goals. ____________9. Vision is a mental image of what the organization will be in the future, as desired by the company and employees. ___________10. Mission is a basic purpose of an organization and range of their operations. 15 ___________11. Goal Setting is a steps needed in order to attain desired ends. ___________12. Objectives is the identification of targets or desired ends that management wants to reach. ___________13. Planning is important because it reduces uncertainty; it compels managers to consider future events that may affect their company. ___________14. Establishing goals and standards during planning may be used for controlling, another necessary managerial function. ___________15. Without planning, goals and standards will be absent and controlling will not be possible. Assessment IDENTIFICATION: Write the correct answer on the space provided before the number. ___________1. Basic purpose of an organization and range of their operations. ___________2. Is a process that involves the setting of the organization’s goals, establishing strategies for accomplishing those goals and developing plans of action or means that managers intend to use to achieve organizational goals. ___________3. The identification of targets or desired ends that management wants to reach. ___________4. A mental image of what the organization will be in the future, as desired by the company management and employees. ___________5. A comprehensive plan for the entire organization covering time frame, specific purpose, frequency of use and others. ___________6. Plans that establish the organization’s overall goals and apply to the entire firm; they are broad in scope and are the responsibility of the organization’s President or Chief Operating Officer and several managers. ___________7. Plans that cover one year or less; such plans must lead toward the attainment of long-term goals and are the responsibility of the unit/department heads. ___________8. Plans that go beyond three years; everyone must understand the organization’s long-term plans to avoid confusion that may divert the organization members’ attention. 16 ___________9. Plans that apply to a particular unit area only; their scope is narrow; achievement of company goals may not be achieved if operational plans are not clear. ___________10. Plans that are ongoing; provide guidance for different activities done repeatedly; refer to the identified activities of operational plans. ___________11. Plans that are clearly stated and which have no room for interpretation; language used must be very understandable. ___________12. Plans used or stated once only as this applies to the entire organization; refer to the operational plans of the firm. ___________13. Plans that are flexible or give general guidelines only; although flexible and general, these plans must still be related to the strategic plans. ___________14. Steps needed in order to attain desired ends. ___________15. Is the first management function and a very essential component of management. Additional Activities WORD POOL Complete the statements using the correct words given in the box. Write your answer on the blank provided for every number. 1. are the targets or desired ends that management wants to reach, while 2. are the actions or means that administrators/managers intend to use to achieve organizational goals. 3. It is the identification of targets or desired ends that management wants to reach. 17 4. Plans that are flexible or give general guidelines only; although flexible and general, these plans must still be related to the strategic plans. 5. Plans that are clearly stated and which have no room for interpretation; language used must be very understandable. 6. A mental image of what the organization will be in the future, as desired by the company management and employees. 7. Plans that establish the organization’s overall goals and apply to the entire firm. The basic purpose of an organization and range of their operations is called 8. 9. A Plans that are ongoing; provide guidance for different activities done repeatedly; refer to the identified activities of operational plans. 10. It is the first management function and a very essential component of management. 11. Plans that are clearly stated and which have no room for interpretation; language used must be very understandable. 12. Plans used or stated once only as this applies to the entire organization; refer to the operational plans of the firm. 13. Plans that are flexible or give general guidelines only; although flexible and general, these plans must still be related to the strategic plans. 14. Steps needed in order to attain desired ends. 15. Is a process that involves the setting of the organization’s goals, establishing strategies for accomplishing those goals and developing plans action or means that managers intend to use to achieve organizational plans. 18 Assesment: 1. Mission 2. Planning 3. Goal Setting 4. Vission 5. Organizational Plan 6. Strategic Plan 7. Short – Term Plan 8. Long – Term Plan 9. Operational Plan 10. Specific Plan What More: 2 5 3 1 4 19 Assesment: 1. Mission 2. Planning 3. Goal – Setting 4. Vision 5. Organizational Plan 6. Strategic Plan 7. Short – term Plan 8. Long – term Plan 9. Operational Plan 10. Standing Plans 11. Specific Plans 12. Single – use Plans 13. Directional Plans 14. Objectives 1. Planning What I Can Do: 1. True 2. False 3. False 4. True 5. True 6. False 7. True 8. True 9. True 10. True What In: 1. Goal Setting 2. Organizational Plan 3. Operational Plan 4. Standing Plans 5. Directional Plans 6. Frequency 7. Strategic Plans 8. Short-term Plans 9. Specific Plans 10. Single-use Plans What New: 1. Specific Plans 2. Frequency 3. Standing Plans 4. Directional Plans 5. Strategic Plans What have I learned: 1. Strategic Plan 2. Specifity 3. Planning 4. Comprehensiveness 5. Vission 6. Objectives 7. Mission 8. Standing Plans 9. Operational Plans 10. Goal Setting What I Know: 1. Plan 2. Goals 3. Strategic Plans 4. Objectives 5. Operation Answer Key References DepEd (2016). Kto12 MELC. Organization and Management Business Dictionary. 20 For inquiries or feedback, please write or call: Department of Education – Region III, Schools Division of Bataan - Curriculum Implementation Division Learning Resources Management and Development Section (LRMDS) Provincial Capitol Compound, Balanga City, Bataan Telefax: (047) 237-2102 Email Address: bataan@deped.gov.ph