PLANNING
MODULE OVERVIEW
As discussed in the previous module, there are four functions of management namely planning,
organizing, leading and controlling (PRO TIP: memorize it by using the acronym, POLC! ). This module
discusses planning, the first management function.
There is a popular saying often attributed to Benjamin Franklin, the father of time management, "Failing to
plan is planning to fail”. You may think “planning” is relevant to large companies, but not something that’s
relevant to you right now. But when you figure out your life in the next five years or even when you decide
what you need to do to finish a project on time, you’re planning. And planning is something that all
managers need to do. Although what they plan and how they plan may differ, it’s still important that they
do plan. In this module, we present the basics: what planning is, why managers plan, and how they plan.
All contents are heavily drawn from our main reference book, Management (14th ed.) by Robbins &
Coulter (2018).
MODULE LEARNING OBJECTIVES
At the end of this module, you should be able to:
• Define the nature and purposes of planning.
• Classify the types of goals organizations might have and the plans they use.
• Compare and contrast approaches to goal-setting and planning.
• Discuss contemporary issues in planning.
A. THE WHAT AND WHY OF PLANNING
What is Planning?
Planning involves defining the organization’s goals, establishing strategies for achieving those goals, and
developing plans to integrate and coordinate work activities. It’s concerned with both ends (what) and
means (how).
When we use the term “planning,” we mean formal planning. In formal planning, specific goals covering a
specific time period are defined. These goals are written and shared with organizational members to
reduce ambiguity and create a common understanding about what needs to be done. Finally, specific
plans exist for achieving these goals.
What do Managers Plan
Managers plan to (1) provide direction (2) reduce uncertainty (3) minimize waste and redundancy, and (4)
to establish the goals or standards used in controlling.
Planning and Performance
Generally speaking, formal planning is associated with positive financial results—higher profits, higher
return on assets, and so forth. Second, it seems that doing a good job planning and implementing those
plans play a bigger part in high performance than how much planning is done. Next, in those studies
where formal planning didn’t lead to higher performance, the external environment often was the culprit.
When external forces—think governmental regulations or powerful labor unions—constrain managers’
options, it reduces the impact planning has on an organization’s performance. Finally, the planningperformance relationship seems to be influenced by the planning time frame. It seems that at least four
years of formal planning is required before it begins to affect performance.
LEARNING ACTIVITY 1
•
Continue reading the topic on the ebook, Management (14th ed.) by Robbins & Coulter (2018) on
pp. 290-291. Also, check on the ebooks/journals below. Just like what you did on Module 1, write
short notes about it.
• Cairo University (n.d.). Retrieved from
http://www.pathways.cu.edu.eg/subpages/downloads/Planning_Chapter_1.pdf
• Sarker, A. (2019). Planning Function of Management. Retrieved from
https://www.academia.edu/38304841/PLANNING_function_of_Management
Reflection Questions (Code: T2_RQ1)
After reading, answer the following guide questions:
• Explain what studies have shown about the relationship between planning and performance.
Answer: Studies suggest that effective planning positively correlates with improved performance
in various task. Establishing clear goals, organizing tasks and outlining strategies tend to
enhance productivity and success rates. However, the extent of this relationship can vary based
on individual differences, task coplexity, and external factors.
•
Planning takes a lot of effort. Why do you think people should engage in it? Explain the quote,
“failing to plan is planning to fail.”
Answer: Engaging in planning helps individual set clear goals, prioritize tasks, allocate resources
efficiently and reduce uncertainry. Ultimately, investing effort in planning can lead to better
outcomes and a more organize approach to achieving desired objectives.
"Failing to plan is planning to fail" emphasizes the importance of preparation. If you neglect to
make plans and set goals, you're essentially setting yourself up for failure because you lack a
structured approach to your tasks or objectives. The absence of a plan increases the likelihood of
encountering obstacles, making it more challenging to achieve success. In essence, planning is
seen as a crucial step in achieving positive outcomes.
B.
GOALS AND PLANS
Difference between goals and plans
Planning is often called the primary management function because it establishes the basis for all the
other things managers do as they organize, lead, and control. It involves two important aspects: goals
and plans.
Goals (objectives) are desired outcomes or targets. Plans are documents that outline how goals are going
to be met. They usually include resource allocations, schedules, and other necessary actions to
accomplish the goals. As managers plan, they develop both goals and plans.
Types of goals
•
•
•
•
Types of Plans
Financial goals are related to the financial performance of the organization
Strategic goals are related to all other areas of an organization’s performance.
Stated goals are official statements of what an organization says, and what it wants its
various stakeholders to believe, its goals are
Real goals are goals that an organization actually pursues, as defined by the actions of
its members
•
•
Strategic plans are plans that apply to the entire organization and establish the
organization’s overall goals
Operational plans are plans that encompass a particular operational area of the
organization
•
•
Long-term plans are plans with a time frame beyond three years
Short-term plans are plans covering one year or less
•
•
Specific plans are plans that are clearly defined and leave no room for interpretation
Directional plans are plans that are flexible and set out general guidelines
•
Single-use plan is a one-time plan specifically designed to meet the needs of a unique
situation
Standing plans are ongoing plans that provide guidance for activities performed
repeatedly
•
•
Continue reading the topic on the ebook, Management (14th ed.) by Robbins& Coulter (2018) on
pp. 291-293. Also, check on the ebooks/notes below. Write short notes about it.
• https://www.businessmanagementideas.com/planning/planning-meaning-types-andadvantages/3402
• https://www.slideshare.net/glendapapagayo/plan-and-goal-managerial-planning
Answer:
Short notes about Planning
> Planning is deciding in advance what to do, how to do it. It is the function that determines in
advace what should be done. Planning is very important for successfulness and the effective
performance of an organization not only for organizations but also for endividuals. It is the mort
basic of all the manageral functions. It consist of selecting the enterprice objectives policies,
programmes procedures and other means of achieving these objects. Planning helps individuals
and organizations navigate challeges and maximize efficiency. It offers several advantages,
incluiding improved organization, goal clarity, resource allocation, and enchance decisionmaking.
Virtual Interview (Code: T2_Vi)
Interview two managers (from different companies, preferably different industries) about the types of
planning they do. Ask them for suggestions on how to be a better planner. Write a report describing and
comparing your findings.
C. SETTING GOALS AND DEVELOPING PLANS
Approaches to Setting Goals
As mentioned earlier, goals provide the direction for all management decisions and actions and form the
criteria against which actual accomplishments are measured. Everything organizational members do
should be oriented toward achieving goals. These goals can be set either through a traditional process or
by using management by objectives
•
•
Traditional goal-setting is an approach to setting goals in which top managers set goals that
then flow down through the organization and become subgoals for each organizational area
• When the hierarchy of organizational goals is clearly defined forms an integrated
network of goals, or a means-ends chain. Means-ends chain is an integrated network
of goals in which the accomplishment of goals at one level serves as the means for
achieving the goals, or ends, at the next level
Management by objectives (MBO) is A process of setting mutually agreed upon goals and
using those goals to evaluate employee performance
Developing Plans
The process of developing plans is influenced by three contingency factors namely organizational level,
degree of environmental uncertainty, and length of future commitments. The third contingency factor is
also related to the time frame of plans. The commitment concept says that plans should extend far
enough to meet those commitments made when the plans were developed. Planning for too long or too
short a time period is inefficient and ineffective.
Developing plans is also influenced by the planning approach followed.
• In the traditional approach, planning is done entirely by top-level managers who often are
assisted by a formal planning department, a group of planning specialists whose sole
responsibility is to help write the various organizational plans.
• Another approach to planning is to involve more organizational members in the process. In
this approach, plans aren’t handed down from one level to the next, but instead are
developed by organizational members at the various levels and in the various work units to
meet their specific needs
LEARNING ACTIVITY 3
•
•
Continue reading the topic on the ebook, Management (14th ed.) by Robbins& Coulter (2018) on
pp. 294-300.
Also, read on this ebook:
https://www.academia.edu/19124058/Chapter_6_Managerial_Planning_and_Goal_Setting_9th_E
d?auto=download. Just like what you did on Module 1, write short notes about it.
Answer: One of the primary responsibilities of managers is to decide where the organization
should go in the future and how to get it there.
Of the four management functions (planning, Organizing, leading and controlling) planning is
considered the most fundamental. Involves the formulation of strategies and actions to achieve
organizational objectives. Managers assess resources, potential obstacles, and allocate tasks
efficiently to ensure the team works cohesively toward the desired outcomes.
Goal setting alligns individual and team efforts with the broader organizational mission. Effective
managerial planning and goal setting contribute to increased productivity and successful
achievement of business objectives.
CONTEMPORARY ISSUES IN PLANNING
•
One contemporary planning issue is planning in dynamic environments, which usually means
developing plans that are specific but flexible. Also, it’s important to continue planning, even
when the environment is highly uncertain. Finally, because there’s little time in a dynamic
environment for goals and plans to flow down from the top, lower organizational levels should
be allowed to set goals and develop plans.
•
Another contemporary planning issue involves using environmental scanning to help do a
better analysis of the external environment. One form of environmental scanning, competitive
intelligence, can be especially helpful in finding out what competitors are doing.
Organizations can gather business intelligence using a variety of digital tools to collect and
analyze quantitative and qualitative data to support decision making.
LEARNING ACTIVITY 4
•
Continue reading the topic on the ebook, Management (14th ed.) by Robbins& Coulter (2018) on
pp. 300-304.
Module 2 Activity
1.
Study Reading Assignment :
Topic 2 : Goal Setting and Planning
2.
Watch the videos and take down notes to be included in your submission :
Planning and Goal Setting in Management
https://www.youtube.com/watch?v=29qE4FSxc1w
SMART Goals
https://youtu.be/1-SvuFIQjK8
3. Reflective Thinking: Answer the following questions.
1.
What are the levels of goals and plans?
2.
What are the steps in the organizational planning process?
3.
What are the criteria for effective goals?
4. Analytical Skills: Answer the following questions.
1.
In your own understanding of the lesson what are the benefits and limitations of planning.
2.
Personally , why do you need to plan?
•
Application
• How do you think planning in today’s organizations compares to planning 25 years ago? Do
you think planning becomes more important or less important in a world where everything is
changing quickly and crises are a regular part of organizational life? Why?
• Course Goal Setting
Step 1. Make specific stretch goals for yourself regarding desired outcomes for this course. What
is your goal for a grade? Your goal for learning specific knowledge or skills? Define at least two
stretch
goals
for
this
course.
Step 2. The next step is to break down each goal into “goal behaviors.” These are the specific
behaviors that will allow you to achieve each goal derived in Step 1. Examples of goal behaviors
might include maintaining 100 percent attendance, taking good class notes every day, reading
assigned chapters before class, outlining chapters, writing definitions of new words, participating
in class discussions, setting specific study times for exams, answering end- of-chapter questions,
and completing “Apply Your Skills assignments. Define a minimum of four goal behaviors that
will
lead
to
the
achievement
of
each
goal
listed
in
Step
1.
Step 3. In groups of three to five students, compare your goals and goal behaviors. Students
should
take
turns
sharing
goals
and
behaviors
with
the
group.
Step4. What did you learn from hearing the goals and goal behaviors of group members? How
different were the goals and behaviors of group members? Which combination of goal and goal
behaviors
seems
most
likely
to
be
successful?
Step 5. On the last day of class, meet again as a group. Each student should report on the
degree of success following goal behaviors and achieving goals. Share what you learned from
this experience. Your instructor may ask your group members to report their findings to the class.
SUMMARY
•
•
•
•
Planning involves defining the organization’s goals, establishing strategies for achieving those
goals, and developing plans to integrate and coordinate work activities. It’s concerned with both
ends (what) and means (how).
The purpose of planning is to (1) provide direction (2) reduce uncertainty (3) minimize waste and
redundancy, and (4) to establish the goals or standards used in controlling.
The types of goals are:
• Financial goals are related to the financial performance of the organization
• Strategic goals are related to all other areas of an organization’s performance.
• Stated goals are official statements of what an organization says, and what it wants its
various stakeholders to believe, its goals are
• Real goals are goals that an organization actually pursues, as defined by the actions of
its members
The types of plans are the following:
• Strategic plans are plans that apply to the entire organization and establish the
organization’s overall goals
• Operational plans are plans that encompass a particular operational area of the
organization
• Long-term plans are plans with a time frame beyond three years
• Short-term plans are plans covering one year or less
• Specific plans are plans that are clearly defined and leave no room for interpretation
• Directional plans are plans that are flexible and set out general guidelines
• Single-use plan is a one-time plan specifically designed to meet the needs of a unique
situation
• Standing plans are ongoing plans that provide guidance for activities performed
repeatedly
•
•
Approaches to goal setting includes traditional goal setting and Management by objectives
(MBO). Traditional goal-setting is an approach to setting goals in which top managers set
goals that then flow down through the organization and become subgoals for each
organizational area. While MBO is a process of setting mutually agreed upon goals and using
those goals to evaluate employee performance
• Meanwhile there are also two approaches in developing plans: traditional approach and
involving more organizational members in the process. In the traditional approach, planning is
done entirely by top-level managers who often are assisted by a formal planning department.
One contemporary planning issue is planning in dynamic environments, which usually means
developing plans that are specific but flexible. And the other one involves using environmental
scanning to help do a better analysis of the external environment.
REFERENCES
•
Cairo University (n.d.). Retrieved from
http://www.pathways.cu.edu.eg/subpages/downloads/Planning_Chapter_1.pdf
•
Sarker, A. (2019). Planning Function of Management. Retrieved from
https://www.academia.edu/38304841/PLANNING_function_of_Management
•
https://www.academia.edu/19124058/Chapter_6_Managerial_Planning_and_Goal_Setting_9th_E
d?auto=download
•
https://www.businessmanagementideas.com/planning/planning-meaning-types-andadvantages/3402
•
https://www.slideshare.net/glendapapagayo/plan-and-goal-managerial-planning
•
Robbins, S. & Coulter, M. (2018). Management. (14th ed.). Pearson Education Limited (Chapter
11 pp 382-405)