Planning
by Mrs. Belen Apostol
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Planning
• is the process of setting goals,
developing strategies, outlining
tasks and schedules to
accomplish the goals, and setting
standards for performance
evaluation.
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four steps:
1. Setting goals - the primary purpose of
this step is to provide every person in
the organization with a sense of
direction as to what the organization
wants to achieve.
2. Developing strategies
3. Creating detailed tasks to accomplish
goals and determining resources
needed
4. Setting performance standards
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Levels of Planning
Three levels:
1. strategic planning,
2. intermediate planning, and
3. operational planning.
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Strategic Planning
• Strategic plans are composed of the
corporate or company mission, the
corporate objectives and goals, and the
corporate strategy.
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Intermediate Planning
• This level of management falls to middle
management. This refers to the process
of developing detailed tasks that will
support the major strategies of the
organization. Intermediate planning may
be omitted for small and/or microbusinesses since it is only applicable to
companies that have multiple
departments and/or operations.
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Intermediate Planning
• Steps in intermediate planning involve:
• 1. Setting departmental vision, mission,
and objectives that support the
organization’s VMO.
2.Setting departmental policies and
processes needed to achieve these
goals.
3. Determining the resources needed to
accomplish goals.
4.Setting standards to evaluate
departmental performance.
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Intermediate Planning
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Operational Planning
• This level of planning falls to lower
management. This refers to the process
of developing specific goals for shortterm durations. These plans focus on
day to day activities and processes.
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Operational Planning
• Steps involved in this level of planning
involve:
1. Determining specific goals.
2. Determining specific policies and
tactics.
• 3. Setting performance standards.
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Operational Planning
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Types of Planning
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Goal Setting
• It is evident that goal setting is the
initial step in any level of planning,
whether it is a strategic, intermediate,
or operational planning. The reason is
that goals or objectives will determine
the direction of plans. Planning would
be useless if there is no goal to be
achieved. In simple terms, goal setting
is simply the process or step of
determining what a company, a
department or a unit wants to achieve.
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Strategies vs. Tactics
• Strategies
Strategies are broad or general course
of actions of plans that are created or
developed to make sure that the VMO
of a firm will be attained. These are
created for long term purposes.
• Tactics
Tactics are detailed plans that are
implemented in order to support the
strategies of a firm. These may be
referred as the short term or
immediate actions being implemented
in order to assure the smooth flow of
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the company’s strategies.
Resource Determination
• In order for a plan to be effective,
resource determination is critical. In
this step, the planning personnel are
tasked to know the human and nonhuman resources needed, including
the quantity and quality of such
resources. Failure to properly
determine these resources will result
to wastage, loss of opportunities, or
worse, the failure of the company as a
whole.
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Standard Setting
• The final step in planning is the setting
of standards. The purpose of such is
for the business or the company to
have a basis as to whether the plan
was properly implemented. These
standards will be the qualitative and
quantitative criteria that will be used to
measure or evaluate the performance
of the different aspects of the business
such as employees, processes, and
resource utilization.
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Types of Plans
• Plans may be classified by functional
area, time horizon, and frequency of
use.
. Functional Area Plans
Marketing Plans
These are plans that relate to the proper
implementation and control of the
marketing strategies, policies, and
tactics of the company.
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Functional Area Plans
Production Plans
These are plans that provide the goals
and guidelines as to the quantity and
quality of the company’s product
outputs, which could either be goods of
services.
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Functional Area Plans
Financial Plans
These provide the summary of the
current and projected financial situation
of the company, which are used to help
the company in adopting financial
activities that will maximize its financial
resources.
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Functional Area Plans
• Human Resource Management Plan
These provide the company with the
human resource of personnel needs of
the company which also provides the
details as to the quantity and quality of
personnel needed.
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Plans as to Time Horizon
Short-range Plans
• These are plans that cover a period of
less than one year. These are usually
the concern of lower management.
Mid-range Plans
• These are plans that cover a period of
1-5 years. A mid-range plan is usually
being done by the middle
management.
Long-range Plans
• These plans cover a period of more
than 5 years. These plans are the
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responsibility of top management.
Plans as to Frequency of Use
• Standing Plans
These are plans that are implemented
on a recurring basis. These are plans
that are applied over and over again in
the business to address to the
concerns in operations. Examples are
policies, procedures, and rules.
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Plans as to Frequency of Use
• Single Use Plans
These are plans that are likely to be
used on a one-time basis only. In
other words, these are plans that
would be significant to a single or to a
unique activity and would be
discarded at the end of the said
activity. Examples of these plans are
budgets, programs, and projects.
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Contents of a Marketing Plan
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The executive summary
Table of contents
Situational analysis and target market
Marketing objectives and goals
Marketing strategies
Marketing tactics
Schedule and budgets
Financial data and control
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Contents of a Production Plan
• The production capacity
• The number of employees required
• The quantity of materials to be
purchased
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Contents of a Financial Plan
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Sales forecast
Capital budget
Cash budget
Projected financial statements
External financing plan
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Contents of a Human Resource Plan
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Personnel requirements
Recruitment and selection plan
Training plan
Retirement plan
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Effective Planning
• Plans are developed in order to attain
a particular goal. Therefore, it is
important to carefully process each
plan since its failure could result to the
failure to attain the goal. In order to
successfully develop a plan, it is
advisable to:
• Recognize the planning barriers
• Use planning aids
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Planning Barriers
These are factors that affect the
successful planning. Examples are:
• The manger’s 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 only on the controllable
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variance
Planning Aids
These are possible guides that will help
in effective planning. Examples are:
• Gathering as much information as
possible
• Developing multiple sources of
information
• Involving others in the planning
process
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