Planning: Planning at Various Management Levels

Felsie Jane G.
Penaso
PLANNING
Planning at Various Management Levels

Planning is a management function that decides what objectives to pursue
during a future time period and what to do in order to achieve those goals/ objectives,
while management is a process that involves guiding or directing a group of people
towards an organizational goal/ objectives. Since 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. Strategic Planning for the Top Management
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.
Top-level managers are responsible for controlling and overseeing the entire
organization. The Chief Executive Officer (CEO), president, vice presidents, general
manager and division heads are all examples of top-level managers. Although all
levels of management typically are involved in the planning process, top-management
level usually spend more time planning than low-level management. The planning
horizon of strategic planning for top management is one to ten years.
2. Intermediate Planning for Middle Management
Intermediate planning refers to the process of determining the contributions
that subunits can make with allocated resources. The intermediate plan is designed to
support the strategic plan.
Middle-level managers are responsible for executing organizational plans
which comply with the company’s policies. Functional managers, product line
managers, and department heads are all examples of middle-level managers. These
managers act at an intermediary between top-level management and low-level
management. The planning horizon for intermediate planning is 6 months to 2 years.
Middle-level managers devote more time to organizational and directional functions
than top-level managers. Their roles can be emphasized as:
 Executing organizational plans in conformance with the company’s
policies and the objectives of the top management;
 Defining and discussing information and policies from top management
to lower management; and most importantly
 Inspiring and providing guidance to low-level managers towards better
performance.
Some of their functions are as follows:
 Defining and monitoring group-level performance indicators;
 Diagnosing and resolving problems within and among work groups;
 Designing and implementing reward systems supporting cooperative
behavior.
3. Operational Planning for lower management
Operational planning is the process of determining how specific tasks can best
be accomplished on time with available resources. This type of planning is the
responsibility of lower management. It must be performed in support of the strategic
and intermediate plans.
Low-level managers focus on controlling and directing. They serve as role
models for the employees they supervise. Unit managers and first line supervisors are
examples of low-level managers. The planning horizon for operational planning is one
week to one year.
Low-level managers usually have the responsibility of:
 Assigning employee tasks;
 Guiding and supervising employees on day-to-day activities; and
 Making recommendations and suggestions.
Low-level manages provides:
 Basic supervision
 Motivation
 Career planning
 Performance feedback; and
 Staff supervision.
The Planning Process
The process of planning consists of various steps depending on the
management level that performs the planning task. Planning involves the following;
1. Setting Organizational, Divisional, or Unit Goals
The first task of the 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 provides 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.
Examples of Goals, By Organizational Level

ORGANIZATIONAL LEVEL EXAMPLE OF GOAL
Company
ARGEEJAY
Manufacturing Company To expand market share by
20%
Division
Cosmetics Divisions
To increase the number of
products manufactured and
Unit sold by the company
Personal Services
To increase the number of
product managers
2. Developing Strategies or Tactics to Reach Goals
After determining the goals, the next task is to invent or plan. The ways chosen
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.
Strategy may be defined as a course of action aimed at ensuring that the
organization will achieve its objectives.
A tactic is a short-term action by management to adjust to negative or external
influences. An example of tactic is the hiring of contractual workers to augment the
company’s current workforce.
3. Determining Resources Needed
When particular sets of strategies or tactics have been devised, the manager
will then determine the human and non-human resources required by such strategies
or tactics. Too many resources in terms of either quality or quantity will be wasteful;
too little will mean loss of opportunities for maximizing income. The different units of
the company will determine the specific requirements.
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 ₱55 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 performance of people, capital, goods, or process. 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.

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What are the three levels of planning discussed and their time horizons?

What are some of the responsibilities of middle-level managers?

Felsie Jane G.

Planning at Various Management Levels

Examples of Goals, By Organizational Level

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