Planning
Technical
Activity
  Alcover, Jasper Clint M.
BSCp.E - 5
 

  If managing organization is to be
pursued vigorously, planning  will
constitute the most important
activity. Managers who plan are
afforded with the opportunity to
carefully analyze situations which
directly contribute to effective
decision-making.
 

 
The engineer manager, regardless of
his management level, will have to
devote some of his time to planning.

“The  higher the management level

the engineer manager is in, the
more sophisticated his planning
activity becomes.“  
 

The Nature of Planning 

THE NATURE OF PLANNING

“Being busy can

affect decision-making,
so planning is undertaken”
 

  Plan
  the output of planning
  provides a methodical way of
achieving desired results
  serves as a useful guide
( Without the plan , some minor tasks may be
afforded major attention which may, later on,
hinder the accomplishments of objectives)
 

An example
example of the difficulty
of difficuty of not
of not having a
having a PLANPLAN
The management of an engineering firm was
able to identify the need to hire additional 3
employees. The manager proceeded to invite
applicants, screen them, and finally hired
three of them. When the hiring expense
report was analyzed, it involved more than
double the amount spent by other firms in
hiring the same number of people.
 

When an inquiry was made, it was found out

that the manager committed some errors
in judgment. For instance, he used an
expensive advertising layout in a newspaper
when a simple message will do.

Also, it was found out that the absence of a

hiring plan  contributed to the high cost
of hiring.
 

Planning Defined
PLANNING DEFINED:

According to Nickels :
Planning refers to
“the management function that involves
anticipating future trends and determining
the best strategies and tactics  to achieve
organizational objectives.” 

[This definition is useful because it relates

the future to what could be decided now.]
 

According to Aldag and Stearns :

Planning refers to
“the  selection  and sequential ordering
of tasks required to achieve an organizational
goal.” 

[This definition centers on the activity

required to accomplish the goals]
 

Definition Summary :
Planning 
 selecting the best course of action so
that the desired result may be achieved.
It must be stressed that the desired
result takes priority and the course of
action chosen is the means to realize
the goal. 
 

PLANNING AT
PLANNING ATVARIOUS
VARIOUS MANAGEMENT
MANAGEMENTLEVELS
LEVELS 
 

Types
TYPESof
OF Planning
PLANNING
 

STRATEGIC PLANNING
  process of determining the major goals of the
organizational and the policies and strategies for
obtaining and using resources to achieve this
goal.
 the whole company is considered, specifically its
objectives and current resources.
 Involved : Top Management
 Output : Strategic Plan ( the decision about long-
range goals and the course of action to achieve this
goals”  )
 

INTERMEDIATE PLANNING
process of determining the contributions that
subunits can make with allocated resources.
the goals of a subunit are determined and a plan
is prepared to provide a guide to realization of
the goals.
Involved : Middle Management
Output : Intermediate Plan
( designed to support the strategic plan )
 

OPERATIONAL PLANNING
The process of determining how specific task
can best be accomplished on time with available
resources.
Involved : Lower Management
Output : Operational Plan
( designed to support the strategic plan &
the intermediate plan )
 

Planning
PLANNINGProcess
PROCESS 
consist
of various steps depending on the
management level that performs the planning
task
1. setting organizational, divisional, or unit
goals
2. developing strategies or tactics to reach
those goals
3. determining resources needed
4. setting standards
 

1. Setting Organizational, Divisional,

1. Setting Organizational, Divisional and Unit Goals
or Unit goals
The 1st task of the manager is to provide a sense
of direction to his firm (if he is the chief executive),
to his division (if division chief), or to his unit (if 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/her
share in the realization of such goals.
 

Goals 
 

may be defined as the “precise

statement of results sought,
quantified in time and magnitude,
where possible.” 
 

Example of
Examples Goals
Goals
 

2. Developing Strategies or Tactics

2. Developing Strategies of Tactics to Reach Goals
to Reach Goals
After determining the goals, the next
task is to devise some means to realize
them. The ways to realize the goals are
called strategies  and these will be the
concern of top management. The middle
and the lower management will adapt
their own tactics to implement their
plans.
 

Strategy
 

may be defined as the “course of

action aimed at ensuring that the
organization will achieve its
objectives.” 
 

Example of Strategy
Examples of Strategies

The decision of a construction firm’s 

management to diversify its business by
engaging also in the trading of
construction materials and supplies.

If strategy  is implemented, it may help the

construction firm realize substantial savings in
the material and supply requirements used in
their construction activities. The firm will also
have greater control in the timing of deliveries
of materials and supplies.
 

  Tactic
 a short-term action taken by management
to adjust to negative internal or external
influences.
 formulated and implemented in support
of the firm’s strategies.
 Output : Tactical Plan
.
 

Example
Example of Tactic
of Tactics

Hiring of contractual workers to

augment the company’s  current
workforce
 

3. Determining
3. Determining Resources
Resources Needed Needed

Note 1: 
When particular sets of strategies or
tactics have been devised, the engineer
manager will, then, determine the human
and nonhuman resources require by such
strategies or tactics. Even if the resource
requirements are currently available, they
must be specified.
 

Note 2: 
The quality  and the quantity  of
resources needed must be correctly
determined. Too much resources in terms
of either quality or quantity will be
wasteful. Too little will mean loss of
opportunities for maximizing income.
 

Note 3: 
To specify strategic requirements, a
general statement of needed resources
will suffice. The specific requirements will
be determined by the different units of
the company.
 

Example
Example :
Suppose the management of a construction firm has
decided, in addition to its current undertakings, to
engage in the trading of constructions 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 Php 50
million shall be set aside to finance the activity.
Qualified persons shall be recruited for the purpose.
 

4. Setting
Setting Standards Standards

The standards for measuring

performance will be set at the
planning stage. When actual
performance does not match with the
planned performance, corrections
may be made or reinforcements.
 

Standard
 

 a quantitative  or qualitative 

measuring device designed to help
monitor the performances of people,
capital goods, or processes.
 

Types of Plans
Types of Plan

Plans are different types

  may be classified in terms of :
1. functional areas
2. time horizon and 
3. frequency of use
 

1. Functional
1. Functional Area Plans
Area Plans

Plans may be prepared according to

the needs of the different functional
areas.
 Types :
a. Marketing Plan
b. Production Plan
c. Financial Plan
 

a. Marketing Plan
  this is the written document or
blueprint  for implementing and
controlling an organization’s 
marketing activities related to a
particular marketing strategy.
 

b. Production Plan
 this a written document
that states that the quantity
of output  a company must
produce in broad terms and
by product family.
 

c. Financial Plan
 it is a document that
summarizes  the current
financial situation of the
firm, analyzes  the financial
needs, and recommends  a
direction for financial
activities.
 

d. Human Resource Management Plan

 it is a document that indicates the human

resource needs  of a company detailed in
terms of quantity  and quality  and based on
the requirements of the company’s strategic
plan.
 

2. Time Horizon
2. Time Horizon Plan Plans

consist of the following:

a. Short-Range Plans 
b. Long-Range Plans
 

a. Short-range plans
 these are plans intended to cover a
period of less than one year.
 Involved : First-line supervisors

b. Long-range plans
 these are plans covering a time span
of more than one year.
 Involved : middle and top
management
 

4. Plans According to
4. Plans According to Frequency Use
Frequency Use

may be classified as :
a. Standing Plans
b. Single-Use Plans
 

a. Standing
A. Standing Plans Plans

 plans that are used again and

again, and they focus on managerial
situations that recur repeatedly.
 may be classified as :
a1. Policies 
a2. Procedures
a3. Rules 
 

a1. Policies 
 they are broad guidelines to aid
managers at every level in making
decisions about recurring situations
or function 
 

a2. Procedures 
 they are plans that describe the
exact series of actions to be taken in
a given situation. 

a3. Rules
  they are statements that either
require or forbid a certain action. 
 

b. Single-Use Plans
B. Single-Use Plans

may be classified as :
b1. budgets 
b2. programs
b3. projects 
 

b1. Budget 
 according to Weston and Brigham, is
“a  plan which sets forth the
projected expenditure for a certain
activity and explains where the
required funds will come from.” 
 

b2. Program 
 is a single-use plan use designed to
coordinate a large set of activities. 

b3. Project
 is a single-use plan that is usually
more limited in scope than a
program and is sometimes prepared
to support a program. 
 

PARTS/CONTENTS OF THE
PARTS/CONTENTS OF THE VARIOUS
VARIOUS FUNCTIONAL
FUNCTIONAL AREA PLANS

AREA PLANS
 

Contents
Contents of theof the Marketing
Marketing Plans Plan

The structure and content of

marketing plans vary depending on
the nature of the organizations
adapting them. William Cohen
maintains that the following must be
included in the marketing plan.
 

1. The Executive Summary

 which presents an overall view of the
marketing project and its potential.
2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control
 

Contents
Contents of the Production
of the Production Plan Plan
The production plan must contain the
following :

1. the amount of capacity the

company must have
2. how many employees are required
3. how much material must be
purchased
 

Contents
Contents of thePlans
of the Financial Financial Plan
The financial plan must contain the following :

1. An analysis of the firm’s  current financial

condition as indicated by an analysis of the
most recent statements
2. A sales forecast
3. The capital budget
4. The cast budget
5. A set of proforma (or projected) financial
statements
6. The external financing plan
 

Contents of the Human

Resources
Contents of the Plan
Human Resources Plan
The human resources plan must contain
the following :
1. Personnel requirements of the
company
2. Plans for recruitment & selection
3. Training Plan
4. Retirement Plan
 

Parts of the Strategic Plan

Parts of the Strategic Plan

1. Company or corporate mission

2. Objectives or goals
3. Strategies
 

Making Planning
Making Planning Effective

Effective
 

Planning  is done so that some

desired results may be achieved. At
times, however, failure  in planning
occurs.
 

Planning may be made

Planning may be effective if
successful if
the following
the following are observed:
are observed:

1. Recognize the planning barriers

2. Use of aids to planning
 

Planning Barriers (According to

Planning Barriers
(According to Plunkket
Plunkett & Attner)and Attner)

1.   Manager’s inability to plan
2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of
the future
6. Too much reliance on the planning
department
7. Concentrating on only the controllable
variables
 

Aids on
AidsPlanning
on Planning that may
that may be used
be used

1. Gather as much information as

possible
2. Develop multiple sources of
information
3. Involve others in the planning
process
 

Questions ???