A plan provides a methodical way of

achieving
desired
results.
In
the
implementation of activities, the plan
served as a useful guide. Without a plan,
some minor tasks may be afforded major
attention which may, later on, hinder the
accomplishments of objectives.

Planning, according to Nickels, refers to

the management function that involves
anticipating future trends and determining
the best strategies and tactics to achieve
organizational objectives.
Aldag and Stearns, defined planning as
the selection and sequential ordering of tasks
required to achieve an organizational goal.
Cole and Hamilton, on the other hand,
defined planning as deciding what will be
done, who will do it, where, when and how it
will be done, and the standards to which it will
be done.

Since engineer managers could be

occupying positions in any of the various
management levels, it is important to know
that planning can be undertaken at the
different management levels.
1. Top
Management Level Strategic
Planning
2. Middle Management Level Intermediate
Planning
3. Lower Management Level Operational
Planning

This is the process of determining major goals

of the organization and the policies and
strategies for obtaining and using resources to
achieve those goals.
The output of the strategic planning is called
strategic plan which spells out the decision
about long range goals and the course of
action to achieve these goals.
CEO, President, VPs, GMs, Division Heads

This refers to the process of determining the

contributions that subunits can make with
allocated resources.
Under this type, the goals of a subunit are
determined and a plan is prepared to provide
a guide to the realization of the goals. It has a
primarily designed to support the strategic
plan.
Functional Managers, Product Line Managers,
Dept Heads

This is the process of determining how

specific tasks can best be accomplished
on time with available resource.
This is to support the strategic plan and
intermediate plan.
Unit Managers, First Line Supervisors

Planning involves these processes:

1. Setting Organizational, Divisional, or Unit
Goals
2. Developing strategies or tactics to
reach those goals
3. Determining resources needed and
4. Setting Standards

The setting of these goals will make

everyone in the team be aware of the
goals. If the members know and have an
idea about the corporate goal, there is a
big chance that everybody will contribute
his/her share in order to achieve of such
goals.

QUESTION: When you set

goals, what do you usually
do?
Can you give an example
of a goal you have
already set or currently
setting?

Goals my be defined as the precise

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

This is the next step in planning after

determining goals.
In order to attain your goals, strategies will
be needed. This is the main concern of the
top management that they need to
acquire because without a strategy they
will not be able to push through or take off
with their goals.

A 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 taken by
management to adjust to negative
internal or external influences. This is
implemented in order to support the
strategy.

After devising particular sets of

strategies or tactics, the next step will be
determining the human and non human
resource required by the said strats and
tactics.
Determining the resource needed
must be specific. It is also important to
determine the quality and quantity of
resource.
Why?

A standard may be defined as a quantitative

or qualitative measuring device designed to
help monitor the performances of people,
capital goods or processes.
Standards must also be specific and well
defined.
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

Functional Areas
Marketing Plan

Production Plan
Financial Plan
Human Resource Management Plan

Time Horizon Plans

Short Range Plan
Long Range Plan

Plans According to Frequency of Use

Standing Plans
Single Use Plans

Marketing Plan the written document

or blueprint for implementing and
controlling an organizations marketing
activities related to a particular
marketing strategy.
Production Plan this is a written
document that states the quantity of
output a company must produce in
broad terms and by product family

Financial Plan it is a document that

summarizes the current financial situation of
the firm, analyzes financial needs, and
recommends a direction for financial
activities.
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 companys strat
plan

Short Range Plans plans that are

intended to cover a period of less than
one year. First line supervisors are mostly
concerned with these plans.
Long Range Plans these are plans
covering a time span of more than one
year. These are usually undertaken by
middle and top management.

Standing Plans these are plans that are

used again and again, and they focus
on managerial situations that recur
repeatedly
Policies broad guidelines to aid managers

at every level in making decisions

Procedures plans that describe the exact
series of actions to be taken in a given
situation.
Rules statements that either require or
forbid a certain action

Single Use Plans these plans are

specifically developed to implement
courses of action that are relatively unique
and are unlikely to be repeated
Budget Plan is a plan which sets forth the

projected expenditure for a certain activity and

explains where the required funds will come from
Program Plans it is designed to coordinate a
large set of activities
Project Plan has a limited scope than a
program and is sometimes prepared to support
a program

The Executive Summary which presents

an overall view of the marketing project
and its potential
Situational Analysis and Target Market
Marketing Objectives and Goals
Marketing Strategies
Marketing Tactics
Schedules and Budgets
Financial Data and Control

The amount of capacity the company

must have
How many employees are required
How much material must be purchased

An analysis of the firms current financial

condition as indicated by an analysis of
the most recent financial statements
A sales forecast
The Capital budget
The Cash budget
A set of proforma (projected) financial
statements
The External financing plan

Personnel Requirements of the company

Plans for recruitment and selection
Training Plan
Retirement Plan

Planning may be made successful if the

following are observed:
1. Recognize the planning barriers
2. Use of aids to planning

Managers 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 on only the controllable
variables

Gather as much information as possible

Develop multiple sources of information
Involve others in the planning process