PLANNING

PREPARED BY:
SHIELA MEDALLON
ANDREI PIERRE SANCHEZ
CLIFF RICHARD ABILA
1. Planning Defined
2. The nature of Planning
3. Planning at various Management Levels
4. The Planning
5. Types of Plans
6. Parts of the various functional area plans
7. Making planning effective
Planning Defined
- As selecting the best course of action in
anticipation of future trends so that the
desired result may be achieved
The Nature of Planning
a. planning is a mental activity.
b. planning is a goal-oriented.
c. planning is forward looking.
d. planning pervades all managerial activity.
e. planning is the primary function.
f. planning is based on facts.
g. planning is flexible.
h. planning is essentially decision making.
Planning at Various Management Levels
1. Strategic Planning for top Management.
- refers to the process of determining the major goals of
the organization, policies, strategies for obtaining and
using resource to achieve those goals
Planning at Various Management Levels
1. Strategic Planning for top Management.
- refers to the process of determining the major goals of
the organization, policies, strategies for obtaining and
using resource to achieve those goals
2. Intermediate Planning for Middle Management
- refers to the process of determining the contributes that
submits can make with allocated resource.
Planning at Various Management Levels
1. Strategic Planning for top Management.
- refers to the process of determining the major goals of
the organization, policies, strategies for obtaining and
using resource to achieve those goals
2. Intermediate Planning for Middle Management
- refers to the process of determining the contributes that
submits can make with allocated resource.
3. Operational Planning for Lower Management.
- the process of determining how specific tasks can best be
accomplished with available resources.
Figure 15. Types of Planning
Management Level Planning Horizon

Top Management Strategic Planning

Chief, Executive Officer, President, Vice
president, General Manager, Division Heads

Middle Management Functional Managers, Product line Managers, Intermediate

Department Heads planning (6 Months
to 2 years)

Unit Managers, First line Supervisors

Lower Management Operational Planning
(one week to one
year)
The Planning Process

1. Setting Organizational, Divisional, or Unit Goals

- First task of 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 units (if he is a supervisor).
Figure 16. The Organizational and President/
Types of Planning Undertaken General
Manager
Responsible for
Strategic Planning
MARKETING
MANAGER
Responsible for
PRODUCTION
Intermediate Planning
MANAGER

Responsible for FINANCE

Intermediate Planning MANAGER
Responsible for
Intermediate Planning

INDUSTRIAL QUALITY PERSONAL

FACTORY MANAGER
ENGINEERING CONTROL
MANAGER
MANAGER MANAGER Responsible for
Intermediate Planning
Responsible for Responsible for Responsible for
Operational Planning Operational Planning Operational Planning
Figure 17.Examples of Goals, By Organizational Level
ORGANIZATIONAL LEVEL EXAMPLE OF GOAL

COMPANY To expand market

Share by 20%
ARGEEJAY
Manufacturing Company

To increase the number

DIVISION of the products manufactured
and sold by the company
Cosmetics Divisions

To increase the number

UNIT of the product managers

Personal Services
2. Developing strategies or tactics to reach goals
* Strategy – may be defined as course of action aimed at ensuring
that the organization will achieve its objectives.
* Tactic – is a short-term action by management to adjust to negative
or external influences.

3. Determining Resources Needed.

- When particular sets of strategies or tactics have been devised, the
managers will then determine the human and non-human resources
required by such strategies or tactics, even if the resource requirements
are currently available they must be specified.
4. Setting standards.
– The standards for measuring performance may be set at the planning
stage.
A standard may be defined as a quantitative or qualitative measuring
device designed to help monitor the performance of people, capital,
goods, or processes.
Figure 18. Types of Plans
Types of Plans

Functional Area Plans with Varied Plans with Time

Plans Frequency of use Horizon

Marketing Plan

Short-range plan
Production Plan

Financial Plan Long-range plan

Human Resources Plan

Standing Plan Single-Use Plan

Policies Procedures Rules Budget Program Project

Types of Plans

1.functional area plans. May be prepared according to the needs of the different
functional areas.
a. Marketing plan – is the written document or blueprint for implementing and
controlling an organization’s marketing activities related to a particular marketing
strategy.
b. Production plan – is a written document that states the quantity of output a
company must produce in broad terms and by product family
c. Financial plan – is a document that summarize the current financial situation of
the firm, analyzes financial needs, and recommends a direction for financial
activities.
d. Human resources plan – 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. Plans with time Horizon.
a. short-range plans – are plans intended to cover a period of less than one
year. First line supervisors are mostly concerned with these plans.
b. long-range plans – are plans covering a time span of more than one year.
Middle and top management mostly undertake this.
3. plans with varied frequency of use.
a. standing plans. Plans that are used again and again, and they focus on managerial
situations that recur repeatedly.
-Policies
-Procedures
-Rules
b. Single-Use Plans. These plans are specifically develop to implement courses of
action that are relatively unique and are unlikely to be repeated.
-Budget plan
-Program Plan
-Project Plan
PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS

1. Marketing Plan – the structure and content of marketing plans vary depending on the
nature of the organizations.
Marketing Plan includes the following:
a. Executive summary;
b. Table of contents;
c. Situational analysis and Target market;
d. Marketing objectives and Goals;
e. Marketing strategies;
f. Marketing tactics;
g. schedule and budgets;
h. Financial data and control;
 ARGEESAY MANUFACTURING COMPANY
Marketing Plan Schedule Figure 19. Example of marketing
TARGET SALES UNIT AMOUNT plan schedule
Electric fan
Jan. 8,000 3,200,000
Feb. 9,000 3,600,000
Mar. 10,000 4,000,000
Total
1st Quarter 27,000 10,800,000 2. Production Plan. The production plan must contain the
2nd Quarter 35,000 14,000,000 following:
3rd Quarter 48,000 19,000,000
4th Quarter 60,000 24,000,000
Total electric fan 170,000 68,000,000 a. Production capacity the company must have;
b. Number of employees required and;
Gas Stove
Jan. 8,000 3,200,000 c. Quantity of materials which must be purchased.
Feb. 9,000 3,600,000
Mar. 10,000 4,000,000
Total
1st Quarter 27,000 13,500,000
2nd Quarter 35,000 17,500,000
3rd Quarter 48,000 24,000,000
4th Quarter 60,000 30,000,000
Total Gas Stove 170,000 85,000,000

Total Electric Fan and Gas Stove 153,000,000

 ARGEESAY MANUFACTURING COMPANY
Detailed Production Plan

Required for Add final Units to be

Total Less initial
Sales inventory of Completed
required inventory of
finished goods
finished goods
ELECTRIC FAN
January 8,000 10,000 18,000 8,000 10,000
Figure 20.
February
March
9,000
10,000
12,000
15,000
21,000
25,000
10,000
12,000
11,000
13,000
Example of
TOTAL
1st Quarter 27,000 17,000 44,000 8,000 36,000
a production
2nd Quarter 35,000 20,000 55,000 17,000 38,000 Plan
3rd Quarter 48,000 31,000 79,000 20,000 59,000
4th Quarter 60,000 40,000 100,000 31,000 69,000 schedule
TOTAL 2012
Gas Stove
January 8,000 10,000 18,000 8,000 10,000
February 9,000 12,000 21,000 10,000 11,000
March 10,000 15,000 25,000 12,000 13,000
TOTAL
1st Quarter 27,000 17,000 44,000 8,000 36,000
2nd Quarter 35,000 20,000 55,000 17,000 38,000
3rd Quarter 48,000 31,000 79,000 20,000 59,000
4th Quarter 60,000 40,000 100,000 31,000 69,000
TOTAL 2012 170,00 40,000 210,000 8,000 202,000
3. Financial plan
4. Human Resource plan
5. Strategic plan
3. Financial plan
4. Human Resource plan
5. Strategic plan

Making Planning effective

1. managers 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;
3. Financial plan
4. Human Resource plan
5. Strategic plan

Making Planning effective

1. managers 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;

Among the aids to planning that may be used are:

1. Gathering so much information as possible;
2. Developing multiple sources of information;
3. Involving others in the planning process.
 Thank you
For listening