Planning by Mrs. Belen Apostol

1. Planning by Mrs. Belen Apostol

2. Planning • is the process of setting goals, developing strategies, outlining tasks and schedules to accomplish the goals, and setting standards for performance evaluation.

3. 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

4. Levels of Planning Three levels: • strategic planning, • intermediate planning, and • operational planning.

5. Strategic Planning • Strategic plans are composed of the corporate or company mission, the corporate objectives and goals, and the corporate strategy.

6. 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 micro-businesses since it is only applicable to companies that have multiple departments and/or operations.

7. 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.

8. Intermediate Planning

9. Operational Planning • This level of planning falls to lower management. This refers to the process of developing specific goals for short-term durations. These plans focus on day to day activities and processes.

10. Operational Planning • Steps involved in this level of planning involve: 1. Determining specific goals. 2. Determining specific policies and tactics. • 3. Setting performance standards.

11. Operational Planning

12. Types of Planning

13. 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.

14. 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 the company’s strategies.

15. 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 non-human 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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.

21. 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 responsibility of top management.

22. 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.

23. 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.

24. Contents of a Marketing Plan • 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

25. Contents of a Production Plan • The production capacity • The number of employees required • The quantity of materials to be purchased

26. Contents of a Financial Plan • Sales forecast • Capital budget • Cash budget • Projected financial statements • External financing plan

27. Contents of a Human Resource Plan • Personnel requirements • Recruitment and selection plan • Training plan • Retirement plan

28. 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

29. 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 variance

30. 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