OrgMan - Planning, Decision Making, Level of Management

Planning

focuses on setting objectives and determining how to achieve those objectives.

Planning

It is also a discovery of alternative path.

Benefits of Planning

• It sharpen focus

• It provides flexibility

• It improves coordination

• It tightens control

Different Types of Plans

• Long-range Plans

• Short-range Plans

• Operational Plans

Long-range Plans

• are traditionally those that look at three or more years into the future.

• also known as the strategic plans.

• Chart the company’s long term direction.

Short-range Plans

Are usually those that covered the period of one

year or less.

Examples of Short-range Plans

• Monthly plans

• Quarterly plans

• Midyear plans

• Annual plans

Operational Plans

are details how the overall organizational objectives are to be achieved in the lower levels of the organization and likewise, in the short-term, that is monthly, weekly and day-to-day.

Two types of Operational Plans

• Standing Plans

• Single-used Plans

Standing Plans

are plans that are used repetitively and as often as situations happen.

Single–used Plans

are plans used only once because the situation is not likely to happen again in the future.

Standard Operating Procedures

Is a series of action to be followed for a specific situation in the workplace.

Planning Techniques and Tools

It pertains to the different methods for determining, analyzing, and predicting situations that will likely to occur.

Different Planning Techniques and Tools

• Forecasting

• Contingency Planning

• Scenario Planning

• Benchmarking

Forecasting

It pertains to the use of scientific techniques to predict the likelihood of certain events or factors to happen in the future.

Two types of Forecasting

• Quantitative Forecasting

• Qualitative Forecasting

Quantitative Forecasting

Uses statistical tools and analyzes to predict the future.

Ex. Comparative Statistics of Sales

Qualitative Forecasting

It is the use of opinions or perceptions from experts for prediction purposes

Ex. Exe. Judgment, Market Research

Contingency Planning

is the process of identifying alternative courses of action in the event that unforeseen or uncontrollable events take place.

Plans

_______ are prepared in relation to financial risks, market risks, production risks, labor risks, information and communication risks, and natural disaster risks.

Scenario Planning

• It involves predicting potential alternative events that might happen.

• It entails preparing resources and actions to prevent or mitigate the “shocks” from negative events.

• It helps to visualize the positive effects of seizing

  opportunities.

Benchmarking

Is finding out what other organizations are doing well and then incorporating those “best practices” into the operations of one’s organization to improve its cost and effectiveness

Types of Benchmarking

• External benchmarking

• Internal benchmarking

External benchmarking

Compares the methods and approaches used by the high performing companies with those of one’s company.

Internal benchmarking

Best practices of other units within their own organization

Top Level Management

• President/Chairman

• VP for Finance

• Chief Executive Officer

Middle Level Management

• Operation Manager

• Marketing Manager

• Branch Manager

• Quality Control

Lower Level Management

• Bookkeeper

• Lead Person

• Supervisor

Plans by level of management

• Strategic plans

• Functional plans

Strategic Plans

• are developed by the top management of the company.

• covers the entire company and provide the direction it will take for the coming years.

• starts with clarifying the long term vision and mission of the company.

Vision

It is the compelling future scenario desired for the company.

Bold, Hairy, Audacious, Goal-oriented

BHAG

Bold

sets a high standard for what is ideal that must be embraced by management and employees.

Hairy

it compel the highest level of imagination and creativity among its organizational members.

Audacious

it exudes utmost courage for one to reach it.

Goal-oriented

it sets a clear direction of where the company wants to go, or wants to achieve in the future.

Mission

Pertains to the guiding purpose of the company

It answers the questions; What do we do? For whom do we do it? What is the benefit?

Values

• It stands for the strong character and ideal qualities of the organizational members

• The state how people in the organization should conduct themselves, and how they should operate the business.

• Core Values may pertain to quality, customer orientation, and employee satisfaction

Functional Plans

• plans are developed at the middle and supervisory levels.

• also known as tactical plans.

• these are tactics prepared by different functional departments such as production, marketing, finance, and human resource management.