ORGMA ♡ Planning

Planning

• discovery of alternative paths

• road map

  • mark your goal/destination

  • select the best route to get there

• more than just a to-do list

• decision-making

depend on

• facts gathered

• assumptions made

• intuitive thinking of managers

Benefits of Planning

• essential for managers to achieve objectives

• ensure successful organizational performance

  • sharpens focus

  • provides flexibility

  • improves coordination

  • tightens control

Sharpens Focus

• sense of direction & purpose: of what they want to achieve

• overcoming dilemmas

• laying out steps

• preventing distractions: stay on track

• focusing business decisions

• key business aspects

Key Business Aspects

• type of product/service to offer

• target customers

• expected profitability

• research and development approach

• product/service quality

Provides Flexibility

• adapting to dynamic environments

• responding to change

• external environment

• internal environment: changes within

External Environment

• political

• economic

• sociocultural

• technological

• physical conditions

Internal Environment

• company policies

• leadership structure

• operating systems

• interpersonal relations

• individual management styles

Improves Coordination

• harmonizing efforts for common goals

• coherent & consistent work

• encouraging participation

• identifying contributions: effort and resources

• simultaneous activities: work in sync

Tightens Control

• clarifying objectives: SMART

• managerial control

  • allow for control by comparing:

    • what was expected at the outset

    • what was actually accomplished at the end

• interlinked functions: planning and control are connected

Types of Plans

• Long-range Plans

• Short-range Plans

• Operational Plans

  • Standing Plans

  • Single-use Plans

• Strategic Plans

• Functional Plans

programmed decision making

anticipated

nonprogrammed decision making

unanticipated

Long-range Plans

• three or more years into the future

• strategic plans that chart long-term direction

• backed up by research studies

  • primary data

  • secondary data

• ex. LGUs multiyear development plans, government long-term plans for different sectors

primary data

• research studies

• commissioned by the company itself

secondary data

• research studies

• sourced from published reports

• from reliable organizations

  • ex. government agencies, academic institutions, and research think tanks

different sectors

education, health, infrastructure, agriculture, industries, environment, & natural resources

Short-range Plans

• one year or less

• monthly, quarterly, midyear, & annual plans

  • operations group are required to regularly prepare

operations group

• cover production, marketing, finance, & accounting

• required to prepare monthly, quarterly, & midyear plans

• produces the company products or services

support departments

• human resource management, administration, & information and communication technology (ICT)

• prepare annual plans

technological innovation long-range plan

• computers, cell phones, & radars

• two-year period

• anything that goes beyond two years are hard to foresee due to fast changes in technology

Operational Plans

• where programmed decision making is needed

• standing plans & single-use plans

Standing Plans

• used for situations that occur repeatedly

• in the form of policies, rules, & SOP

policy

• general or broad guide for the actions or behaviors of people in the workplace

• emanates from top management level

  • cascades down to lowest level

• ex. sustainability policy

  • promotes solar power for renewable energy

sustainable director

• permanent & senior position

• in charge of leading, developing, & promoting sustainability strategies & programs

rule

• more specific guide to actions or behavior in the workplace

• employee error, equipment, insufficiency, and procedure insufficiency

standard operating procedure (SOP)

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

Collective Bargaining Agreement (CBA)

• productive relations between management & members

• 3 main stages

  • pre-negotiation process

  • negotiation process

  • post-negotiation process

pre-negotiation process

• preparation stage

• meet with the heads of different departments

• clear and open communication

• review contract, current situation, & pertinent laws

negotiation process

• bargaining stage

• submits proposal

• parties should agree on rules

• parties are encouraged to resolve conflict

post-negotiation process

• administration stage

• binding to both parties

• grievance procedure to resolve any conflict

  • panel of voluntary arbitrators, neutral third party

Single-use Plans

• stand alone plans

• non programmed decision making

• unique or specific project or program

Strategic Plans

• developed by the top management of the company

• cover the entire company

• provide the direction it will take for the coming years

• vision & mission

vision

• long term goal of a company

• future scenario desired for the company

• BHAG (bold, hairy, audacious, & goal-oriented)

mission

• guiding purpose of the company

• differentiates it from other companies

values

• strong character and ideal qualities of the members

• represented by a cycle of perpetual development

• quality, customer orientation, and employee satisfaction

Functional Plans

• developed at middle and supervisory levels

• plans made at the top are cascaded down through different management levels

• also called tactical plans

  • tactics prepared by managers from different departments

top management

develop strategic plans

middle management

develop the functional plans

supervisory management

develop more detailed functional plans