Management and Its Levels of Planning

Planning as a Directional Tool: For future managers, planning is essential because it sets the specific direction of the organization. It serves as the foundation for where the organization will be part of and how it will function.
The Analogy of the Blank Paper: An organization that lacks proper planning is compared to a piece of paper without anything on it. In this state, there is no substance, no point, and no clue regarding the destination or future of the entity.
Goal Achievement: Different levels of plans are essential and play a significant role in the achievement of organizational goals.
The Planning System: Planning should be viewed as a total system that takes place at all organizational levels. Through careful execution at each level, the full potential of organizational leadership is measurably strengthened.

Definition and Scope: Strategic planning is focused on the organization’s general objectives. It provides a high-level overview of the entire business entity.
The Strategic Plan:
- Management Guide: It serves to guide managers in their decision-making processes.
- Nature: It is directional and forward-looking.
- Attributes: The plan is designed to be robust yet flexible.
- Primary Focus: It focuses specifically on the achievement of overall organizational goals.
Components of a Strategic Plan:
- Vision: This is a declaration of the company’s short-term or long-term goals. It serves as an affirmation of what the company ultimately wants to become.
- Mission: This is a declaration of the company’s purpose. It provides a realistic overview of the company along with its specific aims and ambitions.
- Values: These serve as a guide for managers and influence the type of employees the organization hires. Values are considered a "living document" that grows within the organization and dictates its future.

Definition and Scope: Tactical planning translates the high-level strategic plan into specific tactics. It breaks down the mission statement into actionable chunks.
The Tactical Plan:
- Function: It describes the specific tactics to be used by the organization to achieve the goals and ambitions outlined in the strategic plan.
- The "How" Factor: Tactical planning specifically responds to the question of "How?" goals will be met.
Components of a Tactical Plan:
- Specific Goals with Fixed Deadlines: Managers must formulate goals that have fixed deadlines to stimulate immediate action.
- Budgets: The tactical plan must include budgetary requirements. Specific examples include budgets for:
  - Hiring personnel.
  - Marketing efforts.
  - Sourcing materials.
  - Manufacturing processes.
- Resources: This identifies the resources required to achieve organizational aims, including:
  - Human resources.
  - Financial resources.
- Funding: This identifies company strategies and specific activities that require funding, ensuring all activities are aligned with the goals of the strategic plan.

Definition and Scope: Operational planning is performed by first-level supervisors. it includes the day-to-day activities that must be carried out.
The Operational Plan:
- Roadmap function: It serves as the specific roadmap for daily activities required to carry out the strategic plan and achieve tactical goals.
- Specificity: The plan is highly specific.
Categorization of Operational Plans:
- Single-use plans: These are plans created for events or activities that have a single occurrence.
- Ongoing plans: These are plans that can be used multiple times in different settings on an ongoing basis.
Types of Ongoing Plans:
- Policy: A general document that guides managers in their decision-making.
- Rules: Specific regulations established within an organization that must be followed.
- Procedures: Defined processes regarding how a particular objective should be accomplished.

Top Management: Responsible for the Strategic Plan. This includes the high-level overview of the vision, mission, goals, objectives, and values.
Middle Management: Responsible for the Tactical Plan. These are short-term plans formulated based on the strategic plans to create actionable chunks and include deadlines, budgets, and resource allocation.
First-line Management: Responsible for Operational Plans. They implement these plans in daily operations, managing both single-use and ongoing plans (policies, rules, and regulations).

Concept Mapping Activity: Each group was tasked to create a visual representation (concept map) of the level of planning assigned to them (strategic, tactical, or operational).
Reflection Questions:
- What is the level of management assigned to your group? Are you familiar with it?
- What are the concepts that you have identified that you think are related to the topic assigned to you?
- Based on the activity, what do you think are the major differences among the levels of planning?
- How is planning done on different levels of management?
- Based on the lesson, what do you think are the skills required for the managers to fulfill their responsibilities in each level of planning?