PLANNING TECHNICAL ACTIVITIES

Managers who plan are afforded with the opportunity to carefully analyze situations

which directly contribute to effective decision-making.

Planning Defined

• refers to the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.

Nickels and Others

Planning Defined

is the selection and sequential ordering of tasks required to achieve an organizational goal.

Aldag and Stearns

Planning Defined

is deciding what will be done, who will do it, where, when and how it will be done, and the standards to which it will be done.

Cole & Hamilton

Planning at Various Management Levels

1. Top management level- strategic planning2. Middle management level – intermediate

planning3. Lower management level – operational planning

Top Management

• Chief Executive Officer• President• Vice Presidents• General Manager• Division Heads

Middle

Management

• Functional Managers• Product Line Managers• Department Heads

Lower

Management

• Unit Managers• First Line Supervisors

The Planning Process

1.Setting organizational, divisional, unit goals

2. Developing strategies or tactics to reach those goals

3. Determining resources needed

4. Setting standards

Types of Plans

Functional Areas

Time Horizon

Frequency of Use

Functional Plans

• Marketing Plan• Production Plan• Financial Pluman• Resource Management Plan

Plans With Time Horizon

• Short-range Plan• Long-range Plan

Plans According to Frequency of Use

• Standing Plans:PoliciesProceduresRules

• Single-use Plans:BudgetsProgramsProjects

The Contents of the Marketing Plan

The Executive Summary

Table of Contents

Situational Analysis and Target Market

Marketing Objectives and Goals

Marketing Strategies and Tactics

Schedules and BudgetsFinancial Data and Control

The Contents of a Production Plan

• The amount of capacity the company must have

• How many employees are required• How much material must be purchased

The Contents of the Financial Plan

• An analysis of the firm’s current financial condition as indicated by an analysis of the most recent statements

• A sale forecast• The capital budget• The cash budget• A set of pro forma (or projected) financial

statements• The external financing plan

Contents of the Human Resources Plan

• Personal requirements of the company• Plans for recruitment and selection • Training plan• Retirement plan

PARTS OF THE STRATEGIC PLAN

• Company or corporate mission• Objectives or goals• Strategies

MAKING PLANNING EFFECTIVE

– Planning may be made successful if the following are observed:

Recognize the planning barriersUse of aids to planning

Planning Barriers

1. Manager’s in ability to plan2. Improper planning process3. Lack of commitment to the planning process4. Improper information5. Focusing on the present at the expense of the future6. Too much reliance on the planning department7. Concentrating only on the controllable variables

Aids to planning that may be used are:

1. Gather information as much as possible2. Develop multiple sources of information3. Involve others in the planning process