l:esson 1DEFINITION AND NATURE OF PLANNING

OBJECTIVES :

1.Define planning and its nature.

2.Summarize the nature of planning.
3. Appreciate the importance of planning in our daily lives.

Have you ever heard of this famous quotation?

“By failing to prepare, you are preparing to fail” -Benjamin Franklin. To me this quote means
that if you don’t study for a test then you are setting yourself up for failure. If you do study then
you are setting yourself up for success. So don’t take away a chance before it is even given
WHAT IS PLANNING?
PLANNING
 Planning is one of the major functions of management.
 It is a process that involves the setting of the organization’s goals, establishing strategies for
accomplishing those goals and developing plans of actions that managers intend to use to achieve said
organizational goals.
NATURE OF PLANNING

1.PRIMARY FUNCTION -Functions of management largely depends upon planning. It provides the basic
from which all future management functions arise.
2.GOAL-ORIENTED- Plans arise from objectives. Objectives provide guidelines for planning.
3. CONTINUOUS PROCESS- It is an on-going process of adapting the organization with the changes in
business.
4.FLEXIBLE Planning selects the best alternatives based on certain assumptions. There is a possibility of
dead log in the functions of the management. It has one more alternative to suit future situation.
5.MANAGERIAL FUNCTION It is found at all levels and all departments of an organization. It involves
choosing the future course of action from among alternatives.
ACTIVITY:

Take time to make a detailed plan for yourself and your future. Consider the following:
Define your goals
Set a deadline
Recognize Opportunities and Threats
Measure progress
 LESSON 2: TYPES OF PLANS
OBJECTIVES :

1.Identify the four types of plans.

2.Differentiate each type of plans.
3.Apply each type of planning in a personal and business setting.

TYPES OF PLANS
1. CONTINGENCY PLAN

 are made when something unexpected happens or when something needs to be changed
 It is essential in moments when changes can’t be foreseen
2. OPERATIONAL PLANS
 about how things need to happen.
 This type of planning typically describes the day-to-day running of the company.
 Operational plans can be either single use, or ongoing.
1. Single Use- These plans are created for events/activities with a single occurrence. This can
be a one-time sales program, a marketing campaign, a recruitment drive, etc.
Single use plans tend to be highly specific.
2. Ongoing Plans -These plans can be used in multiple setting on an ongoing basis.
3.STRATEGIC PLAN -
 “Strategic plans are all about why things need to happen.”
 It is a high-level overview of the entire business, its vision, objectives, and value
 This plan is the foundational basis of the organization and will dictate decisions in the long-term
 The scope of the plan can be two, three, five, or even ten years.
4. TACTICAL PLAN
 “Tactical plans are about what is going to happen”.
 describes the tactics the organization plans to use to achieve the ambitions outlined in the strategic
plan. It is a short range (i.e. with a scope of less than one year), low-level document that breaks down
the broader mission statements into smaller, actionable chunks.
 The tactical plan is a very flexible document; it can hold anything and everything required to achieve the
organization’s goals

Quiz:
Arrange the highlighted words to where it should go in the sentence.
1. Strategic planning at the highest level with defining a mission and casting a vision starts.
2. Tactical plans ask specific questions about what needs to happen to accomplish a goal strategic.
3. plans ask how the organization will generally do something to accomplish the company’s Operational
mission.
4. Contingency planning can be helpful circumstances in that call for a change.
Key Answer
1. Strategic planning starts at the highest level with defining a mission and casting a vision.
2. Tactical plans ask specific questions about what needs to happen to accomplish a strategic goal.
3. Operational plans ask how the organization will generally do something to accomplish the company’s
mission.
4. Contingency planning can be helpful in circumstances that call for a change.
 CHAPTER 3: LESSON 3 PLANNING AT DIFFERENT LEVELS IN THE FIRM

Introduction

Different Level in the firm are all engaged in Planning.

The resulting plans must be related to one another and directed toward the same goals.

Bateman and Snell (2008) stated that an effective strategy provides a basis for answering 5 broad questions about
how organizations will meet its goals / objectives.

5 Questions

1. Where will we be active?

2. How will we get there?
3. How will we win in the marketplace?
4. How fast will we move and in what sequence will we make changes?
5. How will we obtain financial returns?

Planning at Different Levels of Management

• Strategic Planning
• Tactical Planning
• Operational Planning

Top-Level Management Planning (Strategic Planning)

Top-Level Management Planning (Strategic Planning)

Top level Managers

Top level Managers

 Responsible for the organization's strategic planning.

 Making decisions about the organization's long-term goals and strategies.
 CEOs, Company Presidents or the Organization's Senior Executives
 Develop and execute the said strategic plan. They do not formulate or execute the plan on their own.
 Manage team supports and helps top-level managers in carrying out there tasks.

Strategic planning

Strategic planning

Strategic planning starts with:

2. Major targets related on the maintenance of the organization's stability.

1. Defining the organization's goals/ objectives.

3. Its organizational culture, values and growth improving its productivity, profitability, effevtiveness and
efficiency, among others.

Tactical Planning

Middle-level Management Planning (Tactical Planning)

It is a set of procedures for changing or transforming broad strategic goals and plans into specific that are
applicable and needed in one unit / portion of the organization.

It is focused on major actions that must be done by a unit in order to contribute its share for the achievement of
the strategic plan.

Competitive
 Advantages

Planning Hierarchy
Frontline/ Lower-Level Management Planning (Operational Planning)

 Identify specific procedures and processes required at the lower levels of the osrganization.
 It is also involves routine tasks or tasks repeatedly done by the organization lower level units.

Before

Frontline/ Lower-Level Management Planning (Operational Planning)

Integrating Strategic, Tactical and Operational Planning

Developing Strategic Plan

Managers in different hierarchical levels of organization may contribute their ideas or suggestions in developing
the strategic plan.

A task originally assigned to the senior executives.

Strategy Formulation

Frontliner managers may make decisions that could influence strategy formulation in the higher levels.

All plans must be directed toward the achievement of the organization's strategic goals.

Communication Lines, Dissemination of Information and Awareness.

CEOs or company presidents must see that all communication lines in their organization are open, excellent
dissemination of information to all levels, and that they are aware of everything that is happening in the firm.

LESSON 3: PLANNING AT DIFFERENT LEVELS IN THE FIRM

•Planning is vital to the continued success of organization.
• Business planning is performed at various levels in an organization, often in a hierarchical fashion.
• With each level drafting plans to achieve the goals set in the level directly above.
• Planning at various stages involves nearly everyone in an organization.
SELF CHECK: Write C for Corporate Level, B for Business Level and F for Functional Level.
1. Focused on satisfying customer needs
2. Think activities that unit needs to perform
3. Determine how they are going to compete effectively in the market
4. Executives primarily focus on what industries should we get into
5. Decide what business should the corporation invest money
Answer Key 1.B 2.F 3.B 4.C 5.C