Definition and Nature of Planning
Definition and Nature of Planning
OBJECTIVES :
“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 :
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
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
• Strategic Planning
• Tactical Planning
• Operational Planning
Strategic planning
Strategic planning
3. Its organizational culture, values and growth improving its productivity, profitability, effevtiveness and
efficiency, among others.
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
Managers in different hierarchical levels of organization may contribute their ideas or suggestions in developing
the strategic plan.
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.
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.