Planning
PLANNING
Thinking and looking ahead
Process of establishing objectives and appropriate courses of action before taking action
Why plan?
To be: a. EFFECTIVE – being able to realize the objectives - “doing the right thing”
b. EFFICIENT – being able to spend the least amount of resources in realizing the objective - “doing things right”
TYPES OF PLANS:
1. Strategic Plan - focused on the entire organization - top management formulates the objectives - lower level management formulate the relevant objectives and plans on how to attain them - it predicts the external business environment
2. Tactical Plan - middle level managers plan what to do, how to do it and who will do it - scope is one year or less
3. OPERATING PLAN - provides the specifics as to how the strategic plan shall be attained
a. Single use plan – applicable to activities that do not repeat
(1) Program – set of activities towards and objective - major undertaking that may take several years to complete - large in scope Ex. Building a new production plant, converting all paper files to digital
(2) Budget – provides funds indicating their sources and their corresponding expenditures - anticipated expenses
b. Ongoing plan – used for continuing situations, problems and activities that are similar and consistent
(1) Policy – guidelines for making decision - flexible Ex. Policy on sexual harassment, internet usage, hiring, termination (2) Procedures – step by step instructions for performing an activity or task Ex. Procedures in issuing refund, for handling employee grievances
(3) Rule – specific plan for controlling human behaviour at work - rigid Ex. No eating rule in areas where the employees are visible to the public
PRINCIPLES IN PLANNING:
1. It must be realistic – goals and objectives must be supported by available
Thinking and looking ahead
Process of establishing objectives and appropriate courses of action before taking action
Why plan?
To be: a. EFFECTIVE – being able to realize the objectives - “doing the right thing”
b. EFFICIENT – being able to spend the least amount of resources in realizing the objective - “doing things right”
TYPES OF PLANS:
1. Strategic Plan - focused on the entire organization - top management formulates the objectives - lower level management formulate the relevant objectives and plans on how to attain them - it predicts the external business environment
2. Tactical Plan - middle level managers plan what to do, how to do it and who will do it - scope is one year or less
3. OPERATING PLAN - provides the specifics as to how the strategic plan shall be attained
a. Single use plan – applicable to activities that do not repeat
(1) Program – set of activities towards and objective - major undertaking that may take several years to complete - large in scope Ex. Building a new production plant, converting all paper files to digital
(2) Budget – provides funds indicating their sources and their corresponding expenditures - anticipated expenses
b. Ongoing plan – used for continuing situations, problems and activities that are similar and consistent
(1) Policy – guidelines for making decision - flexible Ex. Policy on sexual harassment, internet usage, hiring, termination (2) Procedures – step by step instructions for performing an activity or task Ex. Procedures in issuing refund, for handling employee grievances
(3) Rule – specific plan for controlling human behaviour at work - rigid Ex. No eating rule in areas where the employees are visible to the public
PRINCIPLES IN PLANNING:
1. It must be realistic – goals and objectives must be supported by available