The document discusses the key elements and process of planning. It defines planning as determining a course of action to achieve desired results through forecasting and outlining activities. Effective planning requires analyzing present conditions, forecasting the future, and using tools like SWOT analysis. The key elements of planning discussed are objectives, programs, policies, procedures, budgets, and forecasts. Planning establishes goals and measures to direct an organization and ensure efficient achievement of its objectives.
The document discusses the key elements and process of planning. It defines planning as determining a course of action to achieve desired results through forecasting and outlining activities. Effective planning requires analyzing present conditions, forecasting the future, and using tools like SWOT analysis. The key elements of planning discussed are objectives, programs, policies, procedures, budgets, and forecasts. Planning establishes goals and measures to direct an organization and ensure efficient achievement of its objectives.
The document discusses the key elements and process of planning. It defines planning as determining a course of action to achieve desired results through forecasting and outlining activities. Effective planning requires analyzing present conditions, forecasting the future, and using tools like SWOT analysis. The key elements of planning discussed are objectives, programs, policies, procedures, budgets, and forecasts. Planning establishes goals and measures to direct an organization and ensure efficient achievement of its objectives.
The document discusses the key elements and process of planning. It defines planning as determining a course of action to achieve desired results through forecasting and outlining activities. Effective planning requires analyzing present conditions, forecasting the future, and using tools like SWOT analysis. The key elements of planning discussed are objectives, programs, policies, procedures, budgets, and forecasts. Planning establishes goals and measures to direct an organization and ensure efficient achievement of its objectives.
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The Process and Elements of Planning
Company Objectives, Plans, and Programs
It is the determination of the course of action to achieve the desired results. It involves the process of forecasting in general with reference to the purpose of accomplishing the task with utmost efficiency and economy The proximate activities are outlined with some What is distinction and directed towards a specific course of Planning? action. It is thinking before doing Courses of action are properly conceived before the actual work performance Management planning involves the development of a system of activities that will happen in the future. A mental activity, that require a careful analysis of the present environmental conditions There should be available data and information before Why is there a making a forecast need for It requires imagination, foresight, and sound judgment Planning? Involves the working of human mental faculties and thought process of identification and evaluation of business events which involves opportunities and threats/ 1. To clearly define the goals and objectives of the organization 2.Identify strengths, weaknesses, opportunities and threats Planning is 3. Review present environmental conditions done for the and draw specific strategy or course of action following Provide budgetary requirements for specific reasons; activities Sets measures of control mechanism to achieve the desired results. Organizations operates in different fashion and intensity of operation The Elements The method of planning depends on who of Effective makes it and those who put it on Planning operation Process It differs in the scope of activities to be undertaken and range of systems application Forecasting – a systematic approach to probe the future business events from available data and information. Essential A mathematical technique of analysis to Planning predict the frame of reference which the activities are likely to happen Elements SWOT analysis could be an important tool to forecast the total company direction. It stands for strengths, weaknesses, opportunities and threats These are the goals that put into specific terms the vision and mission of the organization into operational terms Goals establish the parameters of company operation that can grow and change in an orderly Objectives manner with well defined direction. Objectives and goals are established by top management and defined operationally in the lower levels of the organization. This enables managers to operate with maximum freedom within the reference of the over-all company objectives Economic Objectives Refers to market goals and what it intends to do in order for the business to prosper It determines its primary business and how it will penetrate the market condition using the Categories of available resources Objectives It provides a consistent guide to channel company operation in relation to > Sales volume-quality of products produced and the amount of customer patronage. >Share of the market- pertains to the percentage of the market that it penetrates manufacturers of the same or similar product > Profit peso margin- refers to how much is the total profit that will be generated in company operation in the short or long term objectives Categories of >Return on capital investment-pertains to the amount Objectives of money that will be generated against total investments, specifically say 20% for the first year of operation, 25% on the five years annual net profit. > Stockholders dividends- Stockholders would be encouraged to put more money when their capital investments will generate more dividends These include the non-profit objectives of the company in their operation in the social environment. Social commitment is important in order to Social have good image . Objectives Image building improves stakeholder patronage. Public relations improve vehicles of public information. Company policy, it is rule of action, a principle, and it sets the objectives in motion. >As a rule of action, it specifies a continuing decision that is relatively permanent unless revised and changed by top management. Company Operating managers must participate in crafting and Policy implementing policy decisions as they are accountable and responsible to top Management in its effective implementation. Policies are positive declaration. They are commands or rules of conduct that must be interpreted as to purpose and carry a degree of compliance A. Policy is a guide in making decision on repetitive situation B. It ensures uniform and consistent Purposes of actions Policy C. Problems are solved in definite manner without much consultation with top Management. Program is a sequential line of activities to implement policies and designed plans. A step by step approach to guide the necessary action towards the predetermined goals. Program Line managers are responsible in crafting the necessary program activities Participation and coordination with subordinates ensures acceptance in its total accomplishment and for which he is directly responsible. 1. It must be closely related to corporate and operational plans 2. It is combined with schedule to provide a synchronized chronological sequence of activities 3. It must provide budgetary allocations so that Features of a timely accomplishments are assured Program 4. Maybe prepared in narrative or tabular form describing specific activities at designated timeframe 5. Short term programs maybe prepared for specific projects, while long term programs may be for a five year period subject to annual audit. While programs tells what to be done, procedures tell and define how it is done Features of a Good Procedure; 1. It analyses and study the work being Standard described Operating 2. It results in job simplification Procedures 3. It eliminates overlapping and duplications (SOP) 4. Ensures a high level of uniform performance when properly established 5. It assures the production of quality products 6. Provides a standard system of appraisal on employee performance 7. It reduces the burden of decision making as standards are all set SOP 8. It lessens the time managers in training and job coaching 9. It ensures close coordination and develop work efficiency 10. Woks are carried out uniformly in all levels of the operating department While procedures features a lot of advantages, it discourages innovation and initiative among managers and line workers. To counter the problem and to improve Manual of existing work systems, managers must always Procedure review the procedures. Participation and concerted efforts of all concerned is necessary Updating and revision of the Manual of Procedures should be done periodically No organization will exist without the necessary value attached to its program objectives Budget is the estimate of how much money is required for the activities to take off. It must start with the projection of the long and short term goals; Budget refers to money, time, materials, and other BUDGETS organizational resources required to perform works at specific target results Top Management, Line and Operating managers must cooperatively develop programs and budgets. The over all company goals and programs must be identified and corresponding allocation must be set to accomplish the desired results. 1. It is an appraisal of expected expenses projected against anticipated income in the future 2.it is based on available data and information after conducting SWOT analysis 3. Over all company goals sets the pattern for contributing efforts of all elements of the enterprise 4. It precedes compilation of figures in monetary terms Features of a representing anticipated needs Good 5. It considers total expenditures on wages, materials, machinery, equipment and other requirements in the operation of the business Budgeting 6. Goal setting and programming must be cooperatively undertaken System by all Line and Operating Managers in making specific plans 7. It can be applied as a system of evaluation and a yardstick for every component of the business as it pinpoints individual accountability. 2 Levels of Planning Spectrum 1.Instituttional Planning-It determines what the total organization should do in the course of its operation, It defines the vision and mission of the enterprise, Top management sets the overall objectives and set directional courses of action. The Planning Institutional Plans are divided into capital budget, the Hierarchy operating budget and the schedule for the implementation of planned events Short range Planning- It is usually for a period of one to two years Medium range – Covers a period of more than two but less than five years Long range- Refers to plans of more than five years (5 years) Level I Board of Directors Policy Determination Level ll Chief Executive Long Range Planning Level lll VP and Sr Manager Medium Range Planning Level lV Line and Operation Mgrs.. Activity Planning Organizational Level Vline Supervisors Job Planning Planning Plans are guides and are not fixed Hierarchy They are mere estimates of the future events and must be re assessed constantly Market conditions, technology and internal and external environment must be carefully watched as any development will have an effect on the business. The purpose of any organizational plan is to pursue a development goal or address the current problem. It is prepared after a careful research and study Essentials of of the prevailing conditions of the enterprise Planning It sets targets and directional strategies to accomplish the maximum potentials of its resources. 1. Define clearly the target goals and objectives, it must be set by the person having authority and control. The goal should be specific, measurable, acceptable to all concerned, realistic and time bound 2. It must identify all issues and problems that need to be addressed How to prepare a 3. Review present and past performances Comprehensive 4. Decide on the important corporate requirements and how to meet them Plan 5. Prepare time tables in graphs and charts 6. Develop strategies to accomplish the goals and objectives 7. Review periodically accomplishments against targets Organizations cannot move effectively without plans and it cannot have an effective system of internal control unless it has plans Approved plans lead to action with the Relationship imposition of control measures to see that the Between desired output is achieved. Planning and The output is then compared with the plan as Control to its compliance with the budgetary and resource allocations. The link between planning and controlling is scheduling The programs must be with time tables defined specifically into schedule of activities which were drawn in graphs and charts. Any change in the scheduled time and the cost estimated is a variance and constitute a red flag for management to investigate Planning and If a job is running late or exceeding its cost estimates, something is wrong and therefore control must be instituted Control by management. When control valves are loose, variance show up and management has to fix the loose valve. Planning should always be associated with control Overages would be much greater when variances are not properly checked
1.1 Principles of Management 1. Management Is Said To Have Universal Application. How Do You Justify The Universality of Management? Give Examples To Illustrate Your Arguments