Planning

PLANNING is the process of deciding exactly what one

wants to accomplish and how to best go about it

-when done well, it creates a solid platform for further

managerial efforts at organizing and staffing-allocating and
arranging resources to accomplish essential tasks;
directing-guiding the efforts of human resources to ensure
high levels of task accomplishment; and controlling-
monitoring task accomplishments and taking necessary
corrective action

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 Foundations of Planning
• Planning is one of the four functions of
management.
• Planning involves defining the organization’s
goals, establishing an overall strategy for
achieving these goals, and developing plans
for organizational work activities.

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 Purposes of Planning
Planning serves a number of significant
purposes.
1. Planning gives direction to managers and non-
managers of an organization.
2. Planning reduces uncertainty.
3. Planning minimizes waste and uncertainty.
4. Planning establishes goals or standards used
in controlling.
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 Planning Process
Step 1: DEFINE YOUR OBJECTIVES – identify the
desired outcomes in every specific ways. Know
where you want to go; be specific enough that you
will know you have arrived when you get there.

Step 2:DETERMINE WHETHER YOU STAND VIS-À-VIS

OBJECTIVES – evaluate current accomplishments
relative to the desired results. Know where you
stand in reaching the objectives; know what
strengths to work in your favor and weakenesses
may hold you back
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Step 3: Develop premises regarding future
conditions – try to anticipate the future events.
Generate alternative scenarios for what may
happen

Step 4: Analyze possible action alternatives, choose

the best among them, and decide how to
implement – list and evaluate the possible actions
that may be taken

Step 5: Implement the plan and evaluate results –

take action and carefully measure your progress
toward objectives.
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 Planning and Performance
Although organizations that use formal planning
do not always outperform those that do not
plan, most studies show positive relationships
between planning and performance.

Studies have shown that when formal planning

has not led to higher performance, the external
environment is often the reason.

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 The Role of Goals and Plans in Planning
• Planning is often called the primary management function
because it establishes the basis for all other functions.
Planning involves two important elements: goals and plans.
• Goals (often called objectives) are desired outcomes for
individuals, groups, or entire organizations.
• Types of goals
a. Financial goals versus strategic goals
• Financial goals related to the financial performance of the organization
• strategic goals are related to other areas of an organizations
performance.
b. Stated goals versus real goals
• Stated goals are official statements of what an organization says and
what it wants its various stakeholders to believe its goals are.
• Real goals are those that an organization actually pursues, as defined by
the actions of its members.

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 Types of Plans
Plans can be described by their RANGE, TIME FRAME, SPECIFICITY, and FREQUENCY OF USE

On the basis of Range plans can be Strategic or operational plans.

Strategic plans (long-term plans) are plans that apply to the entire organization,
establish the organization’s overall goals, and seek to position the organization in
terms of its environment.
Operational plans (short-term plans) are plans that specify the details of how the
overall goals are to be achieved.

On the basis of Time frame plans can be Short-term or long-term plans.

Short-term plans are plans that cover one year or less.
Long-term plans are plans with a time frame beyond three years.

On the basis of Specificity plans can be Specific or directional plans.

Specific plans are plans that are clearly defined and leave no room for interpretation.
Directional plans are flexible plans that set out general guidelines.

On the basis of Frequency of use plans can be Single-use or standing plans.

single-use plan is a one-time plan specifically designed to meet the needs of a unique
situation.
Standing plans are on going plans that provide guidance for activities performed
repeatedly
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 Indicators of Poor Planning
1. Delivery dates not met
2. Machines idle
3. Materials wasted
4. Some machines doing jobs that should be done by
smaller machines
5. Some men overworked, other men under worked
6. Skilled workers doing unskilled work
7. Men fumbling on jobs for which they have not been
trained
8. Quarrelling, bickering, buck-passing and confusion

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 Qualities that a good planner must have:

1. Good judgement, imagination, foresight and

experience
2. Ability to evaluate business opportunities
and hazards
3. Proficiency in the determination of objectives
4. Ability to accept changes

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 Organizing
• is the process of arranging people and other
resources to work together to accomplish a
goal.
• it involves both creating a division of labor for
tasks to be performed and then coordinating
results to achieved a common purpose.

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 Branch
Manager

Manager Manager Manager

Loans Investments Operations

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 Benefits of Organizing
1. Division of work that avoids duplication,
conflict, and misuse of resources, both
material and human.
2. Clarity of individual performance expectation
and specialized tasks.
3. A logical flow of work activities that can be
comfortably performed by individuals or
groups.

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continuations
4. Established channels of communication that
enhance decision making and control.
5. Coordinating mechanisms that ensure
harmony among organization members engaged
in diversified activities.
6. Focus efforts that relate to objectives logically
and efficiently.
7. Appropriate authority structures with
accountability to enhance planning and
controlling throughout the organization.

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• The way in which the various parts of an
organization are formally arranged is usually
referred to as the organization structure. This
is the system of tasks, workflows, reporting
relationships and communication channels
that link together the work of diverse
individuals and group.

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• Restructuring. This term refers to the process
of changing an organization’s structure that
meets the needs of all circumstances.

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• Typical organization chart identifies various
positions and job titles as well as the lines of
authority and communication between them.
• Formal structure, it represents the way the
organization is intended to function; a
structure wherein individuals work in
cooperation with one another in the pursuit of
company goals and objectives.

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 What You Can Learn From An
Organizational Chart
• The division of work
• Supervisory Relationships
• Communication channel
• Major Sub-units
• Levels of Management

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 What are the major types of
organization structures?

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 Traditional Organization Structures
• Functional structures, people with similar skills who
perform similar activities work together under a
common manager.
Major advantages of a functional structure include the
following:
• Task assignments consistent with expertise and training
• High-quality technical problem solving
• In-depth training and skill development within
functions
• Clear career paths within functions

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• Divisional structure, people who work on a
similar product, work in the same
geographical region, serve the same
customers, or participate in the same work
processes are grouped together under
common managers.

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The potential advantages of divisional structures
include the following:
• more flexibility in responding to environment
changes
• Clear points of responsibility for product or
services delivery
• Expertise focused on specific customers,
products, and regions
• Greater ease in changing size by adding or
deleting divisions.

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• Product Structure group together jobs and
activities working on a single product or
service. They clearly identify costs, profits,
problems, and successes with a central point
of accountability.

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 Geographical Structure
• Geographical Structure, area structure , group
together jobs and activities being performed
in the same location or geographical region.
• Used when there is a need to differentiate
products or services in various locations, such
as different regions of a country.

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• Customer Structure group together jobs and
activities that are serving the same customers
or clients.
• Business firms use them to give separate
customer attention to industrial firms and
consumers. Banks use them to give separate
attention to consumer and commercial
customers for loans.

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• Process structure is a group of task related to
one another that collectively create something of
value to a customer.
• Other fulfilment when you telephone catalog
retailer and request a particular item.
• Process of order fulfilment takes the order form
from point of initiation to point of fulfilment.
• Together jobs and activities that are part of the
same processes.
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 Centralization
• It is the systematic and consistent reservation
of authority at central point within the
organization
• Denotes that the majority of the decisions
having to do with the work being performed
are not made by those doing the work but at a
point higher in the organization.

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 Decentralization
• Refers to the systematic effort to delegate to
the lowest levels all authority except that
which can only be exercised at central points.
• It proceeds at a different rate to different
levels and for different functions within the
same company.

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 Staffing
• Staffing is the process of recruitment, selecting
and training of men.
• Means putting the right men on the job.
• Its involves finding the right people, with the right
skills, abilities, and fit, who may be hired or
already working for the company or may be
working for competing companies.
• Staffing is the process of supplying the
organization with needed people to achieve the
purposes for which it has been established.
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 The Three Parts of Staffing
• Staffing can be divided into three major parts,
each consisting of a number of important
activities.
1. Planning,
2. Execution, and
3. Maintenance

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 Planning
• It has to be aided by certain analytical studies
and guided by set of policies, procedures,
regulations, and standards.
• Main products of this stage are human
resource policies and program plans.
• Planning involves human resource forecasting,
job analysis, and policies and programs
formulation.

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 Execution
• Implementation or administration of all
policies and programs directly related to
acquisition and development of personnel will
be the focus of execution. Included in this
group are recruitment, selection, placement,
training, and development.

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 Maintenance
• Phase that involves activities that serve as
mechanisms that will help sustain the overall
staffing efforts by providing the manager with a
continuous supply of information gathered from
the execution activities.
• Research or monitoring, which gathers data from
the program, and evaluation, which analyses the
effects of these programs, is the basic
components of maintenance, are human
resource accounting, performance appraisal
system, and program evaluation.

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 Human Resource Planning
• Is a process of analysing an organization’s
human resource needs under changing
conditions and developing the activities
necessary to satisfy needs.

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 Job Analysis
• Job Analysis is a study of what is required to
do a job satisfactory. Determines what major
work-connected behaviours and traits,
responsibilities, capabilities, experiences, the
like are needed to perform a job.
• Helps you find out what kinds of people could
do the job.

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Information Flow from Job Analysis to
other Staffing-related Activities
• Job Description: What the job entails
• Job Specifications: What kind of person
• Information Used In
• Other Staffing Activities

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 Kinds of Human Resource Programs
1. Recruitment and Selection
2. Placement/deployment
3. Skills and manpower development
4. Management development
5. Performance appraisal
6. Rewards and benefits
7. Labor or industrial relation

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 Sources of Labor/Applicants
a. Internal Recruitment
b. External Recruitment

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 Internal Recruitment VS External
Recruitment Advantages

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 Disadvantages

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 Management Development
• The target of this program are the managers
and would be managers being groomed for
higher responsibilities. It combines formal
training, practical work experience, and other
educational processes.

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 Ways to Carry Out a Management
Development Program
1. Succession Planning
the employer or its authorized personnel
plans out how people in the company will move in
various positions over time. Plan is periodically
reviewed to determine who are occupying what
position and to asses who are due for promotion,
retirement, transfer, separation, replacement, or
whatever employee movement.

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2. Career planning and development
career planning and development provides
assistance and opportunities for employees to
arrive and achieve realistic career goals.
3. Mentoring
individual to be developed is assigned a
mentor, person of high position in the organization
who will serve a mixture of roles such as an advisor-
coach, consultant, “Godfather”, supporter,
sympathizer, and master to teacher to the person to
be developed.
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5. Assistant to Position
creation of “an assistant to” managers and
executives is one of the common approaches to
develop an individual with managerial
potentials. Serves as a staff to the superior who
may have handpicked or selected him out of the
many who showed in many instances the
prospect of becoming an upcoming manager.

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Continuations
Direct exposure to the many managerial
circumstances of the superior provides the
“assistant to” a wealth of insights into the
executive/managerial world which will prove
useful when it will be his time to manage.

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