Governance & Management

of Educational Institutions.

MANAGEMENT
FUNCTION:
PLANNING
Presenter: Rochelle Romualdo Tupaz
Learning Outcomes
At the end of the lesson, the students
should be able to:
Identify the steps and timeframes for
planning;
Understand the general approaches to formal
planning;
Appreciate how each type of plans can be
applied in a management scenario; and,
Examine case facts and explain courses of
action related to planning function of
management.
Planning Function of management

Involves setting objectives

Determining a course of action

for achieving those objectives.

Systematic processes for

achieving objectives and
determining resources needed.
Types of Plans
Long-Range Planning
Spans three to five years or even
more.
It encompasses top-level strategic
decisions and sets the direction for
the organization.
Provide a vision and guide for future
growth, expansion, or adaptation to
changing market conditions.
Types of Plans
Intermediate-Range
Planning
It covers a period of one to three
years.
It bridges the gap between long-range
planning and short-range operational
activities.
Its focus is to translate the
organization’s long-term goals into
actionable plans and strategies.
Types of Plans
Short-Range Planning
Also called as operational planning.
Covers a period of up to one year or
even less.
Focuses on day-to-day operations
and tactical decision-making to
achieve organizational goals.
Reasons why there should be Planning

Forces analytical Establishes a framework

Increases the chance
thinking and for decision making
of success by
evolution of consistent with top
focusing on results
alternatives, thus management’s
not on activities.
improving decisions. objectives
Reasons why there should be Planning

Modifies styles from Helps avoid crisis

Orients people to
day-to-day managing management and
action, instead of
to future focused provides decision
reaction.
managing. making flexibility.
Reasons why there should be Planning

Identifies areas of greatest

Enables us to make
Increases employees oppurtunity and defines the
most effective and
involvement and desirable results that have
economical use of
improve the greatest probability of
manpower, equipment, being achieved
communication.
facilities and money
Reasons why there should be Planning

Makes possible to let subordinates know what is

required of them and to give them opportunity to
participate in the decisions that are made
Steps of Planning External/internal
data along with A plan is a
estimates of conclusion,
Problem to be probable future based on the
resolve must be development information it
clearly stated should be utilized was derived

Designation Collection and Formulation

Statement Statement Statement
of planning interpretation and testing of
of Objective of problem of data tentative plan of final plan
authority

Clear concept of Responsible for Not always

the broad performing the feasible. Identify
objectives functions strengths and
included in the weaknesses.
approved plan
 General Approaches to
Formal Planning

Bottom-up Approach
Participative approach to
planning
Involvement at all levels
Plans are developed at the
lower levels of an
organization and passed
upward through consecutive
levels until they reach top
management.
General Approaches
to Formal Planning

Top-down Approach
Initiative taken by the the
upper level executives of
the organization.
Formulates a unified,
coordinated plan
with advice of the lower-
level manager
 General Approaches
to Formal Planning

Interactive Approach
Corporate executives and
lower-level managers
develop plan in consultation.
Link between wider
corporate objectives and the
managers detailed
knowledge of specific
situation.
 General Approaches
to Formal Planning

Dual Approach
Plan is independently
formulated both at the
corporate and business
levels
All units form plans to suit
their particular situations.
Regularly viewed by
corporate management.
Classifications and Types of Plans
According to Time and Duration

Long-Range Plan Intermediate Plan Short-Range Plan

3 to 5 years or 1 to 3 years. Less than 1 year (typically 1
These are tactical plans week to 12 months).
more.
that serve as a bridge These plans address
Address broader, immediate actions and
between long-term
strategic goals and goals, ensuring that day-to-
strategic goals and
future aspirations day operations align with
short-term actions.
of the organization. longer-term objectives.
Focus on more specific
Involve significant They include routine tasks
objectives that help to
changes or or decisions related to
realize the long-term current activities and
transformations plan. performance.
Classifications and Types of Plans
According to Business Functions or Use

Production Human
Sales Plans Financial
or Resource
Plans
Operations (HR) Plans
Plans

To direct the To manage the financial

To manage the
activities of the To manage the resources of the
manufacturing or
sales team and organization's workforce organization and ensure
service delivery
ensure that sales effectively by aligning HR profitability, liquidity,
process.
targets are practices with business and financial
achieved. Efficiently converting goals. sustainability.
Customer inputs (resources) into
outputs (goods or Staffing, training, employee Budgeting, forecasting,
acquisition, sales
services) while development, managing cash flows,
strategies, territory
management, and maintaining quality and compensation, and investment, and
sales forecasting. cost control. employee relations. financing decisions.
Classification of Plan According to Scope
Objective/Goal Policies
A target, aim or condition the organization W
General statement that guide decision making.
wants to achieve help organizations manage its goals and objectives.
Provide guidance Provide a foundation for consistency, guide the
Unified direction for people development of plans, and ensure that decisions
Source of motivation/inspiration for align with the organization’s overall mission and
employees vision.

Rules
Procedures
O T
Specific and rigid directives that dictate how
step-by-step instructions or actions that certain actions must be performed
need to be followed to accomplish a specific Absolute and must be followed without deviation
task or achieve a goal.
 Classification of Plan According to Scope
Programs
Forecast
Set of activities W
Developed assumptions or premises about the
Comprehensive, coordinated sets of plans future.
designed to achieve specific, long-term Essential for reducing uncertainty, managing risks,
organizational objectives. and making informed choices in both short-term and
Consists of several interrelated projects, activities, long-term planning.
policies, procedures, and resources, all aligned to
accomplish a major goal

Budget Schedules
Structured timeline that outlines the specific
O
Detailed financial plan that estimates an
organization's future income, expenses, and
T
tasks, activities, milestones, and deadlines
required to achieve an objective within a given
resource allocation over a specified period period.
Blueprint for managing financial resources Ensure that work is completed efficiently,
effectively resources are used effectively, and timelines are
met.
Classifications of Plans
According to the Frequency
Single-Use Plan Standing Plan
Ongoing policy or procedure that is
Created for unique situations that
used repeatedly in organizations to
are unlikely to recur, meaning it guide routine decision-making and
doesn't require repetition or activities.
ongoing application. Designed to provide consistent
These plans are often detailed guidance over a long period of time
and focus on addressing short- Can be applied to recurring
situations.
term challenges or opportunities.
Help ensure that regular operations
Once the goal is accomplished,
are conducted efficiently and
the plan is no longer useful. consistently.
A structured step of plans in
organizations, ensuring coordination
and alignment. At the top is the
mission, defining why the organization
exists. Goals follow, outlining what to
achieve, guided by the mission.
Strategies chart the path for long-term
objectives. Policies provide decision-
making guidelines, while procedures
detail systematic steps. Rules are
specific guidelines for actions.
Programs prioritize and organize
activities, and budgets allocate
resources wisely.
Guidelines for
Effective
Planning
1. Plan shoul be based on
specific objectives
Define clear goals: Establish well-defined,
achievable goals that are specific, measurable,
attainable, relevant, and time-bound (SMART).
Prioritize objectives: Determine which goals are
most critical to the organization’s success and
allocate resources accordingly.
2. Plan should facilitate action
Good plans must dictate action or
else it will just remain as a piece of
paper
3. Coordination and
Communication play a vital
role
There is a need for constant
communication and revisions to
arrive at realistics targets.
4. Planning is part of all
functions
Allows the assesstment of these
functions and their corresponding
improvements.
5. Plan should be flexible and
not rigid.
It should be adoptable to situations or be
ready for emergency situations which will
have effect on plans.
Characteristics
of Good
Plans
 Make the plan
easy to
understand.
Clearly illustrated
and provide
pertinent
examples
Characteristics of Good Plans
 Feature full
coverage of all
needed
activities
required to
attain objectives
Characteristics of Good Plans
 Reduce the
plan to a
simple series
of actions
Characteristics of Good Plans
 Keep the
planned
efforts on
schedule
Characteristics of Good Plans
 Coordinate
the separate
activities
within the
plan.
Characteristics of Good Plans
 Keep the
plan flexible
to permit
adjustments
.
Characteristics of Good Plans
 Ensure
acceptance of
the plan by all
concerned or
affected by it
Characteristics of Good Plans
 Fulfill a
recognized need
whic is within the
capability of the
management
team
Characteristics of Good Plans
 Show clearly
the
respective
responsiblity
and authority.
Characteristics of Good Plans
Factors Affecting Planning
Conditions
Physical facilities
Time factor
Resources Available
Skills and attitudes of
management
Political, social and environmental
conditions
 Policies and Classifications
Guides to managerial
Policies decisions which fall under
certain limits and
boundaries.
Formulated by management
to govern actions at all levels
in the organization.
Intended to achieve
predetermined objectives.
 Policies as to Origin
A. Imposed Policies
Required by the government as laws, rules, procedures and administrative orders.

B. Appealed Policies
Formulated when a subordinate endorses to his superior matters not covered by
existing policies which will serve as a guide on matters of similar nature in the
future

C. Originated Policies
Formulated by top management
 Policies as to Level in the Organization
A. Basic Policies
Formulated at the start of the business but may be amended to cope with changing
conditions, Broadly stated and serve as the basic guides for all.

B.General Policies
Used by middle management. They consist of a specific guides in line with the
basic policies.

C. Department Policies
Are intended for the use of those in lower management to meet daily
requirements in carrying out general policies and basic policies.
Policies as to Functions/Activity Grouping
A. Personnel Policies
Cover those that deal with recruitment, selection and placement of efficient work
force.

B. Financial Policies
Inlcude the limitation if what it will do for finance.

C. Sales Policies
Formulated for general income to assure continous operation.

D. Production Policies
Include procurement of materials, parts, supplies, product quality, schedule, etc.
 Characteristics of Good Policy
Known and understood by all
Should be stable
Consistent within the company
Sincere
Realistic
Figure 2: Overall
View
of Planning
and its
Relationship
to the
Management
Process
References
https://medium.com/@ikatasharlet/linking-
long-intermediate-and-short-range-planning-to-
forecasting-strategies-a-comprehensive-
b413bf855707
https://www.monash.edu/business/marketing/
marketing-dictionary/b/bottom-up-approach-
to-planning