Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Presented by:
ARIEL A. CATAPAL
MBA – OLIVAREZ COLLEGE
1st Semester
S.Y. 2009 - 2010
Subject:
ACKNOWLEDGEMENT
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I would like to acknowledge and extent my heartfelt gratitude to the following persons
Our Dean of Graduate School, Dr. Eric L. Olivarez, for his vital encouragement and
support.
Dr. Avelino S. De Chavez, our Assistant to the Dean, for his understanding and
assistance.
Ms. Bernadette Uy, Secretary of Graduate School for the constant reminders and much
needed motivation.
Mr. Ernesto M. Apodaca, my professor in Management Principles & Dynamics for the
TABLE OF CONTENTS
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I. INTRODUCTION
V. TYPES OF PLANS
Short-Range and Long-Range Plans
Strategic and Operational Plans
Policies and Procedures
Budgets and Projects
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Decide on a Preferred Course of Action
Implement the Decision
Evaluate Results
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• Corporate Governance
• Strategic Leadership
I. SUMMARY OF TOPICS
Additional Relevant Readings
Interview with an expert on topics assigned
II. BIBLIOGRAPHY
III. APPENDIX
INTRODUCTION
The process of management involves planning, organizing, leading, and controlling the
use of resources to accomplish performance goals. The first of these four functions,
planning, sets the stage for the others by providing a sense of direction. It is a process
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of setting objectives and determining how best to accomplish them. Said a bit
differently, planning involves deciding exactly what you want to accomplish and how
best to go about it. Planning involves defining the organization’s goals, establishing an
overall strategy for achieving these goals, and developing a comprehensive set of plans
to integrate and coordinate organizational work. The term planning as used in this
chapter refers to formal planning. The quality of the planning process and appropriate
implementation probably contribute more to high performance than does the extent of
and deciding how best to achieve them. But remember, planning is not something
managers do while working alone in quite rooms, free from distractions, and at
scheduled times. It is an ongoing process, often continuously being done even while
dealing with an otherwise busy and demanding work setting. And like other decision
making, the best planning is done with active participation of those people whose work
will eventually determine whether or not the plans are well implemented and the
IMPORTANCE OF PLANNING
When planning is done well, it creates a solid platform for the other management
guiding the efforts of human resources to ensure high levels of tasks accomplishment;
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demanding organizational and career environments it is essential to stay one step
ahead of the competition. This involves always striving to become better at what you are
In the planning process, objectives identify the specific results or desired outcomes that
one intends to achieve. The plan is a statement of action steps to be taken in order to
1. Define your objectives: Identify desired outcomes or results in very specific ways.
Know where you want to go; be specific enough that you will know you have
arrived when you get there, or know how far off the mark you are at various
reaching objectives; know what strengths work in your favour and what
Generates alternative “scenarios” for what may happen; identify for each
scenario things that may help or hinder progress toward your objectives.
4. Analyze and choose among action alternatives: List and carefully evaluate
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objectives; describe step-by-step what must be done to follow the chosen course
of action.
5. Implement the plan and evaluate results: Take action and carefully measure your
progress towards objectives. Do what the plan requires, evaluate results, take
BENEFITS OF PLANNING
Organizations in today’s dynamic times are facing pressures from many sources.
a global economy, changing technologies, and the sheer cost of investments in labor,
capital, and other supporting resources. Internally, they include the quest for operating
diversity in the work-place, and related managerial challenges. As you would expect,
Good planning improves focus and flexibility, both of which are important for
performance success. An organization with focus knows what it does best, knows the
needs of its customers, and knows how to serve them well. An individual with focus
organization with flexibility is willing and able to change and adapt to shifting
circumstances, and operates with an orientation toward the future rather than the past.
An individual with flexibility adjusts career plans to fit new and developing opportunities.
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Planning is a way for people and organizations to stay ahead of the competition and
become better at what they are doing. It helps avoid the complacency trap simply being
carried along by the flow of events. It keeps the future visible as a performance target
and reminds us that the best decisions are often those made before events force
organizations are doing many different things at the same time. But even as they pursue
their specific tasks and objectives, their accomplishments must add up to meaningful
One of the side benefits that planning offers is better time management. Lewis Platt,
choices.” These choices have to be made in ways that allocate your time to the most
important priorities. Platt says that he was “ruthless about priorities” and that you “have
Most of us have experienced the difficulties of balancing available time with the many
commitments and opportunities we would like to fulfil. It is easy to lose track of time and
fall prey to what consultants identify as “time wasters.” Too many of us allow our time to
be dominated by other people and/or by nonessential activities. “To do” lists can help,
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but they have to contain the right things. In daily living and in management, it is
important to distinguish between things that you must do (top priority), should do (high
priority), would be nice to do (low priority), and really don’t need to do (no priority).
performance results and take action to improve things necessary. Planning helps make
this possible by defining the objectives along with the specific actions through which
they are to be pursued. If results are less than expected, either the objectives or the
actions being taken, or both, can be evaluated and adjusted. In this way planning and
controlling work closely together in the management process. Without planning, control
lacks objectives and standards for measuring how well things are going and what could
be done to make them go better. Without control, planning lacks the follow-through
TYPES OF PLANS
Managers face many different planning challenges in the flow and pace of activities in
organizations. In some cases the planning environment is stable and quite predictable;
in others it is more dynamic and uncertain. A variety of plans are used to meet these
different needs.
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A rule of thumb is that short-range plans cover 1 year or less, intermediate range plans
cover 1 to 2 years, and long range plans look 3 or more years into the future. Top
management is most likely to be involved in setting long-range plans and directions for
the organization as a whole, while lower management levels focus more on short-run
organization’s long-term plans, there is always risk that the pressure of daily events will
create confusion and divert attention from important tasks. In other words, without a
sense of long-term direction, people can end up working hard but without achieving
significant results.
Plans differ not only in time horizons but also in scope. Strategic plans set broad,
Operational plans define what needs to be done in specific functions or work units to
implement strategic plans. Typical operational plans for a business firm include
production plans – dealing with the methods and technology needed by people in their
work; financial plans – dealing with money required to support various operations;
facilities plans – dealing with facilities and work layouts; marketing plans – dealing with
the requirements of selling and distributing goods or services; and human resource
plans – dealing with the recruitment, selection, and placement of people into various
jobs.
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Policies and Procedures
Among the many plans in organizations, standing plans in the form of organizational
policies and procedures are designed for use over and over again. A policy
communicates broad guidelines for making decisions and taking action in specific
circumstances. For example, typical human resource policies address such matters as
discipline.
situations. They are often found stated in employee handbooks or manuals as “SOPs” –
standard operating procedures. Whereas a policy sets a broad guideline for action,
In contrast to standing plans, single-use plans are used once, serving the needs and
that commit resources to activities, projects, or programs. They are powerful tools that
allocate scarce resources among multiple and often competing uses. Most managers
bargain for adequate budgets to support the needs of their work units or teams. They
are also expected to achieve performance objectives while keeping within the allocated
budget.
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PLANNING TOOLS AND TECHNIQUES
The benefits of planning are best realized when the foundations are strong. Among the
planning, scenarios, benchmarking, participative planning, and the use of staff planners.
FORECASTING
Forecasting is the process of predicting what will happen in the future. All plans involve
forecasts of some sort. Periodicals such as Business Week, Fortune, and the
unemployment, and trade deficits, among other issues. Some are based on qualitative
forecasting, which uses expert opinions to predict the future. Others involve quantitative
forecasting, which uses mathematical models and statistical analyses of historical data
CONTINGENCY PLANNING
Planning by definition, involves thinking ahead. But the more uncertain the planning
environment, the more likely that one’s original assumptions, forecasts, and intentions
Although one can’t always predict when things will go wrong, it can be anticipated that
they will. It is highly unlikely that any plan will ever be perfect; changes in the
environment will sooner or later occur, as will crises and emergencies. And when they
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do, the best managers and organizations have contingency plans ready to be
implemented. Contingency plans contain “trigger points” that indicate when preselected
SCENARIO PLANNING
identifying several alternative future scenarios or states of affairs that may occur. Plans
BENCHMARKING
All too often planners becomes too comfortable with the ways things are going and
overconfident that the past is a good indicator of the future. It is often better to keep
challenging the status quo and not simply accept things as they are. One way to do this
The purpose of benchmarking is to find out what other people and organizations are
doing very well, and then plan how to incorporate these ideas into one’s own
operations. One benchmarking technique is to search for best practices, thing people
organizations emphasize internal benchmarking that encourages all members and work
units to learn and improve by sharing one another’s best practices. They also use
STAFF PLANNERS
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As organizations grow, there is a corresponding need to increase the sophistication of
the planning system itself. In some cases, staff planners are employed to help
coordinate planning for the organization as a whole or for one of its major components.
These planning specialists are skilled in all steps of the planning process, as well as
with planning tools and techniques. They can help bring focus and energy to accomplish
important, often strategic, planning tasks. But one risk is a tendency for a
communication “gap” to develop between staff planners and line manager. Unless
everyone works closely together, the resulting plans may be inadequate, and people
may lack commitment to implement the plans no matter how good they are.
all planning steps the people who will be affected by the plans and/or who will be asked
to help implement them. Participation can increase the creativity and information
available for planning. It can also increase the understanding and acceptance of plans,
as well as commitment to their success. And even though participatory planning takes
DECISION-MAKING PROCESS
The decision-making process involves a set of activities that begins with identification
of a problem, includes making a decision, and ends with the evaluation of results. The
steps in managerial decision making are (1) identify and define the problem, (2)
generate and evaluate alternative solutions, (3) choose a preferred course of action and
conduct the “ethics double check,” (4) implement the decision, and (5) evaluate results.
All five steps can be understood in the context of the following short-but-true case.
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STEP 1 – IDENTIFY AND DEFINE THE PROBLEM
The first step in decision making is to find and define the problem. This is a stage of
goals by identifying exactly what a decision should accomplish. The more specific the
goals, the easier it is to evaluate results after the decision is actually implemented. The
Once the problem is defined, it is time to assemble the facts and information that will be
helpful for problem solving. It is important here to clarify exactly what is known and what
The process of evaluating alternatives often benefits from stakeholder analysis. Key
stakeholders in the problem should be identified, and the effects of possible courses of
action on each of them should be considered. Another useful approach for the
alternative will cost in relation to the expected benefits. At a minimum, the benefits of an
alternative should be greater than its costs. Typical criteria for evaluating alternatives
• Benefits: What are the “benefits” of using the alternative to solve a performance
• Costs: What are the “costs” of implementing the alternative, including resource
• Timeliness: How fast will the benefits occur and a positive impact be achieved?
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• Acceptability: To what extent will the alternative be accepted and supported by
• Ethical soundness: How well does the alternative meet acceptable ethical criteria
This is the point of choice, where an actual decision is made to select a preferred
course of action. Just how this is done and by whom must be successfully resolved in
The classical decision model views the manager as acting rationally in a certain
world. Here, the manager faces a clearly defined problem and knows all possible action
decision that gives the absolute best solution to the problem. The classical approach is
a rational model that assumes perfect information is available for decision making. The
behavioural decision model, accordingly, assumes that people act only in terms of
what they perceive about a given situation. Because such perceptions are frequently
imperfect, the decision maker has only partial knowledge about the available action
alternatives and their consequences. Consequently, the first alternative that appears
Once a preferred solution is chosen, actions must be taken to fully implement it. Nothing
new can or will happen unless action is taken to actually solve the problem. Managers
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not only need the determination and creativity to arrive at a decision, they also need the
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