THE NATURE OF PLANNING

There are many instances when managers are overwhelmed by various activities which at times becloud his judgement. This must be expected since anybody who is confronted by several situations happening simultaneously will loose sight of the more important concerns. To minimize mistakes in decision-making, planning is undertaken.
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A plan, which is the output of planning, provides a methodical way of achieving desired results. In the implementation of activities, the plan serves as a useful guide. Without the plan, some minor tasks may be afforded major attention which may, later on, hinder the accomplishment of objectives.

According to Nickels and others, it

refers to the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.

 According to Aldag and Stearns, on the other hand, define planning as the selection and sequential ordering of tasks required to achieve an organizational goal. According to Cole and Hamilton, planning is deciding what will be done, who will do it, where, when and how it will be done, and the standards to which it will be done.

Since engineer managers could be occupying positions in any of the various management levels, it will be useful for them to know some aspects of planning undertaken at the different management levels. Planning activities undertaken at various levels are as follows:

1.TOP MANAGEMENT LEVELstrategic planning 2.MIDDLE MANAGEMENT LEVELintermediate planning 3.LOWER MANAGEMENT LEVELoperational planning

STRATEGIC PLANNING

It refers to the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve goals. The top management of any firm is involved in this type of planning. The output here is the strategic plan which spells out the decision about longrange goals and the course of action to achieve these goals.

 INTERMEDIATE

PLANNING

It refers to the process of determining the contributions that sub units can make with allocated resources. This type of planning is undertaken by middle management. Under intermediate planning, the goals of sub unit are determined and a plan is prepared to provide a guide to the realization of the goals. The intermediate plan is designed to support the strategic plan.

OPERATIONAL PLANNING
It refers to the process of determining how specific tasks can best be accomplished on time with available resources. This type of planning is a responsibility of lower management. It must be performed in support of the strategic plan and the intermediate plan.

1.

2.

3. 4.

Setting organizational, divisional or unit goals. Developing strategies or tactics to reach those goals Determining resources Setting standards

The first task of the engineer manager is to provide a direction to his firm. The setting of goals provide an answer to the said concern. If everybody is aware of the goals, there is a big chance that everybody will contribute his share in the realization of such goals. Goals may be defined as the precise statement of results thought, quantified in time and magnitude, where possible.

After determining the goals, the next task is to devise some means to realize them. The ways to realize the goals are called strategies and these will be the concern of top management. The middle and lower management will adapt their own tactics to implement their plans.

 STRATEGY may be defined as a course of action aimed at ensuring that the organization will achieve its objectives. TACTIC is a short-term action taken by management to adjust to negative internal or external influences. They are formulated and implemented in support of the firms strategies. The decision about short-term goals and the courses of action are indicated in the tactical plan.

When particular sets of strategies or tactics have been devised, the engineer manager will, then, determine the human and nonhuman resources required by such strategies or tactics. Even if the resource requirements are currently available. They must be specified.

The quality and quantity of resources needed must be correctly determined. Too much resources in terms of either quality or quantity will be wasteful. Too little will mean loss of opportunities for maximizing income.

The standards for measuring performance may be set at planning stage. When actual performance does not match with the planned performance, corrections may be made or reinforcements are given. STANDARD may be defined as a quantitative or qualitative measuring device designed to help monitor the performances of people, capital goods or processes.

1. Functional Area Plans 2. Plans With Time Horizon 3. Plans According to Frequency of Use

Plans may be prepared accdg. to the needs of the different functional areas. Among the types of functional area plans are the ff: 1. MARKETING PLAN this is the written document or blueprint for implementing and controlling an organizations marketing activities related to a particular marketing strategy.

2.PRODUCTION PLAN this is a written document that states the quantity of output a company must produce in broad terms and by product family. 3.FINANCIAL PLAN it is a document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities. 4.HUMAN RESOURCE MANAGEMENT PLAN is a document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the companys strategic plan.

Plans with time horizon consist of the following: 1.SHORT-RANGE PLANS are plans intended to cover a period of less than one year. Firstline supervisors are mostly concerned with these plans. 2. LONG-RANGE PLANS are plans covering a time span of more than one year. These are mostly undertaken by middle and top management.

According to frequency reuse, plans may be classified as:

1.

Standing Plans Single-use plans

1.

STANDING PLANS are plans that are used

again and again, and they focus on managerial situations that recur repeatedly. Standing plans may be further classified as: 1.POLICIES- are broad guidelines to aid managers at every level in making decisions about recurring situations or functions. 2.PROCEDURES are plans that describe the exact series of actions to be taken in a given situation. 3.RULES are statements that either require or forbid a certain action.

SINGLE-USE PLANS these plans are specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated. Single-use plans may be further classified as: 1. Budgets
2.

Programs Projects

3.

 BUDGET is a plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from, according to Weston and Brigham.
PROGRAM is a single-use plan designed to coordinate a large set of activities.

PROJECT is a single-use plan that is usually more limited in scope than a program and is sometimes prepared to support a program.

The strategic plan must contain the following:

1. Company of corporate mission 2. Objectives or goals 3. Strategies

Company of corporate mission refers to the strategic statement that identifies why an organization exists, its philosophy of management, and its purpose as distinguished from other similar organizations in terms of products, services and markets.

Planning is done so that some desired results may be achieved. At times, however, failure in planning occurs. Planning may be made successful if the following are observed: 1. Recognize planning barriers 2. Use of aids to planning

According to Plunkett and Attner, the planning barriers are as follows: 1. Managers inability to plan 2. Improper planning process 3. Lack of commitment to the planning process 4. Improper information 5. Focusing on the present at the expense of the future. 6. Too much reliance on the planning department. 7. Concentrating on only the controllable variables.

Among the aids to planning that may be used are:

1.

Gather as much information as possible

2.

Develop multiple sources of information

Involve others in the planning process.

3.