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LESSON 3

PLANNING AT DIFFERENT LEVELS IN THE FIRM


• DIFFERENT LEVEL IN THE FIRM ARE ALL ENGAGED IN PLANNING; HOWEVER, ALL THE
RESULTING PLANS MUST BE RELATED TO ONE ANOTHER AND DIRECTED TOWARD THE
SAME GOALS. PLANNING AT THE DIFFERENT LEVELS OF MANAGEMENT INCLUDE
STRATEGIC PLANNING, TACTICAL PLANNING, AND OPERATIONAL PLANNING.
TOP-LEVEL MANAGEMENT PLANNING
(STRATEGIC PLANNING)
• AS EARLIER MENTIONED, TOP-LEVEL MANAGERS ARE RESPONSIBLE FOR THE ORGANIZATION’S
STRATEGIC PLANNING WHICH INVOLVES MAKING DECISIONS ABOUT THE ORGANIZATION’S
LONG-TERM GOALS AND STRATEGIC. CEO’S, COMPANY PRESIDENTS, OR THE
ORGANIZATION’S SENIOR EXECUTIVES DEVELOP AND EXECUTE THE SAID STRATEGIC PLAN.
THEY, HOWEVER, DO NOT FORMULATE OR EXECUTE THE PLAN ON THEIR OWN; A
MANAGEMENT TEAM SUPPORTS AND HELPS TOP-LEVEL MANAGERS IN CARRYING OUT THESE
TASKS.
• STRATEGIC PLANNING STARTS WITH DIFINING THE ORGANIZATION’S
GOALS/OBJECTIVES, THE MAJOR TARGETS RELATED TO THE MAINTENANCE OF THE
ORGANIZATION’S STABILITY, AND ITS ORGANIZATIONAL CULTURE, VALUES, AND
GROWTH IMPROVING ITS PRODUCTIVITY, PROFITABILITY, EFFECTIVENESS, AND
EFFICIENCY, AMONG OTHERS.
MIDDLE-LEVEL MANAGEMENT PLANNING
(TACTICAL PLANNING)

• TACTICAL PLANNING REFERS TO A SET OF PROCEDURES FOR CHANGING OR


TRANSFORMING BROAD STRATEGIC GOALS AND PLANS INTO SPECIFIC
GOALS AND PLANS THAT ARE APPLICABLE AND NEEDED IN ONE
UNIT/PORTION OF THE ORGANIZATIONS. IT IS FOCUSED ON MAJOR ACTIONS
THAT MUST BE DONE BY A UNIT IN ORDER TO CONTRIBUTE ITS SHARE FOR THE
ACHIEVEMENT OF THE STRATEGIC PLAN.
FRONTLINE/LOWER-LEVEL MANAGEMENT
PLANNING
(OPERATIONAL PLANNING)
• OPERATIONAL PLANNING INVOLVES IDENTIFYING THE SPECIFIC
PROCEDURES AND PROCESSES REQUIRED AT THE LOWER LEVELS OF THE
ORGANIZATION. THIS ALSO INVOLVES ROUTINE TASKS REPEATEDLY DONE
BY THE ORGANIZATION’S LOWER LEVEL UNITS.
INTEGRATING STRATEGIC, TACTICAL, AND
OPERATIONAL PLANNING
• THE PRESENT ORGANIZATIONAL PLANNING IS NOT AS RIGID AS THE HIERARCHICAL
PLANNING EARLIER DISCUSSED IN THIS CHAPTER. MANAGERS IN DIFFERENT
HIERARCHICAL LEVELS OF THE ORGANIZATION MAY CONTRIBUTE THEIR IDEAS OR
SUGGESTIONS IN DEVELOPING THE STRATEGIC PLAN, A TASK ORIGINALLY ASSIGNED
TO THE SENIOR EXECUTIVES. ALSO, FRONTLINE MANAGERS MAY MAKE DECISIONS
THAT COULD INFLUENCE STRATEGY FORMULATIONS IN THE HIGHER LEVELS. ALL
PLANS, HOWEVER, MUST BE DIRECTED TOWARD THE ACHIEVEMENT OF THE
ORGANIZATION’S STRATEGIC GOALS.
• FINALLY, CEO’S OR COMPANY PRESIDENTS MUST SEE TO IT THAT ALL COMMUNICATION LINES
IN THEIR ORGANIZATION ARE OPEN, THAT THERE IS EXCELLENT DISSEMINATION OF
INFORMATION TO ALL LEVELS, AND THEY ARE AWARE OF EVERYTHING THAT IS HAPPENING IN
THEIR FIRM.