Foundations of

Planning
Dapal, Jamie Daisylette
Salcedo, Joshua Eulo
Hengania, Enrico Jr.
Ardo, Andrey
Objectives
Define the nature and purposes of planning.

Classify the types of goals organizations might have and the plans they use.

Compare and contrast approaches to goal-setting and planning

What is Planning?
•Planning is the primary management function.
To Set Standards
To Provides
to Facilitate
Direction
Control

Purposes of
Planning
To Minimize
To Reduce
Waste
Uncertainty
and Redundancy
 Does Planning Improve Performance?
Does it pay to plan?
•Financial results

•Environmental/Economical concerns

•Quality of Implementation
The Timeframe of Planning

Short-Term Long-Term
Plans Plans

FOM 5.6
 Specific Plans

Directional Plans
Types of Plans and
Contingency Factors on
Planning
JOSHUA EULO SALCEDO
Types of Plans
•Hierarchical plans,
•Standing plans,
•Single-use plans, and
•Contingency plans.
1. Hierarchical plans,
These plans are drawn at three major hierarchical levels, namely, the institutional, the
managerial and the technical core.

Strategic
Administrative and,
Operational respectively.
Strategic Plans
Strategic plans define the organization’s long-term vision and how the organization intends to make
its vision a reality
Administrative or Intermediate plan
Middle level management.
It is cone to allocate organizational resources and coordinate internal subdivisions of the
organization. It is also a process of determining the contributions that sub-units can make with
allocated resources.
 Operational plan

the process of determining how specific tasks can best be accomplished on time with available
resources. This is also done to cover the day-to-day operations of an organization. As such, many
operational plans are designed to govern the workings of the organization’s technical core.
 2. Standing Plans

Standing plans are drawn to cover issues that managers face repeatedly. Such a standing plan
may be called standard operating procedure (SOP). Mission or purpose, strategies, policies,
procedures, rules are some of the most common standing plans.
 3. Single-use Plans
Single-use plans are prepared for single or unique situations or problems and are normally
discarded or replaced after one use.
For example:
objectives/goals,
programs,
projects,
budgets.
 4. Contingency Plans
Contingency planning is the development of alternative courses of action to be taken if
events disrupt a planned course of action. A contingency plan allows management to act
immediately if such unforeseen events as strikes, boycotts, natural disasters or major economic
changes render existing plans inoperable or unsuitable.
Contingency Factors on Planning
Goals

One of the primary factors that influences contingency planning are the goals of the business owner
or owners. The way business owners choose to respond to different contingencies will reflect their ultimate
goal for the business.
 Government Regulations
Government regulations can have a large impact on businesses, and a contingency plan
might include instructions for how the company should deal with changing regulations.
 Profitability

A business owner might decide to pursue different courses of actions in response to certain
contingencies based on the profitability of the company
Considerations

Any unforeseen events that affect the current

plan
Multiplicity Objectives
ENRICO HENGANIA JR.
Objectives
•A business objective is a result that a
company aims to achieve. It also
includes the strategies that people will
use to get there.
How To Create Objectives That Work?
• Specific
•Measurable
•Attainable
•Relevant
•Timely
Multiplicity Objectives
• Business objectives are multiple in character. That is, a business does not have only one
objective. It has many or multiple objectives. This is because a business has to satisfy different
groups.
• Employee’s
• Shareholder’s
• Customer’s
• Society’s
Employee’s Objectives
•Targets that are agreed between an organization and
an employee for a given amount of time.
•They are typically designed to be specific,
measurable, achievable, relevant, and time-bound.
Shareholder’s Objectives
•Short-Term Profit
•Long-Term Profit
•Strategic Influence
•Minimize Risk
Customer’s Objective
•Keep Customers Satisfied
•Meet Customer’s Need
•Increase Repeat Business
•Build Word-Of-Mouth Reputation
•Lower the Amount of Complaints Received
•Create Effective Customer Service Goals
Society Objectives
•Quality Good and Services
•Adoption of Fair Trade Practices
•Contribution To The General Welfare of Society
and Provision of Welfare Amenities
Real and Stated
Objectives
REAL OBJECTIVES STATED OBJECTIVES

• Objectives that and organization actually • Objectives that are official statements of what
pursues, as defined by the actions of its an organization says and what it want its various
members. stakeholders to believe.
Traditional Goal Setting
ANDREY ARDO
Definition

an approach to setting
goals in which goals are
set at the top level of
the organization and
then broken into
subgoals for each level
of the organization.
Traditional goal setting assumes that top managers know what is best because of their ability to
see the “big picture.” Employees are to work to meet the goals for their particular area of
responsibility.
This traditional approach requires that goals must be made more specific as they flow down to
lower levels in the organization. In striving to achieve specificity, however, objectives
sometimes lose clarity and unity with goals set at a higher level in the organization
When the hierarchy of organizational
goals is clearly defined, it forms an
integrated means-end chain—an
integrated network of goals in which
the accomplishment of goals at one
level serves as the means for achieving
the goals, or ends, at the next level.
Management by
Objective
Management by objectives (MBO) is
a strategic management model that
aims to improve the performance of
an organization by clearly defining
objectives that are agreed to by both
management and employees
Steps in Management
by Objective
Review Organizational
Objectives
Set employee Objectives
Monitor
Evaluate
Reward
The first step is to either determine
or revise organizational objectives
for the entire company. This broad
overview should be derived from
the firm's mission and vision.
The second step is to translate the
organizational objectives to employees.

• Specific
• Measurable
• Acceptable
• Realistic
• Time – Bound
Step three is stimulating the
participation of employees in
setting individual objectives. After
the organization's objectives are
shared with employees, from the
top to the bottom, employees
should be encouraged to help set
their own objectives to achieve
these larger organizational
objectives. This gives employees
greater motivation since they
have greater empowerment.
• Step four involves monitoring
the progress of employees. In
step two, a key component of
the objectives was that they
are measurable in order for
employees and managers to
determine how well they are
met.
The fifth step is to evaluate
and reward employee
progress. This step includes
honest feedback on what
was achieved and not
achieved for each employee.
Key Takeaways

Management by objectives (MBO) is a strategic management

model that aims to improve the performance of an
organization by clearly defining objectives that are agreed to
by both management and employees.
According to the theory, having a say in goal setting and action
plans encourages participation and commitment among
employees, as well as aligning objectives across the
organization.