Organization and Management

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 3 – Org Man Subject Teacher: Kenny Jones A. Amlos

Functions of Management: Planning

Learning Objectives:
At the end of the lesson, the student should be able to:
a. discuss the nature of planning;
b. explain the significance of Vision and Mission statements and goals or objectives in
planning;
c. enumerate and discuss the different type of plans;
d. describe the planning process and planning at different levels in the firm;
e. apply appropriate planning techniques and tools in business situations;
f. identify the different decision models;
g. identify common errors in decision making;
h. conduct planning and organizing based on specific situations.

Definition of Terms
➢ Planning
The process of setting objectives and determining how to best accomplish them.
➢ Objectives
Identify the specific results or desired outcomes that one intends to achieve.
➢ Plan
A statement of action steps to be taken in order to accomplish the objectives.
➢ Goal
A specific commitment to achieve a measurable result within a stated period of time.
It should be SMART:
Specific - use details while keeping the goal clear and succinct
Measurable - Identify evidence for when you reach the goal
Attainable - make sure you are able to put the goal into action
Relevant - the goal should meet personal interests, skills, and resources
Timely - create a time frame for accomplishing a goal

Types of Goals:
Strategic Goals - are set by and for top management and focus on objectives for the
organization as a whole.
Tactical Goals - are set by and for middle managers and focus on the actions needed to
achieve strategic goals.
Operational Goals - are set by and for first-line managers and are concerned with short-term
matters associated with realizing tactical goals.

The Benefits of Planning:

1) Planning helps you check on your progress
2) Planning helps you coordinate activities
3) Planning helps you think ahead
4) Above all, planning helps you cope with uncertainty

How do managers plan?

Steps in the planning process:
1. Define your objectives.
2. Determine where you stand vis-à-vis objectives.
3. Develop premises regarding future conditions.
4. Analyze and choose among action alternatives.
5. Implement the plan and evaluate results.

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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 3 – Org Man Subject Teacher: Kenny Jones A. Amlos

Making Plans:

Mission and Vision Statement:

Vision
-Expresses the organization should become, where it wants to go strategically.

What does it identify?

1. Graphic- describes the kind of company that the management want to create and aspires to
be.
2. Directional- describes the path where the company wants to go and presents specific plans to
move forward in the future.
3. Focused- specific
4. Flexible- room to change based on….
5. Feasible- achievable and realistic
6. Desirable- clear path, practically sensible and serves the interests of members in the long run
7. Easy to communicate- easy to understand, articulate, and can be simplified into a powerful
slogan

Mission
-Expresses the purpose of the organization.

Characteristics of effectively worded vision statements:

1. Products and services;
2. The customers’ needs that the company seeks to satisfy;
3. Target markets;
4. Approaches to satisfy customers’ needs; and
5. Presents the unique identity of the company

Types of Planning:
1. Strategic Planning
Top managers decide what the organization’s long-term goals should be for the next 1-
5 years with the resources they expect to have available.
2. Tactical Planning
Middle managers decide what contributions their departments or similar work units can
make with their given resources during the next 6-24 months.
3. Operational Planning
First-line managers determine how to accomplish specific tasks with available resources
within the next 1-52 weeks.

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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 3 – Org Man Subject Teacher: Kenny Jones A. Amlos

The Planning Process:

Planning Techniques and Tools:

Qualitative Techniques:
1. Brainstorming - work together to generate ideas
2. Nominal Group Technique - restricts personal discussion; all opinions are considered to be
equally important
3. Delphi Technique - no group meeting; the leader collects and assimilate ideas; objective
and well-thought-out process

Quantitative Techniques:
1. Decision Tree - weighing different alternatives using a graph; useful for decisions that
involve succession of small decisions.
2. Payback Method - method in evaluating in purchasing equipment, furniture, and fixtures.
Quickest payback of the initial cost

Additional Planning Techniques and Tools:

1. Forecasting - Attempts to predict the future, in terms of qualitative forecasting it uses expert
opinions and in terms of quantitative forecasting it uses mathematical models and
statistical analysis of historical data and surveys.

2. Contingency Planning - it is identifying alternative courses of action to take when things go

wrong, anticipating changing condition, and it contains trigger points.

3. Scenario Planning - is a long-term version of contingency planning, identifying alternative

future scenarios, and plans made for each future scenario, and it increases organization’s
flexibility and preparation for future shocks.

4. Benchmarking – it uses external and internal comparisons to plan for future improvements,
adopting best practices: things people and organizations do that lead to superior
performance, and assisting in all steps of the planning process.

5. Participatory Planning - unlocks the motivational potential of goal setting, management by

objectives (MBO) promotes participation when participation is not possible, workers will
respond positively if supervisory trust and support exist.

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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 3 – Org Man Subject Teacher: Kenny Jones A. Amlos

Decision Making and the Common Types of Decision Models:

1. Rational or Logical Decision Model- preferred model of many managers.

Evaluate
Implement the results
Choose the chosen
the best alternative
Formulate
alternative alternative
Assign
weights to courses of
Identify action
the the criteria
Identify
the decision
problem criteria

2. Intuitive Decision Model- “gut feeling” and instincts by managers with several years of
experience.

3. Predisposed Decision Model- “rational up-to-date decision”; decide on a solution and gather
material to support it.

Contemporary Structured Decision- Making Models:

1. Kepner - Tregoe Matrix Model:

2. Vroom - Yetton - Jago Decision Model:

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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 3 – Org Man Subject Teacher: Kenny Jones A. Amlos

3. Observe- Orient – Decide- Act (OODA) Loop Model (orig. air combat)

REFERENCES

Cabrera, H.M.F. (2015). Organization and Management. Quezon City: Vibal Group, Inc.
De Guzman, R.S. (2018). Introduction to Management. Baguio: University of the Philippines
Stevenson, W.J. (2010). Operations Management. Singapore: McGraw-Hill Companies, Inc.
Kinicki, A. & Wliliams, B.(2009). Management. New York: McGraw-Hill/Irwin.
Schermerhorn, J. (2010). Introduction to Management
Payos, et al( 2016). Organization and Management. Rexetore.
Stevenson, W.J. (2010). Operations Management. Singapore: McGraw-Hill Companies, Inc.

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