ORGANIZATION AND

MANAGEMENT
Student Learning Module
Module 3
S.Y. 2021-2022

Student Name :_______________________________________________

Address :_______________________________________________
Contact Number :_______________________________________________
Email Address :_______________________________________________
Course & Year :_______________________________________________
Instructor :JOAN MAE A. VILLEGAS__ ________
 ORGANIZATION AND MANAGEMENT
SELF - LEARNING MODULE

PRELIMINARIES

Module # and Title:

Module 3: Planning and Decision-making

Learning Competencies :

At the end of the lesson, the students are expected to:

1. Apply appropriate planning techniques and tools.
2. Formulate a decision from several alternatives.
3. Enumerate some tips in time management.

Instructional Materials

Students Learning Module

REFERENCE:

DIWA textbooks (DIWA Senior High School Series: Organization and

Management)
hilippine Copyright 2017 by DIWA LEARNING SYSTEMS INC.

MATERIALS:

Student Learning Module

Pre-assessment
Before going any further, you should answer first this
pre-assessment section to gauge your prior knowledge.

The Best Buko Pie

Mang Carding opened a snacks restaurant and plans to serve buko (coconut)
pie as one of his main product offerings. He has to decide which maker of
buko pie to get the bulk of supply from. Having learned from his friends
about the popular buko pie outlets that can be found in Los Baños, Laguna,
he personally went there to compare the various brands of buko pie produced
in the town. He was surprised to see many buko pie makers. After getting
feedback from the local people, he narrowed down his options to three
brands The Original Buko Pie, Collete’s. and Lety’s. He realized he must
have a set of criteria for choosing from among the three alternative
brands. As such, he came up with the following to make a decision:
Buko taste - 4 points
Crust - 2 points
Overall taste - 2 points
Overall presentation (such as packaging) - 2 points
Total Score - 10 points

Question: What can you say about the decision-making technique that will be
used by Mang Carding so he can choose his supplier?

Managers normally face significant challenges in planning. They first

identify the key issues and urgent concerns in managing people, situations,
and events. They spend time and resources to get reliable and timely data
from various sources to examine those issues and concerns. They analyze and
synthesize results based on the data gathered. They draw out the main
findings and recommendations to solve the key issues and problems. Then
they apply that gained knowledge to plan in detail the appropriate
strategies and concrete actions. Given such challenges, managers use
techniques strategies and concrete actions. Given such challenges, managers
use techniques and tools to aid them in planning so as to come up with
appropriate strategies and solutions.
Planning Techniques and Tools – pertain to the different methods for
determining, analyzing, and predicting situations that will likely occur.
This is done in order to adequately prepare for these situations and to
respond to them in a timely and appropriate manner. Confronted with today’s
challenges of heightened competition among industry players and the dynamic
changes occurring in the environment, managers make use of planning
techniques and tools. The long-term success of an organization depends on
how well managers are able to use and apply their knowledge, skills and
talent for planning. Therefore, you must be familiar with the different
planning techniques and tools that managers use to achieve target
objectives.

Forecasting – it is essential for managers to be prepared for the future.

Managers must be proactive. They should be forward-looking and vigilant for
any sudden change in the environment. This is in contrast to being merely
reactive to events. Being reactive is passive attitude that does not
attempt to identify potential problems in the future. By being complacent,
a reactive person waits for things to happen and makes no attempt to
prepare for possible negative outcomes. For managers to become more
prepared, the following describes useful techniques to be able to
anticipate future events.

Forecasting – pertains to the use of scientific techniques to predict the

likelihood of certain events or factors to happen in the future. Managers
make use of findings from data analysts who gather sets of data and examine
these acquired information for patterns and trends. Data analysts make
certain assumptions for those patterns and trends that may occur at a
certain time in the future.

Forecasting techniques may be quantitative or qualitative in method. These

techniques are described below:
1. Quantitative Forecasting techniques - use statistical tools and
analyses to predict the future. They are used when the information
about the variable you are trying to forecast are available and can be
quantified. For instance, a marketing manager of a shoe manufacturing
company is tasked by top management to provide quarterly forecast of
the sales volume of the shoes for the coming year. Quarterly sales
volume forecast are important because they affect many areas related
to operations, such as production schedules, raw material purchasing
plans, inventory policies and sales quotas. To prepare the quarterly
sales forecasts, you can review the actual sales data for shoes in
previous periods, examine a pattern on the sales data, and then
extrapolate that sales pattern into the future. This procedure is
called the time series method. Figure 7.1 shows a graph, which is
helpful in forecasting with regular upward movement.

On the other hand, qualitative forecasting techniques make use of opinions

or perceptions from experts for prediction purposes. For instance, a panel
of experts may develop a consensus forecast of employment rate a year from
now. An advantage of the qualitative forecasting method is that it can be
applied for nonquantifiable data when historical data are not applicable or
available.

Contingency Planning – due to uncertainties and risks in the environment

that the future brings to any company, managers prepare contingency plans.
Contingency Planning is the process of identifying alternative courses of
action in the event that unforeseen or uncontrollable events take place.
Business contingency plans are prepared by managers in relation to
financial risks, market risks, production risks, labor risks, information
and communications risks, and natural disaster risks. Managers sometimes
refer to these contingency plans as Plan A, Plan B, or even Plan C as
alternative courses of action. Large companies that protect people’s safety
such as hospitals, or those that provide vital utilities such as power
firms, water service providers, and metro rail companies, are bound by
government regulators to prepare contingency plans in case of emergencies.
These companies have higher standards for accuracy and speed of recovery in
case of breakdown or service interruptions.

For instance, Metro Manila residents are aware of the possibility of an

intensity 7 earthquake, dubbed as the “Big One”, which may occur
unexpectedly at any time based on scientific studies quoted by the
Metropolitan Manila Development Authority (MMDA). To prepare for the “Big
One”, all institutions in Manila are required to conduct earthquake drills
and to prepare for announced by the MMDA corresponding to the four main
relocation areas where people should converge during the big earthquake.See
Figure 7.2)

Scenario Planning – involves pre-

dicting potential alternative
events that might happen. It
entails preparing resources and
actions to prevent or mitigate
the “shocks” from negative events.
At the same time, it helps to
Visualize the positive effects of
Seizing opportunities.

Scenario planning, therefore is

Similar to contingency planning
In preparing for unforeseen events.
However, scenario planning is more
Detailed and extensive in visualizing the alternative events that may take
place. For instance, the “worst case” scenario and the “best case” scenario
are both described in detail.

Scenario planning is often used in strategic

Planning wherein managers visualize alternative
Scenarios in crafting their long-term strategies
Managers apply the technique of scenario plan-
Ning when, for instance, they want to venture
Into new markets or launch new products. They
Explore multiple features and multiple perspec-
Tive when they map out in detail different sce-
Narios for their company. In picturing different scenarios, managers may
take any of the following four approaches: the inductive approach, the
deductive approach, the incremental approach, and the normative approach
(se Figure 7.3).

Inductive Approach - to scenario planning

Starts with a potential possibility based on
A familiar context but not yet a well-tested
Path, and then develops this route to grow
Out into several alternative pictures of
Potential possibilities.

Deductive Approach – to scenario planning

Starts with a general and well-tested concept
Or principle, then fleshes out this principle
Into several possible detailed applications
Or features.
Incremental Approach - involves a gradual development of possibilities that
usually starts with a general approach, then leads to another potential
approach, and so forth. The scenarios take many twists and turns.s
Normative Approach – involves developing possibilities emanating from a
major path and ultimately aimed toward a grand vision or an ideal end-goal.

In general, developing detailed scenarios as a planning technique

ultimately depends on the end-objectives of an institution and the
cognitive style (e.g. feeling vs. thinking, or sensation vs. intuition) of
the individuals who develop the finer details of the different scenarios.
For instance, some scenario planners would prefer five detailed narratives
to come up with good scenarios, while other would opt for just three to
four scenarios.

Benchmarking – technique is finding out what

Other organizations are doing well and then
Incorporating those “best practices” into the
Operations of one’s organization to improve its
Cost and effectiveness. It compares the methods
And approaches used by high performing companies
With those of one’s company. The technique is
Referred to as external benchmarking. Figure
7.4 depicts benchmarking in terms of comparing
And adjusting one’s performance with the per-
Formance of the best of the group.

The benchmarked activities may include the following:

1. How inventories are managed
2. How customer complaints are handled
3. How raw materials are purchased
4. How wastes are reduced and recycled
5. How preventive maintenance is performed
6. How factory defects are eliminated
7. Other practices that can be examined in terms of competitiveness

Take for instance a small hotel that can benchmark or learn from examining
the good housekeeping practices of the number one leader in the hotel
industry. Studying the practices of other companies may be done by
collecting information from published reports, visiting the Web sites of
the admired companies, holding interviews with industry experts, conducting
customer feedback survey, and arranging for field trips to the facilities
of other companies.

Managers can also learn from the best practices of other units within their
own organization. This technique is called internal benchmarking. Gathering
benchmarking data from within one’s company is relatively easier compared
to collecting data from other competing or noncompeting companies. For
instance, the Marketing Department can assess and learn from the effective
cost-cutting measures being adopted by the Finance Management.
ACTIVITY 3.1
1. What are the different techniques and tools in planning?
2. What are some examples on how these techniques and tools are applied
in business?
3. What have you understand in this module that can be applied in real
life scenario?