Managers often face overwhelming activities that can cloud their judgment. When confronted with multiple simultaneous situations, it is easy to lose sight of important concerns. To minimize mistakes in decision-making, planning is essential. A plan provides a methodical way of achieving desired results, serving as a guide in the implementation of activities. Without a plan, minor tasks may receive undue attention, hindering the accomplishment of objectives.
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Definitions of Planning
Various experts define planning in ways that suit specific purposes.
For our purpose, planning can be defined as selecting the best course of action to achieve the desired result. The primary focus is on the desired result, with the chosen course of action being the means to realize the goal.
In simple terms, planning means deciding the best way to get what you want. The main focus is on what you want to achieve, and then figuring out the steps to get there.
Planning at Various Management Levels
Engineer managers can occupy positions at different management levels, each requiring specific planning activities.
Top management is involved in strategic planning, which determines the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. This level of planning considers the entire company, its objectives, and its resources. The output of strategic planning is a strategic plan that outlines long-range goals and the actions needed to achieve them.
Example: The CEO and senior executives meet to discuss the company’s vision for the future. The strategic plan serves as a roadmap, detailing the steps needed to reach the company’s vision of sustainability, ensuring everyone in the organization knows their role in achieving these long- range goals.
Middle management engages in intermediate planning, determining the contributions subunits
can make with allocated resources. This planning supports the strategic plan by setting goals for subunits and creating plans to achieve them. Example: Increasing sales of 30%. They analyze the strategic plan set by top management to understand how their specific regions or departments can contribute to the company's goal of increasing online sales by 30% over the next two years.
Lower management focuses on operational planning, determining how specific tasks can be accomplished on time with available resources. This planning supports both the strategic and intermediate plans.
Example: Production supervisors and team leaders engage in operational planning. By focusing on operational planning, lower management ensures that day-to-day activities align with both the strategic goals set by top management and the intermediate goals set by middle management.
The Planning Process
The planning process involves several steps, depending on the management level. Generally, it includes:
1. setting goals
The first step in the planning process is to establish goals. Goals provide a sense of direction and purpose, guiding the organization towards its desired outcomes. Clear goals help ensure that everyone within the organization understands their role in achieving the overall objectives.
2. developing strategies or tactics to reach those goals
Once goals are set, the next step is to develop strategies or tactics to achieve them. (Pinagkaibahan hit strategies and tactics). Strategies are long-term plans formulated by top management to ensure that the organization reaches its objectives. Tactics, on the other hand, are short-term actions taken by middle and lower management to address immediate challenges and support the overall strategies. Tactics are more focused and specific, often involving day-to-day operations. 3. determining the resources needed; and
Resources include both human (personnel) and nonhuman (equipment, materials)
elements. The quality and quantity of these resources must be accurately assessed to avoid wastage and ensure optimal performance.
4. setting standards.
Standards are benchmarks or criteria against which actual performance is compared.
They provide a way to monitor progress and make necessary adjustments if performance deviates from the plan. Standards can be quantitative, such as production targets, or qualitative, such as customer satisfaction levels.
For instance, a company might set a standard for the minimum number of units produced per worker per day. If actual production falls below this standard, the company can investigate the cause and take corrective action, such as additional training or process improvements.
Types of Plans
Each type serves a specific purpose and helps in addressing different aspects of organizational management.
Functional Area Plans
Plans may be prepared according to the needs of the different functional areas. Among the types of functional area plans are the following: 1. Marketing plan- this is the written document or blueprint for implementing and controlling an organization's 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 - it 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 company's strategic plan. Plans With Time Horizon:
1. Short-Range Plans: These plans cover a period of less than one year and are primarily concerned with the immediate tasks and goals. First-line supervisors and lower management typically handle these plans. 2. Long-Range Plans: These plans span more than one year and are undertaken by middle and top management. They focus on achieving long-term goals and setting the direction for the organization’s future.
Plans According to Frequency of Use:
1. Standing Plans: These plans are used repeatedly in recurring situations and provide consistent guidance for managers. They include: o Policies: Broad guidelines to aid managers in decision-making about recurring situations. o Procedures: Detailed series of actions to be taken in specific situations. o Rules: Specific statements that either require or forbid certain actions. 2. Single-Use Plans: These plans are developed for unique, non-recurring situations and are not intended for repeated use. They include: o Budgets: Plans that set forth projected expenditures for certain activities and explain where the required funds will come from. o Programs: Single-use plans designed to coordinate a large set of activities. o Projects: Smaller in scope than programs, projects are single-use plans prepared to support a specific program or initiative.
MAKING PLANNING EFFECTIVE
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 the planning barriers 2 use of aids to planning -- The planning barriers, according to Plunkett and Attner, are as follows: potential obstacles that could hinder the planning process 1. manager's 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: Utilize tools and resources 1. Gather as much information as possible 2. Develop multiple sources of information 3. Involve others in the planning process
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Summary
Planning is basically strategizing. Technical activities require effective planning to
achieve objectives and goals. Planning involves various steps and is performed at different management levels. Plans can be classified by functional areas, time horizons, and frequency of use, and each type of plan consists of specific parts that engineer managers must understand. Effective planning involves recognizing and overcoming barriers and using aids to ensure success.
