Module 3 Planning Technical Activities PDF

PLANNING-TECHNICAL ACTIVITIES  CONTENTS The Nature of Planning Types of Plans Planning Defined Making Planning Effective Planning at Various Management Level The Planning Process PLANNING TECHNICAL ACTIVITIES If managing...

PLANNING-TECHNICAL ACTIVITIES  CONTENTS The Nature of Planning Types of Plans Planning Defined Making Planning Effective Planning at Various Management Level The Planning Process PLANNING TECHNICAL ACTIVITIES If managing an organization is to be pursued vigorously, planning will constitute the most important activity. Managers who plan are afforded with the opportunity to carefully analyze situations which directly contribute to effective decision-making. The engineer manager, regardless of his management level, will have to devote some of his time to planning. The higher the management level the engineer manager is in, the more sophisticated his planning activity becomes. THE NATURE OF PLANNING There are many instances when managers are overwhelmed by various activities which at times becloud his judgment. This must be expected since anybody who is confronted by several situations happening simultaneously will loose sight of the more important concerns. To minimize mistakes in decision-making, planning is undertaken. A plan, which is the output of planning, provides a methodical way of achieving desired results. THE NATURE OF PLANNING In the implementation of activities, the plan serves as a useful guide. Without the plan, some minor tasks may be afforded major attention which may, later on, hinder the accomplishment of objectives. THE NATURE OF PLANNING An example of the difficulty of not having a plan is illustrated below. ❖ The management of an engineering firm was able to identify the need to hire additional three employees. The manager proceeded to invite applicants, screen them, and finally hired three of them. ❖ When the hiring expense report was analyzed, it involved more than double the amount spent by other firms in hiring the same number of people. ❖ When an inquiry was made, it was found out that the manager committed some errors of judgment. ❖ For instance, he used an expensive advertising layout in a newspaper when a simple message will do. ❖ Also, it was found out that the absence of a hiring plan contributed to the high cost of hiring. PLANNING DEFINED Planning, according to Nickels and others, refers to "the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives." This definition is useful because it relates the future to what could be decided now. PLANNING DEFINED Aldag and Stearns, on the other hand, define planning as "the selection and sequential ordering of tasks required to achieve an organizational goal." This definition centers on the activity required to accomplish the goals. PLANNING DEFINED The definition of Cole and Hamilton provides a better guide on how to effectively perform this vital activity. Planning, according to them is "deciding what will be done, who will do it, where, when and how it will be done, and the standards to which it will be done." PLANNING DEFINED For our purpose, it will suffice to define planning as selecting the best course of action so that the desired result may be achieved. It must be stressed that the desired result takes first priority and the course of action chosen is the means to realize the goal. PLANNING AT VARIOUS MANAGEMENT LEVEL Since engineer managers could be occupying positions in any of the various management levels, it will be useful for them to know some aspects of planning undertaken at the different management levels. Planning activities undertaken at various levels are as follows: 1. Top Management Level - strategic planning 2. Middle Management Level - intermediate planning 3. Lower Management Level - operational planning PLANNING AT VARIOUS MANAGEMENT LEVEL Strategic Planning The term strategic planning refers to the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. The top management of any firm is involved in this type of planning. In strategic planning, the whole company is considered, specifically its objectives and current resources. The output of strategic planning is the strategic plan which spells out "the decision about long-range goals and the course of action to achieve these goals.” PLANNING AT VARIOUS MANAGEMENT LEVEL Intermediate Planning Intermediate planning refers to "the process of determining the contributions that subunits can make with allocated resources." This type of planning is undertaken by middle management. Under intermediate planning, the goals of a subunit are determined, and a plan is prepared to provide a guide to the realization of the goals. The intermediate plan is designed to support the strategic plan. PLANNING AT VARIOUS MANAGEMENT LEVEL Operational Planning The term operational planning refers to "the process of determining how specific tasks can best be accomplished on time with available resources." This type of planning is a responsibility of lower management. It must be performed in support of the strategic plan and the intermediate plan. PLANNING AT VARIOUS MANAGEMENT LEVEL PLANNING AT VARIOUS MANAGEMENT LEVEL THE PLANNING PROCESS The process of planning consists of various steps depending on the management level that performs the planning task. Generally, however, planning involves the following: 1. Setting organizational, divisional, or unit goals 2. Developing strategies or tactics to reach those goals 3. Determining resources needed and 4. Setting standards. THE PLANNING PROCESS Setting Organizational, Divisional, or Unit Goals The first task of the engineer manager is to provide a sense of direction to his firm (if he is the chief executive), to his division (if he heads a division), or to his unit (if he is a supervisor). The setting of goals provide an answer to the said concern. If everybody in the firm (or division or unit, as the case may be) is aware of the goals, there is a big chance that everybody will contribute his share in the realization of such goals. Goals may be defined as the "precise statement of results sought, quantified in time and magnitude, where possible. THE PLANNING PROCESS THE PLANNING PROCESS Developing Strategies or Tactics to Reach Goals After determining the goals, the next task is to devise some means to realize them. The ways to realize the goals are called strategies and these will be the concern of top management. The middle and lower management will adapt their own tactics to implement their plans. A strategy may be defined as "a course of action aimed at ensuring that the organization will achieve its objectives. An example of a strategy is as follows: ❖ The decision of a construction firm's management to diversify its business by engaging also in the trading of construction materials and supplies. THE PLANNING PROCESS Developing Strategies or Tactics to Reach Goals When the above-mentioned strategy is implemented, it may help the construction firm realize substantial savings in the material and supply requirements used in their construction activities. The firm will also have greater control in the timing of deliveries of materials and supplies. A tactic is a short-term action taken by management to adjust to negative internal or external influences. They are formulated and implemented in support of the firm's strategies. The decision about short-term goals and the courses of action are indicated in the tactical plan. An example of a tactic is the hiring of contractual workers to augment the company's current workforce. THE PLANNING PROCESS Determining Resources Needed When particular sets of strategies or tactics have been devised, the engineer manager will, then, determine the human and nonhuman resources required by such strategies or tactics. Even if the resource requirements are currently available, they must be specified. The quality and quantity of resources needed must be correctly determined. Too much resources in terms of either quality or quantity will be wasteful. Too little will mean loss of opportunities for maximizing income. To satisfy strategic requirements, a general statement of needed resources will suffice. The specific requirements will be determined by the different units of the company. THE PLANNING PROCESS Determining Resources Needed To illustrate: Suppose the management of a construction firm has decided, in addition to its current undertakings, to engage in the trading of construction materials and supplies. A general statement of required resources will be as follows: A new business unit will be organized to deal with the buying and selling of construction materials and supplies. The amount of P50 million shall be set aside to finance the activity. Qualified persons shall be recruited for the purpose. THE PLANNING PROCESS Setting Standards The standards for measuring performance may be set at the planning stage. When actual performance does not match with the planned performance, corrections may be made or reinforcements given.“ THE PLANNING PROCESS Setting Standards A standard may be defined as "a quantitative or qualitative measuring device designed to help monitor the performances of people, capital goods, or processes.“ An example of a standard is the minimum number of units that must be produced by a worker per day in a given work situation. TYPES OF PLANS Plans are of different types. They may be classified in terms of functional areas, time horizon, and frequency of use. TYPES OF PLANS 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. TYPES OF PLANS Plans with Time Horizon Plans with time horizon consist of the following: 1. Short-Range Plans - these are plans intended to cover a period of less than one year. First-line supervisors are mostly concerned with these plans. 2. Long-Range Plans - these are plans covering a time span of more than one year. These are mostly undertaken by middle and top management. TYPES OF PLANS Plans According to Frequency of Use According to frequency of use, plans may be classified as: standing plans and single-use plans. TYPES OF PLANS Plans According to Frequency of Use Standing Plans - these are plans that are used again and again, and they focus on managerial situations that recur repeatedly. Standing plans may be further classified as follows: 1. Policies - they are broad guidelines to aid managers at every level in making decisions about recurring situations or function. 2. Procedures - they are plans that describe the exact series of actions to be taken in a given situation. 3. Rules - they are statements that either require or forbid a certain action. TYPES OF PLANS Plans According to Frequency of Use Single-Use Plans - these plans are specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated. Single-use plans may be further classified as follows: 1. Budget - according to Weston and Brigham, is "a plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from." 2. Program - is a single-use plan designed to coordinate a large set of activities. 3. Project - is a single-use plan that is usually more limited in scope than a program and is sometimes prepared to support a program. TYPES OF PLANS PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS The engineer manager may be familiar with engineering plans, knowing the details from beginning to end. However, the ever present possibility of moving from one management level to the next and from one functional area to another presses the engineer manager to be familiar as well with other functional area plans. PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS The Contents of the Marketing Plan The structure and content of marketing plans vary depending on the nature of the organizations adapting them. William Cohen maintains that the following must be included in the marketing plan: 1. The Executive Summary - which presents an overall view of the marketing project and its potential. 2. Table of Contents 3. Situational Analysis and Target Market 4. Marketing Objectives and Goals 5. Marketing Strategies 6. Marketing Tactics 7. Schedules and Budgets 8. Financial Data and Control PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS The Contents of the Production Plan The production plan must contain the following: 1. The amount of capacity the company must have. 2. How many employees are required. 3. How much material must be purchased. PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS The Contents of the Financial Plan The components of the financial plan are as follows: 1. An analysis of the firm's current financial condition as indicated by an analysis of the most recent statements 2. A sales forecast 3. The capital budget 4. The cash budget 5. A set of pro forma (or projected) financial statements 6. The external financing plan PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS The Contents of the Human Resource Plan The human resources plan must contain the following: 1. Personnel requirements of the company 2. Plans for recruitment and selection 3. Training plan 4. Retirement plan PARTS OF THE STRATEGIC PLAN The strategic plan must contain the following: 1. Company or Corporate Mission - refers to the "strategic statement that identifies why an organization exists, its philosophy of management, and its purpose as distinguished from other similar organizations in terms of products, services, and markets."' 2. Objectives or goals 3. Strategies 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 MAKING PLANNING EFFECTIVE The planning barriers, according to Plunkett and Attner, are as follows: 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 MAKING PLANNING EFFECTIVE Among the aids to planning that may be used are: 1. Gather as much information as possible 2. Develop multiple sources of information 3. Involve others in the planning process SUMMARY Technical activities, like other activities, require effective planning, i.e., if objectives and goals are to be realized. A plan is a methodological way of achieving results. Planning is undertaken at various management levels. Various steps are required in the planning process depending on the management level. SUMMARY Plans may be classified in terms of functional areas, time horizon, and frequency of use. Plans consist of various parts that the engineer manager must be familiar with. Plans can be made effective by recognizing the planning barriers and making use of aids to planning.  END ENG R. FH ER NO AH N. LEO NG SO N | EM 1 0 1 | UNI V ER SI TY O F SAN AG USTI N - I LO I LO