DEFINITION AND NATURE OF PLANNING RIA MAE MILLADO

DEFINITION AND NATURE OF PLANNING RIA MAE MILLADO

PLANNING v. Is the first management function and for good reason. It is a crucial and essential part of management. v. A process that involves the setting of the organization’s goals, establishing strategies for accomplishing those goals, and developing plans of action

Planning is important for the following reasons: v Planning provides direction to all of the organization’s human resources- both managers as well as employees. v Planning is important because it reduces uncertainty; it compels management to consider future events that may affect their company. v Minimizing of wastes will result if there is a proper coordination of activities due to planning; negative practices, ineffectiveness, and inefficiencies could easily detected and can be corrected or eliminated. v Establishing goals and standards during planning maybe used for controlling, another necessary managerial function.

Types of Plans v Strategic Plans- plans that establish the organization’s overall goals and apply to the entire firm; they are board in scope and are the responsibility of the CEO, president, and general manager of the company v Operational Plans- plans that apply to a particular unit area only; their scope is narrow; achievement of company goals may not be achieved if operational plans are not clear. v Long- term Plans- plans that go beyond three years ; everyone must understand the organization’s long- term plans to avoid confusion that may divert the organization members’ attention.

v Short- term Plans- plans that cover one year or less ; such plans must lead toward the attainment of long- term goals and are the responsibility of the United/Department needs. v Directional Plans-plans that flexible or give general guidelines only; although flexible and general, these plans must still be related to the strategic plans v Single use plans- plans used or stated ones only as this applies to the entire organization; refer to the strategic plans of the firm. v Standing Plans- plans that are ongoing; provide guidance different activities done repeatedly; refer to the identified activities of operational plans.

Steps in planning Planning is a process and, such, involves steps-from carrying out its purpose, setting of goals/ objectives, and determining what should be done to accomplish them. Schermerhorn (2008) gave 5 steps in the planning process: 1. Define your goals/ objectives by the identifying desired outcomes/ results in very specific ways. 2. Determine where you stand in relation to set goals/ objectives ; know your strengths and weaknesses. 3. Develop premises regarding future conditions; anticipate future events, generate alternative” scenarios” for what may happen; identify for each scenario that may help or hinder progress toward your goals/ objectives; 4. Analyze and choose among action alternatives; list and carefully evaluate possible actions and choose the alternative most likely to accomplish goals/ objectives. 5. Implement the plan and evaluate results; take corrective action and revise plans as needed.