ORGANIZATION AND MANAGEMENT

John Patrick S. Borres

MA. Cecilia R. Dordas Patrick Bryan Miranda
Teacher Mara Antonette Sayritan
Vincent Domo-os
Reporter
Definition and Nature of Planning
The following present the importance of planning:
•Planning provides direction to all of the
organization's human resources-both managers as
well as employees. If they know what their firm or
their work unit is trying to achieve and what activities
they should engage in to be able to contribute to the
achievement of the firm's set vision, mission, goals,
and objectives, they will coordinate their actions and
collaborate well with one another.
The following present the importance of planning:

• Planning is important because it reduces

uncertainty; it compels managers to consider
future events that may affect their company.
Anticipating changes and their impact will
help managers and other workers to react to
such changes appropriately.
The following present the importance of planning:
•Minimizing of wastes will result if
there is proper coordination of activi-
ties due to planning; negative practices,
ineffectiveness, and inefficiencies could
be easily detected and can be corrected
or eliminated.
The following present the importance of planning:
• Establishing goals and standards during
planning may be used for controlling, another
necessary managerial function.
Without planning, goals and standards will be
absent and controlling will not be possible.
Relationship of Planning to Individual
and Organizational Performance
Is there a clear relationship between planning
and performance? Although numerous
researchers have shown a generally positive
relationship between planning and performance,
it would not be advisable, however, to judge that
organizations or individuals who formally plan
have better performance compared to those
who do not plan.
There are other environmental factors that also affect
individual or organizational performance, thus, result in
reducing the impact of planning to performance. It is
safer to say that the relationship between planning and
performance is mainly due to association of systematic
planning with the excellent financial status of the
organization and higher return of investments, higher
income, and profit that could be traced to the excellent
performance of its human resources.
Finally, the planning-performance relationship
could also be associated with the time spent in
preparing and executing a formal organizational
or individual plan. A well-thought-out plan
requires a longer period of preparation; its
execution or application must also be done for a
certain period of time-months or years before it
begins to affect performance.
Definition of Terms

Planning - is a process that involves the setting of the organization's

goals, establishing strategies for accomplishing those goals, and
developing plans of action or means that managers intend to use to
achieve organizational goals
Goal-setting - is the identification of targets or desired ends that
management wants to reach
Vision - a mental image of what the organization will be in the
future, as desired by the company management and employees
Mission basic purpose of an organization and range of its operations
Objectives - steps needed in order to attain desired ends
Difference between Goals and Plans

Goals are the targets or desired ends that

management wants to reach, while plans are the
actions or means that administrators/managers
intend to use to achieve organizational goals. In short,
goals serve as the foun dation of planning. Goals
precede plans because knowing the desired targets is
a must before establishing plans for reaching them.
Types of Plans
Comprehensiveness refers to the completeness of
planning coverage: for example: it may start from plans that
cover the entire organization, called strategic plans, up to
operational plans that apply to a particular operational area
only. The more comprehensive the plan is, the better, as this
could completely guide both the employer and employee
toward the fast achievement of company goals. A plan may
be long-term, or covering more than three years, or short-
term, covering one year or less. Top-level management
usually sets long-range plans, while lower-level management
focuses on short-term goals.
Specificity refers to very detailed, clearly defined plans wherein
objectives are clearly stated and can easily be understood. Simple
language must be used in order to facilitate understanding of the plan.
Frequency of use refers to the number of times or instances a plan may be
used. For example, strategic plans have a single use, while operational plans are
usually standing or are used frequently or several times. Referring to set plans is
often necessary to ensure that all plans are carried out, thus, hastening the
achievement of the organization's goals. Managers meet many planning challenges
as they go about their tasks and direct their company's affairs. In some
organizations, the planning environment is steady, but in others, it is dynamic, so,
different types of plans are made to meet organizational needs. Different types of
planning include the following:
Strategic plans - plans that establish the organization's overall
goals and apply to the entire firm; they are broad in scope and are
the responsibility of the CEO, president, and general manager of
the company.
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.

Long-term 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.
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 unit/department heads.
Directional plans - plans that are flexible or give general
guidelines only; although flexible and general, these plans must still
be related to the strategic plans.
Specific plans - plans that are clearly stated and which have no
room for interpretation; language used must be very
understandable.
Single-use plans - plans used or stated once only as this applies
to the entire organization; refer to the operational plans of the
firm.
Standing plans - plans that are ongoing: provide guidance for
different activities done repeatedly; refer to the identified
activities of operational plans.
Steps in Planning
Planning is a process and, as such, involves steps from carrying
out its purpose, setting goals/objectives, and determining what
should be done to accomplish them. Schermerhorn (2008) gave
five steps in the planning process:
1. Define your goals/objectives by 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 things 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.
Definition of Terms

Organizational Plan - a comprehensive plan for the entire organization

covering time frame, specific purpose, frequency of use, and others
Strategic Plan - plans that establish the organization's overall goals and
apply to the entire firm; they are broad in scope and are the responsibility of
the organization's President or Chief Operating Officer, and several managers
Operational Plan - plans that apply to a particular unit area only; their
scope is narrow and prepared by lower level managers