ORGANIZATION AND

MANAGEMENT
PART 2

PREPARED BY:

MR. CHRIS DAVIDSON LUALHATI

MR. MARK ANTHONY D. RELIGIOSO
Unit 3: PLANNING

IN THIS UNIT, you will learn what planning is all about and the accurate planning at different levels in a
firm. You will also learn the application of different planning tools and techniques.
 Lesson 1
Definition and Nature of Planning

Learning Objectives
At the end of this lesson, you should be able to:
1. describe what planning is and
2. explain its nature.

Overview
We’ll begin this lesson by defining planning and discussing its
nature. We’ll see why planning is considered as a crucial and
essential part of management.

Definition of Terms
Strategies – plan of action or policy designed to achieve a major or
overall aim
Goal – an idea of the future or desired result that a group of people
envision, plan and commit to achieve

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 What is Planning?
To try if you know how to make an organizational plan, do this activity:

Directions. Make a draft of a good plan for the following situations given below. Write your answer
on the space provided.

1st Scenario:
Your team was given a task to make an event that will promote Mental Health Awareness and your
target audience will be the elementary students. What kind of event should you exhibit to achieve
your goal with young audience?
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2nd Scenario:
The anniversary date of the organization you are leading is coming and as a tradition every
anniversary, there should be an event that will be for a cause. So, what are you planning to do to
make your organization’s anniversary more special than the previous years?
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 Planning is a process that involves the setting of the
organization’s goals, establishing for accomplishing those
goals and developing plans of action or means that
managers intend to use to achieve organizational goal.
Planning is a crucial and essential part of management.

Planning is important for the following reasons:

• Planning provides direction to all of the organization’s human resources – both managers and
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 goals, they would
coordinate their actions and collaborate well with one another.
• 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.
• Minimizing of wastes will result if there is proper coordination of activities due to planning; negative
practices, ineffectiveness and efficiencies could be easily detected and can be corrected or
eliminated.
• Establishing goals and standards during planning may be used for controlling, another necessary
managerial function.

Without planning, goals and standard will be absent and controlling will not be possible since there
will be no standard to compare or assess work effort.

The nature of planning can be understood by examining its four major aspects. They are as follow:
It is a contribution to objectives.
- Every plan and all its support should contribute to the achievement of the organization’s purpose
and objectives.
It is primacy among the manager’s tasks.
- Planning is the prime managerial function and it is proved by the fact that all other functions such
as organizing, staffing, leading and controlling are designed to support the accomplishment of the
enterprise’s objectives.
It is pervasiveness.
- Character and scope of planning may vary with each manager’s authority and with the nature of the
policies and plans outlined by superiors, but all managers must have some function of planning.
The efficiency of resulting plans
- Plans are efficient if they achieve their objective at a reasonable cost when such a cost is the measure
not only in terms of time, money or production but also in terms of satisfaction of the individual or
group.

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 Lesson 1: Definition and Nature of Planning

Name: Score:
Section: Date:

Directions. Answer the following questions. Write your answer on the space
provided below.

1. What is planning? Explain your answer briefly.

2. Why is planning a crucial and essential part of management?

3. What will happen if a team doesn’t have a plan?

4
 Lesson 1: Definition and Nature of Planning

Name: Score:
Section: Date:

Directions. Answer the following questions. Write your answer on the space provided for each item.

1. In your own words, define planning. Compare your definition with the given definitions in this
lesson and point out their differences and similarities.

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2. Explain the nature of planning.

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3. How can you say that a plan is efficient?

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 Lesson 2
Planning at Different Levels in the Firm

Learning Objectives
At the end of this lesson, you should be able to:
1. name and define the three planning types that take place
in the three hierarchical levels of managerial planning.

Overview
We’ll begin this lesson by discussing Strategic Planning,
Tactical Planning and Operational Planning.

Definition of Terms
Hierarchy – a system or organization in which people or groups are
ranked one above the other according to status or authority.

6
Think of a possible mission or goal if you are the leader of the following organization. Write
your answer on the space provided.

1. Peer Group

2. Art Group

3. Youth Organization

7
 Different levels in the firm are all engaged in planning; however, all the resulting plans must
be related to one another and directed toward the same goals. Planning at the different levels of
management include strategic planning, tactical planning and operational planning.

Top-Level Management Planning (Strategic Planning)

- Starts with defining the organization’s goals/ objectives, the major targets related to the
maintenance of the organization’s stability and its organizational culture, values and growth
improving its productivity, profitability, effectiveness and efficiency, among others.

Middle-Level Management Planning (Tactical Planning)

- Refers to a set of procedures for changing and transforming broad strategic goals and plans
into specific goals and plans that are applicable and needed in one unit/ portion of the
organization. It is focused on major actions that must be done by a unit in order to contribute
its share for the achievement of the strategic plan.

Frontline/ Lower-Level Management Planning (Operational Planning)

- Involves identifying the specific procedures and processes required at the lower levels of the
organization. This also involves routine tasks or tasks repeatedly done by the organization’s
lower level units.

Organization Mission

Organization Goals

Organization Objectives

Department Objectives

Division Objectives

Department Objectives

Individual Objectives

PLANNING HIEARCHY

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 Planning at Different Levels in the Firm

Name: Score:
Section: Date:

Directions. Answer the following questions. Write your answer on the space provided below.

1. Explain the three planning types that take place in the three hierarchical levels of managerial
planning.

2. Explain the relationship between planning and communication.

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 Planning at Different Levels in the Firm

Name: Score:
Section: Date:

Directions. Answer the following questions. Write your answer on the space provided for each
item.

1. If the strategic goal of your organization is the improvement of profitability, what routine tasks could
be included in your operational planning? Name some of these tasks.

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2. Who do you think are responsible for the organization’s strategic planning making decisions about
the long-term goals and strategies? Why?

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3. What are the major targets that you should consider if you are creating a goal or objective?

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 Lesson 3
APPLICATION OF PLANNING TOOLS AND TECHNIQUES

Learning Objectives
At the end of this lesson, you should be able to:
1. name and define the different planning tools and
techniques and
2. discuss how these tools and techniques can be applied.

Overview
We’ll begin this lesson by enumerating and defining the
different planning tools and techniques and how each works.

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Do you belong to an organization right now? Or have you experienced being a part of it?
What did you notice when an organization is planning for a future event? Put a check on the
space provided before each item if you have noticed the given statement.

______1. They are making surveys on what the members wanted to have on the future.

______2. Asking an adviser or some experts on what they can do for the future event.

______3. Preparing Plan A, B, C and so forth.

______4. Uses a chart to properly schedule the production processes and allocate resources.

______5. Compare themselves to other groups.

______6. Talk about the weaknesses, strengths and opportunities that were seen in the past events.

______7. Consider the schedule of those people who are needed for the preparation of the event
and on the event itself.

______8. Consider the possible changes such as weather.

______9. Thinking the possible results of the plan.

______10. Trying to search for the same activity undertaken by other organizations and make their
plan better than that.

If you have checked some items given above, I want to say “Great!”, you know why?
Because it means that the organizations where you belong or you’ve been a part of were
using techniques or tools when it comes to planning. Keep it up! Take a look at this chapter
to get more ideas about the techniques and tools you can use in planning.

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 For effective planning in today’s dynamic environment, different techniques and tools must be used
such as forecasting, contingency planning, scenario planning, benchmarking and participatory planning.

Forecasting – is a statement about the future. It is estimating future event by casting forward past data.
Forecasting is not guessing or prediction. Forecasting involves using several methods to determine possible
future outcomes for the business. Forecasts used may either be quantitative or qualitative. Opinions of
prominent economists are used in qualitative forecasts while mathematical calculations and statistical analyses
of surveys/ researches are used in quantitative forecasts. These, however, are just aids to planning and must
be treated with caution. As the name implies, forecast are predictions and may be inaccurate, at times, due to
errors of human judgement.

Features of Forecasting

1. Relates to future events

2. Needed for planning process because it devises the future course of action
3. Defines the probability of future events
4. Made by analyzing the past and present factors which are relevant for the functioning of an
organization
5. The analysis of various factors may require the use of statistical and mathematical tools and
techniques

Contingency Planning – Contingency plans must be prepared by managers, ready for implementation when
things do not turn out as they should be. Contingency factors called “trigger points” indicate when the prepared
alternative plan should be implemented.

Scenario Planning – is planning for future states of affairs. Several future states of affairs must be identified
and alternative plans must be prepared in order to be able to meet the changes or challenges that may occur in
each of the future scenario. Some examples of changes or challenges that may arise in future scenarios are
environmental pollution, human right violations, climate and weather changes, earthquake damages to
communities and others.

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Benchmarking – is to identify the weaknesses within an organization and improve upon them, with the idea
of becoming the "best of the best." The benchmarking process helps managers to find gaps in performance
and turn them into opportunities for improvement. Benchmarking enables companies to identify the most
successful strategies used by other companies of comparable size, type or regional location and then adopt
relevant measures to make their own programs more efficient. Most companies apply benchmarking as part
of a broad strategic process. For example, companies use benchmarking in order to find breakthrough ideas
for improving processes, to support quality improvement programs, to motivate staffs to improve performance
and to satisfy management's need for competitive assessments.

Participatory Planning – is a planning process that includes the people who will be affected by the plans and
those who will be asked to implement them in all planning steps. Creativity, increased acceptance and
understanding of plans are the positive results of this planning technique.

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 Application of Planning Tools and Techniques

Name: Score:
Section: Date:

Directions. Answer the following questions. Write your answer on the space provided
below.

1. Explain why an organization should apply various techniques when it comes to

planning.

2. Explain the different planning tools and techniques that were discussed in the previous
lesson.

15
 Application of Planning Tools and Techniques

Name: Score:
Section: Date:

A. Write the correct answer on the space provided before each number.

____________________1. It is a statement about the future.

____________________2. Mathematical calculations and statistical analyses of surveys/
researches are used in ________________ forecasts.
____________________3. Opinions of prominent economists are used in ___________ forecasts.
____________________4. What do you call the contingency factors in planning?
____________________5. It is planning for future states of affairs.
____________________6. This involves identifying the weaknesses within an organization and
improve upon them.
____________________7. It is a planning process that includes the people who will be affected
by the plans and those who will be asked to implement them in all planning steps.

B. Answer the following.

1. Enumerate the features of forecasting.

2. What do you think is the best technique or tool that you should use in planning? Justify your
answer.

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 REFERENCES

Altajeros, A.D., Cabrera, H.M., & Benjamin, R. (2016). Organization and Management. Quezon City:
Vibal Group, Inc.

Hashaw, (2019). What Is the Difference Between an Informal & Formal Organization? Chron.com
https://smallbusiness.chron.com/difference-between-informal-formal-organization-18282.html

Sharma, M. (2020). Informal Organisation: Types, Functions and Structure (With Diagram) Business
Management and Ideas

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