Plan — a specific action proposed to help the organization achieve its objectives. Developing logical plans and taking the steps necessary to put the plans into action.
Dimensions of Plans:
- Repetitiveness — is the extent to which the plan is used over and over again. (Plan used only once/Plan used many times)
- Time — length of time the plan covers. Strategic plans cover long periods of time and tactical plans cover short periods of time. (Long-term/Short-term)
- Scope — portion of the total management system at which the plan is aimed. Master plan (cover the entire open management system: the organizational environment, inputs, outputs, process). Other plans cover only a portion of the management system. (Entire/ Small part of the system)
- Level — level of the organization at which the plan is aimed. Top-level plans are designed for the organization’s top management, whereas middle and lower plans are designed for middle and lower management. (Upper level/Lower level)
Standing Plans — are used over and over again because they focus on organizational situations that occur repeatedly.
- Policy — is a standing plan that furnishes broad guidelines for taking actions consistent with reaching organizational objectives.
- Procedure — is a standing plan that outlines a series of related actions that must be taken to accomplish a particular task.
- Rule — standing plan that designates specific required action.
Single-Use Plans — are used only once (or at most several times), because they focus on unique or rare situations within organization.
- Programs — is a single-use plan designed to carry out a special project within the organization
- Budgets — single-use financial plan that covers a specific length of time. It details how funds will be spent on labor, raw materials, capital goods, information systems, marketing etc.
Why Plans Fail?
- Corporate planning is not integrated into the total management system.
- There’s a lack of understanding of the different steps of the planning process.
- Management at different levels in the organization has not has not properly engaged in or contributed to planning activities.
- Responsibility for planning is wrongly vested solely in the planning department.
- Management expects that plans developed will be realized with little effort.
- In starting formal planning, too much is attempted at once.
- Management fails to operate by the plan.
- Financial projections are confused with planning.
- Inadequate inputs are used in planning.
- Management fails to grasp the overall planning process.
Input planning — the development of proposed action that will furnish sufficient and appropriate organizational resources for reaching established organizational objectives.
Plant Facilities Planning — involves determining the type of buildings and equipment an organization needs to reach its objectives. A major part of this determination is called Site Selection — deciding where a plant facility should be located.
- Profit (Market Location, Competition)
- Operating Costs (Suppliers, Utilities, Wages, Taxes)
- Investment Costs (Land/Development)
- Others (Transportation, Laws, Labor, Unionization, Living Conditions, Community Relations)
Human Resource Planning — involves reflecting on organizational objectives to determine overall human resource needs; comparing these needs to the existing human resource inventory to determine net human resource needs; and finally seeking appropriate organization members to meet the net human resource needs.
- What types of people does the organization need to reach its objectives?
- How many of each type are needed?
- What steps should the organization take to recruit and select such people?
- Can present employees be further trained to fill future needed positions?