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:

  1. Repetitiveness — is the extent to which the plan is used over and over again. (Plan used only once/Plan used many times)
  2. 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)
  3. 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)
  4. 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?

  1. Corporate planning is not integrated into the total management system.
  2. There’s a lack of understanding of the different steps of the planning process.
  3. Management at different levels in the organization has not has not properly engaged in or contributed to planning activities.
  4. Responsibility for planning is wrongly vested solely in the planning department.
  5. Management expects that plans developed will be realized with little effort.
  6. In starting formal planning, too much is attempted at once.
  7. Management fails to operate by the plan.
  8. Financial projections are confused with planning.
  9. Inadequate inputs are used in planning.
  10. 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.

  1. What types of people does the organization need to reach its objectives?
  2. How many of each type are needed?
  3. What steps should the organization take to recruit and select such people?
  4. Can present employees be further trained to fill future needed positions?
At what rate are employees being lost to other organizations?
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