PLANNING TECHNICAL ACTIVITIES

If managing an organization is to be pursued vigorously, planning will constitute the most

important activity. Managers who plan are afforded with the opportunity to carefully analyze
situations which directly contribute to effective decision-making.
The engineer manager, regardless of his management level, will have to devote some of his
time to planning. The higher the management level the engineer manager is in, the more
sophisticated his planning activity becomes. Why and how this is so shall be discussed in this
chapter.

THE NATURE OF PLANNING

There are many instances when managers are overwhelmed by various activities which at
times becloud his judgment. This must be expected since anybody who is confronted by
several situations happening simultaneously will loose sight of the more important concerns.
To minimize mistakes in decision-making, planning is undertaken.
A plan, which is the output of planning, provides a methodical way of achieving desired
results. In the implementation of activities, the plan serves as a useful guide. Without the plan,
some minor tasks may be afforded major attention which may, later on, hinder the
accomplishment of objectives.

PLANNING DEFINED
Various experts define planning in various ways, all of which are designed to suit specific
purposes.
Planning, according to Nickels and others, refers to "the management function that involves
anticipating future trends and determining the best strategies and tactics to achieve
organizational objectives." This definition is useful because it relates the future to what could
be decided now.
Aldag and Stearns, on the other hand, define planning as "the selection and sequential
ordering of tasks required to achieve an organizational goal." This definition centers on the
activity required to accomplish the goals.
The definition of Cole and Hamilton provides a better guide on how to effectively perform this
vital activity. Planning, according to them is "deciding what will be done, who will do it, where,
when and how it will be done, and the standards to which it will be done."
For our purpose, it will suffice to define planning as selecting the best course of action so that
the desired result may be achieved. It must be stressed that the desired result takes first
priority and the course of action chosen is the means to realize the goal.

PLANNING AT VARIOUS MANAGEMENT LEVELS

Since engineer managers could be occupying positions in any of the various management
levels, it will be useful for them to know some aspects of planning undertaken at the different
management levels.
Planning activities undertaken at various levels are as follows:
1. Top management level- strategic planning
2. Middle management level–intermediate planning
3. Lower management level – operational planning.
Strategic Planning operational plan
The term strátegic planning refers to the process of determining the major goals of the
organization and the policies and strategies for obtaining and using resources to achieve those
goals. The top management of any firm is involved in this type of planning.
In strategic planning, the whole company is considered, specifically its objectives and current
resources. The output of strategic planning is the strategic plan which spells out "the decision
about long-range goals and the course of action to achieve these goals."
Intermediate Planning
Intermediate planning refers to "the process of determining the contributions that subunits
can make with allocated resources." This type of planning is undertaken by middle
management.
Under intermediate planning, the goals of a subunit are determined and a plan is prepared to
provide a guide to the realization of the goals. The intermediate plan is designed to support
the strategic plan.

Operational Planning
The term operational planning refers to "the process of determining how specific tasks can
best be accomplished on time with available resources." This type of planning is a
responsibility of lower management. It must be performed in support of the strategic plan and
the intermediate plan.

THE PLANNING PROCESS

The process of planning consists of various steps depending on the management level that
performs the planning task. Generally, however, planning involves the following:
1. Setting organizational, divisional, or unit goals
2. Developing strategies or tactics to reach those goals
3. Determining resources needed and
4. Setting standards.
Setting Organizational, Divisional, or Unit Goals
The first task of the engineer manager is to provide a sense of direction to his firm (if he is the
chief executive), to his division (if he heads a division), or to his unit if he is a supervisor). The
setting of goals provide an answer to the said concern. If everybody in the firm (or division or
unit, as the case may be) is aware of the goals, there is a big chance that everybody will
contribute his share in the realization of such goals.
Goals may be defined as the "precise statement of results sought, quantified in time and
magnitude, where possible.
Developing Strategies or Tactics to Reach Goals
After determining the goals, the next task is to devise some means to realize them. The ways
to realize the goals are called strategies and these will be the concern of top management. The
middle and lower management will adapt their own tactics to implement their plans.
A strategy may be defined as "a course of action aimed at ensuring that the organization will
achieve its objectives.
A tactic is a short-term action taken by management to adjust to negative internal or external
influences, they are formulated and implemented in support of the firm's strategies. The
decision about short-term goals and the courses of action are indicated in the tactical plan.
Determining Resources Needed
When particular sets of strategies or tactics have been devised, the engineer manager will,
then, determine the human and nonhuman resources required by such strategies or tactics.
Even if the resource requirements are currently available, they must be specified.
The quality and quantity of resources needed must be correctly determined. Too much
resources in terms of either quality or quantity will be wasteful. Too little will mean loss of
opportunities for maximizing income.
To satisfy strategic requirements, a general statement of needed resources will suffice. The
specific requirements will be determined by the different units of the company.

Setting Standards
The standards for measuring performance may be set at the planning stage. When actual
performance does not match with the planned performance, corrections may be made or
reinforcements given.
A standard may be defined as "a quantitative or qualitative measuring device designed to help
monitor the performances of people, capital goods, or processes."
TYPES OF PLANS
Plans are of different types. They may be classified in terms of functional areas, time horizon,
and frequency of use.
Functional Area Plans
Plans may be prepared according to the needs of the different functional areas. Among the
types of functional area plans are the following:
1. Marketing plan- this is the written document or blueprint for implementing and controlling
an organization's marketing activities related to a particular marketing strategy,
2. Production plan- this is a written document that states the quantity of output a company
must produce in broad terms and by product family.
3. Financial plan -it is a document that summarizes the current financial situation of the firm,
analyzes financial needs, and recommends a direction for financial activities.
4. Human resource management plan- it is a document that indicates the human resource
needs of a company detailed in terms of quantity and quality and based on the requirements
of the company's strategic plan.

Plans with Time Horizon

Plans with time horizon consist of the following:
1. Short-range plans- these are plans intended to cover a period of less than one year. First-
line supervisors are mostly concerned with these plans.
2. Long-range plans - these are plans covering a time span of more than one year. These are
mostly undertaken by middle and top management.
Plans According to Frequency of Use
According to frequency of use, plans may be classified as:
1. standing plans and
2. Single-use plans.
Standing Plans. These are plans that are used again and again, and they focus on
managerial situations that recur repeatedly,
Standing plans may be further classified as follows:
1. Policies- they are broad guidelines to aid managers at every level in making decisions
about recurring situations or function.
2. Procedures- they are plans that describe the exact series of actions to be taken in a given
situation.
3. Rules-they are statements that either require or forbid a certain action.
Single-Use Plans. These plans are specifically developed to implement courses of action that
are relatively unique and are unlikely to be repeated.
Single-use plans may be further classified as follows:
1. Budgets
2. Programs, and
3. Projects.
A budget, according to Weston and Brigham, is "a plan which sets forth the projected
expenditure for a certain activity and explains where the required funds will come from.
A program is a single-use plan designed to coordinate a large set of activities.
A project is a single-use plan that is usually more limited in scope than a program and is
sometimes pre- pared to support a program.

PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS

The engineer manager may be familiar with engineering plans, knowing the details from
beginning to end. However, the ever present possibility of moving from one management level
to the next and from one functional area to another presses the engineer manager to be
familiar as well with other functional area plans.
The Contents of the Marketing Plan
 The structure and content of marketing plans vary depending on the nature of the
organizations adapting them. William Cohen maintains that the following must be included in
the marketing plan:
1. The Executive Summary– which presents an overall view of the marketing project and its
potential.
2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control

The Contents of the Production Plan

The production plan must contain the following;
1. The amount of capacity the company must have
2. How many employees are required?
3. How much material must be purchased?

The Contents of the Financial Plan

The components of the financial plan are as follows,
1. An analysis of the firm's current financial condition as indicated by an analysis of the most
recent statements
2. A sales forecast
3. The capital budget
4. The cash budget
5. A set of pro forma (or projected) financial statement.
6. The external financing plan

Contents of the Human Resources Plan

The human resources plan must contain the following:
1. Personnel requirements of the company.
2. plans for recruitment and selection
3. training plan
4. retirement plan

PARTS OF THE STRATEGIC PLAN

The strategic plan must contain the following:
1. Company or corporate mission
2. Objectives or goals
3. Strategies
Company of corporate mission refers to the "strategic statement that identifies why an
organization exists, its philosophy of management, and its purpose as distinguished from other
similar organizations in terms of products, services, and markets."

MAKING PLANNING EFFECTIVE

Planning is done so that some desired results may be achieved. At times, however, failure in
planning occurs.

Planning may be made successful if the following are observed:

1. recognize the planning barriers
2. use of aids to planning
The planning barriers, according to Plunkett and Attner, are as follows:
1. manager's inability to plan
2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of the future
6. Too much reliance on the planning department
7. Concentrating on only the controllable variables
Among the aids to planning that may be used are:
1. Gather as much information as possible
2. Develop multiple sources of information
3. Involve others in the planning process

SUMMARY
Technical activities, like other activities, require effective planning, i.e., if objectives and goals
are to be realized.
A plan is a methodological way of achieving results. Planning is undertaken at various
management levels. Various steps are required in the planning process depending on the
management level.
Plans may be classified in terms of functional areas, time horizon, and frequency of use. Plans
consist of various parts that the engineer manager must be familiar with. Plans can be made
effective by recognizing the planning barriers and making use of aids to planning.