Planning
Planning implies that managers think ahead of their goals and actions, and that they base their actions on some method, plan, or logic, and not on hunches.
Planning requires defining the objectives or goals of the organization, establishing a general strategy to achieve those goals and developing a complete hierarchy of Plans to coordinate activities. It takes so much care of the ends (what is there to do?).
Planning is the first step in the administrative process where the results that the social group intends to achieve are determined.
They determine more specific plans that refer to each of the company's departments and are subordinate to the Strategic Plans.
The need to plan derive from the fact that every social organism in an environment that is constantly experiencing technological, economic, political, social, cultural changes.
goals
They represent the results that the company expects to obtain, they are goals to be achieved, established quantitatively and determined to be carried out after a specific time.
Two main characteristics that allow them to be differentiated from any other stage of planning are:
- They are established at a specific time and are determined quantitatively.
Policies and Rules
Policies are essential for the success of the plan, given that:
- They facilitate the delegation of authorities They motivate and stimulate staff, by leaving certain decisions to their discretion, They avoid wasting time for superiors, by minimizing unnecessary consultations that their subordinates may make, They indicate to staff how to act in their operations. They facilitate the induction of new staff.
Classification by level:
Strategic: If they cover the entire organization.
Example: The bonus can be paid within the first twenty days of January.
Tactics: If they cover an area or function. Example: In case of requesting a permit to leave, it will preferably be authorized by the manager of the corresponding area.
Operational: If it covers a section. Example: Purchases can be made when there are at least three quotes.
Policies are flexible.
Planning process
Once the planning is defined, we need to know the “what” of the activities, that is, “what is going to be done”. Once the above is known, it will follow "how it is going to be done", later "where it is going to be done" and, finally, "when it is going to be done".
The failure of some managers to recognize that there are different types of plans has often
caused difficulties in making planning effective. It's easy to see that a main program, like the one in
build and equip a new factory is a plan. But other courses of future action are also plans. To the
Bearing in mind that a plan encompasses any future course of action, it can be seen that the plans are varied.
Here they are classified as
- Purposes - Research - Strategies - Policies Procedures - Programs - Budgets - Courses of action
Programs and budgets
Programs
It is a scheme where the sequence of specific activities to be carried out to achieve the objectives is established, and the time required to carry out each of its parts and all those events involved in its achievement.
Each program has its own structure and can be an end in itself, or it can be part of a series of activities within a more general program.
The technical development of a program should adhere to the following procedure.
1. Identify and determine the activities included.
2. Order chronologically the performance of the activities.
3. Interrelate the activities, that is, determine which activity must be carried out before another, which activities occur simultaneously and, finally, which activities must be carried out later.
4. Assign each activity the unit of time for its duration, as well as the necessary resources.
Budget
It is a financial action plan for a program that covers a defined period.
It is a future projection of what will be needed in monetary terms in a set period.
They are a means of control, comprising an estimated financial program for operations in a future period.
It is a written outline of all or some of the phases of activity of the company expressed in economic (monetary) terms, together with the subsequent verification of the achievements of said plan.
Decision making as a central planning task
Decision making - process of identification and selection of the appropriate action for the solution of a specific problem to make the best use of it.
issue
Situation that occurs when a real state of affairs differs from the desired state of affairs.
Opportunity
Situation that occurs when prevailing circumstances offer an organization the possibility of going beyond its goals or objectives.
Nature of decision making
There are 2 types of decisions:
Scheduled decisions: are those decisions made in accordance with a policy, rule or procedure.
Unscheduled decisions: Are those that take you to solve an unusual or exceptional problem, Example: devaluation, bankruptcy, strike.
Modern approaches to decision making
Risk analysis.- assigns mathematical possibilities to the results of the decisions.
Decision trees.- shows courses of action fortuitous events.
Reference theory.- takes into account the willingness of administrators to take certain risks.
Decision support system (SAP)
It is used by means of computers to make decisions for semi-structured tasks.
Tactical planning and strategic planning
Strategic planning
It is the general planning projected to achieve the institutional objectives of the company and its basic purpose is the establishment of general guidelines for its action.
This type of planning is conceived as the process that consists of deciding on the objectives of an organization, on the resources that will be used, and the general policies that will guide the acquisition and administration of such resources, considering the company as a total entity.
The characteristics of this planning are, among others, the following:
- It is original, in the sense that it constitutes the source or origin for the subsequent specific plans. It is conducted or executed by the highest hierarchical levels of management. It establishes a general frame of reference for the entire organization. It handles fundamentally external information. levels of uncertainty in relation to other types of planning. Usually covers long periods. Does not define detailed guidelines. Its main parameter is effectiveness.
Tactical planning
Part of the guidelines suggested by strategic planning and refers to issues concerning each of the main areas of activity of companies and the most effective use of resources that have been applied to achieve specific objectives.
The difference between the two consists of the time element involved in the different processes; the longer the time element, the more strategic the planning. Therefore, a planning will be strategic if it refers to the entire company, it will be tactical, if it refers to a large part of the planning of a product or advertising.
Some of the main characteristics of tactical planning are:
- It is given within the orientations produced by strategic planning It is conducted and executed by mid-level executives It refers to a specific area of activity of which the company consists External and internal information is handled It is oriented towards coordination Its main parameters are effectiveness and efficiency.
Gantt Charts: Current Planning and Control Techniques
- It is a graphic method of planning and control in which a project is divided into different activities and estimates are made about how much time each activity requires, as well as the total time required to complete the project.Monstantial dates: point in the graph that shows us allows analysis of time and how the tasks are going Lagging parts: Tasks or activities within the project that do not go with the planned time, for which I have to exert an additional effort Gannt chart is used in sequence projects neat. Where there are simultaneous activities.
