INSTRUCTIONS: EXPLAIN IN TAGLISH WITH EXAMPLES

OPERATIONAL PLANNING Another critical element in effective organizational planning is the development and implementation of operational plans. Operational plans are derived from tactical plans and are aimed at achieving operational goals. Thus, operational plans tend to be nar- rowly focused, have relatively short time horizons, and involve lower-level managers. The two most basic forms of operational plans and specific types of each are summarized in Table 3.1.Table 3.1 Types of Operational Plans Plan Description Single-use plan Developed to carry out a course of action not likely to be repeated in the future Program Single-use plan for a large set of activities Project Single-use plan of less scope and complexity than a program Standing plan Developed for activities that recur regularly over a period of time Policy Standing plan specifying the organization's general response to a designated problem or situation Standard operating Standing plan outlining steps to be followed in procedure particular circumstances Rules and regulations Standing plans describing exactly how specific activities are to be carried out Organizations develop various operational plans to help achieve operational goals. In general, there are two types of single-use plans and three types of standing plans. Single-Use Plans A single-use plan is developed to carry out a course of action that is not likely to be repeated in the future. As Disney planned its newest theme park in Hong Kong, it devel- oped numerous single-use plans for individual rides, attractions, and hotels. The two most common forms of single-use plans are programs and projects.Programs A program is a single-use plan for a large set of activities. It might consist of identifying procedures for introducing a new product line, opening a new facility, or changing the organization's mission. When United and Continental Airlines merged, a program was needed to integrate every facet of the two firms' operations. The overall program required the integration of 1,400 technology systems (600 at Continental and 800 at United) and took three years to complete." Projects A project is similar to a program but is generally of less scope and complexity. A project may be a part of a broader program, or it may be a self-contained single-use plan. During the United-Continental merger, one project that was handled by the beverage com- mittee involved deciding what coffee to use on the new airline. What might seem like a simple decision required thousands of taste tests and changes in both coffee suppliers and coffee- making equipment, and took over a year. Projects are also used to introduce a new product within an existing product line or to add a new benefit option to an existing salary package. Standing Plans Whereas single-use plans are developed for nonrecurring situations, a standing plan is used for activities that recur regularly over a period of time. Standing plans can greatly enhance efficiency by making decision making routine. Policies, standard operating procedures (SOPs), and rules and regulations are three kinds of standing plans.Policies As a general guide for action, a policy is the most general form of standing plan that specifies the organization's general response to a designated problem or situa- tion. For example, McDonald's has a policy that it will not grant a franchise to an indi- vidual who already owns another fast-food restaurant. Similarly. Starbucks has a policy that it will not franchise to individuals at all, instead retaining ownership of all Starbucks coffee shops. Likewise, a university admissions office might establish a policy that admis- sion will be granted only to applicants with a minimum SAT score of 1,200 and a rank- ing in the top quarter of their high school class. Admissions officers may routinely deny admission to applicants who fail to reach these minimums. A policy is also likely to describe how exceptions are to be handled. The university's policy statement, for exam- ple, might create an admissions appeals committee to evaluate applicants who do not meet minimum requirements but may warrant special consideration. Standard Operating Procedures Another type of standing plan is the SOP. An SOP is more specific than a policy, in that it outlines the steps to be followed in particular cir- cumstances. The admissions clerk at the university, for example, might be told that, when an application is received, he or she should (1) set up an electronic file for the applicant; (2) merge test score records, transcripts, and letters of reference to the electronic file as they are received; and (3) forward the electronic file to the appropriate admissions director when it is complete. Gallo Vineyards in California has a 300-page manual of SOPs. This planning manual is credited with making Gallo one of the most efficient wine-making operations in the United States. McDonald's has SOPs explaining exactly how Big Macs are to be cooked, how long they can stay in the warming rack, and so forth.Rules and Regulations The narrowest of the standing plans, rules and regulations describe exactly how specific activities are to be carried out. Rather than guiding decision making, rules and regulations actually take the place of decision making in various situa- tions. Each McDonald's restaurant has a rule prohibiting customers from using its tele- phones, for example. The university admissions office might have a rule stipulating that if an applicant's file is not complete two months before the beginning of a semester, the student cannot be admitted until the next semester. Of course, in most organizations a manager at a higher level can suspend or bend the rules. If the high school transcript of the child of a prominent university alumnus and donor arrives a few days late, the direc- tor of admissions might waive the two-month rule. Indeed, rules and regulations can become problematic if they are excessive or enforced too rigidly. Rules and regulations and SOPs are similar in many ways. They are both relatively narrow in scope, and each can serve as a substitute for decision making. An SOP typi- cally describes a sequence of activities, whereas rules and regulations focus on one activ- ity. Recall our examples: The admissions SOP consisted of three activities, whereas the two-month rule related to only one activity. In an industrial setting. the SOP for orient- ing a new employee could involve enrolling the person in various benefit options, intro- ducing him or her to coworkers and supervisors, and providing a tour of the facilities A pertinent rule for the new employee might involve when to come to work each day