The development plan is a blueprint of identifying the potential programs and projects to achieve the organizational goals on efficiency, effectiveness and economy for productivity and increase of performance output.
These are the definitions of the term DEVELOPMENT PLAN as applied in the organization and management, education, public administration, and business administration:
1. It is the preparation of human and economic resources for a certain period of time (usually three to five years) to optimize the development of the organization.
2. It is the well-planned document to provide the development situation by identifying the internal and external needs of the organization.
3. It addresses the current organizational needs in the future for the better allocation and distribution in the management and administration of the institution.
4. It provides the basic information and data to assess objectively and implement the developmental needs of the organization for a certain period of time.
In the first definition , it prepares the organizational need to optimize the human and economic resources. The development plan provides the short and medium term development projection for the next three to five years. The long term range planning perspective may provide the double digit situational analysis as to the overall development impact for the next ten years.
These are the organizational needs in the formulation of a development plan:
a) Human resource is the important part to study the management skills as to the potential operation of the organization to identify the projected needs as to the technical, operational and conceptual skills of the manpower. The operation aspect provides the general support as to the primary production of the goods or services. Likewise, the think-tank of the organizational industry has to identify the potential conceptual and technical management to direct the primary production of the organizational productivity . It has to ensure efficient and effective discharge of the management of manpower as properly identified in the organization structures, systems and processes.
b) Economic resource determines the investment and financial viability as to the operational cost and revenue of the organization. In the public sector, it depends so much in the government subsidy which is considered as budget ( expenditures) which is taken from fiscal management through the revenue generating power and borrowing mechanism of the national government. The public sector relies on the return-of –investment, income flows, profit share and the utilization on the cost of production in the management operation of the organization.
The second definition explains the environmental scanning of the organization and the data analysis as to the documents such as accomplishment reports, administrative communication, investment package, action plans and other documentary forms to support the development programs and projects of the organization. It has to determine the projected environmental development and growth for the next five to ten years as to the economic, manpower, political, social, technological and cultural situations of the service area of organization. It has to correlate the information and data as how it will affect the organization in the future. These are important to identify the strategic direction for the future action and guide in the accomplishment of the organizational goals, vision, and mission to the stakeholders .
The third definition emphasizes the current organizational needs as to the strategic direction in the allocation of scarce resources of the organization. This provides the proper allocation and distribution of financial and manpower resources as to the management and administration plan to reduce the production cost and expenditures of the organization. These are the organizational variables that will be presented in the next five to ten years to project the financial statements and investments for the organization.
1. The financial compensation packages ( salaries, wages, honoraria ,commissions and other compensations) that may increase the production cost of the organization.
2. The marketing , advertisement and promotion programs to enhance and boast the market demand and service offered.
3. The capital investment such as facilities and equipment, machinery, buildings and lands that may provide the bulk of investments and expenditures in the operation of the organization.
4. The miscellaneous operation such as electricity, communication expenses ,lubricants, gasoline, supplies and materials in the offices.
5. The depreciation costs, payment of loans and interest, shares of stocks and other related cost in the production operation of the organization.
The last definition explains the needed information and data to assess objectively the developmental needs of the organization for a certain period of time. The monitoring and evaluation system in the implementation of the development plan provides the comparative analysis as to the actual and projected growth of the organization. It is in this reason to provide the organizational objectives that manager may even use Management by Objectives (MBO), Management Information System ( MIS) and Logical Framework ( Logframe) as the organizational tools to analyze all data that may affect the organization productivity and performance.
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