Planning

Planning

Concept of PlanningNatureImportanceSteps

Types of Planning

Concept of Planning

Planning is the process that involve the determination of future course of action, that is why an action, what action, how to a action, and when to take a action

Terry-Planning is the selection and relation of facts and making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve the desiredobjectives.

Mcfarland-Planning may be broadly defined as a concept of executive action that

embodies the skills of anticipating, influencing, and controlling the nature and direction of change

Concept of Planning

Features & Nature of Planning

Process that determines the future course of actions

Future oriented requiring forecasting, correct forecasting of future situation leads to correct decision about future course of actions

Selecting the best among the alternativesObjective oriented and feasible

At all levels of management as all levels are involved with future course

Flexible as it is future oriented which is dynamic

Continuous managerial function involving complex processes ofPerceptionAnalysisConceptual thoughtCommunicationdecision and action

Features of Planning

A Rational Approach:For defining where one stands, where one wants to go in the future and how to reach there.

The concept denotes the choice of appropriate means of achieving objectives

Nature of Planning

Sta

tus

Current Status

T1 T2

Planning Required

Gap

Desired Status

Planning An Open System Approach:

Takes inputs from the environment, processes these and exports outputs to environmentthe approach indicates the identification of gap between current status and the desired status aDecides the action the bridge the gap , Actions are influenced by a variety of environment factors – PESTEL

Pervasiveness of PlanningPlanning exist at all level of management

Nature of Planning

Organization Plans

Division Plans

Dept Plans

Sectional Plans

Principles of Planning

Principles of Planning

Principle of contribution to objectives1

2 Principle of Primacy of planning: foremost function

3 Principle of pervasiveness of planning: at all levels

4 Principle of flexibility: adaptation to dynamic environment

5 Principle of periodicity: review the plans regularly and change

6 Principle of planning premises: based on assumptions

7 Principle of limited factors: consider facts like 5ms

Importance of Planning

Importance of planning If you fail to plan, you plan to fail!

Primacy ofPlanning

Functions such as organizing Staffing Directing Controlling are performed to achieve the objective set by the planning process

To offset uncertainty &

change

Change reflected in tangible & intangible formTangible-technology, market forceIntangible- attitude, values, culture

To focus Attention on

objectivesProvides direction to achieve

To help in coordination

Plans unifies interdepartmental activities and aligns dept plans to corporate plans

Importance of planning If you fail to plan, you plan to fail!

To help in control

Measurement of accomplishment of events against plans Correction of deviations to assure the achievements of predetermined objectives

To increase orgn

effectivenessAchievement of objectives within given resource

Facilitates decision making

Plans servers as criteria for evaluation of alternatives and choose the best one.

Importance of planning If you fail to plan, you plan to fail!

Plans

What kind of organizationStructure

What kind of people are required

How effectively to lead people

By furnishing standards of 

control

Which helps to Know

Which affects the kind of direction

In order to assure success of plans

Necessary for

Process of Planning

Importance of planning If you fail to plan, you plan to fail!

Perception of Opportunities

Establishing Objectives

Planning Premises

Identification of alternatives

Establishing Sequence of activities

Formulating  support plans

Choice of alternative 

plans

Evaluation of alternatives

Planning Process

Perception of Opportunities

Preliminary look at possible opportunities

Understands SWOT

By studying the internal environment for strength and weakness and external environment for opportunities and strength.

Establishing Objectives

Organizational & Department Objectives are set considering the internal and external environment

Identification of key results area and setting of objectives

setting of departmental and unit level objectives based on organization objectives

Objectives provides direction to the organization

Planning Premises

planning Premises are assumptions on which the plans are based

Assumption of the external and internal environment

External Environment: PESTEL

Internal Environment: policies, Practices, organization

Forecasting plays a major role in planning

Nature of Planning premises: Different focus at different levelsTop Level: externally focused

Identification of alternativesCase: The Objective of the organization is to grow

The various alternative to achieve this objectives are

expansion in the same field of business

Diversification

Merger & Acquisition etc

Overall analysis of all the alternative objectives needs to be done in order to drop non feasible alternatives

preliminary criteria can be defined in several waysMinimum investment requiredMatching with the present business objectivescontrol by the government

Evaluation of alternatives

Feasible alternatives are taken for detailed study

Evaluation of the alternatives to understand its contribution to organizational

objectives in terms of resources and constraints

Choice of alternative plans

The best plan in terms of contribution to the business objectives in the light of

the resources and constraints is chosen

The planner needs to select more than one plan in event of changes. Such

plans are contingence plans

Formulating of Supporting Plans

Plan supporting the main plan

Derivative plans like

Planning for buying equipments

Buying raw materials

Recruitment plans

Training plans

Establishing sequences of activities

The sequence of the plan is decided so as to put the plan in action

Based on the plans the responsibility of implementation and its control is decided

Budget preparation and allocation is done

Types of Planning

Types of planningPlanning can be differentiated based on dimensions such as :

Long Term & Short TimeTime Period Involved 3

Proactive & ReactiveApproach adopted4

Formal & InformalDegree of formulation5

Strategic & Operational PlanningImportance of planning2

Corporate & functional PlanningCoverage of activities1

Types of PlanningDimensions

Barriers to effective Planning

Major Limitation of Planning

• PESTEL-CExternal inflexibilities4

• Time consuming • Expensive

Time & Cost5

• To formulate the correct plans • Lack of commitment• Lack of authority

Failure of people in planning6

• Psychological• Policy & Procedure• Capital investment

Internal Inflexibilities3

Encountered in long term planningProblem of Rapid Change2

• Future is dynamic• Margin of error

Difficulty of accurate planning1

Thank You

Rajeshwari Patil

Thank you