Planning(2)

PLANNING

INTRODUCTION

All organisation whether its govt, a private or a small firm requires planning. To turn their dreams of increasing sales, earning high profit and getting success in the business all businessman have to think about the future; make predictions and achieve targets.

To decide what to do, how to do and when to do is called planning.

DEFINITIONS

“ Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges gap from where we are to where we want to go. It makes it possible for things to happen.”

Koontz & O'Donnell

“Planning is chalking out plan of action i.e., the result envisaged in the line of action to be followed, the stages to go through the methods to use.”

Henry Fayol

FEATURES OF PLANNING

Planning contributes to objectives

Its a pervasive function

Planning is primary function of management

Planning is futuristic exercise

Planning is continuous

Planning involves decision making

Planning is a mental exercise

Efficiency in operations

•Defining organisational objectives

•Develop premises for each alternatives

•List alternative was of reaching objectives

•Evaluating best objective to reach the objectives

•Selecting an alternative

•Formation of supportive plans

•Put the plans into action

•Follow up

PLANNING PROCESS

TYPES OF PLANS

Objectives

Strategies

Single- use plans

(programmes and budgets)

Standing plans (policies,procedures,methods and

rules)

OBJECTIVESGoals or aims the management wishes for the organization to achieve

Should be distinguished from “vision” “purpose” and “mission”

They are the specific targets to be reached by the organization

Objectives take into account all stakes and specify a common viewpoint acceptable to all stakeholders

CHARACTERISTICS OF OBJECTIVES

Objectives are multiple in number•Eight key areas where objectives of performance

and result have to be set Objectives are either tangible or intangible

Objectives have a priority•The accomplishment of one objective is relatively

more important than of others•Managers are confronted with alternative goals

which must be evaluated and rankedObjectives are generally arranged in

hierarchyObjectives sometimes clash with each

other

REQUIREMENT OF SOUND OBJECTIVE

Objectives must both be clear and acceptable• Unambiguous communication is helpful in ensuring

clarity of understanding

Objectives must support one another• Objectives should interlock or interface with one

another.There should be a close knit relationship between short range and long range objectives

Objective must be precise and measurable

Objectives should always remain valid

ADVANTAGES OF OBJECTIVES

Basis of planning and developing

Act as motivators

Eliminate haphazard

action

Facilitate coordinated

behavior

Basis for managerial

control

Facilitate better management

Lessen misunderstanding and conflict

Provide legitimacy

STRATEGY

WHAT IS A STRATEGY ??

Strategy is the determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.

THREE LEVELS OF STRATEGY

FUNCTIONAL LEVEL STRATEGY

BUSINESS UNIT STRATEGY

CORPORATE LEVEL STRATEGY

MULTIBUSINESS

CORPORATION

STRATEGIC BUSINESS

UNIT

RESEARCH AND

DEVELOPMENT

PRODUCTION MARKETING

FINANCE

ECONOMIC FACTORS

Level of economic development

Trends in prices, exchange rates etc.

Supply of labour, raw materials etc.

COMPETITIVE FACTORS

Identification of competitors

Analysis of their performance and programs

Protection of patents, trademarks, industrial property rights etc

SOCIAL AND CULTURAL FACTORS

Literacy level of the population

Religious and social beliefs

Extent and rate of urbanization

STANDING PLANS

WHAT ARE STANDING PLANS??

Standing plans are designed for situations that are repetitive often enough to justify a standardized approach. The major types of standing plans are:

Policies

Procedures

Methods and

Rules

POLICIES

It’s a general guideline.

Helps in channelizing the thinking of the members of the organization.

Policies deal with “how to do” the work, they do not dictate terms.

They only provide a framework.

TYPES OF POLICIES

Policies can be classified on the basis of

Classification on the basis of sources

a) Originated policies

b) Appealed policies

c) Implied policies

d) Externally imposed policies.

Classification on the basis of functions

Classification on the basis of organizational level

ADVANTAGES OF POLICIES

.

•Policies ensure uniformity of action in respect of various matters

.

•Policies speed up decisions at lower levels of the organization

.

•Policies make it easier for superiors to delegate more authority to subordinates

PLANNING SKILLS

Ability to think ahead.

Ability to define company objectives

Ability to forecast future environment trends.

Ability to monitor the implementation of strategies

Ability to frame correct strategies.

LIMITATIONS OF PLANNING

It is time-consuming and expensive It stifles the initiative of the manager Its flexibility cannot be maintained in rapidly changing situations

Advance plans tend to make administration inflexible It is sometimes based on inaccurate premises It sometimes faces people’s resistance

MAKING PLANNING EFFECTIVE

Coordination

Communication

Participation

Proper Climate

PLANNING & CONTROLLING: UNENDING PHENOMENON

Controlling:Corrective Measures & Follow

Up

Results

Planning

Case Study: Planning For A Miracle On 34th Street

Shifted focus from glizty goods to moderated priced goods

Installed new satellite network to connect suppliers with sales people Launched their own 24*7 Cable channel to advertise & sell their goods

A presentation by:AKSHAY KARNATAK – 70

RAHUL CHAUDHRY- 67RINCY JOSEPH-

VARSHA SHARMAJATIN SAXENA