Functions of

Management:
Planning
Group 7
“Management is to forecast, to plan, to organize,
to command, to coordinate and control activities
of others. ”

- Henri Fayol
“Good management or scientific management
achieves a social objective with the best use of
human and material energy and time, and with the
satisfaction for the participants and the public. ”

- Mary Nile
Management in all business and organizational
activities is the act of getting people together to
accomplish desired goals and objectives using
available resources efficiently and effectively. It
comprises of

● Planning
● Organizing
● Staffing
● Directing/Leading
● Controlling
“Planning is deciding in advance - what to
do, when to do and how to do. It bridges
the gap from where we are and where we
want to be”

- Harold Koontz
It deals with chalking out a future course of action and
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.

Planning is necessary to ensure proper utilization of

human & non-human resources. It is all pervasive,
intellectual activity that helps in avoiding confusion,
uncertainties, risks, wastages etc.
“To organize a business is to provide it with
everything useful for its functioning i.e.
raw material, tools, capital and
personnel’s”

- Henry Fayol
It is the process of bringing together physical,
financial and human resources and developing
productive relationship amongst them for
achievement of organizational goals. It involves:

● Identification of activities.
● Classification of grouping of activities.
● Assignment of duties.
● Delegation of authority and creation of
responsibility.
● Coordinating authority and responsibility
relationships.
STAFFING
“Managerial function of staffing involves
manning the organization structure
through proper and effective selection,
appraisal & development of personnel to
fill the roles designed under the
structure”

- Koontz & O’ Donell

Staffing has assumed greater importance in the recent
years due to advancement of technology, increase in
size of business, complexity of human behavior etc. It
involves:

● Manpower Planning
● Recruitment, selection & placement.
● Training & development.
● Remuneration.
● Performance appraisal.
● Promotions & transfer.
Directing is considered life-spark of the enterprise
which sets it in motion the action of people because
planning, organizing and staffing are the mere
preparations for doing the work.
It has following elements:

● Supervision
● Motivation
● Leadership
● Communication
Controlling is the process of checking
whether or not proper progress is being
made towards the objectives and goals and
acting if necessary, to correct any deviation”

- Theo Haimann
The purpose of controlling is to ensure that
everything occurs in conformities with the
standards.It has the following steps:

● Establishment of standard performance.

● Measurement of actual performance.
● Comparison of actual performance with the standards and
finding out deviation if any
STEPS INVOLVED IN PLANNING
Types of planning
Strategic Planning

❖ Organization's process of defining its strategy, or direction, and

making decisions on allocating its resources to pursue this strategy.
❖ Executed by strategic planners or strategists.
❖ Strategy describes how the ends (goals) will be achieved by the
means (resources).
❖ The senior leadership of an organization is generally tasked with
determining strategy.
❖ Strategy can be planned as a pattern of activity as the organization
adapts to its environment or competes.
Stages of Strategic Planning

➢ Prepare
➢ Plan
➢ Implement
➢ Review
Why plan strategically ?

❖ Forces organizations to be aware of future opportunities and challenges.

❖ Forces organizations to understand what resources will be needed to seize
upon or overcome those opportunities and challenges.
❖ Gives individuals a sense of direction and marshals them around a common
mission.
❖ Creates standards and accountability.
❖ Helps organizations limit time spent on crisis management, where they're
reacting to unexpected changes that they failed to anticipate and/or prepare
for.
Tactical Planning
❖ A systematic determination and scheduling of the immediate or
short-term activities required in achieving the objectives of strategic
planning.
❖ Short Range is generally defined as a period of time extending about one
year or less in the future.
❖ Tactical plans are usually developed in the areas of production,
marketing, personnel, finance and plant facilities.
❖ Mishaps potentially occurring during the execution of a tactical plan
should be covered by moderate uncertainties and may lie closer to the
control of management than strategic ones.
❖ Those mishaps, in conjunction to their potential consequences are called
“tactical risks”.
Operational planning
❖ “Process of planning strategic goals and objectives to tactical
goals and objectives”
❖ Defines the actions it will take to support the strategic
objectives and plans of upper management
❖ Produced by the chief executive and staff
❖ Should not be formulated without reference to a strategic plan
❖ Typically describes the day-to-day running of the company
❖ Detailed and specific
❖ Both the first and last step in preparing an operating budget
request
It addresses:
➔ Where are we now
➔ Where do we want to be
➔ How do we get there
➔ How do we measure our
progress
Operational plans should contain:

❖ Clear objectives
❖ Activities to be delivered
❖ Quality standards
❖ Desired outcomes
❖ Staffing and resource requirements
❖ Implementation timetables
❖ A process for monitoring progress
Types of operational plans
❖ STANDING PLANS
➢ Drawn to cover issues that the management faces
repeatedly, like policies and procedures
❖ SINGLE USE PLANS
➢ Prepared for single or exceptional situations or
problems and are normally discarded or replaced
after one use
➢ Eg: programs, projects and budgets
 Contingency planning
❖ Contingencies - Uncontrollable events that are not anticipated
for in the business plan
❖ Special type of planning
❖ Made when something unexpected happens or when something
needs to be changed
❖ Businesses prepare contingency plans because things go wrong
from time to time
❖ A contingency plan allows management to act immediately if
such unforeseen events as strikes, boycotts, natural disasters or
major economic changes render existing plans inoperable or
unsuitable.
 ❖ The aim is to minimise the impact of unexpected
circumstances and to plan for how the business will
resume normal operations after the crisis
❖ It is also called as PLAN B
❖ 5-step process

Analyse
Identify potential Plan
potential Prioritise Execute
emergencies strategies
impact
Contingency plan example: Film industry
Types of plans (on the basis of nature)-
summary
STRATEGIC PLAN

TACTICAL PLAN
CONTINGENCY
PLAN

OPERATIONAL
PLAN

GOAL
Comparison
❖ In terms of level of planning, strategic plans are highest,
operational plans lowest, tactical plans in between.
❖ In terms of scope, strategic plans are broadest, operational
plans least broad, tactical plans in between.
❖ Strategic plans are based on longest-term planning
horizon, operational plans shortest planning horizon (even
on a day-to-day basis), and tactical plans, in between.
❖ In terms of relationships, operational plans lead to the
achievement of tactical plans, which in turn lead to the
attainment of strategic plans.
On the basis of
managerial level
❖ Top level plans
➢ Formulated by general managers and directors
➢ Objectives, budgets, policies, for the whole
organisation
➢ Long term plans

❖ Middle level plans

➢ Formulated by departmental managers

❖ Lower level plans

➢ Formulated by the foreman or supervisors
➢ Problems connected with the actual workspace
➢ Short term plans
On the basis of time
❖ Long term plan
➢ long-term process that business owners use to reach
their business mission and vision.

❖ Intermediate plan
➢ 6 months to 2 years

❖ Short term plan

➢ Few weeks to a year
➢ outline objectives necessary to meet intermediate
plans and the strategic planning process.
On the basis of use
❖ Single plan
➢ Connected with some special problem
➢ Only used once, re-created whenever required

❖ Standing plans
➢ Formulated once, and repeatedly used
➢ Continuously guide the managers
➢ Include mission, policies, objective, rules and strategy
ELEMENTS
OF
PLANNING
 Planning as a managerial process consists of
the following elements or components:

● Goal ● Rules
● Objective ● Programmes
● Policies ● Budgets
● Procedures ● Schedule
Goal

● A goal is an idea of the future or desired

result that a person or an organization
envisions, plans and commits to achieve.
● People work to reach goals within a finite
time by setting deadlines.
● goals direct attention and effort toward
goal-relevant activities
● difficult goals lead to greater effort
● goals increase persistence
 OBJECTIVE

● A specific result that a person or system aims to

achieve within a time frame and with available
resources.
● The important task of planning is to determine the
objectives of the enterprise.
● Objectives are the goals towards which all managerial
activities are aimed at.
● Objectives are basic tools that underlie all planning
and strategic activities.

Examples: minimizing expenses, expanding internationally, or making a profit.

Types of Objectives

● Cognitive
● Affective
● Psychomotor
1. Cognitive Objectives
● Cognitive objectives are designed to increase an
individual's knowledge.
● Cognitive objectives relate to understandings,
awareness, insights.

EXAMPLES:

● Given a description of a planet, the student will be able to

identify that planet, as demonstrated verbally or in writing.
● The student will be able to evaluate the different theories of
the origin of the solar system as demonstrated by his/her
ability to compare and discuss verbally or in writing the
strengths and weaknesses of each theory.
2.Affective Objectives
● Affective objectives are designed to change an individual's
attitude.
● Affective objectives refer to attitudes, appreciations, and
relationships .
EXAMPLE:

● Given the opportunity to work in a team with several

people of different races, the student will demonstrate a
positive increase in attitude towards non-discrimination
of race, as measured by a checklist utilized/completed by
non-team members.
3.Psychomotor Objectives
● Psychomotor objectives are designed to build a physical
skill .
● actions that demonstrate the fine motor skills such as use
of precision instruments or tools, or actions that evidence
gross motor skills such as the use of the body in dance or
athletic performance.

EXAMPLE:

● The student will be able to ride a two-wheel bicycle

without assistance and without pause as demonstrated
in gym class.
In summary

● Cognitive objectives emphasize THINKING,

● Affective objectives emphasize FEELING and
● Psychomotor objectives emphasize ACTING.
Policies

● A policy is a deliberate system of principles to guide decisions

and achieve rational outcomes.
● Published rules that imply a predicted behavior and whose
violation may be permitted or tolerated under certain
circumstances.
● Policies can assist in both subjective and objective decision
making.

Example: Work-Life balance policy.

 Procedures

● A fixed, step-by-step sequence of activities or course of

action (with definite start and end points) that must be
followed in the same order to correctly perform a task.
Repetitive procedures are called routines.
● Guide to action rather than thinking.
● A procedure is sometimes called a work
instruction.Procedures are the methods by which policies
are completed
Rules
Statement that establishes a principle or standard, and serves as a
norm for guiding or mandating action or conduct. Rules may be
divided into four general categories:
1. Folklore: Unpublished rules that are conveyed by behavior and
are implicitly understood.
2. Guidelines: Commonly published and recommended practices
that allow some discretion with their interpretation and use.
3. Mandates: Published commands that may not be ignored in any
circumstance and whose violation is punished.
4. Policies: Published rules that imply a predicted behavior and
whose violation may be permitted or tolerated under certain
circumstances.
 Programmes

● A programme is a group of related projects managed in

a coordinated manner to obtain benefits not available
from managing them individually.
● Programme is the application of knowledge, skills,
tools and techniques to meet our desired
requirements.
● Organizations with mature programmes are far more
successful than those without it.
 Budget

● An estimate of costs, revenues, and resources over a specified

period, reflecting a reading of future financial conditions and goals.
● It can also be called as NUMBERISED PROGRAMME.
● At the most minimal level, a budget contains an estimated income
statement for future periods.
● A budget forecasts the financial results and financial position of a
company for one or more future periods.
● Ex: sales budget, production budget, cash budget, expense budget.
Schedule
● In project management, a schedule is a listing of a
project's milestones, activities, and deliverables,
usually with intended start and finish dates.

● Those items are often estimated by other

information included in the project schedule of
resource allocation, budget, task duration, and
linkages of dependencies and scheduled events.
Advantages
❖ Planning facilitates management by objectives
➢ Helps in focusing the attention of employees on the objectives and goals of
enterprise.
❖ Planning minimizes uncertainties
➢ Helps management to anticipate future and prepare for risks by necessary
provisions.
❖ Planning facilitates coordination
➢ As all activities work towards a common goal there is an integrated effort
from various departments in the group.
❖ Planning provides competitive edge
➢ Planning provides competitive edge to the enterprise over the others
which do not have effective planning.
❖ Planning improves employee morale
➢ Planning creates a healthy attitude towards work environment which
helps in boosting employees’ morale and efficiency.
❖ Planning helps in achieving economies
➢ It facilitates optimum utilization of resources.
❖ Planning facilitates controlling
➢ Facilitates existence of certain planned goals and standard of
performance.
❖ Planning encourages innovations
➢ Planning is basically a decision making function which involves creative
thinking and imagination.
Limitations
❖ Uncertainty of future events:
➢ One of the biggest difficulties of the planning process.
➢ Future is uncertain & risk-oriented.
❖ Costly Process:
➢ It is an expensive process. Planning is useful only when the expected
gains from it, exceed its costs.
➢ Often it is remarked that the cost of planning is in excess of its actual
contribution.
❖ Time Consuming Process:
➢ Planning takes time i.e., adequate time. Sometimes, it may cause delay
in taking decisions. A manager may be bogged down by procedures,
rules, etc., when quick decision is essential.
❖ Lack of Accuracy:
➢ Planning may create a false opinion that all problems will be solved if the
plans are implemented. In practice, management has to revise the plans
continuously and check on their execution.
❖ Difficulty in the Selection of the best Alternative:
➢ Another major limitation of planning is that there are various alternatives
to combat certain problems.
➢ Every alternative has its own merits and limitations. Every alternative
presents different results also.
❖ Limited Flexibility:
➢ Tendency towards inflexibility or reluctance to change, is another
drawback of planning.
In spite of the serious limitations, planning is still
recognized as the foremost function of
management. There is no doubt that unplanned
operations shall produce chaos and disorder
everywhere, without exception.
 References
https://en.wikipedia.org/wiki/

Four Stages of Strategic Planning- National Child

Welfare Resource Center for Organizational
Improvement

https://www.riskope.com/2014/04/03/lets-define-
strategic-tactical-and-operational-planning/

https://www.kullabs.com/classes/subjects/units/l
essons/notes/note-detail/5681

https://sites.google.com/site/whatishumanresourc
e/what-is-management