Planning

Management Process is:

Management Process:
Planning: It is the basic function of
management. It deals with chalking out a future
course of action & deciding in advance the most
appropriate course of actions for achievement of
pre-determined goals.
Decision making is an integral part of Planning
Principle of navigational change
A plan must be flexible

 Organizing: It is the process of bringing

together physical, financial and human
resources and developing productive
relationship amongst them for achievement of
organizational goals.
Staffing: It is the function of manning the
organization structure and keeping it manned.

Management Process:
Directing: It is that part of managerial function
which actuates the organizational methods to
work efficiently for achievement of
organizational purposes.
Controlling: It implies measurement of
accomplishment against the standards and
correction of deviation if any to ensure
achievement of organizational goals.

Planning
Planning includes all the activities that lead to
the definition of objectives and to the
determination of appropriate courses of action
to achieve those objectives.

Planning helps us answer:

What to do?
Where to do it?
How will we do it?
Who will do the task?
And.
When will we do it?

The need for planning:

Increasing Organizational complexity

Leads to success
Focus attention on organizational goals
Facilitates control

Importance of Planning
Planning Clarifies the objectives of the
organization.
Planning economizes operations.
Planning precedes control
Planning provides for the future
Planning increases the efficiency of all the
managerial functions.

Types of Plans
Vision
Mission
Objectives
Strategies
Operational Plans
Single use plans

Standing plans

VISION
Top of this hierarchy is vision. This is the dream
than an entrepreneur creates about the direction
that his business should pursue in future.
A vision should be brief focused, clear and
inspirational to the organizations employees

MISSION
Unique aim of an organization that sets it apart from others
of its type.
It describes the scope of the business
The Mission of ABB Ltd is
to be a global leader.. Most competitive, competent,
technologically advanced, and quality minded electrical
engineering company
Like vision, a firms mission also guides the development of strategies. It
establishes the context within which daily operating decisions are
made . And thus they are not revised every now & then in response to
every new turn in the economy.

Objectives
Objectives are goals or aims that the management
wishes to achieve in the pursuit of its mission
These are the end points towards which all activities
like organizing, staffing, directing and controlling
are directed. Only after having these end points can
the manager determine the kind of organization,
the kind of personnel, their qualification, the kind
of motivation, the supervision, he must employ to
reach these points

Contd..
Objectives are different from purpose.
Purpose is the primary role of any organization
Objectives are specific targets to be reached by
an organization.
Translation of organizations mission into
concrete terms .

Contd..
Objectives have a priority
Objectives are generally arranged in a hierarchy

Requirements of sound objectives

Objectives must be both clear and acceptable

Objectives must support one another
Objectives must be precise and measurable
Objectives should always remain valid

Advantages of Objectives

Provide basis for planning

Act as motivators
Eliminate haphazard action
Facilitate coordinated behavior
A basis for managerial control
Lessen misunderstanding & conflict
Facilitate better management

Strategies
A term originated in military, which connotes a
response to a competitive environment
SWOT analysis is necessary
2 important activities involved in strategy
formulation are environmental appraisal and
corporate appraisal

Environmental Appraisal
Result in the identification of Threats &
Opportunities
Some Environmental factors are:

Political & Legal Factors

Economic Policies
Competitive Factors
Social & Cultural Factors

Political & Legal factors

Stability of the govt. & its political philosophy
Taxation & industrial licensing laws
Monetary & Fiscal Policies
ECONOMIC FACTORS
Level of Economic Development
Distribution of Personal Income
Trends in prices, exchange rates,
Supply of raw material , labour and capital

Competitive factors
Identification of principal competitors
Analysis of their performance & programmes

Social and cultural Factors

Literacy level
Religious and social characteristics
Rate of urbanization
Rate of social change

Corporate Appraisal
This involves analysis of companys strengths or
weaknesses.
Strengths may lie in outstanding leadership,
excellent product design, low cost
manufacturing, efficient distribution , efficient
customer service,.

Operational Plans
Standing Plans
Are plans designed for situation that recur often
enough to justify a standardized approach. Eg.
Plan for processing a loan application
Single Use Plan:
Are developed to achieve specific end. When the pln
is achieved, plan is dissolved.

Standing Plans
Objectives: They are goals established to guide
the efforts of the company and each of its
components.
They are the end point of the management
programme.
An objective indicates the end result the
management wishes to achieve in the long run.

Standing Plans
Policy: A policy is a basic statement that guides
decision making. It tells us what we may or may
not do. It directs the way in which the activities
are to be achieved. It is concerned with how of
administrative action.
They allow a more refined and flexible approach
to recurring problems.
They help in achieving co-ordination.

Standing Plans
Procedures: They are well thought out courses of
action. It prescribes the specific way in which
piece of work is to be done.
They are also called action guidelines.
They are generally derived from policies.
The emphasis is on chronological, step by step
sequence of required action.

Standing Plans
Methods: they are sub units of procedures; they
show clearly show a step of the procedure should
be performed.
They indicate the techniques to be employed to
make the procedure effective.
The primary focus is on finding the best way on
doing a piece of work.
Methods cover limited territory, normally one
department.

Standing Plans
Rules: They are very specific and detailed guide
to action. It is established in a fairly narrow
manner. There is no scope for discretion or
judgment.
Rules must be followed precisely and observed
strictly.

Single Use Plans

Programme: it is a comprehensive plan that
include a complex set of goals, procedures, rules,
work assignment resource flow and generally
cover a large territory.

Single Use Plans

Schedule: it is a kind of time table of work,
specifying the date when a task is to begin and
time needed to complete each task.
They are often combined with programmes to
ensure a chronological sequence of activities.

Single Use Plans

Projects: A small programme is known as
project.
Budget: is a monetary plan designed primarily to
allocate the resources of an organization.
It is a blue print of future course of action in
monetary terms.

Limitations of Planning

Planning premises may be wrong

Rapidity of change
Time and cost constraints
Planning may limit new ideas
Capital investment constraint
Lack of control over external factors

Planning Process

Establishing Objectives
It is the first step.
Identify the objectives that we want to achieve.
They must be clear and concise, must indicate
what is to be achieved, where the action should
take place, who is to perform it, how it must be
undertaken and when it is to be accomplished.

Developing Premises
Premises are assumptions about the
environment in which plans are made and
implemented.
These assumptions are the likely impact of
important environmental factors.

Evaluating alternatives and

selection

There can be multiple courses of action to one

plan.
The pros and cons of each alternative needs to
considered.
This needs to be done before a decision is made.

Formulating derivative plans

The formulation of secondary plans to support
the primary plans.
To ensure the success of primary plan, the
derivative plans must indicate the time schedule
and sequence of performing various tasks.

Securing Cooperation and

Participation

The successful implementation of a plan

depends on a huge extent on the whole hearted
cooperation of the employees.
Management also needs to be involved in this
process.

Providing for Follow-Up

Plans need to reviewed continually to ensure
their relevance and effectiveness.
In course of implementation facts may crop up
that were not taken care of before.
This changes need to made while implementing
the plan.