PLANNING

Planning : Nature and Purpose. Objective, Strategies, Policies, M.B.O., Essentials of Effective Planning

MEANING & DEFINITION

ACCORDING TO WEIHRICH & KOONTZ, Planning involves selecting missions and objectives and actions to achieve them. It requires decision-making that is, choosing from among alternative future courses of action. Planning is the process of defining organizations objectives and selecting best possible future courses of action (i.e. plans) for achieving these objectives efficiently and effectively.

NATURE
Primary or basic function Pervasive function Purposeful A Process A continuous process Dynamic Process Intellectual process Futuristic Time bound Planning involves decision-making Forecasting is the basis of planning

PURPOSE
Helps define objectives Helps achieve objectives Prepares for change Helps capitalize opportunities Helps optimum utilization of resources Provides competitive strength Facilitates cooperation and coordination Prevents hasty decisions Provides a basis of control Motivates employees Encourages innovations and creativity

Essentials of Effective Planning

Well defined Objectives Simple and easy to understand Comprehensive Flexible Balanced Economical Stable Continuity Unity Consistency Participation Human face Practicable Written

PROCESS/TECHNIQUE/STEPS
An ideal Planning consists of the following steps: Environmental Scanning: Managers should scan their internal as well as external environment for possible future opportunities and threats. This will initiate the planning process. Setting Objectives: For entire organization and then for individual departments. Establishing planning premises (critical factors)- about internal environment and external environment. Searching Alternatives: for achieving the objectives Evaluating the alternatives: investment, risk involved, availability of resources. Selecting the most appropriate alternative or plan Formulating derivative plans/ supporting plans Budgeting Implementing the plans Follow up actions

TYPES/DIMENSIONS OF PLANNING
Corporate Planning Long range Planning Short range Planning Medium range Planning Strategic Planning Operational or Tactical Planning Functional Planning

ELEMENTS/ COMPONENTS OF PLANNING

PURPOSES /MISSION OBJECTIVES STRATEGIES POLICIES PROCEDURES METHOD RULES STANDARDS PROGRAMMES SCHEDULES BUDGETS PROJECTS TACTICS

PURPOSES/ MISSION
The mission or purpose identifies the basic function or task of an enterprise.

CITIZEN CHARTER
CORPORATE VISION OF THE BANK We envision to emerge as a strong vibrant Bank through synchronization of human, financial and technological resources. THE MISSION STATEMENT OF THE BANK To put in place the effective Risk Management and Internal Control System. To adopt and operationalize high level technology standards. To strive to achieve excellence in Customer Service. To achieve the highest standards of transparency and accountability in the conduct of banking business. To adopt professional approach in effectively managing financial as well as nonfinancial risks. To maximize profitability and profits of the Bank with due compliance of prudential guidelines. To maximize competitive risk adjusted return on capital, through planned reduction in the average cost of funds, increased yield on advances and investments besides reduction in cost of operations.

Tata Group
MISSION At the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate. Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business.