Planning

Management functions
 Introduction
• Planning is preparing a blue print
• A plan is typically any procedure
used to achieve an objective. It is
a set of intended action, through
which one expects to achieve a
goal
• Planning is the foremost element
of administration which is an
important tool in the hands of
manager with which the course
of action for future is determined
 Definition
• Planning is that functions of manager in which
he decides in advance what he will do
- Hayness and prassic
• Planning is deciding in advance what to do,
how to do, and who is to do it. Planning
bridges the gap between where we are, where
we want to go. It makes possible things to
occur which would not otherwise occur
 Mission
• It is the statement of the purpose of the
organization. The mission statement
should guide the guides of the
organization, spell out its overall goals,
provides path and guides decision
making.
 Cont;
The mission should be
• Leads to success in achieving goals
• Provides meaning to effective use of available
resources such as personnel and facilities in
the organization
• Helps to cope with situational crisis
• Ensures effective control leading to cost
effectiveness and
• Helps to discover the need for change
 Philosophy of planning
• Planning sets guidelines and constraint for the
behaviour of the firm
• Planning requires flexibility, energy and specificity.
It should be simple, realistic, a guide for action in
reaching the goal and must for allow for
adjustment as expected and unexpected events
occur
• Planning is essential, a manager must be able to
overcome the barriers that impede planning
• Planning must be done by hierarchical order and
must be congruent in its flow
 Objectives of planning
• Objectives are framed to ensure the success of
an organization.
• Planning is not possible with out objectives
• Following are the objectives for management
planning;
To bring about unity and uniformity in the
working of an organization
To achieve coordination in power and efforts
of employees working in an organization
 Cont;
• To direct the human power towards collective
interest
• To curtail the cost and expenses of an
organization
• To bring about the certainty in the functions of
formulating plans
 Nature/features/characteristics
• Planning is goal oriented: positive achievements
• Planning is a primary function: it should be
efficient in organizing, staffing, directing and
controlling
• Planning is the first function in the process of
management:
 A manager must be plan before he can be
possibly organize, staff, direct and control.
 Without planning other functions become
meaningless
 Cont;

• Planning is flexible:
The process of planning should be adaptable
to the changes takes place in the environment.
Effective planning requires continual checking
of on events and forecast and redrawing the
plans
• Planning is continuous process:
It is an ongoing and dynamic exercises
 Cont;

• Planning is all pervasive:

planning covers all levels of an manager
While the top management is concerned with
strategic planning, the middle and lower level
management are concerned with administrative
and operational planning
• Planning is an intellectual and rational process:
It is a mental exercises involving imagination,
foresight, and sound judgement.
 Cont;
• Planning is forward looking:
 It involves anticipating the future course of an events
 So forecasting is essence of planning
• Planning is a selective process/involves choices:
 It is essentially choosing among alternatives course
of action
• Planning is an integrated process:
 Planning involves not only the determination of an
objectives but also the formulation of an sound
policies programmes, procedure and strategies for
the accomplishment of goals
 Cont;

Every lower level plans – towards the end of

higher level plans- is called “ends-means
chains”
• Planning is directed towards efficiency:
Planning has no relevance if it does not
facilitate the achievement of objectives
• Planning is a decision making process:
Decision making occurs at many points in the
planning process
 Types/classification of planning
It can be classified depends upon;
• Time: long range, medium range and short
range
• Managerial level: strategic plan,
administrative plan and operational plan
• Repetitiveness of the operation:
standing plan: objectives, policies, procedures,
rule and strategies
single use plan: programmes and budgets
 Cont;
• Long range/strategic planning: usually this
type of planning is done by the top level. It
can be extending 3 to 5 years of an
organization
• It involves the following activities;
Providing detailed analysis of strength,
weaknesses, opportunities and threat(SWOT)
Developing philosophy and formulation of
objectives
 Cont;

 Allocating resources on the basis of priority

 Evaluating activities to increase efficiency
 Providing proper direction to avoid duplication of services
• Short range / operational planning:
 It is a subset of strategic planning
 It should be based on strategic plan
 It should address four question
 Where are we now
 Where do we want to be
 How do we get there
 How do we measure our programme
 Cont;

• It is concerned with the actual delivery of the

services to the community
• It should contain;
 Clear objectives
 Activities to be delivered
 Quality standards
 Desired outlines
 Staffing and resource requirements
 Implementations process
 Process for monitoring programme
 Difference between strategic and
operational planning
Strategic planning Operational planning
• Time span: it covers a • Short period of time
long period of time more than one year
more than one year • It covers a specific
• Scope: it covers the department or
whole enterprise functional area of the
enterprise
• Level of management: • Middle and lower level
it is formulated at the of management
top level management
 Cont;
• Basis: it is based on • Based on strategic
organizational objectives planning
• Nature: it is relatively
broad and general • it is relatively detailed
• Resources: it involves and specific
acquisition and allocation • It involves the utilization
of resources
of given resources
• Environment: it involves efficiently
analysis and forecasting
• It involves analysis of
of external envt.
internal environment
 Advantages of planning
Planning is very helpful in enterprise in following
ways;
• Attainment of objectives
• Better utilization of resources
• Minimizing uncertainties
• Better coordination
• Facilitates control
• Improve the motivation and morale of
employees
 Cont;
• Tackles increasing complexity in modern
business
• Facilitates unity of action
• Focuses attention on the organizational goals
• Improves competitive strength
• Improves adaptability
• Guides decision making
 Essentials of good planning
Good plan should contain the following features;
• It should be based on clearly defined
objectives
• It must be simple and easily understandable
• It should be flexible and adaptable to changing
condition
• It must be balanced in all respects and should
be reasonably comprehensive
 Cont;
• It should provide standards for the evaluation
of performance and action
• It should be economical, permit optimum use
of available resources
• It should be practicable or action oriented
• It should be prepared with the consultation of
concerned person
• Different plan must be properly integrated and
harmonized with one another
 Cont;
• It should provide for proper analysis and
classification of actions
• It should be free from social and psychological
biases of the planners as well as subordinates
• There should be proper coordination among
short and long term plans
 Limitation/ disadvantages of planning
• Time consuming process: its time consuming
and may delay actions
• Expensive: lot of money has to be spent for
preparing estimates, collecting information and
fact for analysis
• Requires experienced and skillful management
workforce
• Influence of external factors: government
control, natural calamities and changes in
political etc.
 Cont;
• Limited scope for specific organization: in case of
quickly changing organization
• Peoples resistance: sometimes managers are
often frustrated in instituting a new plan
• Failure of planners: sometimes the person
involved in planning process fail to formulate a
correct plan.
• Rigidity: planning implies strict adherence to
predetermined policies, procedures, and
programmes, this restrict individual freedom,
initiative and desire for creativity
 Elements of planning
• Forecasting or estimating the future
• Set objectives/ goals and desired results
• Develop and schedule strategies:
programmes, projects, activities and set out
frame
• Prepare the budget and allocation of
resources
• Establish policies, procedures and standards
 Steps in planning process
Establishment of objectives:
• Planning requires systematic approach
• Starts with the setting of goals and objectives
• Objectives provide a rationale for undertaking
various activities
• Objectives should be started in clear, precise
and unambiguous language
• Should be stated in quantitative terms,
practical, acceptable, workable and achievable
 Cont;
Establishment of planning premises:
• Planning is done for future which is uncertain
• Certain assumption are made about the future
environment
• These assumptions are known as planning
premises
• It lay down the boundary or limitations with in
which the plans to be implemented
• Planning premises include internal and external
 Cont;
• Internal; it can be controllable. It depends
upon capital investment policy, management
relation and philosophy
• External; it is non controllable. It depends
upon socioeconomic, political and economical
changes
 Cont;
Choice of alternative course of action:
• When forecast is available and premises are
established, a number of alternate action have
to be considered
• It should be evaluated by weighing its pros
and cons in the light of resources available and
requirements of the organization
• Before choosing has to evaluated for its
consequences
 Cont;
Formulation of derivative plans
• There are sub plan or secondary plans which
help in the achievement of main plan
• Secondary plan will follow the basic plan
• The break down of the main plan in to
departmental and sectional plan provides a
realistic picture of action to taken in future
• A time sequence of activities should be
decided
 Cont;
Securing cooperation:
• After the plans have been determined
necessary to take subordinates suggestion and
involve them in decision making process
• Thus subordinates may feel motivated and
more interested in the execution of these
plans
 Cont;
Follow up / appraisal of plans:
• After the implementation it is important to
appraise its effectiveness
• This is done on the basis of feed back or
information received from departments or
persons concerned
• This enables the management to correct
deviation or modify the plan
• This step establishes the lack between the
planning and controlling function
 Cont;
• Follow up should go side by side of the
implementation of the plans, so that the
future plans can be made more realistic
 Conclusion
• Planning is a major and important step in the
organization. It plays a vital role for smooth
conduction of organization as well as to reach
the organizational goals