PlanningChapter 3

Unit 2

Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.

Planning is the process of establishing goals and a suitable course of action for achieving those goals.

It provides the bridge to take us from where we are to where we want to go.

It is a mental predisposition to do things in an orderly way, to think before acting and to act in the light of facts rather than guesses.

Planning defined

Goal oriented Future oriented Continuous Pervasiveness Intellectual process Primacy of Planning Helps in Co-ordination Involves decision making Efficiency, Economy and Accuracy

Planning:Nature and Characteristics

Minimizes risks of uncertainty Facilitates coordination Facilitates proper direction Establishes standard for control Improves efficiency Encourages innovation Facilitates decision making Reduces wastage of resources

Advantages of Planning

Time consuming Involves paper work Expensive Generates Rigidity Dangers of over targeting and under

targeting Danger of Human error Problems with technical and creative staff Problems of changing situations

Limitations of Planning

Planning Process

Determine objectives

Collect information and forecast

Develop Planning Premises

List alternative

ways of reaching

objectivesStudy

alternative plans

Choose best

alternative

Develop derivative

plans

Communicate and

Implement

Follow up

Objectives:◦ provide purpose of the enterprise◦ end point of planning◦ act as guide to overall planning process

Strategy◦ Complete plan for accomplishing organizational goals◦ Framing long term objectives

Policies◦ General guide to thinking and action rather than a

specific course of action Procedure

◦ Steps to carry out routine activities

Elements of Planning

Method◦ Prescribed manner in which a task is to be performed◦ Deals with task comprising one step of a procedure

Rule◦ Statements informing what should be done what not under a given

situation◦ No flexibility or discretion allowed

Programme◦ Concrete scheme of action designed to accomplish given tasks◦ Includes steps to be taken, resources to be used, time limits for each step

and assignment of tasks◦ Detailed statements about a project outlining objectives, policies,

procedures, rules, resources required and budget to implement any course of action

Budget◦ Plan quantifying future facts and figures◦ Represents the total income and expenses

Elements of Planning

Types of Planning

On the basis of Time Period

Long term planning

Medium term planning

Short term planning

On the basis of scope

Corporate planning

Divisional planning

Departmental or Unit planning

Types of Planning

By Peter Drucker Each and every employee of the

organization working whole heartedly towards the attainment of objectives of the organization

Objectives of the organization must be set by both management and subordinates jointly

Aims at coordinating individual goals with organizational roles

MBO-Management by Objectives

Goal specificity Participative decision making Explicit time period Performance feedback

Elements of MBO

MBO Process

Optimum utilization of human resources Better communication Fixed responsibility Increased employee morale and motivation Career development of the employees Effective planning and control

Advantages of MBO

Insufficient support from top management Insufficient integration with other systems Improper follow up Time consuming Reward punishment approach-stress Difficult to coordinate management and

employees objectives

Disadvantages of MBO

Thank You