Planning

Meaning Of Planning

What should be done How it should be done Who will be responsible Where the action is to be taken Why is it done

Planning

Planning is the first step of management process concerned with the

establishment of objectives and analysis of present limitations

for attaining such goals.

Advantages of Planning Planning facilitates management by

objectives. Planning minimizes uncertainties. Planning facilitates co-ordination. Planning improves employee’s moral. Planning helps in achieving economies. Planning facilitates controlling. Planning provides competitive edge. Planning encourages innovations.

Limitations of Planning

Planning leads to rigidity. Planning reduces creativity. Planning is a time-consuming

process. Planning involves huge costs. Planning does not guarantee

success. Planning may not work in a

dynamic environment.

Features

Planning focuses on achieving objectives.

Planning is futuristic. Planning is pervasive. Planning involves choice and

decision-making. Planning is a continuous process. Planning is a mental exercise.

Guidelines for effective planning:

Involve top management only at key points in the planning process.

Planning should provide realistic targets & alternatives ways to achieve them.

Plans should start on a small scale and e expanded only when the execs have learned the technique & have become convinced of their usefulness.

Steps

Securing and analyzing necessary information. Establishing planning promises and constraints. Ascertaining alternative courses of action or

plans. Selecting the optimum plan. Determining derivative plans.

Types of plans

According to time dimension:

Short term: Upto one year

Medium Term: >1 yr but <5yrs

Long term : >5yrs

Types of plans

Objectives/goals Strategies & tactics Standards Budgets Policies Procedures Programmes Rules Methods

Goals /objectives

End results to be achieved. They give direction to activities. Require creative thinking and

foresight.

Strategies and tactics Strategies are aimed at

counteracting the actions of the opponents.

Tactics are immediate decisions based on the executive’s judgement and experience whilst facing an actual situation.

Standards

Measure of level of achievement.

Very helpful in evaluating deviations from the plan.

Budgets

Used as both- planning and control device.

May be expressed in units of product, finance etc.

Policies

General statements aimed at guiding thinking whilst making decisions.

Eg: “promotions should be from within the company or the existing staff”

Procedures

Involves a selection and establishment of a logical series of tasks within the framework of predetermined policies and objectives.

Programmes

Programme integrates policies, procedures etc required for effecting a certain course of action.

Rules

Rules are related to procedures as they guide action but there Is no time sequence involved.

Eg: Procedure for handling mail may require a rule “all letters received should be replied to on the same day”

Methods:

Prescribes specifically and in detail how a task is to be done.

Constitutes the best method of performing a task.

PROCESS:

Setting objective: The first and foremost step is setting objective.

Developing premises: Planning is concerned with the future whick is uncertain.

Identifying alternate course of action: Once objective are set, assumption are made.

Evaluating alternative courses of action: The next step is to weight the positive and negitive sides of each alternative

Selecting an alternative: This is the real point of decision making the best plan has to be adoppted

Follow up action: To see whether plans are being implimented and activities are performed according to schedule is also part of the process.

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