Planning
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Planning Concept of Planning Nature Importance Steps Types of Planning
Concept of Planning
Concept of Planning Planning is the process that involve the determination of future course of
action, that is why an action, what action, how to a action, and when to take a action TerryPlanning is the selection and relation of facts and making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve the desired objectives. McfarlandPlanning may be broadly defined as a concept of executive action that embodies the skills of anticipating, influencing, and controlling the nature and direction of change
Features & Nature of Planning
Features of Planning Process that determines the future course of actions Future oriented requiring forecasting, correct forecasting of future situation leads to correct decision about future course of actions Selecting the best among the alternatives Objective oriented and feasible At all levels of management as all levels are involved with future course Flexible as it is future oriented which is dynamic Continuous managerial function involving complex processes of Perception Analysis Conceptual thought Communication decision and action
Nature of Planning A Rational Approach: For defining where one stands, where one wants to go in the future and how to reach there. The concept denotes the choice of appropriate means of achieving objectives
Gap
Status
Desired Status
Planning Required Current Status
T1
T2
Nature of Planning Planning An Open System Approach: Takes inputs from the environment, processes these and exports outputs to environment the approach indicates the identification of gap between current status and the desired status a Decides the action the bridge the gap , Actions are influenced by a variety of environment factors – PESTEL Pervasiveness of Planning Planning exist at all level of management
Organization Plans Division Plans Dept Plans Sectional Plans
Principles of Planning
Principles of Planning 1
Principle of contribution to objectives
2
Principle of Primacy of planning: foremost function
3
Principle of pervasiveness of planning: at all levels
4
Principle of flexibility: adaptation to dynamic environment
5
Principle of periodicity: review the plans regularly and change
6
Principle of planning premises: based on assumptions
7
Principle of limited factors: consider facts like 5ms
Importance of Planning
Importance of planning Primacy of Planning
If you fail to plan, you plan to fail!
Functions such as organizing Staffing Directing Controlling are performed to achieve the objective set by the planning process
To offset uncertainty & change
Change reflected in tangible & intangible form Tangible-technology, market force Intangible- attitude, values, culture
To focus Attention on objectives
Provides direction to achieve
To help in coordination
Plans unifies interdepartmental activities and aligns dept plans to corporate plans
Importance of planning
To help in control To increase orgn effectiveness Facilitates decision making
If you fail to plan, you plan to fail!
Measurement of accomplishment of events against plans Correction of deviations to assure the achievements of predetermined objectives
Achievement of objectives within given resource
Plans servers as criteria for evaluation of alternatives and choose the best one.
Importance of planning
If you fail to plan, you plan to fail!
What kind of organization Structure
Plans
Necessary for
Which helps to Know What kind of people are required
Which affects the kind of direction
How effectively to lead people
By furnishing standards of control
In order to assure success of plans
Process of Planning
Importance of planning
Perception of Opportunities
If you fail to plan, you plan to fail!
Establishing Objectives
Planning Premises
Identification of alternatives
Planning Process Establishing Sequence of activities
Formulating support plans
Choice of alternative plans
Evaluation of alternatives
Perception of Opportunities ¾ Preliminary look at possible opportunities ¾ Understands SWOT ¾ By studying the internal environment for strength and weakness and external environment for opportunities and strength.
Establishing Objectives ¾ Organizational & Department Objectives are set considering the internal and
external environment ¾ Identification of key results area and setting of objectives ¾ setting of departmental and unit level objectives based on organization objectives ¾ Objectives provides direction to the organization
Planning Premises
¾ planning Premises are assumptions on which the plans are based
¾Assumption of the external and internal environment ¾External Environment: PESTEL ¾Internal Environment: policies, Practices, organization ¾Forecasting plays a major role in planning ¾Nature of Planning premises: Different focus at different levels ¾Top Level: externally focused
Identification of alternatives Case: The Objective of the organization is to grow The various alternative to achieve this objectives are ¾ expansion in the same field of business ¾ Diversification ¾Merger & Acquisition etc ¾ Overall analysis of all the alternative objectives needs to be done in order to drop non feasible alternatives ¾ preliminary criteria can be defined in several ways ¾Minimum investment required ¾Matching with the present business objectives ¾ control by the government
Evaluation of alternatives
¾Feasible alternatives are taken for detailed study
¾Evaluation of the alternatives to understand its contribution to organizational objectives in terms of resources and constraints
Choice of alternative plans ¾The best plan in terms of contribution to the business objectives in the light of the resources and constraints is chosen ¾The planner needs to select more than one plan in event of changes. Such plans are contingence plans
Formulating of Supporting Plans ¾Plan supporting the main plan ¾Derivative plans like ¾Planning for buying equipments ¾Buying raw materials ¾Recruitment plans ¾Training plans
Establishing sequences of activities ¾ The sequence of the plan is decided so as to put the plan in action ¾ Based on the plans the responsibility of implementation and its control is decided ¾ Budget preparation and allocation is done
Types of Planning
Types of planning ¾ Planning can be differentiated based on dimensions such as : Dimensions
Types of Planning
1
Coverage of activities
Corporate & functional Planning
2
Importance of planning
Strategic & Operational Planning
3
Time Period Involved
Long Term & Short Time
4
Approach adopted
Proactive & Reactive
5
Degree of formulation
Formal & Informal
Barriers to effective Planning
Major Limitation of Planning 1 2
Difficulty of accurate planning Problem of Rapid Change
3
Internal Inflexibilities
4
External inflexibilities
5
Time & Cost
6
Failure of people in planning
• Future is dynamic • Margin of error Encountered in long term planning • Psychological • Policy & Procedure • Capital investment • PESTEL-C • Time consuming • Expensive • To formulate the correct plans • Lack of commitment • Lack of authority
Thank You
Rajeshwari Patil Thank you
Concept of Planning
Concept of Planning Planning is the process that involve the determination of future course of
action, that is why an action, what action, how to a action, and when to take a action TerryPlanning is the selection and relation of facts and making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve the desired objectives. McfarlandPlanning may be broadly defined as a concept of executive action that embodies the skills of anticipating, influencing, and controlling the nature and direction of change
Features & Nature of Planning
Features of Planning Process that determines the future course of actions Future oriented requiring forecasting, correct forecasting of future situation leads to correct decision about future course of actions Selecting the best among the alternatives Objective oriented and feasible At all levels of management as all levels are involved with future course Flexible as it is future oriented which is dynamic Continuous managerial function involving complex processes of Perception Analysis Conceptual thought Communication decision and action
Nature of Planning A Rational Approach: For defining where one stands, where one wants to go in the future and how to reach there. The concept denotes the choice of appropriate means of achieving objectives
Gap
Status
Desired Status
Planning Required Current Status
T1
T2
Nature of Planning Planning An Open System Approach: Takes inputs from the environment, processes these and exports outputs to environment the approach indicates the identification of gap between current status and the desired status a Decides the action the bridge the gap , Actions are influenced by a variety of environment factors – PESTEL Pervasiveness of Planning Planning exist at all level of management
Organization Plans Division Plans Dept Plans Sectional Plans
Principles of Planning
Principles of Planning 1
Principle of contribution to objectives
2
Principle of Primacy of planning: foremost function
3
Principle of pervasiveness of planning: at all levels
4
Principle of flexibility: adaptation to dynamic environment
5
Principle of periodicity: review the plans regularly and change
6
Principle of planning premises: based on assumptions
7
Principle of limited factors: consider facts like 5ms
Importance of Planning
Importance of planning Primacy of Planning
If you fail to plan, you plan to fail!
Functions such as organizing Staffing Directing Controlling are performed to achieve the objective set by the planning process
To offset uncertainty & change
Change reflected in tangible & intangible form Tangible-technology, market force Intangible- attitude, values, culture
To focus Attention on objectives
Provides direction to achieve
To help in coordination
Plans unifies interdepartmental activities and aligns dept plans to corporate plans
Importance of planning
To help in control To increase orgn effectiveness Facilitates decision making
If you fail to plan, you plan to fail!
Measurement of accomplishment of events against plans Correction of deviations to assure the achievements of predetermined objectives
Achievement of objectives within given resource
Plans servers as criteria for evaluation of alternatives and choose the best one.
Importance of planning
If you fail to plan, you plan to fail!
What kind of organization Structure
Plans
Necessary for
Which helps to Know What kind of people are required
Which affects the kind of direction
How effectively to lead people
By furnishing standards of control
In order to assure success of plans
Process of Planning
Importance of planning
Perception of Opportunities
If you fail to plan, you plan to fail!
Establishing Objectives
Planning Premises
Identification of alternatives
Planning Process Establishing Sequence of activities
Formulating support plans
Choice of alternative plans
Evaluation of alternatives
Perception of Opportunities ¾ Preliminary look at possible opportunities ¾ Understands SWOT ¾ By studying the internal environment for strength and weakness and external environment for opportunities and strength.
Establishing Objectives ¾ Organizational & Department Objectives are set considering the internal and
external environment ¾ Identification of key results area and setting of objectives ¾ setting of departmental and unit level objectives based on organization objectives ¾ Objectives provides direction to the organization
Planning Premises
¾ planning Premises are assumptions on which the plans are based
¾Assumption of the external and internal environment ¾External Environment: PESTEL ¾Internal Environment: policies, Practices, organization ¾Forecasting plays a major role in planning ¾Nature of Planning premises: Different focus at different levels ¾Top Level: externally focused
Identification of alternatives Case: The Objective of the organization is to grow The various alternative to achieve this objectives are ¾ expansion in the same field of business ¾ Diversification ¾Merger & Acquisition etc ¾ Overall analysis of all the alternative objectives needs to be done in order to drop non feasible alternatives ¾ preliminary criteria can be defined in several ways ¾Minimum investment required ¾Matching with the present business objectives ¾ control by the government
Evaluation of alternatives
¾Feasible alternatives are taken for detailed study
¾Evaluation of the alternatives to understand its contribution to organizational objectives in terms of resources and constraints
Choice of alternative plans ¾The best plan in terms of contribution to the business objectives in the light of the resources and constraints is chosen ¾The planner needs to select more than one plan in event of changes. Such plans are contingence plans
Formulating of Supporting Plans ¾Plan supporting the main plan ¾Derivative plans like ¾Planning for buying equipments ¾Buying raw materials ¾Recruitment plans ¾Training plans
Establishing sequences of activities ¾ The sequence of the plan is decided so as to put the plan in action ¾ Based on the plans the responsibility of implementation and its control is decided ¾ Budget preparation and allocation is done
Types of Planning
Types of planning ¾ Planning can be differentiated based on dimensions such as : Dimensions
Types of Planning
1
Coverage of activities
Corporate & functional Planning
2
Importance of planning
Strategic & Operational Planning
3
Time Period Involved
Long Term & Short Time
4
Approach adopted
Proactive & Reactive
5
Degree of formulation
Formal & Informal
Barriers to effective Planning
Major Limitation of Planning 1 2
Difficulty of accurate planning Problem of Rapid Change
3
Internal Inflexibilities
4
External inflexibilities
5
Time & Cost
6
Failure of people in planning
• Future is dynamic • Margin of error Encountered in long term planning • Psychological • Policy & Procedure • Capital investment • PESTEL-C • Time consuming • Expensive • To formulate the correct plans • Lack of commitment • Lack of authority
Thank You
Rajeshwari Patil Thank you
