Planning Types And Process

PLANNING TYPES AND PROCESS

Definition “Setting goals and choosing the means to achieve these goals, Chalking out a plan of action i.e. results envisaged, the line of action to be followed, the stages to go through and methods to use.” - Henry Fayol

Features of Planning • • • • • •

Primary function of management It is an intellectual process Focuses on determining the objectives Involves choice and decision making It is a continuous process It is a pervasive function

Importance and Purpose • • • • •

Setting organizational goals helps Minimizes risk and uncertainty Facilitates controlling Input for decision making Leads to success

Quick Look at Some Basic Terms • Goals Goals are specific accomplishments that must be accomplished in total, or in some combination, in order to achieve some larger, overall result preferred from the system, for example, the mission of an organization.

• Strategies or Activities These are the methods or processes required in total, or in some combination, to achieve the goals.

• Objectives Objectives are specific accomplishments that must be accomplished in total, or in some combination, to achieve the goals in the plan. Objectives are usually "milestones" along the way when implementing the strategies.

• Tasks Particularly in small organizations, people are assigned various tasks required to implement the plan. If the scope of the plan is very small, tasks and activities are often essentially the same.

• Resources

Resources include the people, materials, technologies, money, etc., required to implement the strategies or processes. The costs of these resources are often depicted in the form of a budget.

Parts of Plan Goal s Objective s Policies Procedures Rules Programmes Methods Budgets

Forms of Planning • On the basis of content – Strategic plans – Operational plans / Tactical plans

• On the basis of time period – Long-term planning – Intermediate-term planning – Short-term planning

Forms Of Planning Operational Planning  It provides the details needed to incorporate strategy into day-to-day operations. 

It falls into two general classes – Single Use Plans and Standing Plans.

Contingency Planning  It involves identifying and implementing alternative courses of action in changing circumstances.

Planning on the basis of Content • Strategic Planning

– It is the process of deciding on Long-term objectives of the organization. – It encompasses all the functional areas of business

• Tactical Planning – It involves conversion of detailed and specific plans

into detailed and specific action plans. – It is the blue print for current action and it supports the strategic plans.

Difference between Strategic and Tactical planning Basis

Strategic Tactical Planning Planning 1. Deciding major goals Detailed use of Objective and policies resources 2. Time Long Term Short Term w Horizon 3. Primacy Strategic planning precedes tactical planning

Tactical planning succeeds strategic planning

4. Level of Top level formulatio management n

Middle and Lower level management

Planning on the basis of Time Period • Long term planning – Time frame beyond five years. – It specifies what the organization wants to become in long run. – It involves great deal of uncertainty.

• Intermediate term planning

– Time frame between two and five years. – It is designed to implement long term plans.

• Short term planning

– Time frame of one year or less. – It provide basis for day to day operations.

Planning Process

Steps in Planning 1. Define organizational objectives 2. Establishing planning premises 3. Finding alternative courses of action 4. Choice of Best alternative 5. Formulation of derivative plans 6. Securing Cooperation 7. Follow up & Review

S M A R T

Specific Measurable Attainable Realistic Timed

Searching and examining available alternatives

THE “PITFALLS”OF PLANNING • The main pitfall of planning - the one from which all others derive - is falling into the delusion that planning can determine outcome. • In 17th century Japan, Ihara Saikaku wrote "There is always something to upset the most careful of human calculations."

Contd.. • Planning is only as good as the information on which it is based . • Planning isn’t magic : you cant always get what you want . • Adaptable always beat obdurate. • Put planning in its place and time. • It's OK to deviate from the plan. The plan is not a set of rules. It's an overall guideline.

Contd.. • Cookie cutters and boilerplates are wrong tools for this job. • Recurring Planning Process is at Least as Important as Plan Document . • Nature of the Process Should Be Compatible to Nature of Planners . • Critical -- But Frequently Missing Step – “Acknowledgement and Celebration of Results “.

Limitations of Planning • Expensive, time consuming • Lack of accuracy • Limited flexibility • May face people’s resistance • Restricts the organization to the most rational & risk free opportunities.

Conclusion •

Planning cannot guarantee the outcome you want. Instead, it can help you to achieve something integral to any future success: readiness to face the challenges that chance presents.

•

So we can say for effective Planning we can say we need to have:

a.

Coordination

b.

Information

c.

Participation

d.

Proper climate

Thank you

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