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 Tactical planning
precedes tactical succeeds strategic
planning planning
4. Level of Top level Middle and Lower
formulatio management level management
n
 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 Specific
M Measurable
A Attainable
R Realistic
T 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
Any Questions