OVERVIEW:

1. Planning is a process for accomplishing purpose.

2. It is blue print of business growth and a road
map of development.
3. It helps in deciding objectives both in
quantitative and qualitative terms.
4. It is setting of goals on the basis of objectives
and keeping in view the resources.
WHAT SHOULD A PLAN BE?
 A plan should be a realistic view of the expectations.
 Depending upon the activities, a plan can be long range,
intermediate range or short range.
 It is the framework within which it must operate. For
management seeking external support, the plan is the most
important document and key to growth.
 Preparation of a comprehensive plan will not guarantee success,
but lack of a sound plan will almost certainly ensure failure.
PURPOSE OF PLAN :
Just as no two organizations are alike, so also
their plans. It is therefore important to prepare
a plan keeping in view the necessities of the
enterprise.
A plan is an important aspect of business. It serves the following
three critical functions:
 Helps management to clarify, focus, and research their
business's or project's development and prospects.
 Provides a considered and logical framework within which a
business can develop and pursue business strategies over the
next three to five years.
 Offers a benchmark against which actual performance can be
measured and reviewed.
IMPORTANCE OF THE PLANNING
PROCESS
 A plan can play a vital role in helping to avoid mistakes or
recognize hidden opportunities.
 Preparing a satisfactory plan of the organization is essential.
 The planning process enables management to understand
more clearly what they want to achieve, and how and when
they can do it.
 A well-prepared business plan demonstrates that the
managers know the business and that they have thought
through its development in terms of products, management,
finances, and most importantly, markets and competition.
 Planning helps in forecasting the future, makes the future
visible to some extent.
 It bridges between where we are and where we want to go.
Planning is looking ahead.
PLANNING PROCESS/ESSENTIALS OF
PLANNING:
Planning is not done off hand. It is prepared after careful
and extensive research. For a comprehensive business plan,
management has to :

1. Clearly define the target / goal in writing.

 It should be set by a person having authority.
 The goal should be realistic.
 It should be specific.
 Acceptability
 Easily measurable

2. Identify all the main issues which need to be addressed.

3. Review past performance.
CONTD..
4.Decide budgetary requirement.
5.Focus on matters of strategic importance.
6.What are requirements and how will they be met?
7.What will be the likely length of the plan and its
structure?
8.Identify shortcomings in the concept and gaps.
9.Strategies for implementation.
10.Review periodically.
APPLICATIONS:
 In organizations:
1. Planning is also a management function, concerned with defining
goals for future organizational performance and deciding on the
tasks and resources to be used in order to attain those goals.
2. To meet the goals, managers may develop plans such as a business
plan or a marketing plan. Planning always has a purpose.
3. The purpose may be achievement of certain goals or targets.
4. The planning helps to achieve these goals or target by using the
available time and resources.
5. To minimize the timing and resources also require proper
planning.
CONTD..
In public policy:
 Planning refers to the practice and the profession associated
with the idea, (land use planning, urban planning or spatial
planning). In many countries, the operation of a town and country
planning system is often referred to as 'planning' and the
professionals which operate the system are known as
'planners'.......
 It is a conscious as well as sub-conscious activity. It is “an
anticipatory decision making process ” that helps in coping with
complexities.
 It is deciding future course of action from amongst alternatives.
 It is a process that involves making and evaluating each set of
interrelated decisions.
 It is selection of missions, objectives and “ translation of
knowledge into action.” A planned performance brings better
results compared to unplanned one.
CONTD..
 Planning includes the plan, the thought process, action, and
implementation.
 Planning gives more power over the future.
 Planning is deciding in advance what to do, how to do it, when to
do it, and who should do it.
 It bridges the gap from where the organization is to where it
wants to be.
 The planning function involves establishing goals and arranging
them in logical order.
MANAGEMENT BY OBJECTIVES:
Introduction:
 It is a modern Approach to Mgmt.

 AS the organization become more complex both

in organizational structure as well as the extent
of operation, the need for more sophisticated
technique of mgmt arose.
 The introduction of mergers, acquisition or
expansion became sufficiently complicated so
that it became sufficiently complicated sp that
it became necessary to devise new methods of
managing that would ensure that desire results
are achieved effectively.
EVOLUTION & MEANING OF MBO:
The idea behind MBO were advocated by Peter. F .
Drucker who stressed that:
“Business performance requires that each job be
directed towards the objective of the whole
business.”
Therefore,
MBO(management by Objectives) is a process by which
managers and subordinates work together in
identifying goals and setting up objectives and make
plans together in order to achieve these objectives.

These objectives & goals are consistent with the

organizational Goals.
PROCESS OF MBO:
ADVANTAGES OF MBO:
 Since MBO is a result oriented process, it
encourages top managers to do detailed planning.
 Both managers and subordinates know what is
expected of them & hence there is no role
ambiguity or confusion,
 It makes individuals more aware of the company
goals.
 It highlights the area in which the employees
need further training.
 The System of periodic evalution lets the
subordinates know how well they are doing.
 It improves communication b/w management and
subordinates.
DISADVANTAGES:
 As the classical structure of Org authority flows top
to bottom. In result the top mgmt usually reluctant
to support the process of MBO in which their
subordinate would take equal part.
 Subordinates may not feel comfortable in front of
the top mgmt, which leads pressure on their behavior
and hamper the setting up of the objectives.
 Too many meeting and reports increases paper work
and involve huge times by which managers and
subordinates resists their work.
 Most managers and subordinates not be sufficiently
skilled in inter personal interaction and hence overall
aim of MBO may not be justifiable.
MANAGERIAL DECISION MAKING:
What is a Decision?
It is a process of:
 Several alternatives available to the
decision maker ,
 Evaluation of outcomes of these
alternatives,
 Choosing the alternative that gives the
best outcomes.
TWO R’S
R’ OF DECISION MAKING:-
CONTD..
 Routine Decision are simple and require
commonsense and simple quality judgment.
 Problems solving on the other hand is more
vigorous which requires rational decision making,
based on unemotional reasoning, requiring
identification of the problem, generating
feasible solutions to it, choosing the best
solution and then applying to see if it works
efficiently.
 So, in rational decision making, a decision maker
has to be aware of the problem first.
TYPES OF MANAGERIAL DECISION:
PROGRAMMED DECISION:
 These are generally routine, repetitive and applicable to
known problems.
 These decisions are generally handle well structure
problems which are familiar, complete and easily defined
and analyzed. For example, The management has already
established rules, policies and procedures to deal with
situation like refunding on defective merchandise.
 Therefore, a programmed /repetitive/planned decision
has RULES, PROCEDURE, POLICY. Which can be used on a
regular basis to solve or handle the problems in any
organization.
UN-PROGRAMMED DECISION MAKING:
 Decisions are non programmed to the extent that they are
novel, unstructured, and consequential.
 There is no cut and dried method for handling the problem
because it hasn't arisen before, or because its precise
nature and structure are complex, or because it is so
important that it deserves a fundamental treatment.
 It needs intelligent, adaptive, problem oriented action.
 For example, a marketing manager has to put some
innovative ideas to launch a new product in the market
which requires novel, intelligent strategic implementation
that attracts customer mind, and which must be different
from a stereo type launching.
THE FOUR FOLD TABLE OF PROGRAMMED &
UN-PROGRAMMED.
MOTIVATION:
 The word motivation has been derived from the word
‘motive’ which means any idea, need or emotion that
prompts a man into action.
 Stimulus is depend upon the motive of the person.

 Motive can be known by studying his needs and desires.

 Management should try to understand the motives of

individuals which causes different types of behavior.
DEFINITIONS:
 According to Dubin:
“The complex of forces starting and keeping a person at work
in an organization. Motivation is something that moves the
person to action and continues him in the course of action
already initiated.”
 According to Dalton E. McFarland:
“Motivation refers to the way in which urges, drives, desires,
aspiration, striving or needs direct, control or explain the
behavior of the human beings.”
NATURE OF MOTIVATION:
 Motivation is an internal feeling
 It is a continuous process

 It is a complex system

 Motives of an individual changes from time to time

 Motivation is different from satisfaction.