PLANNING

BY:
Anuj Sagar 014
Dhruv Dhingra 045
Gunjan Marwaha 048
Kratika Rathi 027
Sudip Mandal 017
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
Types of Plans

Goals
Objectives

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
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
Difference between Strategic
and Tactical planning
Basis Strategic Planning Tactical Planning
1. Objective Deciding major goals Detailed use of
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 management Middle and Lower
formulation level management
5. Certainty It is more uncertain It is mostly certain
 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.
 Steps in Planning
1. Define organizational objectives

2. Establishing planning premises

3. Deciding the planning period

4. Finding alternative courses of action

5. Evaluating & selecting a course of action

6. Developing derivative plans

7. Measuring & controlling the process

Define Organizational Objectives

The first step in planning is to establish

the enterprise objectives and it is most
often done by upper level or top
managers.
Establishing Planning Premises

Making certain assumptions about the

future on the basis of which the plan will
be ultimately formulated
Deciding the planning period

Time horizon may vary from years to

decades.
 Finding Alternative Courses of
Actions

Searching and examining available

alternatives
Evaluating & Selecting a Course of
Action

Evaluating alternative courses in the light

of the premises and selecting the best
course or courses of action
Developing Derivative Plans

Middle and lower level managers draw up

the appropriate plans, programmes and
budgets for their sub-units.
Measuring & Controlling the Process

Managers check the progress of plans for

taking necessary remedial action and
changing any unrealistic plan
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.
MBO – Management By Objectives

“A comprehensive managerial system that

integrates many key managerial activities in a
systematic manner and that is consciously
directed toward the effective and efficient
achievement of organisational and individual
objectives”
- Koontz and Weirich
Objectives of MBO
• Boosts participation in the goal setting
process
• Facilitates quicker and better decision-making
• Co-ordinates individual and organizational
objectives
• Improves communication
• Serves as a basis for control
• Increases the organisational efficiency
 3. Devise action plans

2. Establish specific
goals 4. Maintain self-control
The
Process
1. Develop overall
of MBO
organisational goals 5. Review the progress

6. Appraisal of performance
Ensuring Effective Planning

• Coordination
• Information
• Participation
• Proper climate
Thank you
 References

• L.M.Prasad
• S.P.Robbins
• Tripathi and Reddy
• Neeru Vasishth