PLANNING

DEFINITION:
PLANNING INVOLVES SELECTING
MISSIONS AND OBJECTIVES AND
DECIDING ON THE ACTIONS TO
ACHIEVE THEM. IT REQUIRES DECISION
MAKING

MODULE 2
NATURE OF PLANNIG
FOCUS ON OBJEVTIVES
IT IS AN INTELLECTUAL PROCESS
SELECTIVE PROCESS
PLANNING IS PERVASIVE
INTEGRATED PROCESS
DIRECTED TOWARD EFFICIENCY
PLANNING IS FLEXIBLE
FIRST FUNCTION IN THE PROCESS OF MGT
PLANNING AND CONTROLLING ARE INTERRELATED
IT IS A CONTINOUS PROCESS
IT IS A DECISION MAKING PROCESS
TYPES OF PLANS
MISSION OR PURPOSE
OBJECTIVES OR GOALS
STRATEGIES
PROCEDURES
RULES
PROGRAMS
BUDGETS
STEPS IN PLANNING
BEING AWARE OF OPPORTUNITIES
ESTABLISING OBJECTIVES
DEVELOPING PREMISES
DETERMINING ALTERNATIVE COURSES
EVALUATING ALTERNATIVE COURSES
SELETING A COURSE
FORMULATING DERIVATIVE PLANS
QUANTIFYING PLANS BY BUDGETING
CO-ORDINTION OF SHORT AND LONG RANGE
PLANS
OBJECTIVES
NATURE OF OBJECTIVES
A) HIEARCHY OF OBJECTIVES
B) SETTING OBJECTIVES AND THE
ORGANISATIONAL HIERARCHY
C) MULTIPLICITY OF OBJECTIVES
HIREARCHY OF OBJECTIVES
SOCIO ECONOMIC PURPOSE
MISSION
OVERALL OBJECTIVES
MORE SPECIFIC OVERALL OBJECTIVES
DIVISION OBJECTIVES
DEPARTMENT AND UNIT OBJECTIVES
INDIVIDUAL OBJECTIVES
HOW TO SET OBJECTIVES
QUANTITATIVE AND QUALITATIVE
OBJECTIVES
GUIDELINES FOR SETTING
OBJECTIVES
MANAGEMENT BY
OBJECTIVES (MBO)
MBO is a comprehensive managerial system that
integrates key managerial activities in a
systematic manner and consciously directed
toward the efficient and effective achievement of
organizational and individual objectives
Benefits of MBO
Failure of MBO and some recommendations
STRATEGIES
STRATEGY REFERS TO THE DETERMINATION
OF THE MISSION AND THE BASIC LONG TERM
OBJECTIVES OF AN ENTERPRISE, FOLLOWED
BY ADOPTION OF COURSES OF ACTION AND
THE ALLOCATION OF RESOURCES NECESSARY
TO ACHIEVE THOSE AIMS.
STRATEGIC PLANNING
PROCESS
INPUTS TO THE ORGNISATION
INDUTRY ANALYSIS
ENTERPRISE PROFILE
ORGANISATION, VALUES AND VISION OF EXECUTIVES
MISSION(PURPOSE), MAJOR OBJECTIVES, AND STRATEGIC INTENT
PRESENT AND FUTURE EXTERNAL ENVIRONMENTS
INTERNAL ENVIRONMENT
DEVELOPMENT OF ALTERNATIVE STRATEGIES
EVALUATION AND CHOICE OF STRATEGIES
CONSISTENCY TESTING AND CONTINGENCY PLANNING
MEDIUM AND SHORT –RANGE PLANNING, IMPLEMENTATION
THROUGH ORGANISING, STAFFING, LEADING AND CONTROLLING
THE TOWS MATRIX : 4
ALTERNATIVE STRATEGIES
The WT strategy
The WO strategy
The ST strategy
The SO strategy
TIME DIMENSION AND THE TOWS
MATRIX
APPLICATION OF TOWS MERGER
MATRIX FOR MERGERS, ACQUISTIONS,
JOINT VENTURES, AND ALLIANCES
THE PORTFOLIO MATRIX: A TOOL FOR
ALLOCATING RESOURCE (BCG)

B
U
S H
I
N
E
S
S
L
G
R
O
W WEAK
STRONG
T
H RELATIVE COMPETITVE POSITION
MAJOR KINDS OF
STRATEGIES AND POLICIES
PRODUCTS OR SERVICES
MARKETING
 HIREACHY OF COMPNAY STRATEGIES
PORTER’S INDUSTR ANALYSIS AND
GENERIC COMPETITIVE STRATEGIES
-INDUSTRY ANALYSIS
-OVERALL COST LEADERSHIP STRATEGY
-DIFFERENTIATION STRATEGY
-FOCUSED STRATEGY
PREMISING AND
FORECASTING
: Theanticipated environment in which
plans are expected to operate.
ENVIRONMENTAL
FORECASTING
Values and areas of forecasting
Forecasting with the Delphi technique.
DECISION MAKING
Decision making- the selection of a course of
action amongst all possible alternatives.
The importance and limitations of decision
making
a)Rationality in decision making
b) Limited or”bounded” rationality
Satisficing-picking a course of action that is
satisfactory or good enough under the
circumstances.
DECISION MAKING
PROCESS
IDENTIFYING OR DEFINING
PROBLEM/OPPORTUNITY
ANALYSING THE PROBLEM
DEVELOPING ALTERNATIVE SOLUTIONS
TO THE PROBLEMS
EVALUATION OF ALTERNATIVES
SELECTING THE BEST ALTERNATIVES
IMPLEMENTATION OF DECISION
FOLLOW UP /FEED BACK
DEVELOPMENT OF
ALTERNATIVES AND THE
LIMITING FACTOR
Limiting factor is something that stands in the way
of accomplishing a desired objective.
The principle of limiting factor states that by
recognizing and overcoming those factors that
stand critically in the way of a goal,the best
alternative course of action can be selected
EVALUATION OF
ALTERNATIVES
QUANTITATIVE AND QUALITATIVE
FACTORS
MARGINAL ANALYSIS
COST EFFECITVE ANALYSIS
SELECTING AN ALTERNATIVE :THREE
APPROACHES

EXPERIENCE
EXPERIMENT
RESEARCH AND ANALYSIS
PROGRAMMED AND NON-
PROGRAMMED DECISION
DECISION MAKING UNDER
CERTAINTY,UNCERTAINTY AND
RISK
CREATIVITY AND
INNOVATION
THE CREATIVE PROCESS
BRAIN STORMING
THE CREATIVE MANAGER
TECHNIQUES OF DECISION
MAKING
BREAK EVEN ANALYSIS
OPERATIONS RESERCH
LINEAR PROGRAMMING
EOQ
PERT
GAME THEORY
DECISION TREE
QUEING THEORY OR WAITING LINE
THEORY
DECISION TREE