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Merely implied from the actions of managers. The president of the company may strictly follow
perhaps for convenience rather than a policy the practice of promoting from within, the practice
may be interpreted as policy and carefully followed by subordinates.Policies can be defined an
area within which a decision to be made and ensure that the decision will be consistent with and
ensure that the decision will be consistent with and contribute to an objective.Policies ordinarly
exist in all levels of the organization,ranging from major company policies through major
department policies to minor policies applicable to the smallest segment of the organization.They
may be related to the functions or merely to project.

PROCEDURE

Procedures are plans that establish a required method of handling future activities. They are
guides to action,rather than to thinking and they detail exact manner in which certain activities
must be accomplished. They are chronological sequence of required action procedures often cut
across department lines.e.g in manufacturing company,the procedure for handling orders will
almost certainly involves thesales department,the finance department,the accounting
department,the production department and the traffic department .company policy may grant
employee vacation, procedures established to implement this policy will provide for scheduling
vacations to avoiding disruption of work, setting methods rates of vacation pay, maintain records
to assure each employee of a vacation and spelling out the means for applying for a vacation.

RULES

Rules spell out specific required action or non actions, allowing no discretion.they are usually the
simplest type of plan. Rules are different from policies or procedures. It is unlike procedure in
that they guide action without specifying the time sequence. In fact a procedure might be looked
upon as a sequence of rules. A rule however may or may not be a part of procedure governing
the handling of orders may incorporate the rules that all orders must be confirmed the day that
are received. This rules allows no deviation from a stated course of action.it does not interfere
with the rest of the procedure in any way, for handling orders. It is comparable to a rule stating
that all fractions of weight of over half an ounce are to be counted as a full ounce or that
receiving inspection must count or weight all materials against the purchase order.

STEPS IN PLANNING:-

Analyzing and understanding of the system:-

Administrator or manager needs to understand the system where he/she is working in and
consisting of their subordinates, community and higher authorities. Each types in the system
have to be made known to it.

Formulation of operational goals and objectives:-

Objectives are the short statement of outcome or what must be done. These set the pattern of the
proposed course of action or shape, the structure of other subsidiary objectives in the
organization, this implies the establishment of goals for the whole organization as also for each
of its subunits,that is major objectives are broken down into departmental ,sectoral and
individual objective,when derivative plans are organized throughout the organization as a guide
of action,objective must be specific,informative,and clear enough to indicate what is to be done.

Establishment of planning premises:-

Developing premises, certain assumptions about the future on the basis of which the plan will be
ultimately formulated.planning promises can be classified as under:

a) internal and external premises:

premises may exist within and outside the company. Important premises are skill of the labor
force, other resourses and abilities of the organization in the form of machines,money and
methods. External premises include population growth,political stability,sociological factors and
government policies.

b)tangible and intantible premises:

tangible premises are those which can be quantitatively measured. Population growth,capital and
resources all are tangible premises whose quantitative measurement is possible. Political
stability, sociologic factors, attitudes, philosophies and behavior of owners of the organization all
are intangible premises whose qualitative measurement is not possible.

c)controllable and non-controllable premises:

because of the presence of uncontrollable factors, there is need for the organization to revive the
plans periodically in accordance with current developments. Some of the examples of
uncontrollable factors are strikes, wars,natural calamities, emergency, legislation etc.controllable
factors are those which can be controlled and normally can not upset well throughout
calculations of organization regarding the plan,E.g. Are skill of the labour force, attitude and
behavior of owners?

Selection and formulation of the operating plan from alternatives:

Planning rests on premises of the expected environmental conditions. Such remises may be:

1.External i.e.Business environment

2.Internal

For eg: Capital investment, values and belief of top management and so on.
Business environment refers to totality of economic, political, social, cultural , and technological
conditions that affect formation of derivative plans of any organization. Timing is an essential
consideration in planning, and it gives practical shape and concrete form to the programme. The
starting and finishing timing are fixed for each work.

Securing participation:

For the effective implementation of the programme, the subordinates participation has been
found to be extremely essential. Plans must be communicated for increasing their understanding
of the proposed action and for enlisting their cooperation in proper implementation of plan.

Implementation:

Implementation is the key in the planning process.the special attention is needed to the use of
strategy. Strategy means asset of decision taken to achieve the objectives. Strategy implies an
approach to implementation of plan whereby all resistance and reactions of workers are
encountered. Strategy dictates some adjustment and adaptation of plan is accordance with
changing situation or events. So it should be flexible enough to adjust to changed conditions and
to unusual and unexpected situation.

Follow –up to the proposed course of action:

For this one should have regular feedback both the way of written records and reports and by
direct observation. This is called control monitoring.

Evaluation:

Evaluation is measuring what has been done against what had been planned to do. any deviation
have to be explained and necessary action has to be initiated to correct deviations

FORMS OF PLANNING:

1.Strategic planning:

It involves deciding what the major goals of the entire organization will be and what policies will
guide the organizations in its pursuit of these goals. The organization relies heavily on external
formulation i.e. estimates of costs, technological developments.

2.Tactical planning:

it involves deciding specifically how the resource of the organization will be used to help an
organization to achieve its strategic goals.
 DISTINCTION BETWEEN STRATEGIC AND TACTICAL PLANNING:

Strategic planning Tactical planning

 It decides the majority goals and policies of allocation It decides the detailed use resources for achieving each
of resources to achieve these goals. goals.
 It is done at higher level of management  It is done at lower levels management
 It is long term  It is short term
 It is generally use for long term broad cast about  It is generally based on the performance of the
technology, political environment etc. organization.
 It is les detailed because it is not involved with day to It is more detailed because it is less involved with the
day operations of organization day to day operations of the organizations.