Hee-321

sri shashikant

dr. vinod kumar

sabiha naz

NCOH/14/2018-19
 Planning is a process which involves studying the past and present in order to forecast
the future and in the light of that forecast determining the goals to be achieved and what
must be done to reach them. Planning is an analytical intellectual activity of deciding the goal
and way to reach to it as the most appropriate course of action. Planning is designing a
course of action to achieve ends. Thus, planning is rightly defined as, the process of setting
goals, developing strategies and outlining tasks and schedules to accomplish the goals.
Planning the enterprise involves selecting objectives and strategies, policies, Programs and
procedures for achieving them. Planning also includes decision making on production,
pricing and marketing of products. Planning is an integral part of any fruitful activity.
The need to be done. It is necessary aspect of any activity. The use of planning is to
discover and prepare the way for action that should be taken. It gives meaning and system
to action. It prepares the basis for a course of future action.

Starting an enterprise is a big event in the life of an entrepreneur and he should not
start it without planning. If he starts the enterprise without planning and proper
preparation, then he may meet failure.

 A plan is a trap laid to capture the future.

 Planning is the process by which you determine whether you should
attempt the task workout the most effect ive way of reaching your target
and prepare to overcome unexpect ed difficulties with adequate resources.
 It bridges the gap from where the organization is and where it wants to be. It
provides a framework within which a business must operate.
 It is a proactive process that is intended to help individuals; group and
organization's to perform effectively to attain objectives.
 However it is seen that people avoid planning because of organizational problems
such as poor effort and reward structures, firefighting, the get-stuck in culture,
non monetary motivation or individual problems such as laziness, lack of
commit ment, resistance to change, fear of failure and lack of experience.

Importance of planning
 Planning is just one of the vital ingredients needed for success.
 Planning enables you to turn your dreams into realit y.
 Planning is an essential stepping stone to business success.
 Failing to plan to win is the same as planning to lose.
 Planning gives road map and a blue print for action.
 It helps directing integrated efforts towards objectives.
 Planning helps to take caution against odds and constraints likely to come up in
future.
 Planning helps organizing resources in advance.
 Planning gives an opportunity to develop enterprise in planned manner.
 If you fail to plan, you plan to fail.

Planning is the premier function

 Without planning, you cannot organize
 without organization, you cannot direct
  without direction, you cannot control
 without control, you cannot get results
 therefore, for success / results, you need planning
Planning provides
 sense of purpose
 sense of direction
 strategic outlook
 mean for action
 sense of t iming
 mean to allocate resources

Functionally, planning provides opportunity to

 determine the environmental impact on the business.
 assess the organization's strengths/weaknesses.
 determine the business opportunities/ threats to business.
 develop strategic plans for the company.
 develop long term/short term plans.
 develop a vision for the organization.

 develop a mission statement for the organization.

 develop business objectives for the organization.
 develop business strategies for the organization.
 develop the action / implementation planning guidelines, which provides the
platform for organization and staffing.
 direct the organizational approach.
 develop leadership.

Steps in planning process

 Reviewing the current operational situation.
 Conducting the current operation strengths or weaknesses.
 St udying the ext ernal environment al fact ors affect ing the operat ion.
 Studying the expectations of the operations.
 Det ermine the opport unit ies for improvement s/ growth and negatives /
constraints.
 Based on the above analyses, determine the goals and objectives for the
operation for the future period.
 Based on the objectives, determine your strategy - how you are going to achieve
the objectives.
 Based on the strategy, determine the action plan that has to be implemented.
 Your act ion plan will det ermine the resources required manpower, finance,
materials, etc.
 Finally a system to monitor the plan / its progress.

Monitoring can be broadly defined as frequent largely routine-wise collection and

analysis of and reporting on informat ion about the performance of the work in a
Program or project, comparison of this with the Program or project plans, and connected
discussion about and proposals for any corrective action. Thus, monitoring aims at
meeting info r mat io n requirement for current Program and pro ject management.
Generally monitoring function starts after launching an enterprise. However, it is also
involved in launching activities. Monitoring involves carefully taking the review of the
activities when the work is in progress and seeing, that they (activities) are leading to the
objectives as per the plan. If there is little progress or no progress, then the causes of
failure need to be identified. The midterm correction is possible by monitoring. One should
try to find out the bottlenecks in the Program. It will help in avoiding wastage of efforts, if
the things are not moving in the right direction. Monitoring will save the enterprise from
disaster if things are not moving in right direction. Continuous checking and supervision of
a project is required for implementing it in time and collecting required information for
evaluating its progress.
Monitoring of a project is required especially in two types of conditions,
viz., (a) Time over runs for completing project and (b) Project cost over runs. Because of
time over runs for completing project, the time limit for getting benefits of project are
extended and because of project cost over runs, a provision of additional finance is required.
Therefore in order to complete project within specified time period and project cost,
Continuous monitoring of project is required.
Monitoring primarily covers issues of finance and quality pertaining to inputs
and outputs as well as actors and time use in implementation. It should usually

also encompass some current assessment of direct results (effects) and may
cursorily address additional issues, which may possibly be analyzed more
thoroughly in some subsequent evaluation. Most monitoring is usually done by
agencies responsible for Program or project.

Evaluation and Follow up

E va luat io n is t he process of det er mi ning t he ext ent to which
objectives have been attained. The word 'Evaluation' has its origin in the Latin word
`valerie' which means to be strong or valiant. Its dictionary meaning is
determinat ion of the value or estimation of the forces for making a judgment of
something. However, the process of evaluation is truly a common happening. We
evaluate our activities in everyday life, knowing or unknowingly. We write a piece of
information, and we read it and reread it to see whether the expected meaning has
been incorporated in it or not. This is evaluation. We draw a picture and then look
to it critically whether we are able to draw the picture of an intended animal? For
example, we wish to draw the picture of horse and unfortunately we find that it
looks like donkey. This is evaluation. Then we may recorrect the picture or take
another paper and draw it fresh. Evaluat ion is an integral part of developmental
process and an essential ingredient of agricultural development. In other words, it is
the process of determining the extent to which one has been able to attain the
objectives.

Evaluat ion can broadly be defined as a thorough examin ation, at specific

points in t ime, of Programs or projects or parts of them, usually with emphasis on
impacts in addition to efficiency, effectiveness, relevance, replicability and
sustainability.
The process of evaluation involves four steps.
1. Making observations and collecting information about an act, activity,
Program or enterprise.
2. Comparing the observat ion wit h some st andard or crit eria.
3. Making judgment about whether the performance meets the standard or
 not.
4. Making decision about corrective measures to be applied to meet the standard.
Generally for developmental Programs, predetermined objectives serve as standard
against which performance is measured. It is a process by which the values of an
enterprise are ascertained. It is a method of determining how far an activity or
Program has progressed and how much further it should be carried to achieve
objectives. It is the measurement of program against the predetermined go als or it is
a comparison of Situation before and after the program.

Evaluation means making an appraisal of the strength or worth of an enterprise by

collecting and analyzing quantitative and qualitative data about its performance, and
pursuing the initial effort by supplementary action.

Follow-up is the action and review of the enterprise from time to time. It is not
enough to plan the enterprise; it needs to be brought into practice as decided in the
plan and manage it further on sustainable basis.

In follow-up, the plan of work needs to be brought into action, if lacuna is

observed, then corrective measures should be taken. If the present activities fail in

reaching the objectives, then the enterprise need to be set on sound footing. The
activities will have to be corrected to reach the desired objectives. Follow-up will help
the entrepreneur in deciding the right course of action.

Follow-up is making an appraisal of the strength or worth of an enterprise by

collecting and analyzing quantitative and qualitative data about its performance, and
pursuing the initial effort by supplementary action.

Managing Competition
The rivalry between business organizations having similar interest is a
common phenomenon. For the business to survive in the face of stiff challenge and
to ensure its sustained growth in that environment, the entrepreneur has to adopt
certain principles of managing competition. Some of them are —
 Spot early opportunit ies and ut ilize them.
 Develop a deeper understanding of the customer — local, national and
international.
 Keep track of the compet itors
 Identify current trends which would shape the future.