NATIONAL INSTITUTE OF TECHNOLOGY SIKKIM

Ravangla Campus
Barfung Block, Ravangla Sub Division, South Sikkim-737139
Department of Mechanical Engineering
Principles of Management (HS16101)

Module: 2 Lecture No: 7

Learning Objectives

 To discuss the Planning-Organising-Leading-Controlling framework.

 To learn about the importance of planning and controlling in management.
 To discuss different terminologies which are useful to understand the concept of
planning.
 To understand different steps in planning.
 To discuss different types of planning.
 To discuss different levels of planning.

Important & Relevant Questions

 ‘Without planning, controlling in meaningless.’ – Justify the statement with suitable

example.
 Identify the steps involved in planning.
 What are the different level of planning carried out in business organisations?

Evaluation Questions

 Why planning and controlling are inseparable?

 What is mission, goal, strategy, policy, rule and budget?
 What are the steps involved in planning?
 What are the types of planning?
 What are the levels of planning?

References

 Koontz H. and Weihrich H., Essentials of Management: An International, Innovation,

and Leadership Perspective, Ed. 3, McGraw Hill Education Private Limited, India.
 Bhat A. and Kumar A., Management: Principles, Processes, and Practices, Ed. 10,
Oxford University Press, India.
 NATIONAL INSTITUTE OF TECHNOLOGY SIKKIM
Ravangla Campus
Barfung Block, Ravangla Sub Division, South Sikkim-737139
Department of Mechanical Engineering
Principles of Management (HS16101)

P-O-L-C Framework
The principles of management have been categorized into the four major functions of
planning, organizing, leading, and controlling popularly known as the P-O-L-C framework.
Table 1: P-O-L-C framework

 Planning
Planning is the first and the most important function of management that involves
setting objectives and determining a course of action for achieving those objectives.
Planners are essentially the managers who are best aware of environmental
conditions facing their organisation and are able to effectively analyze and predict
future conditions. It also requires that managers should be good decision makers.
Planning and controlling are inseparable twins of management. Planning and
controlling functions always co-exist or have to exist together as one function
depends on the other.

Figure 1: Planning and controlling

A system of control presupposes the existence of certain standards. These standards
of performance which serve as the basis of controlling are provided by planning.
Once a plan becomes operational, controlling is necessary to monitor the progress,
measure it, discover deviations and initiate corrective measures to ensure that events
conform to plans. Thus, planning without controlling is meaningless. Similarly,
controlling is blind without planning. If the standards are not set in advance,
managers have nothing to control.
 Terminology
 Missions or Purposes – The basic purpose or function or task of an
enterprise.
 Goals and Objectives – The ends towards which an activity is aimed.
 Strategies – Determination of long-term objectives; adoption of
course of action; allocation of resources.
NATIONAL INSTITUTE OF TECHNOLOGY SIKKIM
Ravangla Campus
Barfung Block, Ravangla Sub Division, South Sikkim-737139
Department of Mechanical Engineering
Principles of Management (HS16101)

 Policies – General statements or understandings that guide in

decision making.
 Procedures – Plans that establish a required method of handling
future activities.
 Rules – Spell out specific required actions or non-actions, allowing
no discretion.
 Programs – A complex of goals, policies, procedures, rules, task,
steps to be taken, resources to be employed to
carryout a given course of action.
 Budgets – A statement of expected results expressed in numerical
terms.
 Steps in planning
Followings are the steps involved in planning a project.
I. Being aware of opportunities
II. Setting objectives or goals
III. Considering planning premises
IV. Identifying alternatives
V. Comparing alternatives with goals
VI. Choosing an alternative
VII. Formulating supporting plans
VIII. Quantifying plans by marketing budgets

Figure 2: Steps involved in planning

NATIONAL INSTITUTE OF TECHNOLOGY SIKKIM
Ravangla Campus
Barfung Block, Ravangla Sub Division, South Sikkim-737139
Department of Mechanical Engineering
Principles of Management (HS16101)

 Types of planning
There are three types of planning based on the duration for execution of the
plan.
I. Short-term planning: Time period of less than 6 months.
II. Medium-term planning: Time period of 6 months to 3 years.
III. Long-term planning: Time period of 3-5 years.

Figure 3: Planning types

 Levels of planning
There are three levels of planning based on the managerial levels, who carry
out those plannings.
I. Strategic planning: Top level management.
II. Tactical planning: Middle-level management.
III. Operational planning: Low-level management.

Figure 4: Planning levels

 Strategic planning involves analyzing competitive opportunities and
threats, as well as the strengths and weaknesses of the organization. It
also involves determining how to position the organization to compete
effectively in their environment.
 Framework for decision-making and securing approval.
 Basis for detailed more detailed planning.
 An insight about the business to others in order to inform,
motivate, and involve.
 Mechanism for performance monitoring.
 Long-term direction for the business.
NATIONAL INSTITUTE OF TECHNOLOGY SIKKIM
Ravangla Campus
Barfung Block, Ravangla Sub Division, South Sikkim-737139
Department of Mechanical Engineering
Principles of Management (HS16101)

 Tactical planning is creating the blueprint for the lager strategic plan.
These plans are often short term and are carried out by middle-level
managers.
 Turns strategy into reality.
 Usually has medium term, i.e., one to two years.
 Derives input from the strategic plan and usually integrated
with the annual budget process.
 Focus on project plans and project budgets.
 Operational planning generally covers the entire organization’s goals
and objectives and put into practice the ways and action steps to
achieve the strategic plans. They are very short terms usually less than
a year.
 Deals with specific systems, procedures, and processes required
to implement the tactical.
 Usually has a very short time span, i.e., daily/weekly/monthly.
 Focuses on routine tasks such as daily production planning and
control, sales, delivery schedule, and personnel management
aspects.