Planning is defining the organizational purpose and ways to achieve it.

Planning is making and using the assumptions regarding the future. Like we have to
visualized like “thinking in advance what is to be done, when it is to be done, how it is to
be done and by whom it is to be done”. It is a continuous process.

You have to set objectives and deciding in advance. So we can define also planning as
setting up of objectives and targets and formulating an action plan to achieve our desire
and goals.

Nature of Planning:

1. Contribution to purpose and objectives

- Planning starts with the determination of objectives. We cannot think of planning in

absence of objective. After setting above objectives planning decides the methods,
procedures and steps to be taken for achieving all said objectives.

2. Planning as the first basic function

- planning is the primary or first function to be performed by every manager. No other

function can be executed by the manager without performing planning function. why
because objectives are set up in planning and other functions depends on objectives
only.

3. Planning as a function of all managers

- Planning is required at all levels of the management. it is not a function restricted to

top level managers only but planning is done by managers at every level. Formation of
every plan unframing of all policies is a task of top level managers where as department
of managers form plans for the respective department activities.

4. Planning for efficient organization

- How, Planning requires high thinking and it is an intellectual process. So, there is a
great scope of finding better ideas, better methods and procedures to perform a
particular job. Planning process forces managers to think differently and zoom up future
conditions. so, it makes the managers innovative and creative.
Major Types of plans

Objectives

- objectives is synonymous to aim, purpose, goal and mission.

- objectives are there in on which activities are aimed objective determine the goals are
the foundation up on which the whole structure of is built. It is also an estimated result
expected in the future. Business goals are goals that a business anticipates
accomplishing in a set period of time. You can set business goals for your company in
general as well as for particular departments, employees, managers and/or customers.
Goals typically represent a company's larger purpose and work to establish an end-goal
for employees to work toward. Business goals do not have to be specific or have clearly
defined actions. Instead, business goals are broad outcomes that the company wishes
to achieve.

Mission

- it is a quest, a journey to a destination in which the whole organization is engaged. It

tells us what our goal is where are we going. It provides the compass setting for the
organization. It is the foundation of effective leadership. It is how the organization is
going to achieve its vision.

Long-Range Objectives

- A long-term goal is an ultimate objective that is meant to be achieved through a series

of smaller goals over a long period.

Short Range Objectives

- A short-term goal is something you want to do in the near future. The near future can
mean today, this week, this month, or even this year. A short-term goal is something
you want to accomplish soon.

Guidelines in Implementing Management by Objectives (MBO)

1. Do not assume that they support higher-level management objectives.

2. Do not formulate objectives whose attainment cannot be measured or at least

verified.

3. Do not build cushions to hedge against accountability for results.

4. Do not keep your head either in the clouds or in the sand.

5. Do not rely on instinct or benchmarks to appraise performance.

6. Do not allow them to remain in loose or vague terms.

7. Do not obscure priorities by stating too many objectives.

8. Do not demand that they do your goal setting for you.

9. Do not fall into the trap of setting your objectives in a vacuum.

10. Modify your statements to meet changing conditions and priorities.

11. Do not continue to pursue objectives which have become obsolete.

Program

- A program management plan exists to manage, execute and control the program and
its goals and objectives. Therefore, the program plan, like any plan, will outline the
overview and strategy for the program. For a program plan, success lives in how the
program is meeting the needs and benefits of the organization.

Policies

- It is a written statement or some oral understanding in general term which govern the
action of subordinate in similar situations.

Procedures

- procedures indicate as to how a particular activities to be performed. Procedure is a

fixed path through the defined area of policy. These are instructions as to how a
particular thing should be done. A set of procedures may be described in operating a
machine or handling employee grievances
Rules

- Rules are prescribed guides to action day of unknown discretion to employees. They
specify what should be done and what should not be done. Unlike procedures, rules do
not have to specify sequences, for example: “No smoking in the conference room” is a
rule. These are very specific actions to be taken with respect to a situation. Wearing
uniforms or reporting to work at a particular time are some examples.

Budgets

- Budgets are numerical statement prepared for a particular period. Budgets are
generally prepared in terms of money but other units may also be used that set
standard from which actuals can be compared.

Philosophy

- Providing quality products at reasonable prices, providing comfort and enhancing the
quality of life of society.

Strategy

- Strategies are modified plans or policies to meet a particular situation particularly

competitive situation in the market.