Planning

PROF. POONAM WANI

ICMS
 Contents

● Concept, need, nature of Planning

● Management By Objectives (MBO) - Process of MBO - Benefits of MBO
● Planning and Performance
● Goals and Plans, Types of Goals, Types of Plans, Setting Goals and
Developing Plans, Approaches to Setting Goals, Developing Plans,
Approaches to Planning
● Planning Effectively in Dynamic Environments.
 Planning Concept

● Planning is process - have sub activities and steps.

● Plan is commitment to particular course of action – For objective.
● Planning is deciding in advance the future course of action: What is to be done
in future?
● When, what, why, where, who how are different aspects of planning: Why -
action's objections or rent result, What - activates to be undertaken, How -
generate policies, program, strategies
● They all speak about future of action.
● Planning is selecting missions and objectives as well as the actions to achieve
them which required decision making i.e. choosing a course of action among
alternatives.
Planning Concept

Definitions:
Gorge R. Jerry – "Planning is the selection and relating of fact and making &
using of assumptions regarding the future in the visualization and
formalization of proposed activities believed necessary to achieve deserved
result".
Mc. Farland – "Planning may be broadly defined as a concept of executive action
that embodies the skills of anticipating, influencing and controlling the nature
and direction of change"
- Anticipating, controlling everything for direction of change, believe that
environment of planning is very dynamic & ever changing.
 Nature of Planning
1. Primary task of management
2. Intellectual process
3. Future oriented
4. Decision oriented
5. Goal oriented
6. Forecasting is the essence
of planning
7. Pervasive function
8. Planning and action are twins of
management
9. Planning is wider than decision
making
 Nature of Planning
10. Inter dependent activity
11. Continuous and dynamic activity
12. Planning is the basis of control
13. Planning follows a systematic and
reutilized procedure.
14. It is participative in nature
15. Planning always has a dimension of time.
16. Planning also implies “managerial innovation” (Koontz and Weihrich)
 Need of Planning

1. Basis of success
2. Keystone management function
3. To manage by objectives
4. To offset growing complexity of business
5. Better utilization of resources
6. To gain economy in operation
7. Establishes coordinated effort
8. Facilitates control
Need of Planning

9. Coping with change

10. Improves competitive strength
11. Creates forward looking attitude
12. Promotes order
13. Prevents hasty judgment and haphazard action
14. Stay on track
15. Managing crises
16. Providing motivation
 Need of Planning

17. Promotes growth and improvement

18. Encourages creativity
19. Facilitates decentralization
20. It provides alternative courses of action
21. Efficient methods and procedures of action can be developed
Management By Objectives (MBO)

 Management by Objectives (MBO) was first outlined by Peter Drucker

in 1954 in his book ‘The Practice of Management’. It is a systematic
and organized approach that allows management to focus on
achievable goals and to attain the best possible results from available
resources.
 According to Drucker managers should “avoid the activity trap”,
all managers should:
1 participate in the strategic planning process, to improve the implement
ability of the plan, and
2 implement a range of performance systems, designed to help the
organization stay on the right track.
Management By Objectives (MBO)

Definitions of MBO
 Heinz & Harold Koontz :"MBO is a comprehensive managerial system
that integrates many key managerial activities in a systematic manner
continuously directed towards the effective and efficient achievement
of organizational objectives."

 S.K. Chakravarty :"MBO is result-centered, non-specialist operational

managerial process for the effective utilization of material, physical &
human resources the organization by integrating the individual with
the organization & organization with environment".
  A philosophy of management
 Goal oriented approach
 Common objectives and individual
goals
Characteristics  Participation and involvement
of  An interactive approach
Management  A comprehensive approach
By Objectives  A systems approach
(MBO)
 It applies to total management system
 Aims at optimum results
 Simple universal approach
 Multiple uses
Process
of MBO
Benefits of MBO

 Clear goals
 Better planning
 Facilitates control
 Objective appraisal
 Motivational force
 Better morale
 Result-oriented philosophy
Limitations of MBO

 Failure to teach philosophy of MBO

 Lack of guidelines
 Inflexibility
 Time consuming
 Incomplete understanding
 Difficulty of setting goals
 Overuse of quantitative goals
 Dynamic & complex environment
 Ignores relationship behavior
Planning and Performance

 Planning: The act of determining the organization’s goals and

the means of achieving them.Planning is selecting missions and
objectives as well as the actions to achieve them which
required decision making i.e. choosing a course of action
among alternatives.
 The performance management process is an ongoing series of
meetings and check-ins between a manager and employee
that plans, monitors, and reviews the employee's objectives,
long-term goals, and overall impact on the company.
Goals

 Goal: A desired future state that the organization attempts to realize. A

goal is an objective that you’re working toward, or a result you seek. It
has a longer time horizon and use objective to refer.

 Plan: A blueprint specifying the resource allocations, schedules, and

other actions necessary for attaining goals. Plans are the specific daily
or weekly efforts you’re going to take to get there.
Types of Goals

 Process goals are specific actions or ‘processes’ of performing. For

example, aiming to study for 2 hours after dinner every day . Process goals
are 100% controllable by the individual.
 Performance goals are based on personal standard. For example, aiming
to achieve a 3.5 GPA. Personal goals are mostly controllable.
 Outcome goals are based on winning. For a college student, this could
look like landing a job in your field or landing job at a particular place of
employment you wanted. Outcome goals are very difficult to control
because of other outside influences.
 Process, performance, and outcome goals have a linear relationship. This is
important because if you achieve your process goals, you give yourself a
good chance to achieve your performance goals. Similarly, when you
achieve your performance goals, you have a better chance of achieving
your outcome goal.
Types of plans.

Components of Planning
1 Strategic Plans: mission or purpose, objectives, strategies.
2 Standing Plans: policies, procedures, methods, rules, regulations.
3 Single-Use Plans: Programmed, projects. budgets, quotas, schedules,
standards
Types of plans.

• Strategtic Plans •Business or divisional level

• Administrative plans plans
Managerial Organizational •Unit or functional level plans
Hierarchy • Operating Plans Scope

• Standing plans •Specific plans

Frequency • Single use plans •Directional plans
of Use Specificity

• Short range plans

• Medium or Intermediate plans •Contingency plans :The are helpful in
emergences
Time Frame • Long range plans Other
classifications
Types of plans.

1 Strategic Plans: To meet the broad objectives of the organization, concerned with
broad mother that affect development of an organization and prepared at the
institutional level. They include mission or purpose, objectives and strategies.
2 Standing Plans: To use over and over again, provide on -going guidance for
performing recurring activities. Similar situations can be handled in a predetermined
way. Thus, they save the time used for making decisions. Examples of such plans are
policies, procedures, methods, rules and regulations.
3 Single-Use Plans: designed to achieve specific goals, developed to meet unique
situations or problems. They are used but once and discarded. Programme, projects.
budgets, quotas, schedules, and standards are example of single-use plans.