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Planning And Implementation

Part 1: Concept

Topics Covered

Nature of planning
Significance of planning Limitations of planning


Planning is the function that determines in advances what

should be done. It consists of selecting the enterprise objectives, policies, programmes, procedures and other means of achieving these objectives.

Nature Of Planning
1. Planning Is Goal Oriented

Planning is not an end in itself. Rather, it is a means towards the accomplishment of objectives. Planning has no meaning unless it contributes in some positive way to the achievement of desired goods. All plans way to the achievement of desired goals. All plans emanate from objectives.

2. Planning Is A Primary Function

Planning is the basis or foundation of the management process.
All other functions of management are designed to attain the goals set under planning. Planning provides the basis for efficiency organizing, staffing, directing and controlling. Without planning, there is nothing to organize, no one to actual and no need to control.

3. Planning Pervades All Managerial Activity

Planning is the function of each and every manager irrespective of the level and area of his/her operation. It is the job of all managers

in all types of organizations. However, the scope, extent and nature

of planning tend to achieve as we descend towards the lower levels of management.

4. Planning Is Intellectual
Planning is a mental exercise involving imagination, foresight
and sound judgment. It requires a mental disposition of thinking before doing and acting in the light of facts then guess

5. Planning Is A Continuous Process










assumptions and events on which plans are based changes, old plans have to be revised or new ones have to be prepared.

6. Planning Is Forward Looking

Planning involves anticipating the future course of the events. Therefore, forecasting is the essence of planning. Forecasting

involves accessing the uncertain future and making provision for

it .

7. Planning Involves Choice

Planning is essentially choosing among alternative course of action.
Planning is presupposes the existence of alternatives. There is no need for planning if there is only one way of doing something.

8. Planning Is A Mental Activity

Planning is not a simple process. It is an intellectual exercise and
involves thinking and forethought on the part of the manager.

Significance Of Planning :
(a) Minimizes uncertainty The future is generally uncertain and things are likely to change with the passage of time. Planning helps in minimizing the uncertainties of the future as it anticipates future events. (b) Emphasis on objectives

The first step in planning is to fix the objectives. When the

objectives are clearly fixed, the execution of plans will be facilitated towards these objectives. (c) Promotes coordination Planning helps to promote the coordinated effort on account of predetermined goals.

Significance Of Planning (Cont)

(d) Facilitates control Planning and control are inseparable in the sense that unplanned actions cannot be controlled. Control is nothing but making sure that activities conform to the plans. (e) Improves competitive strength Planning enables an enterprise to discover new opportunities, which give it a competitive edge. (f) Economical operation Since planning involves a lot of mental exercise, it helps in proper utilization of resources and elimination of unnecessary activities. This, in turn, leads to economy in operation.

Significance Of Planning (Cont)

(g) Encourages innovation

Planning is basically the deciding function of management. Many

new ideas come to the mind of a manager when he is planning. This creates an innovative and foresighted attitude among the managers.

(h) Tackling complexities of modern business With modern business becoming more and more complex, planning helps in getting a clear idea about what is to be done, when it is to be done, where it is to be done and how it is to be done.

Limitations Of Planning :
(a) Costly process Planning is a costly process as time, energy and money are involved in gathering of facts and testing of various alternatives.

(b) Rigidity

Planning restricts the individuals freedom, initiative and desire for

creativity as it strictly adheres to predetermined policies and programmes.

(c) Limited scope The scope of planning is said to be limited in the case of organizations with rapidly changing situations.

Limitations Of Planning (Cont)

(d) Influence of external factors The effectiveness of planning is sometimes limited because of the external social, political, economical and technological factors which are beyond the control of the planners.

(e) Non-availability of data

Planning needs reliable facts and figures. planning loses its value unless reliable information is available.

(f) Peoples resistance Resistance to change hinders planning. Planners often feel frustrated in instituting new plans, because of the inability of people to accept them.


Nature of planning
Significance of planning Limitations of planning

Part 2: Types Of Planning

Topics Covered
Types of planning

Importance of planning
Identifying barriers to planning Requirements of a good plan

Corporate Planning And Functional Planning Strategic Planning And Operational Planning Long Term Planning And Short Term Planning Formal Planning And Informal Planning

Corporate Planning
(i) Corporate Planning denotes planning activities at the top level and cover the entire organizational activities. (ii) Determine the long-term objectives. (iii) Generate plans to achieve the objectives bearing in mind the probable changes in environment. (iv) Corporate planning includes: The setting of objectives, Organizing the work, people, and systems to enable those objectives to be attained,

Motivating though the planning process of the plan and

developing people through better decision making,









Functional Planning

(i) Functional planning is segmental and it is undertaken for each major function of the organization like production/operation, marketing, finance, human resource/personnel etc.

(ii) At the second level, functional planning is undertaken for subfunctions within each major function.

Strategic Planning
Strategic Planning is

(i) Deciding on objectives of the organization, (ii) Deciding on changes on these objectives, (iii) Deciding on the resources used to attain these objectives, (iv) Policies that are to manage the acquisition, use and disposition of these resources.

Operational Planning
Operational Planning is

(i) Deciding the most effective use of the resources already allocated . (ii) To develop a control mechanism to assure effective

implementation of the actions.

Long-Term Planning

(i) Long term plans usually cover all the functional areas of the
business and are affected within the existing and long-term framework of economic, social, and technological factors. (ii) Analysis of environmental factors, particularly with respect to how the organization relates to its competition and environment.

Short-Term Planning

These plan are aimed at sustaining organization in its production

and distribution of current products or services to the existing markets.

Proactive Planning
Proactive planning involves designing suitable courses of action
in hope of likely changes in the relevant environment.

Reactive Planning
Organizations responses come after the environmental changes

have taken place.

Formal Planning
Formal planning is in the form of well-structured process involving different steps.

Informal Planning
This planning process is based on managers memory of events, perception and gut-feelings rather than based on systematic evaluation of environmental happenings.

Task 1
If a manager is planning to double the revenue by the end of the current fiscal year and is planning to contract an advertising consultant for one month to help him analyze and capitalize on customers buying trends.

Can you tell which one is a long term and which one is a short term planning?

Answer 1

Manager planning to double the revenue by the en d of the current fiscal year is a long term goal and the manager planning to contract an advertising consultant for one month is a short term goal.

Task 2
When we are doing the task of business planning while taking

shower thinking about how to get better clients, more satisfying

work, or while sitting in traffic or perhaps specially when we are paying bills, and trying to manage our cash flow.

Is this a formal planning or a informal planning?

All these are examples of informal planning.

Importance Of Planning- Why Planning Is Important

1. Increases efficiency. 2. Reduces business-related risks. 3. Facilitates proper coordination. 4. Aids in organizing. 5. Gives right direction. 6. Keeps good control. 7. Helps to achieve objectives. 8. Motivates the personnel. 9. Encourages creativity and innovation. 10.Helps in decision making.

Identifying Barriers To Planning

(i) Inability to plan or inadequate planning Managers are not born with the ability to plan. Some managers are not

successful planners because they lack the background, education,

and/or ability. Others may have never been taught how to plan. When these two types of managers take the time to plan, they may not know how to conduct planning as a process. (ii) Lack of commitment to the planning process The development of a plan is hard work; it is much easier for a manager to claim that he or she doesn't have the time to work through the required planning process than to actually devote the time to developing a plan. Another possible reason for lack of commitment can be fear of failure. As a result, managers may choose to do little or nothing to help in the planning process.

Barriers To Planning (Cont...)

(iii) Inferior information Facts that are out-of-date, of poor quality, or of insufficient quantity can be major barriers to planning. No matter how well managers plan, if they are basing their planning on inferior information, their plans will probably fail.

(iv) Focusing on the present at the expense of the future Failure to consider the long-term effects of a plan because of emphasis on short-term problems may lead to trouble in preparing for the future. Managers should try to keep the big picture their long-term goals in mind when developing their plans.

Barriers To Planning (Cont...)

(v) Too much reliance on the organization's planning department Many companies have a planning department or a planning and development team. These departments conduct studies, do research, build models, and project probable results, but they do not implement plans. Planning department results are aids in planning and should be used only as such. Formulating the plan is still the manager's responsibility. (vi) Concentrating on controllable variables Managers can find themselves concentrating on the things and events that they can control, such as new product development, but then fail to consider outside factors, such as a poor economy. One reason may be that managers demonstrate a decided preference for the known and an

aversion to the unknown.

Requirements Of A Good Plan

(a) Clear objective The purpose of plans and their components is to develop and facilitate the realization of organizational objectives. The statement on objectives should be clear, concise, definite and accurate. It should not be colored by bias resulting from emphasis on personal


(b) Proper understanding

A good plan is one which is well understood by those who have to

execute it. It must be based on sound assumptions and sound reasoning.

Requirements Of A Good Plan (Cont)

(c) Flexible The principle of flexibility states that management should be able to change an existing plan because of change in environment without undue extra cost or delay so that activities keep moving towards the established goals. Thus, a good plan should be flexible to

accommodate future uncertainties.

(d) Stable

The principle of stability states that the basic feature of the plan
should not be discarded or modified because of changes in external factors such as population trends, technological developments, or unemployment.

Requirements Of A Good Plan (Cont)

(e) Comprehensive A plan is said to be comprehensive when it covers each and every aspect of business. It should integrate the various administrative plans so that the whole organization operates at peak efficiency.

(f) Economical A plan is said to be good, if it is as economical as possible,

depending upon the resources available with the organization.

Types of planning

Importance of planning
Identifying barriers to planning Requirements of a good plan

Part 3: Steps In Planning Process

Topics Covered
Steps in planning process

Definition of implementation
Steps in implementation process

Step 1: Establish Goals

The first step of the management planning process is to identify

specific company goals. This portion of the planning process should

include a detailed overview of each goal, including the reason for its selection and the anticipated outcomes of goal-related projects. Where possible, objectives should be described in quantitative or qualitative terms. An example of a goal is to raise profits by 25 percent over a 12-month period.

Step 2: Identify Resources

Each goal should have financial and human resources projections associated with its completion. For example, a management plan may identify how many sales people it will require and how much it will cost to meet the goal of increasing sales by 25 percent.

Step 3: Establish Goal- Related Tasks

Each goal should have tasks or projects associated with its achievement. For example, if a goal is to raise profits by 25 percent, a manager will need to outline the tasks required to meet that objective. Examples of tasks might include increasing the sales staff or developing advanced sales training techniques.

Step 4: Prioritize Goals And Tasks

Prioritizing goals and tasks is about ordering objectives in terms of

their importance. The tasks deemed most important will theoretically be approached and completed first. The prioritizing process may also reflect steps necessary in completing a task or achieving a goal. For example, if a goal is to increase sales by 25 percent and an associated task is to increase sales staff, the company will need to complete the steps toward achieving that

objective in chronological order.

Step 5: Create Assignments And Timeliness

As the company prioritizes projects, it must establish timelines for completing associated tasks and assign individuals to complete them. This portion of the management planning process should consider the abilities of staff members and the time necessary to realistically complete assignments. For example, the sales manager in this scenario may be given monthly earning quotas to stay on track for the goal of increasing sales by 25 percent.

Step 6: Establish Evaluation Methods

A management planning process should include a strategy for evaluating the progress toward goal completion throughout an established time period. One way to do this is through requesting a

monthly progress report from department heads.

Step 7: Identify Alternative Courses Of Action

Even the best-laid plans can sometimes be thrown off track by unanticipated events. A management plan should include a contingency plan if certain aspects of the master plan prove to be unattainable. Alternative courses of action can be incorporated into each segment of the planning process, or for the plan in its entirety.

Definition Of Implementation

Implementation is the carrying out, execution, or practice of a plan, a method, or any design for doing something. As such, implementation is the action that must follow any preliminary thinking in order for something to actually happen.

In an information technology context, implementation encompasses

all the processes involved in getting new software or hardware operating changes. properly in its environment, including installation, configuration, running, testing, and making necessary

Steps Involved In Implementation Process

Step 1

Evaluate the plan. The first step in the implementation process is to step back and make sure that you know what the plan is. Review it carefully, and highlight any elements of the plan that might be especially challenging. Recognize any parts of the plan that might be unrealistic or excessive in cost, either of time or money. Highlight these, and be sure to keep them in mind as you begin implementing the strategic plan. Keep back-up ideas in mind in case the original plan fails.

Step 2

Create a vision for implementing the plan. This vision might be a series of goals to be reached, step by step, or an outline of items that need to be completed. Be sure to let everyone know what the end result should be and why it is important. Establish a clear image of what the strategic plan is intended to accomplish.

Step 3

Select team members to help you implement the plan. Make sure
you have a team that has your back, so to speak, and understands the purpose of the plan and the steps involved in implementing it. Establish a team leader, if other than yourself, who can encourage the team and field questions or address problems as they arise.

Step 4

Schedule meetings to discuss progress reports. Present the list of goals or objectives, and let the planning team know what has been accomplished. Whether the implementation is on schedule, ahead of schedule, or behind schedule, assess the current schedule regularly

to discuss any changes that need to be made. Establish a rewards

system that recognizes success throughout the process of implementation.

Step 5

Involve the upper management where appropriate. Keep the organizations executives informed on what is happening, and provide progress reports on the implementation of the plan. Letting an organizations management know about the progress of

implementation makes them a part of the process, and, should

problems arise, the management will be better able to address concerns or potential changes.

Steps in planning process

Definition of implementation
Steps in implementation process

Case Studies

Topics Covered
Why planning is required

Case study 1
Case study 2 Case study 3

Case study 4

Example Why Planning Is Required

One night 4 college students were playing till late night and could

not study for the test which was scheduled for the next day.
In the morning they thought of a plan. They made themselves look as dirty with grease and dirt. They then went up to the Dean and said that they had gone out to a wedding last night and on their return the tire of their car burst and they had to push the car all the way back and that they were in no condition to appear for the test. So the Dean said they could have the re-test after 3 days. They thanked him and said they would be ready by that time.

Example (Cont)
On the third day they appeared before the Dean.. The Dean said that as this was a Special Condition Test, all four were required to sit in separate classrooms for the test... They all agreed as they had prepared well in the last 3 days. The Test consisted of 2 questions with a total of 100 Marks. Q.1. Your Name............................ (2 MARKS) Q.2. Which tire burst? (98 MARKS) a) Front Left b) Front Right c) Back Left d) Back Right.....!!!

Case Study 1
RMS Titanic was a British passenger liner that sank in the North Atlantic Ocean on 15 April 1912 after colliding with an iceberg during her maiden voyage from Southampton, UK to New York City, US. The sinking of Titanic caused the deaths of 1,502 people in one of the deadliest peacetime maritime disasters in history. The RMS Titanic was the largest ship afloat at the time of her maiden voyage.

Result Of Improper Planning

The US inquiry was headed by Senaton William Alden Smith and the
British one by Lord Mersey. 1. The result of the investigations revealed that many of the safety measures and regulations of the international maritime were outdated and required a second look. The ship itself was found short on few of the standards. 2. The steel sheet that was used to make the body was made up of a

certain kind of steel that became extra brittle in the cold and easily
cracked at the slightest of the contact.

3. During 14th April 1912, Titanic radio operators received six messages from other ships warning of drifting ice, which passengers had begun to notice during the afternoon. 4. There were only 20 lifeboats, each lifeboat can accommodate only 68 people and collectively 1178 barely half the number of people on board. 5. The shortage of lifeboats was not because of a lack of space- Titanic had been designed to accommodate up to 68 lifeboats- nor was it

because of cost. The White Star Line had rather wished to have a wide
promenade deck with uninterrupted views of the sea, which would have been obstructed by a continuous row of lifeboats.

Case Study 2

In 1845 Sir John Franklin set out on an expedition to find the fabled Northwest Passage linking the Atlantic and Pacific oceans through the Arctic Circle. It was a vitally important expedition because, if the Northwest Passage existed, it could provided a link between Britain

and her far flung Empire. Sir John and his company of 138 officers
and men sailed in two three masted barques with auxiliary steam engines. He expected the voyage to last two to three months. But the ship sank after 15 days. Do you know why did this happen?

Result Of Improper Planning

The ships were equipped as replicas of English Royal Navy officers clubs.

Each ship had a 1200 volume library; there were copious amounts of
china plate settings, cut glass wine goblets and sterling silver table ware and cutlery. The cutlery was engraved for the individual officers, with each officers initials and family crest. Unfortunately items such as these took up so much space that room could be found for only 12 days supply of coal for the auxiliary steam engines. They took no special clothing for the Arctic conditions, just the rather splendid naval uniforms, and

equipment was standard: there were for instance no sleds.

It took 20 yrs to find the remnants of the expedition; the ships had been destroyed by the pack ice, but frozen bodies were found in groups, many kilometers from where their ships had disappeared.

Case Study 3
SANO which is a brain child of Rakish Vita raised hope for a lot of middle class families by giving them the status of owning a car. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find whats inside SANO?. The only factor the customer knew in advance was its price tag of 1 lac as conveyed by Rakish Vita. The five seater car Sano from Vita finally arrived in the market. The strengths of the product included its small size, ease in handling and good mileage efficiency. It directly took on the motorcycle market and tried to attach a status symbol to itself such that customers prefer the Sano above buying a motorcycle. But why was it not a big hit and why is it still lagging to grab the market

in spite of its good and convincing features?


Failure of Sano was basically due to planning failure. The launch price came in two variants ranging between 1.2 lacs to 1.5lacs. It was 20 50% higher then the proposed rates which was a major setback to customers. Within a few months of initial sales, technical

problems were found in the product and there were a few reports of
Sano catching fire, which further weakened the trust for the brand Sano as a whole. Rakish Vita also faced political problems and had to shift the plant location which led to production delays. And now due to inflation, Sanos prices have further increased due to increase in the prices of raw material such as steel, rubber and others.

Case Study 4

In 1973 APJ Abdul Kalam became the project director of India s

satellite launch vehicle program, commonly called the SLV-3. The goal was to put Indias Rohini satellite into orbit by 1980. He was given funds and human resources but was told clearly that by 1980 they had to launch the satellite into space. Thousands of people worked together in scientific and technical teams towards that goal. By 1979 in the month was August, they thought they were ready. As

the project director, he went to the control center for the launch.
After launching the rocket manually. Instead of the satellite going into orbit, the whole rocket system plunged into the Bay of Bengal . It was a

big failure. Do you know why did this happen?


This failure was basically due to improper planning. At four minutes before the satellite launch, the computer began to go through the checklist of items that needed to be checked. One minute later, the

computer program put the launch on hold; the display showed that
some control components were not in order. Abdul Kalaam's experts he had four or five of them with him told him not to worry; they had done their calculations and there was enough reserve fuel. So he bypassed the computer, switched to manual mode, and launched the rocket.

Why planning is required

Case study 1
Case study 2 Case study 3

Case study 4