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Pro. Mrunali Tikare

Coping with Uncertainty
• Three Types of Uncertainty
– State uncertainty: occurs when the environment, or a portion of the environment, is considered unstable. – Effect uncertainty: occurs when impacts of environmental change are unpredictable. – Response uncertainty: arises when the consequences of decisions are unpredictable.

What is Plan • A Plan: – Is a specific documented intention consisting of an objective (end) and an action statement (means). . – States what. when. and how something is to be done.

Definition of Planning • The act of determining the organizations goals and the means for achieving them. .

Planning improves time management .ADVANTAGES OF PLANNING • Good planning can produce Provides direction Reduces uncertainty Minimizes waste and redundancy Sets the standards for controlling Focus on goals Intensified effort Persistence of effort Creation of strategies and tactics Planning improves coordination and control.

.Planning Process • Planning – The process of setting objectives and determining how to accomplish them.

Identify Goals Develop Planning Premises Determine Alternative Course of Action Selection and Implementation Review and Revise .

.  Step 3. identify strengths that work in your favor and weaknesses that can hold you back. Define your objectives Know where you want to go. be specific enough to know you have arrived when you get there and how far off you are along the way.Planning Process  Step 1. identify for each scenario things that may help or hinder progress toward your objectives. Develop premises regarding future conditions and generate alternative scenarios for what may happen.  Step 2. Determine current status vis-à-vis objectives Know where you stand in reaching the objectives.

Take action.Planning Process Step 4. describe what must be done to implement this course of action. measure progress toward objectives as implementation proceeds. Make a plan Choose the action alternative most likely to accomplish your objectives. Step 5. take corrective actions and revise plan as needed . Implement the plan and evaluate results.

• For Planning Premises – you need data on the current status of the organization .Planning Premises • Planning Premises lay down the boundary or limitations within which plans are to be implemented.

Types of Planning Premises • Internal v/s External data • Controllable v/s Uncontrollable . motivation . goodwill.Conditions • Tangible v/s Intangible – Time .

Types of Plans .

Types of Plans .

•Only the rare person can handle a 20-year time span. • Long-range Plans – Usually cover three years or more Jaques’s Findings on Long-Term Thinking •Most people are comfortable with 3-month time spans. . •Some work well with a 1-year time span.Types Of Plans • Short-range plans – usually cover a year or less.

. yet allow discretion in implementation.Types of Plans • Specific Plans – Plans that are clearly defined and leave no room for interpretation • Directional Plans – Flexible plans that set out general guidelines. provide focus.

Ex. Methods • Standing Plans – Ongoing plans that provide guidance for activities performed repeatedly. Policies. Project. Rules . Budget. Schedule. Procedure. Programmes. Ex.Types of Plans • Single-Use Plan – A one-time plan specifically designed to meet the need of a unique situation.

. • Benchmarking identifies best practices used by others. • Participatory planning improves implementation capacities. • Staff planners provide special expertise in planning. • Scenario planning crafts plans for alternative future conditions.Types Of Planning • Contingency planning creates back-up plans for when things go wrong.

Components Of Plans  Policy  communicates broad guidelines for making decisions  Procedure  defines specific actions to be taken in specific situations  Project Plans  specify activities. and timetables for completing projects  Budget  plan that commits resources to projects or activities  Zero-based Budget  allocates resources as if each budget was brand new  Programme :  Comprehensive plan designed to implement polic . resources.

Planning Horizons .

– Planning uses feedback from controls to improve/alter plans and implement corrective actions where necessary. attainment of objectives).e. ..The Planning/Control Cycle – Planning sets in motion activities to accomplish the planned objectives. – Control functions to direct and monitor activities for deviations from plans (i.

The Basic Planning/Control Cycle .

– Plans cannot be developed for dynamic environments. – Planning focuses managers’ attention on today’s competition not tomorrow’s survival. – Formal planning reinforces today’s success. – Formal plans cannot replace intuition and creativity. which may lead to tomorrow’s failure.Contemporary Issues in Planning • Criticisms of Planning – Planning may create rigidity. .