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Planning

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.

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 improves time management

Planning Process

Planning

The process of setting objectives and determining how to accomplish them.

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

Identify Goals

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

Develop Planning

Premises

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

Determine Alternative Course of Action

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

Selection and

Implementation

   

Review and Revise

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

Planning Process

Step 1. 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.

Step 2. Determine current status vis-à-vis objectives Know where you stand in reaching the objectives;

identify strengths that work in your favor and weaknesses that can hold you back.

Step 3. Develop premises regarding future conditions and generate alternative scenarios for what may happen; identify for each scenario things that may help or hinder progress toward your objectives.

Planning Process

Step 4. Make a plan Choose the action alternative most likely to accomplish your

objectives; describe what must be done to implement this course of action.

Step 5. Implement the plan and evaluate results. Take action; measure progress toward objectives as implementation

proceeds; take corrective actions and revise

plan as needed

Planning Premises

Planning Premises lay down the boundary

or limitations within which plans are to be

implemented.

For Planning Premises you need data on the current status of the organization

Types of Planning Premises

Internal v/s External data

Controllable v/s Uncontrollable - Conditions

Tangible v/s Intangible Time , goodwill, motivation

Types of Plans

Types of Plans

Types of Plans

Types of Plans

Types Of Plans

Short-range plans

usually cover a year or less.

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.

Only the rare person can handle a 20-year time span.

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, yet allow discretion in implementation.

Types of Plans

Single-Use Plan

A one-time plan specifically designed to meet the need of a unique situation.

Ex. Programmes, Budget, Schedule, Project,

Methods

Standing Plans

Ongoing plans that provide guidance for activities performed repeatedly.

Ex. Policies, Procedure, Rules

Types Of Planning

Contingency planning creates back-up plans for when things go wrong.

Scenario planning crafts plans for alternative future conditions.

Benchmarking identifies best practices used by others.

Staff planners provide special expertise in planning.

Participatory planning improves implementation capacities.

Components Of Plans

  • Policy communicates broad guidelines for making decisions

  • Procedure defines specific actions to be taken in specific situations

  • Project Plans specify activities, resources, 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

Planning Horizons

Planning Horizons

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.e.,

attainment of objectives).

Planning uses feedback from controls to improve/alter plans and implement corrective

actions where necessary.

The Basic Planning/Control Cycle

The Basic Planning/Control Cycle

Contemporary Issues in Planning

Criticisms of Planning

Planning may create rigidity.

Plans cannot be developed for dynamic environments.

Formal plans cannot replace intuition and creativity.

– Planning focuses managers’ attention on today’s competition not tomorrow’s survival.

– Formal planning reinforces today’s success, which

may lead to tomorrow’s failure.