PLANNING:

as
Managemen
t Function
By: Rolando P. Roncal Jr.
DMMMSU ICHAMS Faculty

PLANNING

OBJECTIVES OF PLANNING:

Forecasts the Course

Forward Bearing
Assured Activities
Forecasts the Risk
Helps in Establishing Co-ordination
Develops in Facing Competition
Managing Budgetary Targets
Present Important Informations
Economy in Management
Supports in Maintaining Healthy
Competition

CHARACTERISTICS OF
PLANNING
Planning is a Continuous
Process

Planning Contributes to Objectives

Planning as Primary Function of Management
Planning is Forward Looking
Planning is Target Based
Planning is Pervasive
Planning is a Choice Making or Selecting Process
Planning is a Compulsory Part of Organization
Planning Increase the Efficiency in Operation in an
Organization
Planning is not an End
Planning is Universal in Managerial Activities
Planning is an Intellectual Process

Elements of Planning
Vision, Mission, Philosophy, Goals,
Objectives, and Values
Forecasting
Policies
Procedures
Rules
Programmes
Budgets
Strategies

MISSION: Purpose for

being

Communicates the organizations reason

for being, and how it aims to serve its key
stakeholders.
Mission statements are often longer than
vision statements.
Sometimes mission statements also
include a summation of the firms values.

Values
The beliefs of an individual or group, and in an
organization, in which they are emotionally invested.
Example:
Provide a great work environment and treat each other
with respect and dignity.
Embrace diversity as an essential component in the
way we do business.
Apply the highest standards of excellence to the
purchasing, roasting and fresh delivery of our coffee.
Develop enthusiastically satisfied customers all of the
time.
Contribute positively to our communities and our
environment.
Recognize that profitability is essential to our future
success.

VISION: based on the purpose, this

is what we want to become.
A future-oriented declaration of the
organizations purpose and aspirations.

Goals
Results to be achieved.
Describes ideal states
to be achieved at some
unidentified future time.
Defined consistent with
and related directly to
vision and mission.
Guide
everyday
decisions and actions.

Objectives
Focuses on critical organization issues and
milestones.
Describe activities to be accomplished to
achieve goals.
Measurable in terms of whether or not they
are achieved. They may be changed when
necessary for progress towards goals.

Forecasting
The Forecasting is the second most
important element in planning.
As per the organizational pre decided
goals, planning forecasts the
different aspects such as the man
power needed, finance required and
amount to be produced and many
more issues.

Policies

Policies tend to pre determined

issues, avoid represented analysis
and consideration of general course
of action and give a unified structure
and other types of plans, thus
permitting manager to delegate
authority.

Procedures
The procedures basically decide the
systematic way for job performance
and the required actions that have to
take place.
Steps that take place in a specific
sequence in a business or industrial
unit for policy enforcement and
achievement of objectives are the
recommended procedure of that unit.

Rules

Firm and definite plan that spells out

what is to be done or not to be done
in a certain condition

Programmes

Made to carry out the

implementation of the planned work,
according to general policies and
procedures.
A short plan to perform a particular
task or work.

Budgets
Budget is the financial plan, which explains
the expected result in quantitative terms.
This ascertains the limit within which the
goals have to be accomplished.
Budget is a futuristic and an organization
has many types of Budgets as, CashBudget, Purchase-Budget, Sales-Budget,
Overhead-Budget, etc. and all these are
specific tools for systematic control, since
it is numerical and not abstract.

Types of Budgeting
Incremental Budgeting
Zero-Base Budgeting

Types of Budget

Master Budget
Operating Budget
Cash Flow Budget
Financial Budget
Static Budget

Strategies
A special type of plan formulated in such
a way that it assimilates with the existing
primary plan or any optional plan for the
successful accomplishment of objective.
Type of Strategies: Marketing Strategies,
Financial Strategies, Production
Strategies, and Personnel Strategies.
- They are designed to tackle or support in
reaching specific decision or result.
- Mostly these strategies depend upon the
problem or situation prevailing in the
changing world.

Importance of Planning
Planning Offsets Future Uncertainties
Planning Clarifies & Develops Attention on Objectives
Planning Coordinates Action & Reduces Wasteful
Activities
Planning Improves Organizational Efficiency
Planning also Increase Managerial Efficiency
Planning Facilitates Control
Planning Helps in Economical Operations
Planning Provides Direction
Planning Facilitates Decision Making
Planning Improves Motivation & Morale
Planning Encourages Innovation & Creativity
Planning in Nation Building