Chapter 3

Unit 2
 Planning is deciding in advance what to do,
how to do it, when to do it and who is to do
it.
Planning is the process of establishing goals
and a suitable course of action for achieving
those goals.
It provides the bridge to take us from where
we are to where we want to go.
It is a mental predisposition to do things in
an orderly way, to think before acting and to
act in the light of facts rather than guesses.
 Goal oriented
Future oriented
Continuous
Pervasiveness
Intellectual process
Primacy of Planning
Helps in Co-ordination
Involves decision making
Efficiency, Economy and Accuracy
 Minimizes risks of uncertainty
Facilitates coordination
Facilitates proper direction
Establishes standard for control
Improves efficiency
Encourages innovation
Facilitates decision making
Reduces wastage of resources
 Time consuming
Involves paper work
Expensive
Generates Rigidity
Dangers of over targeting and under
targeting
Danger of Human error
Problems with technical and creative staff
Problems of changing situations
 Collect Develop
Determine
information and Planning
objectives
forecast Premises

List
Choose best Study alternative
alternative alternative ways of
plans reaching
objectives

Develop
Communicate and Follow
derivative
Implement up
plans
 Objectives:
provide purpose of the enterprise
end point of planning
act as guide to overall planning process
Strategy
Complete plan for accomplishing organizational goals
Framing long term objectives
Policies
General guide to thinking and action rather than a
specific course of action
Procedure
Steps to carry out routine activities
 Method
Prescribed manner in which a task is to be performed
Deals with task comprising one step of a procedure
Rule
Statements informing what should be done what not under a given
situation
No flexibility or discretion allowed
Programme
Concrete scheme of action designed to accomplish given tasks
Includes steps to be taken, resources to be used, time limits for
each step and assignment of tasks
Detailed statements about a project outlining objectives, policies,
procedures, rules, resources required and budget to implement
any course of action
Budget
Plan quantifying future facts and figures
Represents the total income and expenses
 Long term
planning

On the basis of Medium term

Time Period planning

Short term
planning
Types of
Planning
Corporate
planning

On the basis of Divisional

scope planning

Departmental or
Unit planning
 By Peter Drucker
Each and every employee of the organization
working whole heartedly towards the
attainment of objectives of the organization
Objectives of the organization must be set by
both management and subordinates jointly
Aims at coordinating individual goals with
organizational roles
 Goal specificity
Participative decision making
Explicit time period
Performance feedback
 Optimum utilization of human resources
Better communication
Fixed responsibility
Increased employee morale and motivation
Career development of the employees
Effective planning and control
 Insufficient support from top management
Insufficient integration with other systems
Improper follow up
Time consuming
Reward punishment approach-stress
Difficult to coordinate management and
employees objectives