Planning

Prof. Seema Prashar

*PLANNING

Jul 2012
 Task Number One Of Management
 Determination Of Future Course Of Action
 Intellectual Process
 Process Of Thinking Before Doing
 Decision Making Process
 Precedes All Managerial Functions
 Refers To Policy Formulation And
Establishment
 Of Goals
Deciding In Advance What To Do, When And How
 To Do It
Foundation Of Management

Jul 2012
“Planning Is Deciding In Advance What Is To Be Done. It
Involves Selection Of Objectives, Policies, Procedures And
Programmes From Among Alternatives.”

“Planning Is An Intellectual Process, The Conscious

Determination Of Future Courses Of Action, The Base Of
Decisions On Purpose, Acts And Considered Estimates”—
Koontz & O’Donnell.

*DEFINITION
S Jul 2012
“Management planning involves the development of
forecasts, objectives, policies, programmes, procedures,
schedules desired results”—Louis A. Allen

“Planning is deciding in the present what to do in future.

It is the process whereby companies reconcile their
resources with their objectives and opportunities”—
Philip Kotler

*DEFINITION
Jul 2012
 PURPOSE
PHILOSOPHY
PROMISES
PLANS
POLICY
PRIORITY

*SIX P’S OF
PLANNING Jul 2012
PURPOSE—Goals should be
verifiable so that we can check
it
PHILOSOPHY—ideology
PROMISES—uniting
factor
PLANS—manager has to ascertain the goals,
actions to achieve goals, requirement of
POLICY—general
resources, sources of resources on
guidelines management can which
take decision
PRIORITY—Needs * SIX P’S OF
PLANNING
Jul 2012
• Planning Is Goal Oriented
• Planning Is An Intellectual Process
• Planning Is All Pervasive
• Precedes All Managerial Functions
• Planning Is A Continuous Process
• It Is Flexible In Nature
• Directed Towards Efficiency

*NATURE/CHARACTERISTICS
OF
Jul 2012
STEP 1 Determination Of Objectives
STEP 2 Establishment Of Planning Premises
STEP 3 Selection of the Best Plan from the
Alternatives Available
STEP 4 Timing and Sequence of Operation
STEP 5 Estimation of Future Events
STEP 6 Follow Up Action

*STEPS IN PLANNING
PROCESS
Jul 2012
Determination of objectives is the first step
in planning process.

The objectives so determined decide the future

course of action.

*STEP Determination Of
1 Objectives
Jul 2012
Planning premises are the assumptions for future
which provide a framework for the planning
process.

They form the very basis for action.

Business environments are

uncertain.

*STEP 2 Establishment Of
Jul 2012
Planning
Planning Premises gives a
prediction about future
uncertainties of business
environments.
On the basis of these forecasts are made
and future trends are indicated.
Jul 2012
 *STEP 3 Selection of the Best Plan
from
the Alternatives Available
All alternatives are found out, studied and
evaluated.

After careful consideration of all the points one

alternative is selected and decision is taken
according to the choice made.

Jul 2012
Timing an consideration in any
is essential

planning.
Sequence of operation is also arranged carefully.
Priorities are fixed.

*STEP Timing and Sequence of

4 Operation

Jul 2012
Some estimation is made for future events.

There are trend studies which indicate possible future

events.

Keeping some provision for margin of error,

these trend studies can be relied upon.

Experience, judgment and discretion also help

in estimating future events.

*STEP Estimation of Future

5 Events
Jul 2012
The plans so prepared are to be carried out.
Follow up action is also needed for seeing through
the plan during the course of implementation.
A regular follow-up action is both desirable and
needed for effective implementation and
accomplishment of tasks assigned.

*STEP Follow Up
6 Action

Jul 2012
 CLASSIFICATION OF PLANS

STANDING PLANS SINGLE-USE PLANS

MISSION PROGRAMMES

OBJECTIVES
PROJECTS
POLICIES
SCHEDULES
PROCEDURES

BUDGETS
STRATEGIES

STANDARDS
RULES
 STANDING PLANS SINGLE-USE
PLANS
*Formulated by
*Are used for only
managers
at specific periods.
levels and aredifferent
meant
for repeated use as
and when the occasion
demands.

* May be used over a

long period of time.

Jul 2012
1. FINANCIAL OR NON-FINANCIAL PLANS
Plans that require financial resources are
considered financial plans

Plans relating to physical resources of an

organization are non-financial plans

*TYPES OF PLANS
Jul 2012
Mere thinking by
managers or contemplation
refers to informal plans
When informal plans are finalized and
prepared for implementation, it is considered to
be a formal plan

*2. INFORMAL
AND FORMAL Jul 2012
Any plan made with a
particular objective is a
specific plan
Day-to-day normal activities require some type of
regular plan known as routine plan

*3. SPECIFIC
AND ROUTINE
PLANS Jul 2012
Strategic planning is overall planning
enterprise’s objectives determined
management

A plan made in functional area like

production, purchase, marketing is referred
to as
plan
*4 .STRATEGIC AND
functional

FUNCTIONAL
PLANS
Jul 2012
Short term plans refers to a
period covering six to twelve
months
Long range plans usually involve a time interval
of between three and five years

*5. LONG-RANGE
OR SHORT RANGE
PLAN
Jul 2012
Administrative plans provide the base for
operative plans.

Administrative planning is done by top and middle

level management and operational planning is
done by lower level management

*6.
ADMINISTRATIVE
OR OPERATIONAL
Jul 2012