FUMDEMENTALS OF PLANNING

Mamun Muztaba
MC @Bangladesh Institute of Management
 CONCEPT OF PLANNING
• “ Planning is the selecting and relating of facts and the making and using of assumption
regarding the future in the visualization and formulation of proposed activities believed
necessary to achieve desired results .”
……….George R .Terry

• “Planning is a concept of executive function that embodies the skills of anticipating

influencing and controlling the nature and direction of change.”---------- Dalton
E.Mcfarland

MAMUN MUZTABA, MC, BIM

MAMUN MUZTABA, MC, BIM
 CONCEPT OF PLANNING
• Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it. Planning bridges the
gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise
happen.

• Planning is the process of thinking about what you want and how you are going to accomplish it; determining in
advance what is to be done; preparing for the future by making decisions now.
 Plan
• A statement of action steps to be taken in order to accomplish the objectives.

MAMUN MUZTABA, MC, BIM

 NATURE OF PLANNING
 Planning is goal oriented
 Planning is an intellectual or rational Process
 Planning is a primary function.
 Planning is All- pervasive
 Planning is forward –looking
 Planning is continuous process .
 Planning is an Integrated Process.
 Planning Involves Choice.
MAMUN MUZTABA, MC, BIM
 BENEFITS OF PLANNING

Improves focus and flexibility.

Improves action orientation.
Improves coordination.
Improves time management.
Improves control.

MAMUN MUZTABA, MC, BIM

CLOSE RELATIONSHIP OF PLANNING AND
CONTROLLING
 TYPES OF PLANS

MAMUN MUZTABA, MC, BIM

STRATEGIC VS OPERATIONAL
LONG RANGE VS SHORT RANGE
 CORPORATE VS FUNCTIONAL
 Corporate Plan:
• A comprehensive plan that outlines the broad objectives of a company as a whole
and develops plans to achieve those objectives
• Holistic and Unified focus
• Focus on organizational performance
 Functional Plan:
• Is unit planning and deals with different departments in an isolated manner.
• Focus on departmental performance

MAMUN MUZTABA, MC, BIM

 PROACTIVE VS REACTIVE

 Proactive Planning:
• Managers challenge the future, anticipating future contingencies and get ready with
alternative routes for unforeseen circumstances

 Reactive Planning:
• Organizations react to events as and when they arise

MAMUN MUZTABA, MC, BIM

 STANDING VS SINGLE USE
 Standing Plans
• Developed for activities that recur regularly over a period of time
Ex:
• Objectives, Policies, Procedures, Methods, Rules

 Single Use plans

• Developed to carry out a course of action that is not likely to be repeated in future
Ex:
• Programms, Schedules, Projects, Budgets

MAMUN MUZTABA, MC, BIM

 SPECIFIC VERSUS DIRECTIONAL
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.

MAMUN MUZTABA, MC, BIM

SPECIFIC VERSUS DIRECTIONAL PLANS

MAMUN MUZTABA, MC, BIM

STEPS OF PLANNING
HIERARCHY OF PLANS
 HIERARCHY OF PLANS
1. Vision
• A vision refers to the category of intentions that are broad, all-inclusive, and forward
thinking. A vision describes aspirations for the future, without specifying the means
that will be used to achieve those desired ends.
2. Purposes or Mission
• Purposes or Mission identifies the basic function or task of an enterprise or any part of
it. Purposes or Mission describes how the organization reacts to or meets the interest
of its stakeholders/society.
3. Goals
• Goals are attempts to make a mission statement more specific and concrete. A goal is
the future state or position that an organization wants to attain within a specific period
of time.

MAMUN MUZTABA, MC, BIM

 HIERARCHY OF PLANS
4. Objectives
• Objectives are operational definition of goals. The main characteristics of objectives are as follows:
Þ They can be measured.
Þ They reduce conflict.
Þ SMART
5. Strategies
• Strategy is defined as the determination of the basic long-term objectives of an enterprise and adoption of
courses of action and allocation of resources necessary to achieve these goals. E.g A company has to decide
what kind of business it is going to be in. Is it a Transportation or railroad company? Is it a container or
paper box manufacturer.

6. Policies
• A policy is an organization-level document that prescribes acceptable methods or behaviors. These are the
guiding principles of an organization. Essentially, a policy is simply the way things are done within an
organization. HR policy, Policy manual (gift from suppliers, entertainment from outsiders).

MAMUN MUZTABA, MC, BIM

 HIERARCHY OF PLANS
7. Procedures
• Procedures are plans that establish a required method of handling future activities.
They are chronological sequences of required actions.
• A procedure is a series of steps to be followed as a consistent and repetitive approach
to accomplish an end result. Procedure implies the step by step sequence, for the
performance of activity within the organization. Eg. Handling of orders.
8. Rules
• Rules are spell out specific required actions or non-actions, allowing no discretion.
Rules are simplest type of plan. Eg. No smoking”.

MAMUN MUZTABA, MC, BIM

RELATIONSHIP OF OBJECTIVES AND THE
ORGANIZATIONAL HIERARCHY
 BARRIERS OF PLANNING

INAPPROPRIATE GOALS: Goals that are illegal, impossible, unattainable etc.

IMPROPER REWARD SYSTEM: People are often rewarded for poor goal setting behavior and punished
for proper goal-setting behavior.
DYNAMIC AND COMPLEX ENVIRONMENT: Rapid change, technological innovation, and competition
increase the difficulty in assuming future as well as in goal setting.
RELUCTANCE TO ESTABLISH GOALS: Reluctance of some managers to establish goals for themselves
and their units. The reason for such reluctance may be lack of confidence or fear of future.
RESISTANCE TO CHANGE: Planning essentially involves changing something about the organization.
But it is seen that often such changes are not accepted.
CONSTRAINTS: Constraints, that limit what an organization can do, are also major barriers in planning.
Common constraints include a lack of resources, government restrictions, and strong competition.

MAMUN MUZTABA, MC, BIM

MAMUN MUZTABA, MC, BIM