UNIT -2

MANAGEMENT
PROCESS
PRESENTED BY :
CH.LAVANYA
ASSOCIATE PROFESSOR
COMMUNITY HEALTH NURSING DEPARTMENT
GITAM INSTITUTE OF NURSING
GITAM (DEEMED TO BE UNIVERSITY)
DEFINITION OF PLANNING:

Planning in management is about what steps

you need to take to reach the goal, what
changes and hurdles to anticipate, and how
to utilize human resources and opportunities
to reach the expected outcome.
Planning may be defined as deciding in
advance what to be done in future. It is the
process of thinking before doing. It involves
determination of goals as well as the
activities required to be undertaken to
achieve the goals.
DEFINITION OF PLANNING:

 Planning is the systematic process of

establishing a need and then working out
the best way to meet the need, within a
strategic framework that enables you to
identify priorities and determines your
operational principles. Planning means
thinking about the future so that you can do
something about it now.
DEFINITION:
 Planning is the fundamental management
function, which involves deciding
beforehand, what is to be done, when is it
to be done, how it is to be done and who is
going to do it. It is an intellectual
process which lays down an organisation’s
objectives and develops various courses of
action, by which the organisation can
achieve those objectives. It chalks out
exactly, how to attain a specific goal.
PHILOSOPHY OF PLANNING
 1.Planning sets guidelines and constraints for
the behavior of the firm.
 2.planning requires flexibility ,energy and
specificity . It should be simple, realistic ,a
guide for action in reaching the goal ,and most
allow for adjustment as expected and
unexpected events occur.
 3.planning is essential :a manager must be able
to overcome barriers that impede planning.
 4.planning must be done by hierarchical order
and must be congruent in its flow.
CONCEPT OF PLANNING
 PLANNING IS PREPARAING A BLUE PRINT.
 Planning is a future-oriented process. It decides in advance
‘what is to be done, ’how it is to be done ,when to do it,
’who is to do it and ‘where it is to be done.
 A manager first decides on the jobs he wants to do. There
after ,he set long and short term objectives for the
organization and decides on the means or develops
strategies that will be used to achieve these objectives.
 Planning refers to thinking a head of time and formulating
preliminary thoughts. It is a continuous ,intellectual process
of determining philosophy ,objectives, polices ,procedures,
and rules and standards. It involves long and short term
projections and the fiscal course of actions.
 Planning is the preliminary and most important step in the
management process
CHARACTERISTICS OF PLANNING
Managerial function: Planning is a first and foremost managerial function
provides the base for other functions of the management, i.e. organizing,
staffing, directing and controlling, as they are performed within the
periphery of the plans made.
Goal oriented: It focuses on defining the goals of the organization,
identifying alternative courses of action and deciding the appropriate
action plan, which is to be undertaken for reaching the goals.
Pervasive: It is pervasive in the sense that it is present in all the segments
and is required at all the levels of the organization. Although the scope of
planning varies at different levels and departments.
Continuous Process: Plans are made for a specific term, say for a month,
quarter, year and so on. Once that period is over, new plans are drawn,
considering the organization's present and future requirements and
conditions. Therefore, it is an ongoing process, as the plans are framed,
executed and followed by another plan.
Intellectual Process: It is a mental exercise at it involves the application
of mind, to think, forecast, imagine intelligently and innovate etc.
Futuristic: In the process of planning we take a sneak peek of the future.
It encompasses looking into the future, to analyze and predict it so that
the organization can face future challenges effectively.
Decision making: Decisions are made regarding the choice of alternative
courses of action that can be undertaken to reach the goal. The
alternative chosen should be best among all, with the least number of the
negative and highest number of positive outcomes.
STEPS OF PLANNING
 Step 1: To establish objectives which are
verifiable
 Step 2: To establish planning premises
 Step 3: To determine alternative course of action
 Step 4: To evaluate the alternatives and select
the best
 Step 5: To formulate derivative plans
 Step 6: To secure co-operation and participation
of all employees
 Step 7: To measure and control the progress
through follow-up 
STEPS IN PLANNING
 Step 1: To establish objectives which are
verifiable Identify goals of the organization
Internal(Financial position of company,
human resources available, manufacturing
facility, company image, etc.) and external
environment(Government rules and
regulations, Socio-economic condition of the
society, competition level, suppliers
reliability) of the organization has to be
studied
 Step 2: To establish planning premises
Planning premises are assumptions of future
market conditions which become the basis
for current planning process.
Planning premises usually relate to cost and
availability of raw materials, labour, power,
product demands, population trends,
technology growth, government policies etc.
 Step 3: To determine alternative course of action
Search and list all possible alternatives in order
to be compared and analytically evaluated.
 Step 4: To evaluate the alternatives and select
the best
Select most suitable and best course of action.
Alternatives have to be compared and evaluated
with respect to their expected contribution to
organizational goals.
Evaluation and selection is often done with the
help of quantitative techniques and operations
research. 
 Step 5: To formulate derivative plans
Management has to formulate derivative
plans or secondary plans to support the basic
plan.
 Derivative plans are sub plans or
departmental plans. For Example, if the
production plan of TATA MOTORS is to
produce a million of Nano’s in the next five
years, the derivative plans would be plans
for various departments like fabrication,
forging, casting, purchase, assembly etc
 Step 6: To secure co-operation and
participation of all employees Involving
employees in planning process enhances
their co- operation and participation.
Continuous suggestions, complaints and
criticisms must be solicited from the
employees.
 Step 7: To measure and control the progress
through follow-up Continuous evaluation of
plans help in identifying recurring mistakes
and avoiding them in future. 
ESSENTIALS OF A GOOD PLAN:
 The essentials of a good plan are as follows:
  It should be based on a clearly defined objective
  It must be simple
  It should be comprehensive
  It should prove for a proper analysis & classification of
action  It must be flexible
  It must be balanced
  It must use all available resources & opportunities
utmost before creating new authorities & new resources
  It should be free from social & psychological bases of
the planners as well as the sub-ordinates
  There should be proper co-ordination among short-
term & long-term plans
OBJECTIVES OF PLANNING:
 Planning helps in effective forecasting
 Planning provides certainty in the activities
Planning gives a specific direction to the
organization
 It establishes co-ordination in the enterprise
 It is helpful in creating a healthy competition
 It provides economy in the management
 It can forecast the risk
 It provides important information
 It is helpful in facing competition
 It is very much helpful in the accomplishment of
budgets
BENEFITS OF GOOD PLANNING:
 Reduces uncertainty
 Ensures economical operations
 Facilitates control
 Encourages innovation & creativity Improves
motivations
 Gives competitive edge to the enterprise
Ensures better co-ordination & avoids
duplication of efforts
PETER DRUCKER & 6 P’S OF PLANNING:

1. Purpose
2. Philosophy
3. Premise
4. Policies
5. Plans
6. Priorities
TYPES OF PLANS
  Most organizations of any size offer more
than one product or services, as a result they
cannot develop a single plan to cover all
organizations activities, they must develop
plans for multiple levels.  For this purpose,
there are many types of plans and those
different plans are carried out at different
levels of an organization.
TYPES OF PLANS
1) STRATEGIC PLANS
2) TACTICAL PLANS
3) OPERATIONAL PLANS
4) LONG TERM AND SHORT TERM PLANS
5) PROACTIVE PLANS AND REACTIVE PLANS
6) FORMAL AND INFORMAL PLANS
7) STANDING AND SINGLE-USE PLANS
STRATEGIC PLANS
  Strategic planning sets the long-term direction of the org
in which it wants to proceed in future.  It focus on the
broad future of the org. Incorporating both external
information gathered by analyzing the company ‟s
competitive environment and the firms internal resources,
managers determine the scope of the business to achieve
the org long-term objectives.
  Strategic planning involves the analysis of various
environmental factors and the competition.
  Most strategic plans focus on how to achieve goals three
to five years into the future.
  It has the potential to impact dramatically, both
positively and negatively, on the survival and success of the
organization.
  Typically 3-5 years of horizon
  Top management is involved in framing the strategic
plans.
 TACTICAL PLANS
  Tactical plans translate the strategic plans into specific
goals for specific parts of the organizations.  They are
for shorter time frame and usually focused for 1-2 years
  Instead of focusing on the entire corporation, tactical
plans typically affect a single business within an
organization.
  Although tactical plans should complement the
organizations overall strategic plan, they are often
somewhat independent of other tactical plans.

  Tactical plans are concerned with implementation of

strategic plans by coordinating the work of different
departments in the organization.
  They try to integrate various org units and ensure the
commitment to strategic plans.
OPERATIONAL PLANS
  Operational plans translate the tactical
plans into specific goals and actions for small
units of the organization.
  They typically focus on the short term
usually 12 months or less.
  These plans are least complex than
strategic and tactical plans, and rarely have
a direct effect on other plans outside of the
department or unit for which the plan was
developed.
MISSION
  Mission is the organization's purpose or
fundamental reason for existence.
  A mission statement helps the organization
to link its activities to the needs of the
society and legitimize its existence.
  Mission statements are customer-oriented
( society) & future-oriented.
  It depicts the organization‟s business
character and does so in ways, that
distinguish the organization from other
organization.
 OBJECTIVE SETTING

We need to improve
the company’s
Top performance
management’s
objective
I want to see a
Division manager’s significant
objective improvement in the
performamce
Increased
profit’s Departments manager’s
regardlesss of objective
the means
Individual
Individual employee’s
employees objective
objectives

Don’t worry about quality just work fast

WHAT ARE OBJECTIVES
  Objectives are the important ends toward which
organizational and individual activities are directed
  An objective is verifiable (provable) when at the
end of the period one can determine whether or
not the objective has been achieved
  Objectives are precise and used to specify the
end results which and org wants to achieve.
  The results can be achieved at the varying time
period
  So the objective can be long term objectives
which can be supported by the short term
objectives