Chapter 3: Planning

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July 11, 16, 2018
 Definition and Nature

 Integral part of our life
 Most basic and primary function of management
 Pre-decided outline of activities to be conducted in
the organization
 Process of deciding when, what, where and how to
do a certain activity before starting to work
 
 An intellectual process which needs a lot of thinking
before a formation of plans
 Is to set goals and to make certain guidelines achieve
the goals
 Means to formulate policies, segregation of budget,
future programs in order to make activities
successful
 “Planning is deciding in advance, what is to be
done. When a manager plans, he projects a
course of action for the future, attempting to


achieve a consistent, coordinated structure of
operations aimed at the desired results.”
- Theo Haimann

“Planning is the thinking process, the

organized foresight, the vision based on fact
and experience that is required for intelligent
action.”
- Alford and Beaty

“Planning is deciding in advance what is to be

done. It involves the selection of objectives,
procedures, and programs from among
alternatives.”
- ME Hurley
 Types of Plans
(on the basis
 of Nature)
 Operational Plan:
plans which are formulated by the lower level
management for short term period of up to one year
concerned with day to day operations of the
organization
detailed an d specific
based on past experiences
Covers functional aspects such as production,
finance, human resources
 
 Tactical Plan:
Plan concerned with the integration of various
organizational units and ensures implementation of
strategic plans on day to day basis
Involves how the resources of an organization
should be used in order to achieve the strategic goals
Also known as the coordinative or functional plan
 
 Strategic Plan:
 Plan which is formulated by the top level management
for a long period of time of five years or more
 They decide on the major goals and policies
 Takes note of all external factors and risks involved
and makes long-term policy of the organization
 Involves determination of strengths, weaknesses,
external risks, mission, and control system to
implement plans
 Types of Plans
(on the basis of Managerial Level)

 Top Level Plans:
formulated by general managers and directors
Objectives, budget, policies, etc. for the whole
organization are laid down
Mostly long term plans
 
 Middle-level plans:
- Includes departmental managers (usually corporate
has many departments)
Middle level plans where activities of the
department are laid down according to their
department needs
 
 Lower level plans
Prepared by the foremen or supervisors
Take the existence of the actual workplace and
problems connected with it
Formulated for a short period of time
 Type of Plans
(On the Basis
 of Time)
 Long term plan
Crafted by an organization to reach their mission
Determined the path for the business owners to
reach their goals
Reinforces and makes corrections to the goals as the
plan progresses
 
 Intermediate Plan
Planning covers 6 months to 2 years
Outlines how the strategic plan will be pursued
Most often used for campaigns
 
 Short term plans
Involves plans for few weeks or at most a year
Allocates resources for the day-to-day business
development and management within the strategic
plan
Outlines objectives necessary to meet intermediate
plans and the strategic planning process
 Type of Plans
(On the Basis
 of Use)
 Single plan
Connected with some special problems
End the moment of the problems to be solved
They are not used once after their use
Further recreated whenever required
 
 Standing Plan
Formulated once and they are repeatedly used
Continuously guide the managers
Include missions, policies, rules and strategy
 Planning Process

 Analysis of the environment
 Setting the objectives
 Develop premises
 Determine and evaluate alternatives
 Selection of best alternative
 Formulation of a derivative plan
 Budget formulation
 
 Implementation of a plan
 Follow up action
 
Thank you!