Planning and

Development (Week 3)
Dr. Zerish Tasleem
Assistant Professor
School of Governance and Societyy
University of Management and Technology
 Why Planning is Important?

• Planning is the first and foremost essential activity in all

organizations. It helps in determining and achieving the
objectives of the organization. Sound Planning is an important
condition for effective management.
 Planning Helps the Organization in
Different Ways
• Making Objectives Clear
• Planning Provides Direction
• It Reduces Risk and Uncertainty
• Planning is Economical
• Planning Provides the Basis for Control
 Planning Helps the Organization in
Different Ways
• Planning Facilities Decision Making
• Planning Improve Efficiency of Operations
• Planning Improves Morale
• Effective Coordination
• Planning Encourages Innovation and Creativity
 Planning Helps the Organization in
Different Ways
• 1. Making Objectives Clear:
It makes objectives clear and specific and guides deciding what action should be taken in present and
future conditions.
• 2. Planning Provides Direction:
Planning helps the organization to keep on the right path. It provides definite direction to the manager to
decide what to do and when to do it.
• 3. It Reduces Risk and Uncertainty:
It helps the organization to predict future events and prepare to take necessary actions against unexpected
events. It helps assess and meet future challenges. As per the view of Peter F. Drucker, "Planning enables
a manager to affect rather than accept the future."
 Planning Helps the Organization in
Different Ways
• 4. Planning is Economical:
As per the views of Koontz and O' Donnell," Planning substitutes jointly directed effort against the
uncoordinated, piecemeal activity, an even flow of work for an uneven flow, and deliberate decisions for
snap judgments." Effective plans coordinate organizational work and economic issues.
• 5. Planning Provides the Basis for Control:
Planning provides the standard against which the actual performance can be measured and evaluated.
• 6. Planning Facilitates Decision Making:
Planned targets serve as the criteria for evaluating alternatives so that the best one may be chosen with
the help of Planning; hasty decisions and random actions can be avoided.
 Planning Helps the Organization in
Different Ways
• 7. Planning Improve Efficiency of Operations:
Rational activity leads to efficient and economic operations; planned action is always better
than unplanned. Planning makes the task of managing more efficient and effective manner.
It helps to minimize the cost of operations and improves the competitive strength of an
organization.

8. Planning Improves Morale:

If the employee's role is clear and well-defined goals, the employee feels highly motivated
and contributes his full potential towards accomplishing objectives. Planning improves the
behavioral climate in the organization and reduces the friction between departments.
 Planning Helps the Organization in
Different Ways
• 9. Effective Coordination:
According to Koontz and O' Donnell, "Plans are selected courses along with the management
desires to coordinate group action." Effective coordination integrates the physical and human
resources between departments.

• 10. Planning Encourages Innovation and Creativity:

Planning compels the managers to be creative and innovative all the time. It forces managers
to find new and improved ways to remain competitive and avoid environmental threats.
 Classification of Plans
Plans can be classified based on
1. Importance
2. Period of Planning
3. Level
4. Formality
5. Approach.
 Classification of Plans

Based on Importance:
Plans can be strategic, tactical, or operational. Strategic plans are important, future-oriented
plans that form the hub of fulfilling the Vision. Usually, they concern the entire
organization. Tactical plans are required to implement strategic plans. Examples are
redesigning the shop floor layout or closing a few non-performing out-lets of a retail chain.
Operational plans are related to day-to-day functioning such as production, delivery, or
purchase operation. For instance, the plan of Precision Connectors to deliver connectors to
the two-wheeler manufacturer illustrates operational plans.
 Classification of Plans

Based on Time:
Plans can be short, medium, or long-term. Short-term usually refers to one year or less;
medium-term, two to five years; and long time, five to 10 or even 20 years. It depends on
the nature of the project. Some projects such as building the Metro in
Lahore/Karachi/Peshawar may have a short-term plan that covers 50 km of Metro in five
years; a medium-term plan that covers 200 km in 10-12 years, and a long-term plan that
covers 300 or 400 km of rail that in 20 to 30 years.
 Classification of Plans
Based on Level:
A plan can be called corporate level, business level, or functional level plan. The Serine entering the
airlines business is an example of the corporate-level plan and Precision Connectors becoming an
OEM is an example of a business-level plan. For example, functional-level plans are made by
departments, a plan on how the marketing department will achieve its goals.

Based on Formality:
A plan can be formal or informal. It is formal when Planning is done as per the defined steps and
documented, and informal when the documentation is not rigorous.
 Classification of Plans
Based on Approach:
A plan can be called proactive when it is meant to meet an anticipated situation. For instance, a
compensation plan based on three-year salary negotiation is a proactive plan to ensure industrial
peace. It would be a reactive plan if the same compensation plan came up due to a flash strike. The
former leads to growth, and the latter helps regain balance and ensure survival, proactive and
reactive approach.

Activity 1: List at least one Plan on each classification