UNIVERSITY OF ALLAHABAD

DEPARTMENT OF COMMERCE
TOPIC PLANNING
SUBJECT BUSINESS MANAGEMENT

SUBMITTED TO SUBMITTED BY
A.C.P. SIR NYASA PRAJAPATI
(DEPARTMENT OF COMMERCE) M.COM 1ST YEAR
 PLANNING

WHAT IS PALNNING?
Planning is the most basic and primary function of management. It is the pre-decided outline of the activities to be
conducted in the organization.

According to M.E Hurley, “PLANNING is deciding in advance what is to be done. It involves the selection of objectives,
policies, procedures and programs from among alternatives.”
 ESSENTIALS OF PLANNING
A Sound Plan has the following features –

1. Integration :A Good plan should integrate the short term requirements of the firm with its long term
requirements. Plan must be oriented towards the achievement of overall organizational goals.

2. Consistent :Plans should be consistent in terms of adaptability to environmental factors and organizational
resources. They should be followed for a fairly long period of time. It is important that the plans are acceptable to those who
frame them and also to those who implement them.

3. Flexible : Consistent plans should adjust (flexible) to the environmental changes. The fact that plans are made to
achieve a goal in future and future being uncertain, managers should review the plans from time to time and make necessary
changes in accordance with the requirement of the environment

4.Planning is all-pervasive: planning is an on-going activity at all levels of an organizational

hierarchy, right from CEO t first line managers.
 IMPORTANCE OF PLANNING
1. PLANNING PROVIDES DIRECTION: Planning is concerned with pre-determined course of action. It
provides the directions to the efforts of employees. Planning makes clear what employees have to do, how to do, etc. By
stating in advance how work has to be done, planning provides direction for action. Employees know in advance in which
direction they have to work.

2. PLANNING REDUCES THE RISK OF UNCERTAINTIES: Organizations have to face many

uncertainties and unexpected situations every day. Planning helps the manager to face the uncertainty because planners try
to foresee the future by making some assumptions regarding future keeping in mind their past experiences and scanning of
business environments. The plans are made to overcome such uncertainties. The plans also include unexpected risks such as
fire or some other calamities in the Organization.

3. PLANNING REDUCES OVER LAPPING AND WASTEFUL ACTIVITIES: The Organizational

plans are made keeping in mind the requirements of all the departments. The departmental plans are derived from main
Organizational plan. As a result there will be co-ordination in different departments.planning help to know necessary steps
to be taken.
4. PLANNING FACILITATES DECISION MAKING: Planning helps the managers to take various
decisions. As in planning goals are set in advance and predictions are made for future. These predictions and goals help the
manager to take fast decisions.
 LIMITATIONS OF PLANNING
1. Limitation of forecasts: Planning is based on forecasts and if realizable information data are not available for
making forecasts, planning is sure to lose much of its value.

2. Rigidity: Planning implies strict adherence to predetermined policies, procedures and programme . This restricts
individual's freedom, initiative and desire for creativity. It can not be change after making.

3. Time-consuming: Planning is time-consuming and may delay action in certain cases. But to make plans realistic,
it is necessary that sufficient time should be given to the planning process.

4. Costly : Planning is an expensive exercise as a lot of money has to be spent for preparing estimates, collecting
information and facts for analysis, etc.
PLANNING PROCESS
1. SETTING UP OF THE OBJECTIVE- This is the primary step in the process of planning which
specifies the objective of an organization, i.e. what an organization wants to achieve.

2. DEVELOPING PLANNING PREMISES- Planning is essentially focused on the future, and there
are certain events which are expected to affect the policy formation. Planning to find out future
demand for product, changes in government policies, tax rates etc

3.LISTING THE VARIOUS ALTERNATIVE FOR ACHIEVING THE OBJECTIVE - There may be
many ways to act and achieve objectives . All the alternative courses of action should be
identified.

4.EVALUATION OF DIFFERENT ALTERNATIVES- Choosing more positive alternative and eliminating

negative one.

5.SELECTING AN ALTERNATIVE- choose 1 out of 100 alternative.

6. IMPLEMENT THE PLAN- Start work according to plan.

7. FOLLOW UP- Follow the process and manager monitor the plan carefully on employees to see who is
working and who do not.
 TYPES of PLANNING

On the basis On the basis On the basis On the basis

of Nature Of Use Of Level Of Term
Strategic Top Long Single
Tactical Middle Intermediate Standing
Operational Lower Short
BASIS Strategic Planning Tactical Planning Operational Planning

Term Long term plans Intermediate range plans Short range plans

Time Time Frame: 3 or more Time Frame: 2-3 years Time frame: one year
Years

Managerial Responsibility of top level Responsibility of middle level Responsibility of lower level
Level Management management management

Concerned Concerned with objectives, Concerned with procedures, Concerned with schedules and
policies, programmes projects and strategies methods

Responsibilit Responsible for overall Responsible for integrating the Responsible for covering day-
y progress of the company work of various department of the to-day operation and
organization implementing internal goals

Focus on planning and Focus on co-ordination Focus on directing and

Focus
forecasting controlling
Basis of STANDING PLANS SINGLE PLANS
difference
Meaning Standing Plans are plans which are made for activities Single-Use Plans are plans which are made for
or events which occur regularly.  activities or events which do not occur regularly.
Such activities are non-repetitive in nature.

Objective Its main objective is to ensure smooth internal Its main objective is to serve the event or project
operations and are usually for recurring activities. for which it has been made, usually for non-
recurring activities.

Stability These plans are more stable than single-use plans as These plans are less stable than standing plans as
they are used repetitively. It is used over and over they are used for a specific purpose only. Plan over
again with modification from time to time.                   when project is over.
                      
Scope These plans have a wider scope as they involve more These plans have a relatively narrow scope as they
than one department. are made for a specific purpose and generally do
not involve all the departments of an
organizations. 
Formulated  These are usually made by Top-level Management. These are usually made by Middle and Operational
 Example- policies , procedure, methods, rule etc        level of Management. Example- budget,
      Programme and project.
Example Recruitment process in an organization. A plan made for a business event to be held in
Dubai.
THANK YOU