Planning and organizing

INTRODUCTION ABOUT PLANNING

Planning the foremost of management functions which

enables the organization to deal with the present and

anticipate the future, is a process whereby
management decides where it is at present, and where
it wants to be at some time in the future
 The process is one of the forecasting, because
forecasting seeks to provide the manager with
information about the future, and involves considering
the six questions.
What we expect to do?
Why will it be done?
Where will it be done?
When we expect to do it?
Who all are going to do it?
How will it be done?
The primacy of planning is all pervasive because

the other management functions like organizing,

staffing, directing and controlling follow upon
forecast, objectives, strategies and programmes
developed through planning.
DEFINITION OF PLANNING:

Planning is a process of determining the objectives

of administrative effort and devising the means
calculated to achieve them. ( Millet)
Planning is a process of setting formal guidelines
and constraints for the behaviour of the firm.
( Assoff and brundinharg).
IMPORTANCE OF PLANNING
Planning is considered important because:
It attempts to offset uncertainty by foreseeing the future
and bringing about preparedness for the happening in the
future.
It focuses attention on the objectives or goals of the
organization and their achievement.
It leads to economy in operation through the selection of
the best possible course of action.
It helps in controlling the activities by providing
measures against which performance can be evaluated.
It helps in coordinating the operations of an organization
since a well considered plan embraces and unifies all the
divisions in an organization.
PRINCIPLES OF PLANNING

Planning must focus on purposes. It should always be

based on a clearly defined objective.
Planning is a continuous and iterative process includes
series of steps, so continuity and flexibility should be
maintained in planning cycle.
Planning should be simple and there should be provision
for proper analysis and classification of actions.
In planning, there should be a good harmony with
organization and environment – political as well as
economical, etc.
Contd……
Planning is hierarchical in nature and must have an
organizational identification.
Planning should be pervasive activity covering the entire
organization with all its departments, sectors and different
levels of administration, and it should be balanced.
Planning must be precise in its objective, scope and nature. It
should be realistic in its scope.
In planning the provision should be made to use all available
resources.
Planning should always be documented so that all the
concerned are fully committed to the implementation of the
program.
PLAN

A scheme, program or method worked out before

hand for the accomplishment of an objective.

A systematic arrangement of elements or important

parts, a configuration or outline.

TYPES OF PLANS

Plans can be classified as:

Purposes and mission: the purpose or mission identifies the basic

function or task of any enterprise or agency or any part of it. For

example the purpose of a university is teaching, research and
providing services to the community.
Objectives or goals: objectives or goals are the ends toward which

activity is aimed. They represent not only the end point of planning
but also the end towards which organizing, staffing, leading and
controlling are aimed.
Contd…….
Strategies: strategy is defined as the determination of the basic

long-term objectives of an institution and the adoption of courses of

action and allocation of resources necessary to achieve these goals.

Polices: policies also are plans in that they are general statements or

understanding that guide or channel thinking in decision making.

Polices define an area within which a decision is to be made and

ensure that the decision will be consistent with, and contribute to, an

objective.
Contd…….
Procedures: procedures are plans that establish a required method

of handling future activities. They are chronological sequences of

required actions.
Rules: rules spell out specific required actions or non actions,

allowing no discretion. They are usually simplest form of plans.

For example No smoking is a rule that allows no deviation from a
stated course of action. The essence of a rule is that is reflects a
managerial decisions that some certain action must-or must not- be
taken.
Contd……
Programs: programs are a complex of goals,
policies, procedures, rules, task assignments, steps
to be taken, resources to be employed, and other
elements necessary to carry out a given course of
action; they are ordinarily supported by budgets.
Budgets: A budget is a statement of expected
results expressed in numerical terms. It may be
called a “numberized” program.
TYPES OF PLANNING
Planning can be classified into following types:

Directional planning: it is often called policy

planning, and is concerned with the broad general
direction of the program, i.e. setting the framework of
intent and philosophy within which the program will
proceed, and with relating the program to the broad
planning of the community in which the program will
function. For example, state level planning at
directorate.
Administrative planning: it is concerned with the

overall implementation of the policies developed and

with the mobilization and coordination of the
personnel and material available in the administrative
unit for effectuation of the service. For example
director or dean of the nursing education institution is
responsible for administrative planning.
Operational planning: it is concerned with the actual

delivery of the service to the community. For example,

nursing personnel of all level are planning to deliver
proper service to the community either in hospital or
community.
Another classification
Strategic planning: usually the strategic and long range
planning is undertaken by the top level which involves
following activities.
Detail analysis of strength, weakness, opportunities and
threats of organization both internal and external
environment.
Developing philosophy and formulation of policies &
objectives on the basis of analysis of the organization.
Allocation of resources on the basis of priority.
Evaluation of activities to increase efficiency.
Providing proper direction to avoid duplication of services.
 Operational planning: usually this operational and
short range planning is undertaken by middle or
supervisory level personnel. This involves:
Planning for a few months to a financial year.
Planning for detailed budgeting, provision for short
range goods and it should be achieved within given
period.
Extensional aspect for a long range plan.
STEPS OF PLANNING

Planning begins with the definition of the objectives and

the formulation of the specific goals or targets to be
achieved. Goals are derived from the analysis of existing
situation of an organization and once defined provide a
sense of direction to all managerial activities.
Generally speaking the following steps will be involved
in planning.
Analysis and understanding of the system
Administrator or manager needs to understand the
system, where he/she is working in and consisting of
their subordinates, community and higher authorities.
Formulation of operational goals and objectives

Objectives are the short statements of outcome or what must

be done.
These set the pattern of the proposed course of action and
shape, the structure of other subsidiary objectives in the
organization.
This implies the establishment of goals for whole
organization as also for each of its subunits that is major
objectives are broken down into departmental, sectional and
individual objective, when derivative plans are developed
throughout the organization.
As a guide of action, objectives must be specific, informative,
and clear enough to indicate what is to be done.
Establishment of planning premises

Premises refer to the factor in the environment that

affect the achievement of goals. They are assumptions
about the future or understanding of the expected
situation.
Planning premises supply pertinent facts and
information relating to the future, and as such, they are
essential for the success of planning.
Once the objectives are clear, there is need to assess
the resources available to reach the goals. The staff
strength and other capabilities have to be taken into
account. Any gaps noticed to be rectified before
implementing the plan.
Selection and formulation of the
operating plan from alternatives
Planning rests on premises of the expected environmental
conditions. Such premises may be:
External, i.e. business environment.
Internal, e.g. capital investment, values and beliefs of top
management and so on.
Business environment refers to the totality of economic, political,
social, cultural and technological conditions that affect the
formulation of plans of any organization. There are various
different alternative courses of action in a business. These different
courses of action have to be evaluated in terms of effectiveness
and efficiency. The course of action which can lead to attainment
of objectives within the constraints of time and resources have to
be weighted and chosen.
Securing participation

For the effective implementation of the program, the

subordinate’s participation has been found to be
extremely essential. Plans must be communicated for
increasing their understanding of the proposed action
and for enlisting their corporation in proper
implementation.
Implementation
Implementation is the key step in the planning process. Here, the
special attention is needed to the use of strategy.
Strategy means a set of decisions taken to achieve the objectives.
Strategy in a narrow sense has a significant contribution towards
the implementation or execution of a plan.
Accordingly, consideration of different strategies becomes an
integral part of the planning process. Strategy implies an approach
to implementation of plan whereby all resistances and reactions of
workers are encountered.
Strategy dictates some adjustments and adaptation of the plan in
accordance with changing situation or events. So, it should be
flexible enough to adjust to changed conditions and to unusual and
unexpected situation.
Follow-up to the proposed course
of action
Since all pertinent facts are not available in most
planning activities and since some guess work is
inevitable, there should be a prior provision for
following up the proposed program when it is put into
action.
 For this, one should have regular feedback both the
way of written records and reports and by direct
observation. This is called control or monitoring.
Evaluation

Evaluation is measuring what has been done against

what had been planned to do. Any deviation has to be
explained and necessary action has to be initiated to
correct deviations.
Reanalysis and new understanding
of the system
This implies that one can take an overview of the plan
of work and visualize that what has been achieved.
This helps to new understanding of the system and
proceeds with second cycle of planning process.
ORGANIZING

DEFINITION
Organization is the form of every human association
for the attainment of common purpose and the process
of relating specific duties or function in a whole. ( JD
Mooney)
Organization is the arrangement of personnel
facilitating the accomplishment of some agreed
purpose through allocation of functions and
responsibility.( L white)
PRINCIPLES OF ORGANIZATION

Mainly there are six principles of organization as follows:

HIERARCHY : Hierarchy means the rule or control of
the higher to lower. The distribution of functions and
responsibilities in both horizontally and vertically. When
additional levels are added in an organization structure, it
is called vertical growth. But when more functions or
more positions are added without increasing the number
of levels, is called as horizontal growth.
Scalar principles is the vertical division of authority and
definite assignment of duties at various levels.
The advantages of scalar principles of hierarchy will include:
It is an instrument of organizational integration.
The scalar chain serves as a channel of communication upwards
and downwards.
The rule of ‘through the proper channel’ created by the scalar
principles ensure that there will be not shot circuiting
procedures or ignoring of the intermediate links.
It establishes below the top executive, a number of subordinate
levels each of which is centre of decision for specified matters
of a less important nature.
It helps to clarify and define the relative positions and
responsibilities of each post in the organization.
General functions of hierarchical structure are:
Fixing the responsibility.
Providing leadership with areas of description at
successive levels.
Making it acceptable.
Determining the levels at which decisions of various
kinds may be made.
Providing means for exerting influence and exercising
fellowship.
SPAN OF CONTROL: Span of control means the number of
subordinates an officer can effectively supervise. It is simply the
number of subordinates or the units of work that an administrator
can personally direct. It is agreed that span of control does exist at
each level of supervision and it cannot be exceeded without the
danger of a breakdown, and it is recognized that span of control
varies with four factors:
Functions- means the type of the work to be supervised.
Personality- means competence of the supervisors and the
subordinates concerned.
Time- refers to the age of the organization concerned.
Span- means the place where the work to be supervised is located.
INTEGRATION VS DISINTEGRATION:
Integration means unification in administrative
language. An administrative system is called integrated
in which all the executive authority is conferred by law
or constitution on one single person who there upon
becomes Chief Executive.
A disintegrated system where executive authority is
distributed by constitution among a number of co-eval
bodies or agencies or persons.
CENTRALIZATION VS DECENTRALIZATION:
Centralization means concentration of authority at or
near the top. An organization is said to be centralized if
most of the power of the decision is vested on the top
level so that the lower one has to refer most problems
to the head of the organization.
Decentralization means that the central authority gives
certain power to the local authorities.
UNITY OF COMMAND:

Unity of command means that no individual employee

should be subjected to the orders of more than one
immediate superior. The concept of unity of command
requires that every member of an organization should
report to one and only one leader.
DELEGATION:
Delegation is the process of assigning responsibility
and authority to the co-workers and ensuring his
accountability. Delegation implies transfer of certain
specified functions by the superior to the subordinate
authority.
TYPES OF ORGANIZATION

Following are the various types of organizations:

Formal organization.
Non-formal organization.
Informal organization
Line organization
Staff organization
Line and staff organization
Committee organization
Social organization.
The Formal Organization is a system of well-defined
jobs, each bearing a definite measure of authority,
responsibility and accountability. Louis Allen
 Formal Organization is a system of consciously
coordinated activities of two or more persons toward a
common objective. Chester Barnard
 The formal organization is a goal-oriented entity
that exist to accurate the efforts of individuals and it
refers to the structure of jobs and positions with clearly
defined functions, responsibilities and authorities
An Informal organization is an aggregate of interpersonal
relationships without any conscious purpose but which may
contribute to joint results. Chester Barnard
 Informal organization is a network of interpersonal
relationship that arise when people associate with one
another . Keith Davis
 The informal organization is the interlocking social
structure that governs how people work together in practice.
It is the aggregate of behaviors, interactions, norms, personal
and professional connections through which work gets done
and relationships are built among people who share a
common organizational affiliation or cluster of affiliations.
The Line organization Structure
The Line organization authority is delegated directly
from top to bottom.There is vertical line of authority
running from top to the bottom of the organisation.The
man at the top has the highest authority and it is
reduced at each successive level down the
hierarchy.Suitability: This kind of structure is suitable
for smaller organizations
LINE AND STAFF ORGANIZATION
Staff authority is used to support the line authority.
Line and staff organizations have both line and staff
executives. Line executives are assisted by staff
specialists in planning, distribution, quality, legal,
audit, public relations, etc.For example, a production
manager (a line authority) does not have enough time
and experience to handle labour relation problems.
Staffs help them in doing so.
COMMITTEE ORGANISATION
A committee is a group of persons formed to discuss
and deliberate on problems and to recommend or
decide solutions.It may be authorized to deal with all
or specific activities.A committee may be constituted
at any level of organisation and its members may be
drawn from various departments.
social organization is a pattern of relationships
between and among individuals and social groups.
Characteristics of social organization can include
qualities such as sexual composition, spatiotemporal
cohesion, leadership, structure, division of labor,
communication systems, and so on.
STEPS IN ORGANIZATION

The steps in organization is as follows:

Determining and enumeration of objectives for each activity: the
required activities are spelled out from the objectives of the enterprise.
The total work, operating and managerial is broken down into
component activities that are to be performed by all personnel.
Grouping and assigning activities: correlated and similar activities are
grouped into division or departments first. And these departmental
activities are further divided into sections and jobs.
Allocation of fixed duties to definite persons: definite job assignments
are made to different subordinates for assuring certainty of work
performance.
Delegation of authority: corresponding to the nature of the duties,
commensurate authority must be granted to the subordinate for enabling
them to make adequate work performance.