Fundamental Elements

of the Planning Process

PRESENTED BY:
ROWENA A. GIBE
GROUP 2
1. Objectives
DESTINATIONS OF ALL ACTIVITIES ARE CALLED
OBJECTIVES. TARGETS ARE ALSO THE DESTINATION
POINTS, LIKE OBJECTIVES, BUT DETERMINED
QUANTITATIVE OBJECTIVES FOR THE SPECIFIC
CERTAIN TIME PERIOD ARE CALLED TARGETS.
OBJECTIVES ARE THOSE TARGETS, WHICH AN
ORGANIZATION INTENDS TO OBTAIN DURING
VARIOUS TIME PERIODS. OBJECTIVES MEAN THOSE
BASIC POINTS FOR ALL ACTIVITIES OF THE BUSINESS
ARE DIRECTED TO ACHIEVE THEM.
But, the main objectives can be
classified into two main categories:
1. General Objectives
• General objectives are called in long-term objectives also.
• These are of various types, like – commodity
development, sales improvement, improvement in the
management system, increasing the work efficiency,
public welfare and profit increase, etc.
2. Specific Objectives
• These are called short term objectives also. These are of
also various types, like – advertisement, cost control,
quality improvement, price control, and merit rating, etc.
2. Policies

• The principles guiding the decisions are called policies

• Mainly the policies are those which guide the idea in taking
the decision
Besides, the policies should be developed in consultation with
those persons who have the execute them and should be
practical also.

• Policies are mainly of the following types:

a) Basic Policies
• Such type of policies is prepared by top-level management itself for the guidance \

b) General Policies
• These policies are in consonance with the basic policies and are prepared by high
middle-level management.

c) Departmental Policies
• the policies relating to various departments of the organizations are departmental
policies.
• The Purchase policy of purchase departments, finance policies of finance
departments, and production policies of production departments are an example of
these policies
d. Call Policies

• These policies are formulated on the request or demand

of the subordinates (employees and workers).
• Hence, these are called Call Policies. Policies and
objectives are not the same, because the policies are
generally flexible, whereas the objectives lack
flexibility.
–.
3. Procedure
• Procedure implies the determination of the sequence
of activities for accomplishing any particular work.
• The procedure is the action of related activities, which
builds a time schedule and decide the method of
performance of the work.
• For example, the procedure of distribution of
dividends, procedure for the requirement, the
procedure for organizing the company meetings, the
procedure for increasing the capital of the company,
etc.
Policies and procedures have the following differences.

a) Policies provide guidance in decision making,

whereas procedures provide guidance in the
performance of works.
b) Policies are generally decided and developed at the
level of top-level management, whereas procedures
are decided in developed at the lower level.
c) Procedures are developed on the basis of the policies.
c. The policies frame the boundaries of the area of
operation, whereas the procedures decide the way to
achieve the specified objectives.

d. Policies for various departments may be different,

whereas the procedure simultaneously affects the
working methods of several Departments
4. Rules
• Rules mean those directive elements or plans of work or
behavior, which are to be followed compulsorily, by all the
persons in the organization.

• In other words, this is such a schedule which tells, what

specific and certain activity is to be carried out in particular
circumstances. Rules are those schemes, which guide the
necessary activities.

• These are selected from various alternatives, like other schemes

• Actually, the procedure is a chain of rules. A rule
may or may not be part of the procedure.
• Rules and policies have a difference. Policies are
flexible, but rules are to be implemented, in totality.
5. Programme

• Programme means the determination of the sequence of

various activities of work. In other words, determination of
the sequence of various works to be done in any Institution
and priorities is called programme.

• Programmes may be of many types, short term

programmes, like – training programmes, market research
programmes, sales promotion programmes
• Long-term programs like the formulation of 5 Year
programme for improvement of efficiency of the
supervisors, formulating a programme for expansion of
the institution, programme for mechanization in
particular departments, modernization, renovation of
the office, etc. A programme has the following stages.
a) Identification of necessary activities.
b) Division of activities in various steps or stages.
c) To make each person, personally responsible for
activities of the particular type.
d) To determine sources for every step.
e) To determine the time to be taken for every work.
f) To decide target dates for every part of the
programme
6. Methods
Generally, methods explain the
specific ways of the performance of
each activity or stage of
procedures. In other words,
methods mean the specified process
of performing any function of the
institution. Standards methods decide
the best way for the assigned work.
 As a result, planning is facilitated.
Methods check arising of confusions
specifies communication and also helps
in work operation according to the
planned strategies
7. Budget
In simple words, budget means advance
determined plan for the targets, efforts, and
cost for executing any particular programme

Budget is an estimate of future requirements

which is sequentially systematic, in which few
activities of an organization for a specified time
are incorporated.
For these budgets, a consolidated budget is
also prepared, which is called a master budget,
the budget is prepared for various periods, like –
annual budget, half-yearly, budget and monthly
budget, etc.
The budgets are used to establish control of
business activities. Budget is a firm
determination of the managers regarding the
volume of sources required for
implementation of the plans, so as to achieve
the determined targets
Budgets are always for the future and not for the
past.
8. Time Schedule
Deciding of time for every stage of the
programme is called a time schedule. If the
work is not completed in time, it has no
significance

9. Standards
Standards mean those yardsticks, on whose
basis, work performance is evaluated.
Yardstick or context is a unit for standard
measurement in the form of Level. Establishing
standards frame out measurement yardsticks.
10. Strategies
Strategies mean preparing one’s own plans, by
keeping the competitors in view, so that the
objectives of the institution may be achieved, by
sustaining the competition.
In the words, when plans are prepared to meet
the challenges of competitors in view, it is called
strategies.
In other words, Strategy is that behavior of the
officers, which aim at achieving success in
objectives of oneself or the organization and
whose basis, actual or possible functions of
Strategies are of two types.
1. Internal Strategies
This is a system, which is related to the
institution or internal parts of the Enterprise.

2. External Strategies
This is a system, which is made by keeping in
view, the competitive ability of other
Businessman or other Institutions, price policy,
marketing arrangements, etc.
Strategies may be formulated for various
functional areas, like production strategy, market
strategy, financial strategy, publicity strategy, sales
promotion strategy, etc.
Strategies are very useful and important for
planning, because the competitors may not be
defeated by simple plans.
For that, market requirements level of consumer
satisfaction and probable risk are to be always
kept in view.
Thank you!!!