Module 4

Planning – Its Nature, Types and Levels

Objectives: At the end of this lesson, you will
be able to:
• Discuss the nature and levels of planning
and types of plans.
Definition and Nature
of Planning
Planning
Planning is part of our daily lives. Almost everyone involved in
planning to some extent. E.g.: - A student plans his studies for
coming examinations. College authority plans for smooth conduct of
examinations. Political leader plans for his elections. Government
plans too proper utilization of resources to achieve a desire
economic growth. In simple words, Planning is deciding in advance
what is to be done for the future period of time. In this sense,
planning is basic activity.
Planning Defined
Planning may be defined in simple words as deciding in advance
what to do, how to do, when to do & who is to do it. Planning
is a bridge between present & future. It is an intellectual
process & thinking before doing.
Planning bridges the gaps from where we are to & where we
want to go. Planning involves the selection was the course of action
to achieve desired result. In this change planning is projected course
of action.
Nature of Planning
Objectives oriented:
The main purpose of a plan is to accomplish the objectives of the
organization.
Basic function of
management:
Planning is the foundation of organization. No planning, no
organization. The manager decides upon the policies, procedures,
programs and projects before proceeding with his work.
Directed towards efficiency:
The plan is said to be efficient, when the objectives are
accomplished.
It is flexible and dynamic:
Planning leads to the adoption of a specific course of action and the
rejection of other possibilities. Management is dynamic as well as
flexible because future is unpredictable, and when future cannot be
molded to confirm to the course of action, flexibility has to be
ingrained.
Planning at Various
Management Levels
Strategic Planning for Top
Management:
Strategic planning refers to the process of determining the major
goals of the organization and the policies and strategies for
obtaining and using resources to achieve those goals. Strategic
planning is the concern of the top management. In strategic
planning, the whole company is considered, specifically its
objectives and current resources. The output of the strategic
planning is strategic plan, which spells out the decision about long
range goals and the course of action to achieve those goals.
Intermediate Planning for
Middle Management:
Intermediate planning refers to the process of determining the
contributions that the subunits can make with allocated resources.
This type of planning is concern of middle management. Under
intermediate planning, the goals of a subunit are determined and a
plan is prepared to provide a guide for the realization of the goals.
The intermediate plan is designed to support the strategic plan.
Operational Planning for
Lower Management:
Operational planning is the process of determining how
specific tasks can best be accomplished on time with
available resources. This type planning is the
responsibility of lower management. It must be
performed in support of the strategic and intermediate
plans.
Types of Plans
Functional Area Plans
Plans may be prepared according to the needs of the different
functional areas. Among the types of functional area plans are the
following:
Marketing Plan
is there written document or blueprint for implementing and
controlling an organization marketing activities related to a
particular marketing strategy.
Production Plan
is a written document that states the quantity of output a company
must produce in broad terms and by product of family.
Financial Plan
is a document that summarizes the current financial situation of the
firm, analyze financial needs, and recommends a direction for
financial activities.
Human Resources Plan
Is a document that indicates the human resource needs of a company
detailed in terms of quantity and quality and based on the
requirements of the company's strategic plan.
Plans with Time Horizon:
Plans with time horizon consists of the following:
Short-Range Plans
plans intended tocover a period of less than one year. First line
supervisors are mostly concerned with these plans.
Long-Range Plans -
are plans covering times span of more than one year
middle and top management mostly undertaken
these.
Plans with Varied Frequency
of Use:
According to the frequency of use,
plans may be classified as:
Standing Plans
these are plans that are used again and again be focused on
managerial situations that recur repeatedly spending plans may be
further classified as follows:
i. Policies - refer to broad guidelines used by managers to help
make decisions and take actions on specific circumstances.
ii. Procedures - are plans that describe the exact series of actions
to be taken in a given situation
iii. Rules - are statements that either require or forbid a certain
action.
Single-Use Plans:
These plans are specifically developed to implement courses of
action that are relatively unique and or unlikely to be repeated.
single use plans may be further classified as follows:
i. budget plans - sets forth the projected expenditures for a certain
activity and explains where the required funds will come from.
ii. program plan - is designed to coordinate a large set of activities.
iii. project plan - is usually more limited in scope than a program
plan and is