PLANNING

Nature of planning
• Planning is beginning
• Systems approach
• Environmental sub system
• Intellectual process
• Decisionmaking integral part
• Continous process
• Flexible
• Important for all levels
Importance of planning

• Minimises risk and uncertainty

• Leads to success
• Focuses attention on the organisations goals
• Facilitates control
• Trains executive
Types of plan
• Vision
• Mission
• Goals
• Objectives
• Strategies
• Operational plan
• For repetitive- Standing plan(Policies, procedures, methods, rules)
• For non repetitive – single use plan (Programmes and Budgets)
• For customers investors – Business plan
Vision
• Dream of enterprenuer
• Organisations strategy
• Vision should be brief, focused and inspirational
• Convey general strategy to management
• Vision Statements:
• Amazon: Our vision is to be earths most coustmer centric company; to build a place
where people can come to find and discover anything they might want to buy online.
• Sony: to be company that inspires and fulfills your curiosity
• Tata: to be the most reliable global network for customers and suppliers, that
delivers value through products and services. To be a responsible value creator for all
our stakeholders
Mission
• Unique aim of organization
• Scope of business
• Development of strategies
1. Tata: Tata pigments will strive for significant sustainable profitable growth for enhanced
stakeholders value.
2. We will achieve this by engaging extensively with stakeholders to identify sustainable
growth opportunities,
3. investing and adopting modern technologies in existing and new businesses,
4. application of total quality for operational excellence and cost effectiveness in all activities,
5. continually driving innovation and research in our process products and services, driving
customer centricity across our value chain.
6. An engaged and skilled workforce with tata values will ensure achieving our mission
Objectives
• Goal or aim of organization
• Business activities like osdc
• Charactaristics:
• Objectives are multiple in number
• Objectives change over time
• Objectives are tangilble or intangible
• Objectives have a oriority
• Objectives are generally arranged in a hierarchy
• Objectives sometimes clash with each other
• Objectives must be clear and acceptable
• Objectives must be precise and measurable
Strategies
• Originated in military
• Corporate strategy swot, G9 etc
• Modes of strategic formulation
• Planning
• Enterprenueurial, adaptive
Operational plans
• Standing plans
• Policies
• Procedures
• Methods
• Rules
• Single use plan
• Programmes
• Budgets
• Business plan
Steps in planning
• Establishing verifiable goals
• Establishing planning premises
• 1. internal and external premises
• 2. Tangible and intangible
• 3. controllable and un controllable
• Deciding planning period
• Finding alternative courses of action
• Evaluating and selecting a course of action
• Developing derivative plans
• Establishing and deployingaction plans
• Measuring and controlling the progress
Limitations
• Expensive and time consuming
• Restricts organization
• Limited scope in some industries
• Administrative inflexibility
• Difficult to form acurate premises
• People resist
Planning skills
• Ability to think ahead
• Ability to define company objective
• Ability to forecast future environmental trends
• Frame correct strategies
• Monitor the implementation of strategies
• Provide an appropriate timed, intermeshed network of derivative and
supporting programmes
Decision making
• Essential. Part
• Constants series of discussions
• Part of manager
• decisions can lead to positive or negative decisions
• managers make decisions by choosing
• Managers have alternatives available
• Managers have a purpose
Nature of decision making
• 1. Decision making is an intellectual process, which involves imagination, reasoning, evaluation and
judgement.
• 2. It is a selection process in which best or most suitable course of action is finalized from among several
available alternatives. Such selected alternative provides utmost help in the achievement of
organizational goals. The problems for which there is only one selection are most decision problems.
• 3.Decision making is a goal oriented process. Decisions are made to attain certain goals. A decision is
rated
• good to be extent it helps in the accomplishment of objectives.
• 4. It is a focal point at which plans, policies, objectives, procedures, etc., are translated into concrete
actions.
• 5.Decision making is a continuous process persuading all organizational activity, at all levels and in the
whole universe. It is a systematic process and an interactive activity.
• 6.Decision making involves commitment of resources, direction or reputation of the enterprise.
• 7. Decision making is always related to place, situation and time. It may be decision not act in the given
circumstances.
• 8.After decision making it is necessary and significant to communicate its results (decisions) for their
successful execution.
• 9. The effectiveness of decision‐making process is enhanced by participation
Types of decisions

• Programmed and non programmed decisions

• Major and minor decisions
• Routine and strategic decisions
• Sequential and bear by the tail decision
• Individual and group decisions
• Simple and complex decisions
• Heuristics sticks and intuitive decisions
 Rational decisions
• Recognizing the problem
• Deciding priorities among problems
• Diagnosing the problems
• Developing alternative solutions or course of action
• Measuring and comparing the consequences of alternative solutions
• converting the decisions into effective action
• Follow up
Difficulties in decision making
• Non actionable information
• Unsupporting environment
• Non acceptance by subordinates
• Ineffective communication
• Incorrect timing
 Definition
• According to Koontz & O’Donell, “Planning is deciding in advance what to do, how
to do and who is to do it. Planning bridges the gap between where we are to,
where we want to go. It makes possible things to occur which would not otherwise
occur”.
• According to Urwick, “Planning is a mental predisposition to do things in orderly
way, to think before acting and to act in the light of facts rather than guesses”.
Planning is deciding best alternative among others to perform different managerial
functions in order to achieve predetermined goals
• Henry fayol
• “ Planning is deciding the best alternatives among others to perform different
managerial operations in order to achieve the pre determined goals’’
• George R Terry
• “ planning is this election and relating of facts and the making and using of
assumptions regarding the future in the visualization and formulation of proposed
activities believed necessary to achieved desired results’’
Definition of decision making
• George R Terry
• “Decision making is the selection based on certain criteria from two or
more alternatives”
• Marry Nites
• “ Decision making takes is adopting the objectives and choosing the
means and again when a change in the situation creates a necessity for
adjustments’’
• Harold Koontz
• “ Decision making is defined as the selection of a course of action
among alternatives it is the care of planning ‘’
 Types of Planning

Coverage of Importance of Time period Degree of

Approach adopted
activities content involved formalization

Corporate Long term Short term Formal Informal

Functional
planning planning planning planning planning
planning

Strategic Operation Proactive Reactive

planning al planning planning planning
Tactical
planning