09/07/2024
PLANNIN
G
AS A MANAGEMENT
FUNCTION
Tim Chester C. Cube, RPh, CPh
LEARNING
OBJECTIVES
• To know about Planning, its meaning and importance
• To learn the types of planning based on different
classification
• To gain understanding into process and objectives of
comprehensive planning.
PLANNIN
G?
INTRODUCTIO
PLANNING
N
-process of selecting objectives and determining the course of action required to
achieve these objectives.
-It bridges the gap from where we are and where we want to go
INTRODUCTIO
PLANNING
N
Plan is the output of planning, that provides
methodical
PLANNING
• outlining a future course of action
• looking ahead
• getting ready to do something tomorrow
• a trap laid down to capture the future
PLANNING- VARIOUS
DEFINITION
Planning is deciding in advance what to do, how to do int,
when to do it and who is to do it. It is the selection among
alternatives of future course of action for the enterprise as
a whole and each department within it. Plans involve in
selecting enterprise objectives and determining ways of
achieving them”
– Koontz and O’Donnell
(POSDC)
PLANNING- VARIOUS
DEFINITION
Planning is the selecting and relating of facts and the
making and using of assumptions regarding the future in
the visualizations and formulation of proposed activities
believed necessary to achieve the desired results:
– George
R. Terry
PLANNING- VARIOUS
DEFINITION
“Planning is deciding in advance, what is to be done.
When manager plans, he projects a course of action for
the future, attempting to achieve a consistent,
coordinated structure of operations aimed at the desired
results.”
– Theo
Haimann
PLANNING AS MANAGEMENT
FUNCTION
Management planning is the process of assessing an organization’s goals and
creating a realistic, detailed plan of action for meeting those goals
GOALS
• Desired future state that an organization attempts to realize
• According to Davis & Wrecker (1997) Goals are “concrete results that the
organization intends to achieve within a specified period.
NATURE OF PLANNING
• Goal-oriented • Based on facts and information
• Futuristic in Nature • Flexible
• Exist in all managerial
activities
OBJECTIVE OF
PLANNING
• To focus attention on objectives & results.
• To reduce uncertainty and change.
• To provide a sense of direction.
• To encourage innovation and creativity.
• To help in coordination
• To guide decision-making
• To provide a basis for decentralization.
• To provide economy in operation.
• To facilitate control.
LEVELS OF PLANNING
LEVELS OF PLANNING
TOP LEVEL PLANNING
• also known as overall or strategic planning
• top-level planning is done by the top management, i.e.,
the board of directors or governing body.
• It encompasses the long-range objectives and policies of
the organization and is concerned with corporate results
rather than sectional objectives.
• Top-level planning is entirely long-range and inextricably
linked with long-term objectives. It might be called the
‘what’ of planning.
LEVELS OF PLANNING
VISION
• A desired future state
• e.g. The vision of Ford is “to become the world's leading
consumer company for automotive products and
services.”
MISSION
• The purpose of an organization
• e.g. The mission of Kodak is to provide “customers with
the solutions they need to capture, store, process,
output, and communicate images- anywhere, anytime.”
2020 2024
LEVELS OF PLANNING
VALUES
• The philosophical priorities to which managers are
committed.
• it outlines how managers and employees should conduct
themselves, how they should do business, and what kind
of enterprise they should build to help the organization
attain its mission and vision.
LEVELS OF PLANNING
SECOND LEVEL PLANNING
• also known as tactical planning,
• it is done by middle level managers or departmental
heads.
• It is concerned with ‘how’ of planning.
• It deals with the development of resources to the best
advantage.
• This is because its attentions are usually devoted to the
step-by-step attainment of the organization’s main
objective.
LEVELS OF PLANNING
THIRD LEVEL PLANNING
• also known as operational or activity planning
• it is the concern of departmental managers and
supervisors.
• It is confined to putting into effect the tactical or
departmental plans.
• It is usually for a short-term and may be revised quite
often to be in tune with the tactical planning.
LEVELS OF PLANNING
THE ORGANIZATION AND TYPES OF PLANNING
UNDERTAKEN
Strategic Planning
Intermediate Planning
Operational Planning
FUNCTIONAL
AREA PLANS
Human
Marketing Production Financial
Resources
Plan Plan Plan
Plan
PLANS WITH TIME
HORIZON
Short-Range Long-Range
Plan Plan
PLANS WITH
VARIED
FREQUENCY OF
USE Single-Use
Plan
• Policies • Budget Plan
• Procedures • Program Plan
• Rules • Project Plan
THE PLANNING
PROCESS
The essence of planning is to see
opportunities and threats in the future
and respectively exploit the
opportunities and combat the threats
as the case may be.
A planning process is a set of
interrelated and interdependent
activities towards achieving the
planning goals.
1. PERCEPTION OF
OPPOTUNITIES
• It is the starting point of planning. First of
all, we should identify the possible future
opportunities and analyze them clearly and
completely. By analysis, we should know:
Where do we stand?
What are our strengths and
weaknesses?
What problem we want to solve and
why?
What do we expect to gain?
• Once the opportunities are perceived from
availability, the other steps of planning are
2. ESTABLISHMENT OF
OBJECTIVES
• It provides the basic framework in which plans
operate. These premises may be internal or
external
• Internal premises include organizational
policies, resources of various types, sales
forecasts, and the ability of the organization to
withstand environmental pressure.
• External premises include the total factors in
the task environment such as political, social,
and technological competitors, plans and
actions, and government policies, etc.
•
3. DEVELOPING
PLANNING PREMISES
• To establish objectives for the entire
organization and then for each subordinate
unit.
• Objectives specify and indicate the results
expected for the following questions:
What is to be done?
Where is the primary emphasis to be
placed?
What is to be accomplished by various
types
of plans?
4. IDENTIFICATION OF
ALTERNATIVES
• Alternatives for plans are identified based on
organizational objectives.
• Initial screening of alternatives considers
minimum investment, business fit, market
conditions, government control, skilled workers,
and available techniques.
• Only alternatives meeting preliminary criteria
proceed to detailed analysis.
5. EVALUATION OF
ALTERNATIVES
• Each alternative course of action is evaluated
based on profitability, capital investment, risk
involved, etc.
• It presents a problem because each of these
alternatives may have certain advantages and
disadvantages.
• There is no certainty about the outcome of the
alternative because it is related to the future
and the future is uncertain. Thus, the
evaluation work becomes more complex.
6. SELECTING
ALTERNATIVES
• After evaluation of various alternatives, the
most appropriate course of action is selected.
• If more than one alternative is suitable, many
alternatives may be chosen for execution.
• When the situation changes and the selected
plan does not prove to be the best, the other
alternative may be tried.
7. FORMULATION OF
DERIVATIVE PLANS
• The derivative plans are formulated on the
basis of the major plan
• There are several minor plans required to
support and execute the major plan. These
plans are known as derivative plans.
• The various derivative plans are planning for
buying equipment, buying raw materials,
recruiting and training personnel, developing
new products, etc.
8. ESTABLISHING A
SEQUENCE OF
ACTIVITIES
• After formulation of the basic and derivative
plans, the sequence of activities is determined
so that plans are put into action.
• The starting and finishing times are fixed for
each piece of work to indicate when and within
what time the work is to be commenced and
completed.
• Demand for smartphones is expected to rise this
year after “bottoming out” in 2023, according to a
report from Counterpoint Research.
• A mobile phone company sets the objectives to sell
200,000 units this year, which is double compared
the last year sales.
• Demand for smartphones is expected to rise this
year after “bottoming out” in 2023, according to a
report from Counterpoint Research.
• A mobile phone company sets the objectives to sell
200,000 units this year, which is double compared
the last year sales.
• The mobile phone company has set the objective of
200,000 units sales on the basis of forecast done
on the premises of favorable Government policies
towards digitization of transactions.
• Demand for smartphones is expected to rise this
year after “bottoming out” in 2023, according to a
report from Counterpoint Research.
• A mobile phone company sets the objectives to sell
200,000 units this year, which is double compared
the last year sales.
• The mobile phone company has set the objective of
200,000 units sales on the basis of forecast done
on the premises of favorable Government policies
towards digitization of transactions.
• The mobile company has many alternatives like
reducing price, increasing advertising and
promotion, after sale service etc.
• Demand for smartphones is expected to rise this
year after “bottoming out” in 2023, according to a
report from Counterpoint Research.
• A mobile phone company sets the objectives to sell
200,000 units this year, which is double compared
the last year sales.
• The mobile phone company has set the objective of
200,000 units sales on the basis of forecast done
on the premises of favorable Government policies
towards digitization of transactions.
• The mobile company has many alternatives like
reducing price, increasing advertising and
promotion, after sale service etc.
• The mobile phone company will evaluate all the
alternatives and check its pros and cons
• Mobile phone company selects more TV
advertisements and online marketing with greater
after-sales service.
• Mobile phone company selects more TV
advertisements and online marketing with greater
after-sales service.
• Implementing action plan- The mobile phone
company hires a salesman on a large scale, creates
TV advertisements, starts online marketing
activities, and sets up service workshops.
• Follow-up Action- A proper feedback mechanism
was developed by the mobile phone company
through its branches so that the actual customer
response, revenue collection, employee response,
etc. could be known.
1.Planning gives direction and purpose to
an organization; it is a mechanism for BENEFIT
S OF
deciding the goals of the organization
2.Planning is the process by which
management allocates scarce resources;
including capital and people, to different
activities
3. Planning drives operating budgets-
strategic, operations, and unit plans
PLANNIN
G
determine financial budgets for the
coming year.
4.Planning assigns roles and
responsibilities to individuals and units
within the organization
5.Planning enables managers to better
control the organization
REASONS
WHY MANAGER
FAIL Too centralized: top-down
Failure to question
assumptions
Failure to implement
Failure to anticipate rivals’ actions
THANK YOU
REFERENCES:
1.Hill CWL, Steven Lattimore Mcshane. Management. Mcgraw-Hill Higher
Education ; London; 2007.
2.Medina R. Business Organization and Management’ 2006 Ed. Rex
Bookstore, Inc.; 2006.
3. Juneja P. Planning Function of Management.
Managementstudyguide.com. Published 2019.
https://www.managementstudyguide.com/planning_function.htm
