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PLANNING...

Planning 1
CONTENTS

Planning 3
Palak Sood
Roll No. : 67
References:
Principles of Management
 Koontz H. and O’Donnel
Principles of Management
 Prasad L.M.
The Principles of Management
 Rustom S. Davar

Planning 4
PLANNING

Planning 5
ROLE OF PLANNING
CHARACTERTICS

Planning 7
ELEMENTS

Planning 8
TYPES OF GOALS

Planning 9
CHARACTERSTIS OF A GOOD
PLAN

Planning 10
STEPS IN PLANNING

Planning 11
Palak Sood
Roll No. : 67
References:
Principles of Management
 Koontz H. and O’Donnel
Principles of Management
 Prasad L.M.
The Principles of Management
 Rustom S. Davar

Planning 12
Swathi Velisetty
Roll No. : 113
References:
Principles of Management
 Koontz H. and O’Donnel
The Practice of Management
 Drucker P.F.
The Fundamentals of Top Management
 Ralph C. Davis

Planning 13
NEED FOR PLANNING
BENEFITS

Planning 15
BENEFITS

Planning 16
LIMITATIONS

Planning 17
LIMITATIONS

Planning 18
TYPES OF PLANNING
TYPES OF PLANNING

Planning 20
TYPES OF PLANNING

Planning 21
CLASSIFICATION OF PLANS

Planning 22
LEVELS OF PLANNING
LEVELS OF PLANNING

Planning 24
Planning 25
FIVE LEVELS

Planning 26
Swathi Velisetty
Roll No. : 113
References:
Principles of Management
 Koontz H. and O’Donnel
The Practice of Management
 Drucker P.F.
The Fundamentals of Top Management
 Ralph C. Davis

Planning 27
Siddhi Shah
Roll No. : 101
References:
Principles of Management
 Koontz H. and O’Donnel
Principles of Management
 Stoner & Freeman

Planning 28
CORPORATE PLANNING
CORPORATE PLANNING…
Provides a basis of control

Accomplish goals with efficiency and certainty

Anticipate technology changes

Helps to minimize costs

Helps to acquire a competitive edge

Planning 30
Planning 31
CORPORATE OBJECTIVES
Corporate Objectives
 Overall objective is financial
 ‘Long Term’ and ‘Short Term’
 Most generally, they answer the questions:
 Where do we want to be ?
 When do we expect to be there?

Forecasting
 Short-term forecasting
 Long-term forecasting
Planning 32
COMPONENTS OF CORPORATE
PLANNING
What is a Corporate Plan?
 Quite Similar to a Marketing Plan
 More ‘contextual’ in nature than other plans
 Includes plans for disposition of other internal
resources of the organization

Main components of a Corporate Plan


 Market Position vis-à-vis Customer’s perception
 The position the company ‘plans’ to be in
 4Ps are the vehicle to reach the destination

Planning 33
SHORT TERM
FORECASTING
nAbout Short Term Forecasting
•A schedule covering the plan
•Overall - Sales & financial growth oriented
•Has a limited horizon & demonstrates continuity

nSteps / Techniques
•Eye-Balling (Data, Charts & Reports)
•Relies on judgment and experience of the
manager/leader
•Exponential Smoothing
•Produces data for each period using mathematical tools
LONG TERM FORECASTING
nAbout Long Term Forecasting
•A more qualitative plan
•Focus on Strategic aspects (not tactical ones)
•Has a broad horizon & focus on long term growth

nSteps / Techniques
•Identify the important variables
•Brainstorm to find the possible outcomes
•Link these together in a series of alternative
scenarios
•Refine these scenarios
CORPORATE MISSION
nAbout Corporate Mission
•Provides context for Corporate objectives
•Defines exactly what an organization is & what it
does
•Not too wide (meaningless) nor too narrow (lack
development)

nKey Characteristics
•Customer groups to be served
•Customer needs to be met
CORPORATE VISION
nAbout Corporate Vision
•Most crucial aspect to long term success
•Vital for top leadership to develop intricately
•Equally important to create a sense of mission

nKey aspects
•Powerful and relevant
•Inspiring and exciting
•Focused and forward-moving
Siddhi Shah
Roll No. : 101
References:
Principles of Management
 Koontz H. and O’Donnel
Principles of Management
 Stoner & Freeman

Planning 38
Mayank Sanghai
Roll No. : 87
References:
Principles of Management
 Koontz H. and O’Donnel
The fundamentals of top management
 Ralph C. Davis

Planning 39
LONG RANGE
PLANNING
LONG RANGE PLANNING
AREAS OF LONG RANGE
PLANNING

Planning 42
FORECASTING AND
BUDGETING

Planning 43
PROACTIVE MANAGEMENT
UNCERTAINTY
SCENARIO PLANNING

Planning 46
Mayank Sanghai
Roll No. : 87
References:
Principles of Management
 Koontz H. and O’Donnel
The fundamentals of top management
 Ralph C. Davis

Planning 47
Shreyash Shah
Roll No. : 93
References:
www.mindtools.com
www.accel-team.com
Planning –A Global perspective
 Weihrich & Koontz

Planning 48
DECISION MAKING
DECISION MAKING MODEL

Frame

Decide

Communicate

Implement

Evaluate
Planning 50
MULTIVOTING

Description

When to Use

Keeping the End in Mind

• Option 1
• Option 2
• Option 3
• Option 4
• Option 5
Planning 51
GUIDELINES FOR CONDUCTING
THE MULTIVOTING ACTIVITY
1. Brainstorm a list of options.

3. Review the list from the Brainstorming activity.

5. Participants vote for the ideas that are worthy


of further discussion.

7. Identify items for next round of voting.

Planning 52
GUIDELINES FOR CONDUCTING

5. Vote again.

7. Repeat steps 4 and 5.

9. Discuss remaining ideas.

11. Proceed with appropriate actions.

Planning 53
PARETO ANALYSIS
A formal technique for finding the changes that will
give the biggest benefits

Pareto principle - the idea that by doing 20% of


work you can generate 80% of the advantage of
doing the entire job

Particularly useful where many possible courses of


action

Planning 54
PARETO ANALYSIS
The 80/20 rule can be applied to almost
anything:
 80% of customer complaints arise from 20% of your
products or services.
 80% of delays in schedule arise from 20% of the
possible causes of the delays.
 20% of your products or services account for 80% of
your profit.
 20% of your sales-force produces 80% of your
company revenues.
 20% of a systems defects cause 80% of its problems.

Planning 55
THE PROCEDURE…PARETO
ANALYSIS
Seven steps to identifying the important causes
using Pareto Analysis :
2. Form a table listing the causes and their
frequency as a percentage.
3. Arrange the rows in the decreasing order of
importance of the causes, i.e. the most
important cause first.
4. Add a cumulative percentage column to the
table.

Planning 56
THE PROCEDURE…PARETO
ANALYSIS
4. Plot with causes on x-axis and cumulative
percentage on y-axis.
5. Join the above points to form a curve.
6. Plot (on the same graph) a bar graph with causes
on x-axis and percent frequency on y-axis.
7. Draw a line at 80% on y-axis parallel to x-axis. Then
drop the line at the point of intersection with the
curve on x-axis. This point on the x-axis separates
the important causes on the left and less important
causes on the right.

Planning 57
PARETO ANALYSIS…AN
EXAMPLE

Planning 58
PAIRED COMPARISON
ANALYSIS
Paired Comparison Analysis helps you to work
out the importance of a number of options
relative to each other

Helps you to set priorities where there are


conflicting demands on your resources

Planning 59
PAIRED COMPARISON
ANALYSIS
Follow these steps to use the technique
 List the options you will compare

 For each comparison, you will decide which of the


two options is most important

 Assign a score to show how much more important it


is 0 (no difference) to 3 (major difference)

 Consolidate the results

Planning 60
PAIRED COMPARISON
ANALYSIS…AN EXAMPLE

A = 3 (37.5%)
B = 1 (12.5%)
C = 4 (50%)
D=0 Planning 61
GRID ANALYSIS
Also known as Decision Matrix analysis, Pugh
Matrix analysis or MAUT which stands for
Multi-Attribute Utility Theory

Most effective where you have a number of


good alternatives and many factors to take into
account

Planning 62
GRID ANALYSIS
To use the tool, lay out your options as rows on
a table
Set up the columns to show your factors
Allocate weights to show the importance of each
of these factors
Score each choice for each factor using numbers
from 0 (poor) to 3 (very good)
Multiply each score by the weight of the factor,
to show its contribution to the overall selection
Finally add up the total scores for each option.
Select the highest scoring option
Planning 63
GRID ANALYSIS…AN
EXAMPLE

Planning 64
DECISION TREE ANALYSIS

Tool for helping to choose between several


courses of action
Provides a highly effective structure within
which you can lay out options and investigate
the possible outcomes of choosing those
options
Forms a balanced picture of the risks and
rewards associated with each possible course
of action

Planning 65
DECISION TREE ANALYSIS

Assign a cash value or score to each possible

outcome

Estimate the probability of each outcome

Select the most profitable outcome

Planning 66
Planning 67
FORCE FIELD ANALYSIS
Looks at all the forces for and against a decision

Method of weighing pros and cons

Helps you to plan to strengthen the forces


supporting a decision, and reduce the impact of
opposition to it.

Planning 68
Planning 69
COST/BENEFIT ANALYSIS
Technique for deciding whether to make a
change

Add up the value of the benefits of a course of


action, and subtract the costs associated with it

Takes into consideration the effect of time by


calculating the payback period

Planning 70
COST/BENEFIT ANALYSIS
Two possible approaches
 Consider only financial costs and benefits
 put a financial value on intangible costs and
benefits
 Example: Tree worth 5000 for wood or
100000 for its environmental value
 This inevitably brings an element of
subjectivity

Planning 71
Shreyash Shah
Roll No. : 93
References:
www.mindtools.com
www.accel-team.com
Planning –A Global perspective
 Weihrich & Koontz

Planning 72
Kairav Parikh
Roll No. : 70
References:
Principles of Management
 Koontz and O’Donnel
Principles of Management
 Prasad L.M.
The Principles of Management
 Rustom S. Davar

Planning 73
CREATIVE PROBLEM
SOLVING
CREATIVE PROBLEM
SOLVING

Planning 75
STAGES IN CREATIVE
PROBLEM SOLVING

Planning 76
BRAINSTORMING

Planning 77
BRAINSTORMING

Planning 78
PARADIGMS

Planning 79
Kairav Parikh
Roll No. : 70
References:
Principles of Management
 Koontz and O’Donnel
Principles of Management
 Prasad L.M.
The Principles of Management
 Rustom S. Davar

Planning 80
THANK YOU