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PLANNING
Prepared by :
• SHEETAL MORE
• RUTUJA CHAVAN
• JANHAVI KHATAVKAR
• RUPALI KARLE
• ASHWINI YEWALE
• MANJU SHARMA
• REEMA MHATRE
Planning

Meaning of planning
Planning is a sense of direction to business
activities. Planning bridges gap between
where we are and where we want go.
Definition of planning
• By knootz and O’Donnell, “Planning is
deciding in advance what to do, how to do,
and who is to do it,”
• By James stonner, “planning is the process
of establishing goals and a suitable course of
action for achieving those goals.”
Features of Planning
• Primary function of management
• It is an intellectual process
• Focuses on determining the objectives
• Involves choice and decision making
• It is a continuous process
• It is a pervasive function
 Nature of planning
• Planning is goal oriented
• Planning is future oriented
• Continuous activity
• Link between past present and future
• Intellectual process Desired
• Integrated process Status
• Basic function Nature of planning
• Pervasiveness of planning
s
t Gap
a Planning
t Required
u
s

Current Status
T1 Time T2
04-Planning-RegionX-RSLS.ppt 7
 Importance and Purpose
• Setting organizational goals
• Minimizes risk and uncertainty
• Facilitates controlling
• Input for decision making
• Leads to success
• Effective control
• Effective utilization of resources
• Avoiding business failures
• Convert uncertainty into certainty
• Help in co-operation
ADVANTAGES OF PLANNING
• Minimizes risks
• Facilitates co-ordination
• Facilitates organizing
• Facilitates proper direction
• Facilitates control
• Generate efficiency
• Encourages innovations
• Focus on goals
• Facilitates decision making
• Motivates personnel
 Limitations of Planning
• Waste of Time, Money and Effort..
• Lack of accuracy
• Limited flexibility
• May face people’s resistance
• Lack Of Co-ordination..
• High Risk and Uncertainty..
• Confusion..
• Conflict of Authority and Disorganization..
Key “Planning” Elements

• Engage those to be involved

• Work from common understanding

• Address critical issues

• Agree on how the plan is to be

“operationalised” 11
.
Types of Plans
Goals
Objectives
Strategies
Policies

Procedures

Rules

Programmes
Budgets
Schedules
Projects
Forms of Planning
• On the basis of content
– Strategic plans
– Operational plans / Tactical plans

• On the basis of time period

– Long-term planning
– Intermediate-term planning
– Short-term planning
Planning on the basis of Content

• Strategic Planning
– It is the process of deciding on Long-term
objectives of the organization.
– It encompasses all the functional areas of business

• Tactical Planning
– It involves conversion of detailed and specific plans
into detailed and specific action plans.
– It is the blue print for current action and it supports
the strategic plans.
Planning on the basis of Time Period

• Long term planning

– Time frame beyond five years.
– It specifies what the organization wants to become in
long run.
– It involves great deal of uncertainty.
• Intermediate term planning
– Time frame between two and five years.
– It is designed to implement long term plans.
• Short term planning
– Time frame of one year or less.
– It provide basis for day to day operations.
ESSENTIALS OF GOOD PLAN

1. Flexibility: Plans must not be rigid. They

must offer flexibility to change as and when
he situation so demands.
2. Acceptance: The plan must be acceptable
to the subordinates. Therefore, it is advisable
to consult the subordinates before setting
targets.
3 . Simplicity: A plan must be simple and
easy to understand. Facts, figures and
other data must be well presented. A plan
must be simple, so that hose whose are
implementing it must clearly understand it.
4. Suitability: A plan must be suitable to a
particular unit or department. Depending
upon the resources and capabilities, the
targets must be set.
5. Facilitates organising: A good plan
should enable proper organising of
resources. The manager should find no
difficulty in making arrangement of
resources.
6. Facilitates control: A good plan should
facilitate control. If the targets are planned
clearly it will be enable to manager to
monitor the performance.
7. Generate harmony: A plan should
generate team spirit among the different
sections or department of organizations.
This would be possible if the plans of the
concerned departments are integrated or
co-ordinated.
8. Generate efficiency: A good plan must
make optimum use of available resources.
Maximum possible returns must be
achieved with minimum possible cost.
9. Motivate personnel : A good must be
realistic and challenging. The plan
prepared by the superior should motivate
the subordinate.
Without PLANNING there
can be lots of Activities……
but NO real
PROGRESS….(Success)

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 Steps in Planning
1. Define organizational objectives

2. Establishing planning premises

3. Deciding the planning period

4. Finding alternative courses of action

5. Evaluating & selecting a course of action

6. Developing derivative plans

7. Measuring & controlling the process

Ensuring Effective Planning

• Coordination
• Information
• Participation
• Proper climate
MBO – Management By Objectives

“A comprehensive managerial system that

integrates many key managerial activities in a
systematic manner and that is consciously
directed toward the effective and efficient
achievement of organizational and individual
objectives”
- Koontz and Weirich
Objectives of MBO
• Boosts participation in the goal setting
process
• Facilitates quicker and better decision-
making
• Co-ordinates individual and
organizational objectives
• Improves communication
• Serves as a basis for control
• Increases the organizational efficiency
 3. Devise action plans

2. Establish specific
goals 4. Maintain self-control
The
Process
1. Develop overall
of MBO
organizational goals 5. Review the progress

6. Appraisal of performance
COMPONENTS OF PLANNING

In the process of planning, several plans

are prepared which are known as
components of planning.

The various types of plans:

1. Mission : every organization needs to have
a mission. The mission is a statement that
reflects the vision, the basic purpose and
philosophy of the organization.
2. Objectives : organizational objectives are
derived from the mission of the organization.
3. Strategies : strategy is the determination of
the basic long term objectives of an
organization and the adoption of action and
collection of action and allocation of
resources necessary to achieve these goals.
4. Policies : Policies are the statement that
guide making. Policies define the boundaries
within which decisions can be made.
5. Procedure : Procedures are plans that
establish a required method of handling
future activities.
6. Rules : Rules spells out specific required
action or non-action allowing no
discretion.
7. Programmes : A Programme is a
comprehensive plan designed to
implement the policies and accomplish
objectives.
8. Budgets : A budget is a plan which
expresses the anticipated result in
numerical terms.
9. Schedules : A schedule is the time-table
for activities. It indicates the start time and
completion time for each and every
activity.
10. Project : It is single use plan. Project
approach is needed when the work to be
done is of special nature.
HELPS IN ACHIEVING OBJECTIVES
 OBJECTIVES OF PLANNING

• Reduces uncertainty
• Brings co-operation and co-
ordination
• Economy in operation
• Anticipates unpredictable
contingencies
• Achieving the pre determined
goals
• Reduce competition
PLANNING PROVIDES DIRECTION

A good plan act as a work

map.
It should provide proper
direction so that the
activities can be conducted
smoothly.
Depending upon the
planned schedule, the
manager can give the right
direction to complete the
work on time
 Identify Obstacles
Identify and form plan to overcome
• Physical Obstacles
• Conditional Obstacles
• Psychological Obstacles
• Unproductive Activities

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Thank you
 References

• Internet
• Book