Planning involves selecting actions to achieve desired results and minimize mistakes. It occurs at various levels - strategic, intermediate, operational. The planning process consists of setting goals, developing strategies to reach goals, determining needed resources, and setting standards. Plans are classified by functional area, time horizon, and frequency of use.

2. Planning
may be define as selecting the best course
of an action in anticipation of future trends
so that the desired result may be achieved.

3. The nature of Planning
To minimize mistakes in decision- making,
planning is undertaken.
A plan, which is the output of planning,
provides a methodical way of achieving
desired result.

4. Planning at Various Management
Levels
Planning activities are undertaken at
various levels are as follows:
1. top management level – strategic
planning
2. middle management level—
intermediate planning
3. lower management level – operational
planning

5. 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.

6. Intermediate planning
Refers to the process of determining the
contribution that subunits can make with
allocated resources.

7. Operational planning
the process of determining how specific
task can best accomplished on time with
available resources.

8. The planning process
Process of planning consist of various step
depending on the management level that
performed the planning task.
1. setting organizational, divisional, or unit
goals
2. developing strategies or tactics too reach
those goals
3. determining resources needed
4. setting standard

9. Setting organizational, divisional, or
unit goals
The first task of the manager is to provide a
sense of direction to his firm(if he is the
chief executive), to his division(if he heads
a division) or to his unit( if he is a
supervisor).

10. Developing strategies or tactics to
reach goals
The next task is to divise some means to
realize them. The ways chosen to realize
the goals are called strategies and these
will be concern of top management.

11. Determine resources needed
The quantity and quality of resources
needed must be correctly determined. Too
much resources in terms of either quality
or quantity will be wasteful. Too little will
mean loss of opportunities for maximizing
income.

12. Setting Standard
The standards for measuring performance
may be set at the planning stage. When
actual performance does not match with
the planned performance, corrections may
be made or reinforcements given.

13. Standard
may be define as a quantitative or
qualitative measuring device designed to
help monitor the performance of people,
capital goods, or process.

14. Types of plans:
1. Functional area
2. Time horizon
3. Frequency of use

15. Functional Area Plans
1.Marketing Plan—written document or
blueprint for implementing and controlling an
organization’s marketing activities related to a
particular marketing society.
2.Production Plan—written document that
states the quantity of output a company must
produce in broad terms and by product family.
3.Financial Plan—document that summarize the
current financial situation of the firm, analyzes
financial needs, and recommends a direction for
financial activities.

16. 4. Human Resource Management Plan—
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.

17. Plans with Time Horizon:
1. Short-range plans— plans intended to
cover a period of less than one year.
2. Long-range plans— plans covering a
time span of more than one year.

18. Plans According to Frequency of Use:
1. Standing Plans
2. Single Use Plans

19. Standing Plans
These are plans that are used again
and again.
1.Policies—broad guidelines to aid
managers at every level making decision
about recurring situations or function.

20. 2.Procedures—describes the exact series of
actions to be taken in a given situation.
3.Rules—statements that either require of
forbid a certain action.

21. Single Use Plans
Specifically develop to implement courses
of action that are relatively unique and are
unlikely to be repeated.
1. Budgets— a plan which sets forth the
project expenditures for a certain activity
and explains where the required funds will
come from.

22. 2. Program—designed to coordinate a
large set of activities.
3. Project—that is usually more limited in
scope than a program and is sometimes
prepared to support a program.

23. Summary:
Business activities, like other activities,
require effective planning if objectives and
goals are to be realized.
A plan is a methodological way of
achieving plan.
Planning is undertaken at various
management levels.
Various steps are required in the planning
process depending on the management
level.

24. Plans may be classified in terms of functional
areas, time horizon, and frequency of use.
Plan consist of various parts that the manager
must be familiar with.
Plans can be made effective by recognizing the
planning barriers and making use of planning
aids.