3. Meaning
• Planning means looking ahead and chalking
out future courses of action to be followed.
• It is a preparatory step.
• It is a systematic activity which determines
when, how and who is going to perform a
specific job.
• It is the basic management function which
includes formulation of one or more detailed
plans to achieve optimum balance of needs or
demands with the available resources.
4.
5. Principles of Managerial
Planning
• Plans should be based upon clearly defined objectives
and make use of all available information.
• Plans should consider factors in the environment
which will help or hinder the organization in reaching
its goal.
• Plans should be based on the existing organization
and facilitate control in order to cross check
performance with established standards.
• Plans should be precise, practical and simple to
understand and operate.
• Plans must be flexible because if circumstances are
changing, the initial plan must still be valid.
6. Nature & Purpose of Planning
PLANNING is a process for accomplishing purpose.
• It is a blue print of business growth and a road map of development.
• It helps in deciding objectives both in quantitative and qualitative
terms.
• It is setting of goals on the basis of objectives and keeping in view the
resources.
• It predicts what the future should look like.
• Formal procedures used in such an endeavor, such as
• The creation of documents,
• Diagrams,
• Or meetings to discuss
• The important issues to be addressed,
• The objectives to be met,
• And the strategy to be followed.
7. Steps in Planning Function
Planning function of management involves
following steps:-
• Establishment of objectives
• Establishment of Planning Premises
• Choice of alternative course of action
• Formulation of derivative plans
• Securing Co-operation
• Follow up/Appraisal of plans
8. Establishment of objectives
• Planning starts with the setting of goals and
objectives to be achieved.
• Objectives provide a rationale for undertaking
various activities as well as indicate direction of
efforts.
• Objectives should be stated in a clear, precise and
unambiguous language.
• As far as possible, objectives should be stated in
quantitative terms.
• For example, Number of men working, wages given,
units produced, etc.
9.
10. Establishment of Planning
Premises
• Planning premises are the assumptions about the lively
shape of events in future.
• Determining where one tends to deviate from the actual
plans and causes of such deviations.
• What obstacles are there in the way of business during
the course of operations.
11. • Planning premises may be internal or external.
Internal includes
• Capital investment policy,
• Management labour relations,
• Philosophy of management, etc.
• Whereas external includes
• Socio- economic, political and
• Economical changes.
12. Choice of alternative course of
action
• When forecast are available and premises are
established, a number of alternative course of
actions have to be considered.
• For this purpose, each and every alternative will
be evaluated by weighing its pros and cons in the
light of resources available and requirements of
the organization.
• After objective and scientific evaluation, the best
alternative is chosen.
• The planners should take help of various
quantitative techniques to judge the stability of
an alternative.
13.
14. Formulation of Derivative Plans
• Derivative plans are the sub plans or
secondary plans which help in the
achievement of main plan.
• These detail plans include policies,
procedures, rules, programmes, budgets,
schedules, etc.
• For example, if profit maximization is the main
aim of the enterprise, derivative plans will include
sales maximization, production maximization, and
cost minimization.
15.
16. Securing Co-operation
After the plans have been determined,
• It is necessary rather advisable to take
subordinates or those who have to implement
these plans into confidence.
• The purposes behind taking them into
confidence are :-
• Subordinates may feel motivated since they are
involved in decision making process.
• The organization may be able to get valuable
suggestions and improvement in formulation as
well as implementation of plans.
17.
18. Follow up/Appraisal of plans
• After choosing a particular course of action, it
is put into action.
• After the selected plan is implemented, it is
important to appraise its effectiveness.
• This enables the management to correct
deviations or modify the plan.
19.
20. Types of Plans
Three major types of plans can help managers
achieve their organization's goals:
• Operational
• Tactical, and
• Strategic
21.
22. • Operational plans lead to the achievement of
tactical plans, which in turn lead to the
attainment of strategic plans.
• In addition to these three types of plans,
managers should also develop a contingency
plan in case their original plans fail.
23. Operational Plans
• The specific results expected from
departments, work groups, and individuals
are the operational goals.
• These goals are precise and measurable.
• For example-
• “Process 150 sales applications each week” or
“Publish 20 books this quarter” are examples of
operational goals.
24. Operational Plans
• An operational plan is one that a manager
uses to accomplish his or her job
responsibilities.
• Supervisors, team leaders, and facilitators
develop operational plans to support tactical
plans.
• Operational plans can be a single-use plan or
an ongoing plan.
25. Tactical Plans
• A tactical plan is concerned with what the lower
level units within each division must do, how they
must do it, and who is in charge at each level.
• Tactical plans are concerned with shorter time
frames and narrower scopes than are strategic
plans.
• These plans usually span one year or less because
they are considered short-term goals.
• Long-term goals, on the other hand, can take
several years or more to accomplish.
26. Strategic Plans
• A strategic plan is an outline of steps
designed with the goals of the entire
organization as a whole in mind.
• Strategic plans look ahead over the next two,
three, five, or even more years to move the
organization from where it currently is to
where it wants to be.
• Requiring multilevel involvement, these
plans demand harmony among all levels of
management within the organization.
27. • Top-level management develops the
directional objectives for the entire
organization, while
• Lower levels of management develop
compatible objectives and plans to achieve
them.
• Top management's strategic plan for the
entire organization becomes the framework
and sets dimensions for the lower level
planning.
Strategic Plans cont……..
28. Contingency Plans
• Contingency planning involves identifying
alternative courses of action that can be
implemented if and when
• The original plan proves inadequate because
of changing circumstances.
• Unexpected problems and events frequently
occur.
• When they do, managers may need to change
their plans.
29. Contingency Plans cont……
• Anticipating change during the planning
process is best in case things don't go as
expected.
• Management can then develop alternatives
to the existing plan and ready them for use
when and if circumstances make these
alternatives appropriate.
