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PLANNING AND PLANNING 
PREMESIS
WHAT IS PLANNING? 
According to Knootz, 
Planning is the intellectual process that 
requires conscious determination of course of 
action and taking decision on the basis of 
purpose, knowledge and considered 
estimates.
FEATURES/PURPOSE OF 
PLANNING 
Prioritizing 
Determining task and resource 
Scheduling time for completion
ESSENTIALS OF PLANNING 
SYSTEM (GIVEN BY MURPHY) 
• Clearly defined objective 
• Clearly identified assumptions 
• Rational appropriate and comprehensive 
• Simple 
• Flexible
Time bound 
Balanced 
Regular analysis and review 
Utilize available resources and opportunities and new 
resources 
Proper coordination between short term and long term 
plans 
Free from psychological and social basis of planners 
Adequate review and controlling mechanism
CATEGORIES OF 
PLANNING 
Strategic and Functional Planning :- 
Apply to the entire organization, Establish the 
organization’s overall goals, Seek to position the 
organization in terms of its environment, Cover 
extended periods of time 
Functional planning is undertaken by various 
department in to the organization to determine their 
respective , derived from the long term goals and 
objectives. 
Formal and Informal planning:- 
Informal planning takes place when a manager plans 
institutively without any structure or rigid framework. 
Formal planning involves a structured process of 
investigation and action.
Ad hoc and Standing Planning :- 
Standing plans are often policies, procedures and 
programs developed to ensure the internal operations 
of a given business are operating smoothly. Examples 
of standing plans include policies for employee 
interaction, procedures for reporting internal issues in 
the company and regulations in terms of what is 
allowable and what is prohibited in the business. 
Ad hoc plans are basically temporary plan which are 
made in an organisation to enhance the process of 
achievement of objective.
Administration and operational 
planning :- 
Operational planning the details of how the overall 
goals are to be achieved. Cover short time period. 
Administration planning deals with the making of 
policies to achieve a particular goal or objective. 
Long term and short term planning :- 
It is the process of establishing long-term goals, 
making our strategies, policies and programmes to 
achieve these goals. It ranges from 5 years to 20 
years or even more. 
Short terms planning relates to a period of up to one 
year. Such plans are made to achieve short term 
goals.
PROCESS OF PLANNING 
Determination of objectives 
Development of Planning Premises 
Determination of alternative courses of action 
Evaluation of alternatives
Formulation of derivative plans 
Planning of timing and operational Schedule 
Securing people’s participation 
Reviewing and controlling plan 
Budgeting
PLANNING PREMISIS 
Planning premises are defined as the 
anticipated environment in which plans are 
expected to operate. They include 
assumptions or forecasts of the future and 
known conditions that will effect the operation 
of plans.
Internal Premises come from the business itself. It 
includes skills of the 
workers, capital investment policies, philosophy 
of management, sales forecasts, etc. 
External Premises come from the external 
environment. That is, economic, social, political, 
cultural and technological environment. External 
premises cannot be controlled by the business.
Controllable Premises are those which are fully 
controlled by the management. They include factors 
like materials, machines and money. 
Semi-controllable Premises are partly controllable. 
They include marketing strategy. 
Uncontrollable Premises are those over which the 
management has absolutely no control. They include 
weather conditions, consumers' behaviour, 
government policy, natural calamities, wars, etc.
Tangible Premises can be measured in quantitative 
terms. They include units of production and sale, 
money, time, hours of work, etc. 
Intangible Premises cannot be measured in 
quantitative terms. They include goodwill of the 
business, employee's morale, employee's attitude and 
public relations.
Constant Premises do not change. They remain the 
same, even if there is a change in the course of 
action. They include men, money and machines. 
Variable Premises are subject to change. They 
change according to the course of action. They 
include union-management relations.
BARRIERS TO PLANNING 
LACK OF ACCURACY: In planning we are always 
thinking in advance and planning is concerned with 
future only and future is always uncertain. In planning 
many assumptions are made to decide about future 
course of action. But these assumption are not 100% 
accurate and if these assumption do not hold true in 
present situation or in future condition then whole 
planning will fail.
PSYCHOLOGICAL BARRIERS: Generally the human 
beings have a felling of uncertainty related to future. 
People have preference for the present as compared 
to the future. The employees fell making assumptions 
and then changing them according to present 
conditions involve lots of time and cost. So, it is 
always advisable to take decision according to 
present condition only. 
HUMAN ELEMENT:-The manger who are performing 
planning function are human beings may make 
mistakes by making wrong assumption or by 
selecting the wrong alternative to achieve the 
objective of organization. The managers involved in 
planning work may also mislead or misguide the 
employees by giving priority to personal objective 
rather than organizational objective.
CONCLUSION 
The above points show that planning is not a 
substitute for success of a organization 
because it suffers from many limitations. But 
is does not mean that managers should not 
perform planning function, rather they should 
perform planning keeping in mind the 
limitations of planning and then try to 
overcome these limitations.
Planning and planning premesis

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Planning and planning premesis

  • 2. WHAT IS PLANNING? According to Knootz, Planning is the intellectual process that requires conscious determination of course of action and taking decision on the basis of purpose, knowledge and considered estimates.
  • 3. FEATURES/PURPOSE OF PLANNING Prioritizing Determining task and resource Scheduling time for completion
  • 4. ESSENTIALS OF PLANNING SYSTEM (GIVEN BY MURPHY) • Clearly defined objective • Clearly identified assumptions • Rational appropriate and comprehensive • Simple • Flexible
  • 5. Time bound Balanced Regular analysis and review Utilize available resources and opportunities and new resources Proper coordination between short term and long term plans Free from psychological and social basis of planners Adequate review and controlling mechanism
  • 6. CATEGORIES OF PLANNING Strategic and Functional Planning :- Apply to the entire organization, Establish the organization’s overall goals, Seek to position the organization in terms of its environment, Cover extended periods of time Functional planning is undertaken by various department in to the organization to determine their respective , derived from the long term goals and objectives. Formal and Informal planning:- Informal planning takes place when a manager plans institutively without any structure or rigid framework. Formal planning involves a structured process of investigation and action.
  • 7. Ad hoc and Standing Planning :- Standing plans are often policies, procedures and programs developed to ensure the internal operations of a given business are operating smoothly. Examples of standing plans include policies for employee interaction, procedures for reporting internal issues in the company and regulations in terms of what is allowable and what is prohibited in the business. Ad hoc plans are basically temporary plan which are made in an organisation to enhance the process of achievement of objective.
  • 8. Administration and operational planning :- Operational planning the details of how the overall goals are to be achieved. Cover short time period. Administration planning deals with the making of policies to achieve a particular goal or objective. Long term and short term planning :- It is the process of establishing long-term goals, making our strategies, policies and programmes to achieve these goals. It ranges from 5 years to 20 years or even more. Short terms planning relates to a period of up to one year. Such plans are made to achieve short term goals.
  • 9. PROCESS OF PLANNING Determination of objectives Development of Planning Premises Determination of alternative courses of action Evaluation of alternatives
  • 10. Formulation of derivative plans Planning of timing and operational Schedule Securing people’s participation Reviewing and controlling plan Budgeting
  • 11. PLANNING PREMISIS Planning premises are defined as the anticipated environment in which plans are expected to operate. They include assumptions or forecasts of the future and known conditions that will effect the operation of plans.
  • 12.
  • 13. Internal Premises come from the business itself. It includes skills of the workers, capital investment policies, philosophy of management, sales forecasts, etc. External Premises come from the external environment. That is, economic, social, political, cultural and technological environment. External premises cannot be controlled by the business.
  • 14. Controllable Premises are those which are fully controlled by the management. They include factors like materials, machines and money. Semi-controllable Premises are partly controllable. They include marketing strategy. Uncontrollable Premises are those over which the management has absolutely no control. They include weather conditions, consumers' behaviour, government policy, natural calamities, wars, etc.
  • 15. Tangible Premises can be measured in quantitative terms. They include units of production and sale, money, time, hours of work, etc. Intangible Premises cannot be measured in quantitative terms. They include goodwill of the business, employee's morale, employee's attitude and public relations.
  • 16. Constant Premises do not change. They remain the same, even if there is a change in the course of action. They include men, money and machines. Variable Premises are subject to change. They change according to the course of action. They include union-management relations.
  • 17. BARRIERS TO PLANNING LACK OF ACCURACY: In planning we are always thinking in advance and planning is concerned with future only and future is always uncertain. In planning many assumptions are made to decide about future course of action. But these assumption are not 100% accurate and if these assumption do not hold true in present situation or in future condition then whole planning will fail.
  • 18. PSYCHOLOGICAL BARRIERS: Generally the human beings have a felling of uncertainty related to future. People have preference for the present as compared to the future. The employees fell making assumptions and then changing them according to present conditions involve lots of time and cost. So, it is always advisable to take decision according to present condition only. HUMAN ELEMENT:-The manger who are performing planning function are human beings may make mistakes by making wrong assumption or by selecting the wrong alternative to achieve the objective of organization. The managers involved in planning work may also mislead or misguide the employees by giving priority to personal objective rather than organizational objective.
  • 19. CONCLUSION The above points show that planning is not a substitute for success of a organization because it suffers from many limitations. But is does not mean that managers should not perform planning function, rather they should perform planning keeping in mind the limitations of planning and then try to overcome these limitations.