PLANNING

ANTRODUCTION:
Planning 0s the fundamental function of management. Iit is bastc to all other management functlons. It
providea foundatlon upon which organizing, staffing, directing and corntraling functlons can be carrled
Dut.

According to Alford and Beatt, "Planning is the thinking process, the organized foresight, the
vision based on fact and experience that is required for lntelligent action."
Acording to Theo Haimann, "Plannlng is deciding in advance what is to be done. When a
manager plans, he projects a course of action for further attempting to achieve a consistent coordinate
structure of operations almed at the desired results.
According to Koontz and 0' Donnell, "Planning is an Intellectual process, conscious
determination of course of action, the basing of decislon on purpose, facts and considered estimates."
According to Allen, "A plan is atrap lald to capture the future."
Nature or Features of Planning:
Managerial function has some unique charåcteristics of its own whlch separate it from other functions.
They are:
Planning is goal-oriented: Planning is not an end itself. Rather, it is a means towards the
acompliahment of objectives.
Planning Is a primary function: Planning Is the first and foremost activity bf Managerial fünction.
Management starts with planning. Planning gives base for other functlons like organizing,
staffing, directing controling etc. It is equally important like all other managerial functions.
Plannng is Al-pervasive: Planning is a function whlch exists in al levels of managerial hierarchy.
The content and quality of planning differ in different levels.
3 Planning Is an intellectual process: Planning is a process which needs the ability to
think in a
logical way and understanding things. It needs the ability or skill to vlew the future opportunity
and threats.
Plannlng is a çontinuous process: Plannlng is an on-going or dynamlc process and it is
the external and internal changes of environment. It Is a based on
continuous process of assessment and
reassessment of goals, resources, directlons opportunitles and problems of the organizatlon.
Planning Is future oriented: Planning s always future oriented. It is a process which
or thinks ahead and making provision to tackle future looks ahead
event. Whlle planning for the future
managerS would conslder the sltuations and events of present and past within and
outside the
organlzation.
Planntng Invoives decislon making; Planning involves declslon making and problem solving. It
also Involves ldentificatlon of the Issues whlch
needs to be addressed, collection of relevant
Informatlon or facts, finding out the most approprdate alternative course of actlon or
cholce.
 the
Planning Is directed towards efflclency: Planning has no relevance If It does not facllltate
achievement of objectves economlcally and efficlently.

IMPORTANCE OF PLANNING
anning sone of the most Important and cruclal functions of management
Reductlon of Uncertalnty: Futüre is always full ßf uncertaintea. a business organisation has to
functlon in these uncertalnties. It can operate successfully If.it is able to predict the
uncertainties. Sone of the uncertalntles can be predicted by undertakíng systematic. Some of
the uncertalnfies can be predicted by undertaking systematlc forecasting
$ Better Utillzatlon of Resources: An Important' advaDtage of planning Is that it makes effettive
and proper uilzation of enterprise resources. it kdentifies all süch avallable resources and
makes optimumnuse of these resources.
* Inereases Organtzatonaf Efectvnessé "Planning ensures otganizatlonal effecthveness.
..Efectiveness ensures that the eorganisation is In a position to achleve its objectve due to
Ingreased efficdency of the organisatlon.
Reduces the Cost of Performance: Planning assists In reducdng the cost of performance. It
includes the selection of only one course of actlon amongst the different, courses of action that
woukd yield the best results at minium cost. It removes hesitancy, avokds crises and chaos,
eliminates false steps and protects against improper deviations.
Concentration on Objectivess, It is a basic characteristic of planning that It is related to the
organlzational objecth AT the operations,arg planned to achieve the organlzational
objecthves. Planning facilitates the achievement of objectives by focusing attention on them. It
-requites the.clear definitlon of objectives so that most approprate alternative courses of action
are chosen.
Helps in Co-ordinatlon: Goodplans unify the interdepartmental activity and clearty lay down the
area o eedor-In: the deyelopment of various sub-plans. Various departments work in +
accordance with the overall plans of the organlsation. Thus, there s harmony in the
orghkátionfand duplication of efforts and conflict of jurisdictlon are avolded.
" Makes Control _Effective: Planning anid control are InsepaYable in thé' sense th¯t unplanned
actlon cannot be controlled because control involves keeping activities on the predetermined
course by rectfyng deviations from plans. Plannlng helps ontrol by furnishing standärds of
Perfomance.
o Encouragement to Innovatlon: Planning helps Innovative and creative thinklng among the
managers because many new ldeas come to the mind of a manager when he is planning. It
reatesa forward-locoking attitude among the managers.
Increase In' Competitive Strength: Effecthe planning gives a competitve edge to the enterprise
over other enterprises that do not have plannlng or have lheffectve plannlng. This ls because
planning may Inyolve expanslon of capaclty, changes in work methods, changes in quality,
antlcipation of tastes and fashlons of people and technologlcal changes etc.
 Delegation is Facilitated: Agood plan always facilltates delegatlon of authority In a better way to
subofdinates:

PRINCIPLES OF PLANNING
Planning0Sa dynamlc process, It is very essential for every organization, to achleve thlr ultimate goals
These princples are as follows:
3 Prindple of ContributlonThe: purpose .ofplanging Is to ensure.the effectve, and
achlevement of corporateobjectives. The accomplishment of the objectves always depends efficlent
on
the soundness of plans and the adequate amount of contribution of
compamv towards the
sam
Principle of Sound and Consistent Premising: Premises are the assumptions regarding the
environmental forces like economic and market conditlons, soclal, political, legal and cultural
spects, compethor's actlons, etc. These are prevalent during the period of the Implementatlon
of plans. Hence, Plans are made on the basis of premises accordingly, and the
future of the
company depends on the soundness of plans they make so as to face the state of'premises.
Princdple of LInHlting' factors: The limiting factors are the lack of motivated employees, shortage
of trained personnel, shortage of capital funds, government policy of price
regu<ation, etc. The
company tequlres.monitpring all these factors and needing to tackle the same in an efficlent
way soas to make a smooth way for the achlevement of Its ultimate objectives.
Principle of Commitment A commitment Is required to cary-on the business that Is
established. The planning shall has to be In such a way that the product diversification should
encormpass the particular perlod during whlch entire Investment on that product Is recovered.
Princlple of Timing: Number of major and minor plans of the organlisation should be arranged In
a systematia manner. The plans should be aranged, In a tÉme hlerarchy, Inltiation and
completion of those plans should be clearty determined.
PAnciple of Eifliclensýt Cost of planning constitutes human, physlcal and financlal resources for
thelr formulation and Implementation as well. Minimizing thà cost and achleving the eficient
udh~aton of resources shall haye to be the alm of the plans.
Princlple of Flexdblllty: Plans are supposed to be flexlble to favour the organisatlon to
cope-up
Wthethe-unexpected environments. It Is always requlred to keep in mind that future wll be
different In actuallty. Hence companles, therefore, require preparing contingency plans
may be put Into operation In response to the sltuations. which
Princlple of Acceptance: Plans should be understood and
accepted by the employees, slnce the
SUCesshüHmplementatlon of plans requlres the willingness'ànd cooperathve efforts from them.
Communcation plays a crucial role in gaining the employee understanding and acceptance
also
of the plans by removing thelr doubts and
mlsunderstanding about the plans also their
 ippYehiensions and anxleties about consequences of pláns for Yehlevement of thelr personal
go£ls.

Steps or Process of Plann1ng

For systematic appYoathto planning-tts essentlal to complete some procedures or steps. The major
steps of planning are as follows:

Process of Planning

Analyze Sefting Determlnarion

Opportunlties Objectres of Premses

Tuplenentatlon Rerentog the Dtermination

orplan planntug process of alternatties

Foranla tion 6t Seecttign Evaluauon of

Dertrattre plan GourseofActlon Alternatres

A Analyze Oppornties: It s known as pre-step´of lanning. The maDagement has to analyze

strengths; weakness, opportunities and threats (5WOT of changing environment of the business. Here,
strengths'änd weaknesses are Intemal environments of the enterprlse like availability of materials,
machines manpower, organlzational structural technology etc. In the slmllar manner, opportuntles and
threats arë external enronment and'afféded by"màny factóis ike govemment rules, economte
condition, competitors strategy customers taste, social and cyltural belleves etc. It is essential to make
detall study about the aböve fattors and should be polnted clearty..
B. Setting objectives: Thls Is the rst and real starting polnt of planning. The objectves must be specific,
cdear and practlcal. They should be time bound and expressed In numerlcal terms. They should not be
Idealistic or over ambltlous. Amínor mlstake In setting objectves mlght affect In Implementation of
plan. Thus, management has to deflne oblectves In clear manner by consldering organlzatlonal
resources and opportunltles.
 C Determination of premses: After settng objectves, another step of planning is to determine
premises. Premises are the aisumptons about the future In which the planning Is Implemented. They
provide emronmept and boundarles for the lmplementation of plan ln practkal operatlen. The future
emvironment wll be established through forecasting. They proidel present trendánd 'future
possibites These premlses are
(2) Tangble and lntangtble: Tangible premises Imvolve capltal ivestment, unit of production,
unts sold, cost per unlt, tme araiabe etc. Siháary, ntang|ble prémises l^vove'eriployee's
mon, soodwil, motatton, mangerlal atttude, etc.
D) tnternal and, external: internal' prehises Ivovemoney, materlals,, machines and
managements. In the similar manner, extemal factors Invove competitors strategy,
technologicalchange, government policy, social and cultural beliefs ete.
D. Determlatlon of aternatves The next step, aner éstabtshm¿nt of objecthe snd premßes of the
planning s to dscover the various aternatve courses of action for the achlevement of organzational
objetives For this purpose, k s essential to ldentify al the possible hidden atematves. The
Iinformation about aternative courses of action may be'obtained fromprimary and secondary sources
There must be search for the best alternatve.
E Evaluatdon of aternatves: Ths s another step after determinatlon of aternatve courses of actlon to
evaluate them from thelr expected cost and benefits. This sthe logical step to evaluate each alternattve
from ts plus-and minus poits. Each aternave k studled and evaluated in terms of somne common
factors such as risk, responslbilty. planning premses, cost, technology,etr.
F. Selecting a course of action: Next step of the planning after evaluaton of aternatve courses of
action s to select a best course of actionn At that tlme of selectlon of one course of action, management
has to consider past experlence, present situation and future contingencies of such decdsion. In practial
sense, thisk the first step In the real point of decksion. Thus, it is essential to conslder about the varkous
prernises and environments of an organization and thet impact on future course of actkon. Besldes, It Is
needed to forecast about the comparatve costs and benefits factors The from its plus and minus
points. Each aternatve s studied and evaluated In terms of some common factors such as risk,
responsibty, plannlng premises, cost, technology etc. evaluation of these factors will provde
guidelines and suggestions in practical implementation of plan.
G. Formulaton of dertvative plans: This s the next logical step after the selection of a course of action.
Aher the selection of course of action, It Is essentlal to formulate action plans for each step of work and
to all departments of the onganlzatlon. These actlon plans Invove formulation of policdes, rules, schedule
and budget to complete defined objectlves.
H. Implementation of plans: This Is one of the slgnificant steps of plannlng. Without this step, other this
procedure of plan will remaln as paper work. This step brings all the procedure of plan Into actlon. For
Implermentatlon plan, management has to take some steps such as to communicate with subordinates
who inltlate to plan Into actlon; provide necessYry Instruction and guldance; make arrangement of all
 supervislon and control over
equBpment'setc; make timely
machines, money,
resources ike materials,
subordinalgs. procedure ls continuois functlon up to the attalrment
process: The plannlng according to the time, is
. Revdeing the plannlng this purpose, erakuatlon of chlevement of work,
of defined objectves. For manager can take correctve action In proper tiTe
perfomance. The
necessaryY to know about ectual
only after evaluation of actual performance.

LIMITATiONS OR PROBLEM IN PLANNING

Planning suffers from the following limtations:

A Lack of Accurate Information: Planning and

prediction for future work may be an awful work for
as the forecasting period Increases.
anyone. The,accurasy and rellablity of forecasts diminshes
reliable forecasts and datá are not avalable, planning premises anot be realistic.
that may occur
B. Expensie: Wth the extra time and labour in planning, there is a huge deal of expensemust
planning not exceed
due to any mistake. It should always be takencare of that the expenses n a
the benefits from the project.
can cause much a kind of rigidity in
C Rigidity: Planning in an organization levkonment sometimes freedom present In the scenaria.
ariousajs Afer planning there are not many scopes of Individual
the planning already puts limt
Development of employees l< merefy fossible in various aspects, becauseImplemented
be at any level bythe
h the fields of wprk The dlfferent new ldeas and Innovations annot dscourages the
entrepreneurs. The planningthus iDtroduces a great deal of Inelastidty and thereby
Initiative and experimentation of an individual.
an lmportant role. Sometlmes, If
D. Misdirected Plannlng: The direction or motivatlon of planning playsInterests and profits rather than
ndivdual
selfishness comes to play, planning may be used to serve
attempts may be made to set one Indviduar's
serving the Interest of organlzatkon asa whole. Certaln
one's owm requlrements. In such blased
nterest to put to suCcess, and programs may be made to sult
ondition,itis obvious that planning Is golgto give negative results.
consuming: Sometlmes planning can be time consuming. If all are not satisfied wnh a certiln
Time
manager may need to change the overall pan and thereby wasting much of the vahuable time.
plan, the concept of planning Is simply
trequires a huge deal of ImplementatloD, calculations Inplanning. So. the
not appllcable in emergency sltuatlons.
 External limltations: There are certaln cxternal
dters. These may be polltlcal cllmate, labour lmltatlons of planníng, I.e. controlled by external
natural calamities, varlous changes In consumer unlon, technologlcal change, pollcles of competitorsS,
demands and ups and downs In prlces etc.
MAKING PLANNING EFFECTIVE
Managers may use the following measures In order to overcome the above limitatlons and to mnake
ilanning more effective:
Adlimate conduclve to planning should be
The existence of clear and specific objectlvesestablished throughout the prganlzatlon.
sIs essentlalfor
esse effcient planning.
An'efficlent management Information system should be developed.
Careful planning premlsing ls essentlal for effectve planning.
Planning can be effective only when It has Initiatve and support of the top level
3 Partidpation ip; planning may be obtained by constituting management.
making the planning more efective. committees at varlous levels for
Successful implementatlon of plans requlres complete understanding and motivation on the
part of employees at all levels. This Is possible when plans are communicated in time.
3 Different plans must be property balanced and Integrated with one another.
Plans should be kept up-to-date through periodic revlew and revislon (Open system
Cost Benefit Analysis-Timeand Cost.
approach).

Types of Planning
FROM THE VIEW POINT OF SCÒPE:
1. Groupor Sectional or Unit Planning Thls plan refers to plannlng for specific group or sections
within a department or divislon. Such plan is prepared to implement departmental or divislonal
plans. It is formulated at the operating level of management.
2. Departmental or Divislonal or Functional Planning: This planndng includes the plans
formulated for various departments or divislons of an enterpise. It determines the scope and
actlvitles of a particular department. Departmental plans are formulated by mddle level of
management and,approved by thetop management...
3: Corporate Planning Planning for the company as a whole ls knowm as corporate planning. It
laysdown objectves, stratégles and policles for entire organizatlon. It Is done at the top level of
management. Such planning serves as the basis for departmental plannlng.
UFROMTHEVIEW POINT OF SCOPE:.
1. Long term planning this plan is usually 5to 15 years. It is also called as strategle planning. t
prepares the business to face the effects of long term changes.
The plan' sneeded for:'
a) Introduction of a new product
b) Enterlng a new market
 c) Changing the technlque of productlon
"d) Increasing the scale of productlon
2. Medium term planning: it Is known as tactical planning, the perlod covered by the medium
term plan Is usualy 1-S years. The plan Is needed for: a) Maklng additlons to an Exlsting plant.
b) Expanding the factory
3. Short term planning: it Is known as operatlonal planning, the
period covered is less than one year. The plan ls needed for: a) Purchase of raw materlals
b) Arranging for employee training etc.
TYPES OF MANAGEMENT PLANS

PLANS
) Standing or Mut-use Plans: These p1ans are
used repeatedty in situatlons of similar nature. They are
long tem in nature and represent standing answers to
trainingof employees and in job rotation. They serve as guldesrecurring
to action.
problems. These plans help in
1.OBJECTVES: Every organization exists to achieve some purpases which are called its
defined as the ends, purposes or aims which an objectives. It is
time. The terms, objectves, mission, goal, target,organlation wants to achieve over varying periods of
standard,. quota, deadline, etc. are used
Interchangeably in management.
Characteristics of Organizational Objectives
An organization has multiple or several objectves, 8-, profits,
socdety etc survival, growth, service to.
Objectives have time span. Short tern and medlum-tem objectives are means of
long-term objectves. achieving
Objectves form a hierärchy. The hierarchy of objectives s a graded serles in which
organization's goals are supported by each sucoeeding managerlal level down to the level of an
Individual. This is depicted in the followtng chart:
Objettives may betangible or Intangible.
4 Objectives may be of short run or long run.
Essentlals of Valld Ob]ectives
Objectives are clear and specific. b. They should be stated in measurable tems. c. Ob]ectlves
'must be result orlented and time bound, d. Objectlves must be acceptable to employees. e.
Objectives should be communicated to all members of the organlzation. f, Objectves must
have soclal sanctlon.
4 Objectves are clear and specific.
They should be stated In measurable terms.
4 Objectves must be result orlented and time bound.
" Objecthves must be acceptable to employees.
 Objectves should be communkated to all members of the organltaton.
Objectves must have soclal sanctlon.
2. POuaES: A
polisy ls a broad statement formulated to provide gukdance In declalon making at
lower levels of management. It defines the erea or lmlts within whlch decislons can be made. "Ouslnes
pollcy ls an Impled overall gulde, setting up boundarles, that supply the general limlts and directlon In
whlch management action will take place Prof. George Terry Need and Importance of Pollky The
purposes of policy essentlals or effect are;
NEED AND IMPORTANCE OF POUCY THE PURPOSES OF POUCY ESSENTIALS OR EFFECT ARE;
darify objectves
" Havea planning gulde
" Help subordinate in decison malung
" Faciltate overall coordinatlon and control
" Set up yard stlcks for measurlng the accomplshment of poldes both qualitattvely and
quanttately
o Build up employee loyalty and enthuslasm
Ensure conslstency and uniformity In dectsions and so r

Steps in Pol[cý Making

Definition of Policy Area.
" Identification of Policy Alternatves
Evaluaton of Alternatves
.Cholce of Poligy.
¢ Communication of Policy.
3 Policy Application.
Policy Reviewand Appralsal
TYPE'S OF POLICIES:
when organlzatlons are small and
A Oral pollcies: These are word of mouth pollcies adopted usualy,
face to face communicatlon Is desired.
to
B. Wdtten Pollkles: These are put In black and whlite and stated clearty, for the personnel
use slmple language and be
understand. Therefore, It s clear, complete/ precise, contaln legal terms
wam to al those who read.
of executives, they are not stated or
Cmplle Pollcdes: These can be understood from the behavlour
buslness, socal values and even traditlons.
written, they may be Included In the phllosophy of the
 o Ortginated Pollkies: These pollctes are derved from the company
detemined by the top manasement. Subordinate ate supposed to readly accept oblectves, whlkh are
such polcles.
EXADpealed Policles: These are also known as "suggested pollcdes, slnce these are
based on the
suSsestons of employees, subordinate or consultant. They are more ellfectve as they Invove
ahd the top management. employees
KImposed Pollcles: These are not accepted willlngly, but are rather forced by
external forces like
ROVenment, trade unlons, legal acts, society, etc. they have to be followed whether they like It or not.
Characteristics of a Sound Pollcy or Principles of Pollcy Making
It should be related to the orlglnal
b. Slmple and easy to understand
objecthves
cPolisy should be wrltten or precise
d. policles should be stable as well as
flexible
e. polides should be comprehensve
f. polkdes should be
complementary to one another
&Supplementary to overall corporate practlces
h Consistent with publc policy
Rlr,ust and reasonable
Pollcles should be revised and revlewed periodicaly.
SIRATEGY: The concept of strategy in business has been borrowed from military science
mplles the art of the mlltary general to fight the enemy. Strategys the complex plan for where t
JIganzation from a gven posltion to adesired posltlon In future period of time. Astrategybringing
provides
the
answer to the following questions:
U What buslness are we In?
(u)what should be our buslness?
Lu) who Is our customer?
((v) What do they buy and why?
(Y) Why should society accept us? Strategy Is defined as:
"Strategy is the grand deslgn or an overall plan whlch organlzatlons choose In order to mover or react
towards a set of objectives by using its resources. The strategy Includes; awareness of mlsslon, purpose
and objectves, Unpredlctablity and uncertainty of events and takes Into account the probable behavior
ofother In general and rivals in particular.
ÍNEED AND IMPORTANCE OF STRATEGIES
The stratesy contributes to the success of an organlzatlon in the following ways:
thelps In facing environmental challenges.
Provides Direction.
Optlmum Utilzatlon of Resources.
 Facilitates Coordination and Control
Competitive Strength.
Steps In Strategy Formulatlon or Strategle Plannlng Process
The following flow chart shows the strategle management process;

DLTLAANOX OAIOYA1210

AIAETOTODCNIS

SUTALIS

HOCL OFSTATTGT

AETDONOT STUIDGY

ATAEATOYAD0DOL

TYPES OF STRATEGIES:
envronment. Imited number of products,
FAStabitity Strategy: an onganization that has a stable
onganization s satisfied with Its exdisting
astomers, suppliers and competitors they follow stability. The
vel of áctivitles and wants the same to continue.'
may adopt growth
B.Growth Strategy: An organization that wants to raise Its level of performance
Strategy. Development of new products for existing markets
i) Creatlon of new customers for existing products
i) Development of new products for new markets
may declde to produce the raw materlals
C Vertlcal Integratlon Strategy Abusiness enterprise itself start Its own sales outlets to
will declde to
needed for production to ensure continuous supply and It
serve Its cUstomers better, It ls called vertlcal Integration strategy.
productlon and sales and thereby derive the
D. Merger Strategy: The onganlzatlon may combine
benefits of economles of large scale operatlons that ls called merger strategy
 become unpopular
SPnduct tmintion Strater The orzanzaton may elminate products that have
Nh the buets and brrg orty losses so product elhatlon strategy ls adopted.
PROCEDURES: Aprocedure k a chronologca! eaquence of steps to be undertaken to enforce a policy
Rngto thieve an Gtjecthe. t Lrs dwn the soedfc manner In whlch a task b to be performed
POCedures an be defneds 'A eres of functions or stepstaken up to accomplsh aspecific task
portance of Procedures:

¢ Rpresobes the sequence of operations to be performed.

" They fadtate stematik perfomance of the work.
They ensure that the work proceeds in ther t irectlon.
oProcedures ensue conststency and uniformity of ation
R Secures proper coordination
Effectve Procedure

o it out the detailed and essenttal steps and then taken up performance
o Etablish ccountablity and responsblity then standardize the procedure
o AI the phases are to be linked wth cortrol so that performance can be reviewed
They shoud be stable and not ried
Derelop frutttu dedsions n polides by tadng into conslderaton, time, cost and evironmet
o Ay changes to be made shoutd be taken up wel in advance and should be'writen down to help
eæsy understanding
These procedures should be understood, acepted and known to everyone ivoved with them.

Umitatlons of Procedures:
The procedural formalities make delay in the performance of the work.
Afew procedures result in confusion.

4. RULES: Rules are prescribed guides for conduct or action. They specify what should be done or not
pone in a gven situations. Arule ba riggd and definite plan leaving no scope for discretion or deviatlon.
iheios to ensure desired behavior on the part of employees and make actions prediktable. They
Sditate discipline and uniformity of action in the organizatlon. There s always a fine or penalty for the
volation of rdes. Eg No Smoking in the workplace.
SMETHODS: Methods are formalized and standardized ways of accomplishing repetitive and routine
1DD. They are desgned to keep operations running on panned and desired lines, to prevent confusion
I0d to ensure economy and efficlency. Methods are helpful in the simplficatlon, standardizatlon and
HHematization of work.
 6TÁCTICS: Tactics 0s defined as"The
mplementation
nature, tactlcs are
of strategies devised. detalled program prepared by the management for the effectlve
Thus, whlle
minute. Applications of Tattics strategles are master documents and are broad in
To meet
competition effectively -Wheel was Introduced when
Continuous efforts to curb aggresstve
firns-Surf to
Nirma came up.
To retaln competitive posltion prevent Ariel Excel.
meet everyone need -Colgate has Introduced several different types of varlants to
9 iTo consolidaté
products gains-BPL withdrew certaln products to consolidate on the
For retreating Into certaln
existing range of
specific areas-Godrej soapa.
)SINGLE-USE OR AD HOC PLANS
Hsingle-use plan in a business environment refers to plans developed for a
Bnat nas one specific goal or
objective. one-unie pruject or event
PROGRAMMES: Programs deal with the guldelines that are set for accomplishng a
Within the organization. The project may not be In existence for the specdal project
entire tenure
NTit the project Is accomplished, It might result in short-tern success of the of the organization,
aIumately prove to be extremely helpful. organizatlon which might
EEFECTIVE PROGRAMMES
". An effectve program has the following steps.
tís divded into several'steps for achleving objectives.
cIt establishes relationship between several steps toensure a smooth flow of the
sequence of
oberatlons.
Itdecddes responslbility and adcountability
tdetermines the resources needed f. It fixes the time limit by assigning a time for each program
BUDGETS: A budget is a'plan whicu States expected results of a given period In numerical terms. It is
DIantotjaction or blueprínt designed to achleve aspecific goal. It may be expressed in terms of tlme,
ionevior other units. Budget may be prepared for productlon, sales, materials, cash, capltal
Bniture,etc.
RROJECTS: Aproject is acomplex scheme for the Ivestment of resources which çan be analysed and
AILated 'as an Independent unit. The projects helps In preckse allocation of dutiles, effective control,
SWIDDIementatlon of the'plan' and fxatlon of responsibility. The main features of projects are as

S isa non-recurring plan

2 Ithas a specific misslon or objectives
Invoves tlme bound plan with a long time.
S tinvoves considerable Investment of resources.