PLANNIN

G
Planning From Top to
Bottom
HIERARCHY OF PLANS
Planning
Timeframes
 Starting at the Top

Vision
Vision
◦◦ statement
statement of
of aa company’s
company’s purpose
purpose

◦◦ brief,
brief, inspirational,
inspirational, clear,
clear, and
and consistent
consistent with
with
company beliefs
company beliefs and
and values
values
Mission
Mission
◦◦ flows
flows from
from the
the vision
vision

◦◦ specific,
specific, unifying
unifying goal
goal that
that stretches
stretches and
and
challenges the
challenges the organization
organization and
and has
has aa
timeframe
timeframe
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Setting
Missions
Targeting
◦ Setting a clear, specific target

Common-enemy mission
◦ Vowing to defeat a corporate rival

Role-model mission
◦ Emulating a successful company

Internal-transformation mission
◦ Aiming to achieve dramatic change to remain competitive

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  Make transportation as reliable
as running water, everywhere,
for everyone.
Our vision is to be earth’s most
customer-centric company; to build
a place where people can come to To make people happy
find and discover anything they
might want to buy online.

Our vision is to create a

better everyday life for
many people.
 To give people the power to share
and make the world more open and To accelerate the world’s
connected. transition to sustainable energy

At Nokia, we create the

technology to connect the world
"Dedicated to the health & well
being of every household"

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 Sustain ITC's position as one of India's most
valuable corporations through world class
THE ITC VISION » performance, creating growing value for the
Indian economy and the Company's
stakeholders

To enhance the wealth generating capability

THE ITC MISSION » of the enterprise in a globalising environment,
delivering superior and sustainable
stakeholder value

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Vision
The story of Hero Honda began with a
simple vision - the vision of a mobile and
an empowered India, powered by its two
wheelers. Hero MotoCorp Ltd., Mission
company's new identity, reflects its Hero MotoCorp's mission is to
commitment towards providing world become a global enterprise fulfilling
class mobility solutions with renewed its customers' needs and
focus on expanding company's footprint aspirations for mobility, setting
in the global arena. benchmarks in technology, styling
and quality so that it converts its
customers into its brand advocates.
The company will provide an
engaging environment for its
people to perform to their true
potential. It will continue its focus
on value creation and enduring
relationships with its partners

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Our Vision
Our vision is to enrich the lives of
our
customers. Our obsession is to win
customers for life through an
exceptional experience. Our Mission
Hunger to win customers for life.

Our Vision
To be a premium global conglomerate, with
a clear focus on each of the businesses

Our Mission
To deliver superior value to our customers,
shareholders, employees and society at large

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 Types of Plans

Operational plans SINGLE-USE PLANS

Day-to-day plans
Day-to-day plans Deal with unique, one-time-only events

Budgets, Programmes, Projects

STANDING
STANDING PLANS
PLANS
Plans
Plans for
for recurring
recurring events
events

 Policies
Policies

 Procedures
Procedures

 Strategy
Strategy

 Rules
Rules and
and regulations
regulations
 Bending in the
Middle
Tactical
Tactical Plans
Plans
◦◦ specify
specify how
how aa company
company will
will use
use resources,
resources, budgets,
budgets, and
and people
people
to
to accomplish
accomplish goals
goals
Management
Management by
by Objectives
Objectives
◦◦ Develop
Develop and
and carry
carry out
out tactical
tactical plans
plans
◦◦ Four
Four steps
steps
◦◦ Discuss
Discuss goals
goals
◦◦ Participatively
Participatively select
select goals
goals
◦◦ Jointly
Jointly develop
develop tactical
tactical plans
plans
◦◦ Meet
Meet toto review
review performance
performance

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The Formal Goal-setting Process
 Budgets
 AA budget
 budget is
is the
the monetary
monetary or/and
or/and quantitative
quantitative expression
expression of
of business
business plans
plans and
and policies
policies
to be
to be pursued
pursued in
in the
the future
future period
period of
of time.
time.
 According
 According to
to Institute
Institute of
of Cost
Cost and
and Works
Works Accountants,
Accountants, London,
London, “A
“A budget
budget is
is aa financial
financial
statement and
statement and /or
/or quantitative
quantitative statement
statement prepared
prepared prior
prior to
to aa defined
defined period
period of
of time,
time, of
of
the policy
the policy to
to be
be pursued
pursued during
during that
that period
period for
for the
the purpose
purpose of
of attaining
attaining aa given
given
objective.”
objective.”
 In
 In the
the words
words of
of George
George R.
R. Terry,
Terry, “A
“A budget
budget is
is an
an estimate
estimate of
of future
future needs,
needs, arranged
arranged
according to
according to an
an orderly
orderly bases,
bases, covering
covering some
some or
or all
all of
of the
the activities
activities of
of an
an enterprise
enterprise for
for
aa definite
definite period
period of
of time.” 
time.” 

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 Programmes

 A programme is a sequence of activities designed to implement policies and

accomplish objectives.
 It is devised to meet a particular situation.
 Programme may be taken as a combination of policies, procedures, rules,
budgets, task assignments, etc. developed for the specific purpose of carrying
out a particular course of action.
 It is a single use plan laid down for new and non-repetitive activities.

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 Policies
 Policies
 Policies are
are general
general statements
statements or
or understandings
understandings which
which provide
provide guidance
guidance in
in
decision-making to
decision-making to various
various managers.
managers.
 Policies
 Policies define
define boundaries
boundaries within
within which
which decisions
decisions can
can be
be made
made and
and decisions
decisions
are directed
are directed towards
towards the
the achievement
achievement of
of objectives.
objectives.
 Policies
 Policies also
also help
help in
in deciding
deciding issues
issues before
before they
they become
become problems
problems and
and making
making
itit unnecessary
unnecessary to
to analyze
analyze the
the same
same situation
situation every
every time
time itit comes
comes up.
up.
 “Policy
 “Policy is
is aa means
means of
of encouraging
encouraging discretion
discretion and
and initiative,
initiative, but
but within
within limits.”
limits.”

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 Procedures
 Procedures
 Procedures are
are details
details of
of action
action or
or the
the guidelines
guidelines for
for the
the achievement
achievement of
of
business objectives.
business objectives.
 Procedures
 Procedures give
give details
details of
of how
how things
things are
are to
to be
be done.
done.
 Procedures
 Procedures also
also determine
determine the
the policy
policy of
of responsibility
responsibility and
and accountability.
accountability.
 According
 According to
to Terry,
Terry, “A
“A procedure
procedure is
is aa series
series of
of related
related tasks
tasks that
that make
make up
up the
the
chronological sequence
chronological sequence and
and the
the established
established way
way of
of performing
performing the
the work
work to
to be
be
accomplished.”
accomplished.”
Procedures VS Policies
 A procedure is a guide to action whereas a policy is a guide to thinking.
 Policies are guidelines for taking decisions and procedures consist of various
methods to accomplish each phase of work.
 Policies offer scope for interpretation in order to see that they fit in a
particular situation whereas procedures are tailor-made and do not offer any
scope for interpretation.

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 Rules
 A rule is a plan that lays down a required course of action with regard to a
situation.
 A rule is definite and rigid and allows no deviation or discretion to the
subordinates.
 Like procedures, rules do not prescribe a chronological sequence of steps to be
taken to achieve a given objective.
 A rule may or may not be a part of the procedure. A rule such as ‘No smoking in
the factory’ will not form a part of the procedure. On the other, a rule to make
payment within 21 days will be the part of a procedure.

 “Rules prescribe the limits of acceptable behaviour of the members of the

organization. Rules will enable managers to predict the behaviour of their
subordinates, how will they act in a given situation.

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 Contingency Planning

Ongoing planning process

Action point 1 Action point 2 Action point 3 Action point 4

Develop plan, Implement plan and Specify indicators Successfully complete
considering formally identify for the contingency plan or contingency
contingency events contingency events events and develop plan
contingency plans for
each possible event

Monitor contingency event indicators and

implement contingency plan if necessary
Managing Multiple Goals
Managing Multiple Goals
Optimizing allows managers to balance and reconcile inconsistent or conflicting
Optimizing
goals. allows managers to balance and reconcile inconsistent or conflicting
goals.
Managers can pursue one goal and exclude all others or to seek a mid-range goal.
Managers can pursue one goal and exclude all others or to seek a mid-range goal.

Planning VS Controlling
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