Successful managers deal with foreseen problems through planning, while unsuccessful managers struggle with unforeseen issues. Planning involves deciding in advance on actions, forecasting accomplishments, and outlining courses of action. It is defined as both a futuristic and intellectual function, focusing on the future and involving determining objectives and means of achieving them. The outcome is a plan specifying future actions. Planning provides direction, creates frameworks, leads to efficient resource use, reduces risks, and facilitates other functions like decision making, control and innovation. It is a continuous, goal-oriented and integrated process linking where an organization is currently to where it wants to be in the future.
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Planning - Principles of Management
1. 1
“Successful managers deal with
foreseen problems and unsuccessful
managers struggle with unforeseen
problems”….Terry
2. 4
Deciding in advance what to do, how to do it ,
when to do it and who has to do it.
A forecast for accomplishment.
Predetermined course of action.
To produce a scheme for future action and to
bring about specified results at a specified cost
in a specified period of time.
3. 5
Defined in to directions by management thinkers.
Based on futurity
As an intellectual function
Based on futurity:
“Planning is a trap laid down to capture the future” (Allen)
“Deciding in advance what is to be done in future” (Koontz)
“Informed anticipation of future”( Haimann)
Anticipatory decision making” (R L Ackoff)
4. 6
As an intelligence function:
“Planning is a thinking process, an organized
foresight, a vision based on fact and experience that
is required for intelligent action”( Alford & Beatty)
“Deciding in advance what to do, how to do it, when
to do it and who has to do it” ( Koontz & O’ Donnell)
Planning focuses on future and it involves all the
activities that determine objectives for the future and the
appropriate means for achieving those
objectives. Outcome of planning is a plan, which is a
document that specifies the course of action the
organization will take.
5. 7
Provides basic foundation from which all future
management functions arise.
Goal oriented
All pervasive
Intellectual exercise
Continuous process
Futuristic
Integrated Process
7. 9
Provides direction
Creates a unifying frame work
Leads to economical utilization of resources
Reduces the risks of uncertainty
Facilitates decision making
Encourages Innovation & Creativity
Improves morale
Facilitates control
9. 11
Long range Vs Short range
Strategic Vs Operational
Corporate Vs Functional
Proactive Vs Reactive
Standing Vs Single Use
10. 12
Long range plan Point of
distinction
Short range plan
Covers many years &
affects many departments
of an organization
Meaning Covers less than one year
and is more specific &
detail
5 yrs or more Time Up to one year
Organizations linkage
with external factors
Primary
focus
Linkage with various
parts of an organization
Mission ,long term goals
and strategies
Deals with Current operations of
organization
Top management Prepared
by
Lower level executives
11. 13
Strategic Plan Point of
distinction
Operational Plan
5 years or more Time
horizon
Under one year
Adapt to external
environment based on
internal strengths
Purpose Implement internal goals
Total institutional
performance
Activity
controlled
Internal tasks &
Operations
Top management Level
involved
Middle & lower level
Primarily judgmental Basis for
planning
Exact data & Standards
used
12. 14
Corporate Plan:
A comprehensive plan that outlines the broad
objectives of a company as a whole and develops
plans to achieve those objectives
Holistic and Unified focus
Focus on organizational performance
Functional Plan:
Is unit planning and deals with different
departments in an isolated manner.
Focus on departmental performance
13. 15
Proactive Planning:
Managers challenge the future, anticipating
future contingencies and get ready with
alternative routes for unforeseen
circumstances
Reactive Planning:
Organizations react to events as and when
they arise
14. 16
Standing Plans
Developed for
activities that
recur regularly
over a period of
time
Ex:
Objectives, Policies,
Procedures, Methods,
Rules
Single Use plans
Developed to carry
out a course of
action that is not
likely to be
repeated in future
Ex:
Programmes,
Schedules, Projects,
Budgets
16. 18
1. Socio-
economic
purpose
3. Overall objectives of the
organization (long-rage,
strategic)
4. More specific overall objectives
(e.g, in key result areas
5. Division objectives
2. Mission
6. Department and Unit objectives
7. Individual objectives
• Performance
• Personal development objectives
Board of
directors
Top-level
management
Middle – level
managers
Lower-level
managers
(Some)
(Some)
organizational HierarchyHierarchy objectives
17. 19
1. Establishing Verifiable Goals or Set of Goals to
be Achieved
2. Establishing Planning Premises
3. Deciding the Planning Period
4. Finding Alternative Courses of Action
5. Evaluating and Selecting a Course of Action
6. Developing Derivative Plans
7. Establishing and Deploying Action Plans
8. Measuring and Controlling the Progress
18. 20
Being Aware of Opportunity
In light of:
The Market
Competition
What customer want
Our strengths
Our weaknesses
Setting objectives or Goals
Where we want to be and what
we want to accomplish and
when
Considering planning
premises
In what environment – internal
or external – will our plans
operator?
Identifying Alternatives
What are the most promising
alternatives to accomplishing
our objectives?
Comparing alternatives in light of
goals sought
Which alternative will give us the
best chance of meeting our goals at
the lowest cost and highest profit?
Choosing an Alternative
Selecting the course of action we will
pursue
Formulating supporting plans
Such as plan to
Buy equipment
Buy materials
Hire and train workers
Develop a new product
Numerizing plans by Marking
Budgets
Develop such budgets as:
Volume and price of sales
Operating expenses
Necessary for plans
Expenditures for capital
Equipment
19. Planning premises may be wrong:
Rapidity of change:
Time and cost constraints:
Planning may limit new ideas:.
Capital investment constraint:
Lack of control over external factors:
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20. Peter Drucker described M B O in 1954 in
his book, “The practice of management”
The philosophy of management that
emphasises the setting of agreed on
objectives by managers and their
subordinates and the use of these objectives
as the primary basis of motivation,
evaluation and control efforts.
21. Top management’s support and commitment
Establishing long range objectives and plans
Establishing specific shorter term
organizational objectives.
Establishing individual performance
objectives and standards of performance.
Appraisal of results (Implementation and
maintaining self control, reviewing progress
periodically, appraising performance)
Taking corrective actions
22. Enables managers to think about planning for
results rather than merely planning for work
Motivates managers to accept goals and
achieve them
Directs work activity towards organizational
goals/objectives.
Forces managers to clarify organizational goals
and objectives roles and structures
Encourages personal commmitment from
employees to achieve their goals/objectives.
23. Provides clear standards for control
Reduces role conflict and role ambiguity
Provides more objective appraisal criteria.
Identifies problems better by frequent
performance review.
M B O aids in development of personnel.
24. Time-consuming
Enormous paper work and documentation
Failure to implement MBO
Contradictory objectives
27. A decision may be defined as “A Choice made
from available alternatives”
Decisions are Answers to questions, solutions
to problems and actions for oppurtunities.
“Decision making is the process of generating
and evauating alternatives and making choices
among them”
28. Identifying the Problem
Deciding priorities among problem
Diagnosing the problem
Analyzing the problem
Developing Alternatives solutions or courses of
action
Selecting the best solution
Converting the decision into effective action
Follow up
29. Programmed and Non-programmed
Major and minor
Individual and group
Simple and complex
Strategic, tactical and operational
30. Routine and Non Routine
Time available
Risk
Written guidelines
Company attitude
Information available
Degree of acceptance and support
Manager’s personal ability
Previous commitment
Lack of creativity
32. It involves careful study of past data & present
scenario.
Purpose:
To estimate the occurrence, timing or magnitude of
future events.
Types of forecasting:
1. Long Range Forecasting
2. Medium Range Forecasting
3. Short Range Forecasting
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