Flow of Presentation
Planning: An overview
Why do Managers Plan?
Types of Plans
The levels at which Plans are Developed
Planning : An Overview
“ Planning is deciding in advance what is to be done.
It involves the selection of objectives, policies,
procedures and programmes from among alternatives.”
1. Goals provide a sense of direction:
By setting goals, people and their organization
bolster their motivation and gain a source of
inspiration that helps them overcome the inevitable
obstacles they en counter.
2. Goals focus our efforts:
Selecting a single goal or set of related goals, we
establish priorities and make a commitment about
the way we will use our scare resources.
2. Goals guide our plans and decisions:
It helps in deciding short term and your long term
plans and helps you to make many key decision.
2. Goals help us evaluate our progress :
Measurable goal with a specific deadline
becomes a standard of performance that lets
individuals and managers alike evaluate their
Why do Managers Plan?
1. To manage by objectives:
All the activities of an organization are designed
to achieve the framed objectives.
2. Convert uncertainty into certainty:
Future is full of uncertainties. These uncertainties
may be predicted through forecasting. Then the
planning provides necessary provision to face the
3. Economy in operation:
Planning selects any one of the available
alternatives which will help produce the best result
at minimum costs.
4. Help in co-ordination:
The co ordination is obtained by the management
programmes and procedures.
5. Effective control:
6. Effective utilization of resources:
planning involves deciding in advance of the
business activities. Then the business activities are
completed without any delay.
The levels at which plans are
Analysis of external environment
Analysis of internal environment
Determination of objectives
Determining planning premises & constraints
Examination of alternative courses of action
Selection of best alternative course of action
7. Establishing the sequence of activities
8. Formulation of action programmes
9. Determining secondary plans
10. Securing participation of employees
11. Follow-up and Evaluation
Management By Objectives
MBO is popularized in USA by George Odiorne
“ MBO is management system in which each member
of the organization effectively participates and
This system gives full scope to the individual strength
Process of MBO
Defining organizational objectives
Goals of each section
Fixing key result areas
Setting subordinate objectives or targets
Matching resources with objectives
Periodical review meetings
Appraisal of activities
Reappraisal of objectives
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