1. PLANNING
Prepared by: Submitted to:
Ganesh Lama Mr. Sanjeev Pradhan
Ishwor Subedi Faculty of Management
Roshan Acharya
Sumit Chaudhary

2. PLANNING
o Primary function of management
o Deciding in advance; what to do,
when to do it, and who to do it
o Bridges the gap between where we
are and where we want to go
o Setting goals, identifying activities
to be done, choosing various
alternatives etc

3. CHARACTERISTICS OF PLANNING
o Focus on goal
o Primary function
o Pervasive activity
o Future oriented
o Continuous process
o Intellectual work
o Flexible
o Efficiency and economy
o Actionable

4. LEVELS OF PLANNING
Strategic
plan
Tactical
plan
Operational plan

5. STRATEGIC PLAN
 Prepared by top level management
 Related with plan, policies of
organization
 Should have to do SWOT analysis
 For long term horizon

6. TACTICAL PLAN
 Prepared by middle level
management
 Sub division of corporate plan
 Planed on the basis of priority of
work
 Play bridge role between strategic
and operational plan
 Time period 2-3 years

7. OPERATIONAL PLAN
 Prepared by first line management
 Consistent with tactical plan
 Directed to the day to day work
 Concentrated in best utilization of
resources
 Short term plan( less then one year)

8. INDIVIDUAL PLAN
 Non managerial plan
 Prepared by workers
 Time period ( daily, weekly, monthly)

9. STEPS IN PLANNING
1.Analyse environment
2.Set objectives
3.Developing planning premises
4.Determining alternative courses
5.Selection of best alternatives
6.Formulation of derivative plan
7.Converting plans into budget
8.Implementation
9.Review of the planning

10. 1.ANALYSE ENVIRONMENT
o Pre stage of planning
o Consider SWOT of the organization
2.Set objectives
o must be specific, clear and practical
o Should be in SMARTER form
o Should consider organization
resources and capabilities

11. 3.DEVELOPING PLANNING
PREMISES
 Future assumptions
 Should collect reliable information
and its correct study

12. 4.DETERMINING ALTERNATIVE
COURSES
A problem has multiple solutions
 Have to search and identify the
various alternatives using internal
and external sources
 Evaluate SWOT of each alternative

13. 5.SELECTION OF BEST
ALTERNATIVES
 Criticaltask for a planner
 Select on the basis of weighted of
the alternatives

14. 6.FORMULATION OF
DERIVATIVE PLAN
 Supportive plan should be prepared
 should prepared rules, regulations,
working procedure, schedules

15. 7.CONVERTING PLANS INTO
BUDGET
 Yearly programs is clearly mentioned
in monetary form
 Budget of each plan should be
prepared separately and adequately
 Helps to do comparative study after
implementing

16. 8.IMPLEMENTATION
 Operational part of planning
procedure
 Should give the instruction to the
employee
 Should arrange the resources and
budget

17. 9.REVIEW OF THE PLANNING
 Last step of the planning
 Getting feedback or response from
implementation
 If response is positive, plan is
success if not corrective measure
should be applied

18. PITFALLS OF PLANNING
Limitation Of Planning

19. Too Centralized And Top-Down
Failure To Question Assumption
Failure To Implement
Failure To Anticipate Rivals
Action

20. Having Unrealistic And Too
1 Many Goals
6 Failure To Develop
Focusing On Short
Range Plans Only Current Strategic
2
And Tactical Plans
Other Pitfalls
5 Utilizing
Ignoring Planning
Standardize Plan 3 In Everyday Life
For Everyone
Failure To Encourage Creativity
4 In Planning

21. Major Pitfalls
1. Too Centralized and Top-Down
o Only goal Oriented
o Little knowledge about market
o No direct role of Middle and Lower
Level manager
2. Failure to Question Assumption
o Wrong prediction
o Sudden change in premises
3. Failure to Implement
o Not put into action
o Negligence

22. 4. Failure to Anticipate Rivals Action
o Competitor action
o Unable to predict rivals plan
Other Pitfalls
5. Having Unrealistic And Too Many Goals
o Based on Assumptions
o High Expectation
o Too Many Goals
6. Failure To Develop Current Strategic And Tactical
Plans
o Ignoring the current environment
o Being one sided

23. 7.Ignoring Planning In Everyday Life
 Being limited in theory
 Avoiding the plan
8. Failure To Encourage Creativity In
Planning
 Other Efforts
 Reference of past plan
9.Utilizing Standard Plan For Everyone
 Same plan for all level
 Create confusion for lower level

24. 10.Focusing On Short Range Plans Only
 Ignoring long run plan
 Aim to earn more profit at less time

25. TOOLS OF PLANNING
Techniques Of Planning

26. 1.Environment Scanning
o Collecting environmental
informational through evaluating
environmental trends
o Identifying internal and external
elements that might affect the
organization
o Global scanning
o Make decision and taking action

27. 2.Forecasting
o Predicting future events
o Developing assumption
o Recognizing future problems and
opportunities and implementing plan into
action
 Techniques of Forecasting
 Quantitative Techniques
o Applying a set of mathematical rules to a
series of hard data to predict outcomes
(e.g., units to be produced)

28. Quantitative
oTime series analysis
oRegression models
oEconometric models
oEconomic indicators
oSubstitution effect
 Qualitative Techniques
o Using expert judgments and opinions
to predict less than precise outcomes
(e.g., direction of the economy)

29.  Qualitative Techniques
 Qualitative
oJury of opinion
oSales force composition
oCustomer evaluation

30. Benchmarking
search for the best practices among
competitors
Analyzing and coping the method
The Benchmarking Processes
•Form a benchmarking team
•Collect internal and external data
•Analyze data to identify performance
gap
•implement action to meet the standard
of others

31. Steps Of Benchmarking
Form a benchmarking
planning team.
Prepare and implement BEST Gather internal and
action plan. PRACTICES external data.
Analyze data to identify
performance gaps.

32. 3.Simulation Exercise
o Model to solve real life problem
o Related variable and their inter-
relationship are put into system to
find out outcome
o Computer programming is used
o Useful in complex situation

33.  Steps
o Define the system to
simulate
o Formulate the model to
be used
o Test the model
o Identify and collect the
required data
o Run the simulation
o Analyze the result
o Rerun the simulation
o Validate it

34. 4.Linear Programming
o To solve resource allocation problems
o Useful to maximize profit and minimize
cost
o Helpful to determine the value of
variables affecting outcome
 Assumption
o Resource are limited
o Outcome optimum is the goal
o Alternative method exist for
combining resources
o A linear relationship exist between
variables

35. 5.Break-Even analysis
oNo loss and no gain condition
oUsed to determine the unit of good to be
sold
oShows relationship among revenue, cost and
profit
i. Formula to calculate break-even point is:
BEP=TFC/P-VC
where,
TFC=Total Factor Cost
P=Unit Price of Product
VC=Variable Cost per Unit

36. Total Profit
Revenue Area
70 000
60 000
50 000
Loss
Area
40 000 Variable Costs
Total
Breakeven
30 000 Costs
Point
20 000
Fixed Costs
10 000
100 200 300 400 500 600
Output (in thousands)

37. 6.PERT(Program Evaluation and Review
Technique)
And CPM(Critical Path Method)
oTo schedule complex project
oUses flow chart diagram
oInclude cost and time associated with
activity D
4
I 3
6 5 1
J K
10 6 14 3 5 5
Start A B C E G H 3
3 5
F
Critical Path: A - B - C - D - G - H - J - K

38. Process of PERT
1. Identify every significant activity
that must be achieved for a project
to be completed.
2. Determine the order in which these
events must be completed.
3. Diagram the flow of activities from
start to finish, identifying each
activity and its relationship to all
other activities.

39. 5. Compute a time estimate for
completing each activity.
6. Using the network diagram that
contains time estimates for each
activity, determine a schedule for
the start and finish dates of each
activity and for the entire
project.

40. 7. Gantt Charts and
Load Charts
Gantt Charts
oShows when task are supposed to be
done
oMeasures actual and planed output
over period of time
oTime on horizontal axis and task on
vertical axis

41. A Gantt Chart
Activity Month
1 2 3 4
Copy-edit manuscript
Design sample pages
Draw artwork
Print first pages
Print final pages
Design cover
Actual progress
Reporting Date
Goals

42. A Load Chart
Editors Month
1 2 3 4 5 6
Ling
Antonio
Kim
Maurice
Dave
Rashid
Work scheduled

43. 8. Budgeting
oNumerical plans for allocating resources
(e.g., revenues, expenses, and capital
expenditures)
oUsed to improve time, space, and use of
material resources
oAre the most commonly used and most
widely applicable
planning technique for
organizations

44. Types Of Budgets
Revenue Budget
Projects future sales
Cash Budget Expense Budget
Forecasts cash on hand Lists primary activities
and how much will and allocates dollar
be needed amount to each
Variable Budget Fixed Budget
Takes into account OR Assumes fixed
the costs that vary level of sales
with volume or production
Profit Budget
Combines revenue and expense
budgets of various units to determine
each unit ’s profit contribution
’

45. 9.Flow Chart
o Identify the task component and wok
simplification
o Arranging event according to occurrence
o Avoids unnecessary events
 Advantages
o Encourage analytical thinking
o Motivate to eliminate waste steps
 Drawbacks
o Doesn’t include time required for work
completion
o Not suitable in complex situation

46. 10.Contemporary Planning
Techniques
Scenario
oA consistent view of what the future is likely to be
Scenario Planning
oAn attempt not to try to predict the future but to
reduce uncertainty
Contingency Planning
o Developing scenarios that allow managers to
determine in advance what their actions should be
when event actually occur

47. PLANNING PREMISES

48. External premises
o Exist outside the organization
o Can be in form of PEST
o Beyond the control of organization
Internal premises
o Exist within the organization
o Can be form in goal, program, resources,
policies
o Can be controlled in some extend

49. Controllable premises
 Can be easily controlled
 Can be changed by management
Uncontrollable premises
o Cannot be controlled
o Cannot be changed by management

50. Tangible premises
 Measured in quantitative terms
 Involves capital investment, unit of
production, unit sold, cost per unit, time
available
Intangible premises
o Qualitative in measure
o Involves motivation, decision making,
leadership, goodwill, managerial attitude etc

51. IMPROVING PLANNING
1.Decentralised planning
2.Role playing
3.Innovation and creativities
4.Expert opinion
5.Link to goal; tie to budget
6.Comprehensive
7.Prepare both long range and short
range plans
8.Prepare contingencies planning and
crisis management

52. 1.DECENTRALISED PLANNING
 Should take suggestions from every
level of the organization
2.ROLE PLAYING
 Groups of organization play role as
competitor to other
 State how they would counter the plans
of the organization

53. 3.INNOVATION AND CREATIVITIES
 Should be creative and innovative
 New plans with creative idea often
regards as good technique
4.EXPERT OPINION
 should take suggestions, guidance from
consultants and experts

54. 5.LINK TO GOAL; TIE TO BUDGET
o Should have specific and understandable
objectives
o Operating budget should be allocated
separately
6.COMPREHENSIVE
o Should cover each and every aspect of
business

55. 7.PREPARE BOTH LONG RANGE AND
SHORT RANGE PLANS
 Should have to prepare both long and
short term plan
 Short run plans should be made to
support long term plan
8.PREPARE CONTIGENCIES PLANNING AND
CRISIS MANAGEMENT
o should made to handle various crisis and
situation

56. DECISION MAKING
Problem Solving

57. DECISION MAKING
 Subsidiary function of planning
 Art of Problem Solving
 Process of choosing a best alternative
among several alternatives
 Continuous process to achieve the pre-
determined goal
 Essential to solve problems and remove
weakness

58. TYPES OF DECISION MAKING
Programmed and Non-programmed
Decisions
Routine and Basic Decisions
Organizational and Personal Decisions
Individual and Group Decisions
Policy and Operational Decisions

59. DECISION MAKING PROCESS
1.Identification of problem
2.Analysis of problem
3.Development of alternatives
4.Selection of best alternatives
5.Implementation of alternatives
6.Review of Implementation

60. DECISION MAKING CONDITIONS
1.Certainity
2.Risk
3.Uncertainity

61. Any
Queries??
Please!!!!