Re 1 Sachet Story <ul><li>1983, a 20-something chemistry student, Rang Nathan set out to sell shampoos with Rs.15000 in hi...
Contd., <ul><li>Brilliant idea- “Return 5 shampoo sachets and get one chik free” </li></ul><ul><li>Idea clicked in rural h...
<ul><li>His Company “CAVINKARE”-250 Crore approx </li></ul><ul><li>Products division, Polymers division, Export divisions ...
Contd., <ul><li>The Answer is  </li></ul><ul><li>PROACTIVE THINKING AND CAREFUL PLANNING! </li></ul>
Planning <ul><li>Planning is one of the four functions of management.  </li></ul><ul><li>Planning sets objectives and iden...
Planning <ul><li>Planning  </li></ul><ul><ul><li>The process of setting objectives and determining how to accomplish them....
Features of Planning <ul><li>Planning is goal-oriented </li></ul><ul><li>Planning is a primary function </li></ul><ul><li>...
Planning <ul><li>Steps in the Planning Process   </li></ul><ul><ul><li>Step 1. Define your objectives Know where you want ...
Contd., <ul><ul><li>Step 4. Make a plan ; describe what must be done to implement this course of action </li></ul></ul><ul...
Approaches to Planning <ul><li>Top-down approach </li></ul><ul><li>Bottom-up approach </li></ul><ul><li>Composite approach...
Advantages of Planning <ul><ul><li>Action oriented—keeping a results-driven sense of direction  </li></ul></ul><ul><ul><li...
Limitations of Planning <ul><li>Rigidity </li></ul><ul><li>Costly and time consuming </li></ul><ul><li>Employee resistance...
Effective Planning- Koontz O’Donnell <ul><li>Climate </li></ul><ul><li>Top management support </li></ul><ul><li>Participat...
Types of plans <ul><li>Strategic plan </li></ul><ul><li>Tactical plan </li></ul><ul><li>Short-term plan </li></ul><ul><li>...
Types of plans <ul><li>Formal plan—specific goals are formulated, committed to writing, and made available to organization...
Types Of Plans <ul><li>Short-range plans  </li></ul><ul><ul><li>usually cover a year or less. </li></ul></ul><ul><li>Long-...
Types Of Plans <ul><li>Strategic Plan  </li></ul><ul><ul><li>identifies long-term directions for the organization. </li></...
Types of Plans <ul><li>Proactive planning- Challenge the future, anticipating future contingencies and get ready with alte...
Standing plans <ul><li>A plan that can be used over and over again by managers faced with recurring activities </li></ul><...
Single-use plans <ul><li>Plan designed for a specific activity or time period </li></ul><ul><ul><li>Programs </li></ul></u...
Types Of Plans <ul><li>Policy  </li></ul><ul><ul><li>communicates broad guidelines for making decisions </li></ul></ul><ul...
Contd., <ul><li>Methods: Sub-units of procedure. Indicate the simplified and standardized techniques to be employed to car...
Single-Use Plans <ul><li>Programs </li></ul><ul><li>Ana aggregate of several related action plans that have been designed ...
Planning Tools And Techniques <ul><li>Forecasting tries to predict the future.  </li></ul><ul><li>Contingency planning cre...
Planning Tools And Techniques <ul><li>Forecasting </li></ul><ul><ul><li>Attempts to predict the future </li></ul></ul>Twen...
Planning Tools And Techniques <ul><li>Contingency Planning  </li></ul><ul><ul><li>creates back-up plans for when things go...
Planning Tools And Techniques <ul><li>Participatory Planning  </li></ul><ul><ul><li>includes the persons who will be affec...
Semantic Confusion! <ul><li>Mission: The organization’s purpose or fundamental reason for existence </li></ul><ul><li>Visi...
Contd., <ul><li>Objective: End point of a a management program </li></ul><ul><li>Goal: A future target or end result that ...
What may happen in traditional objective setting.
Establishing Goals and Developing Plans <ul><li>Management By Objectives (MBO) </li></ul><ul><ul><li>Specific performance ...
Steps in a Typical MBO Program <ul><li>The organization’s  overall objectives and strategies  are formulated. </li></ul><u...
Does MBO Work? <ul><li>Reason for MBO Success </li></ul><ul><ul><li>Top management commitment and involvement </li></ul></...
Characteristics of Well-Designed Goals <ul><li>Written in terms of outcomes, not actions </li></ul><ul><ul><li>Focuses on ...
Steps in Goal Setting <ul><li>Review the organization’s mission statement. </li></ul><ul><ul><li>Do goals reflect the miss...
Comparison of entrepreneurs and traditional supervisors.
MANAGEMENT TIPS <ul><li>Time management tips   </li></ul><ul><ul><li>Do say “No” to requests that divert you from what you...
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Planning

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  • Planning also improves communications and provides a sense of direction amongst group members .
  • Of the four functions of management, planning may be the most important and definitely is the most controversial. A number of managers view it as a waste of time because many things do not go according to plan.
  • Notice that planning is a process that includes implementation and control. It not unusual for some managers to generate a plan and then forget it and go on doing what they were doing.
  • It is important to remember that a good plan is flexible. The situation will change and the organization will need to adapt.
  • Many people are more comfortable dealing with the here and now than they are with thinking about tomorrow.
  • The operational plans must support the strategic plan.
  • There are many different types of planning tools available. Managers tend to use those with which they are most comfortable.
  • 25 year forecasts are notoriously inaccurate. There are too many variables that cannot be foreseen.
  • Contingency planning is very difficult. Quite often, it is something that you did not think of that causes a problem. Nevertheless, contingency planning can prevent know potential problems from occurring.
  • Acceptance by those that must implement the plan is critical to building the commitment needed for successful implementation.
  • One trick of time management is to always write a note to yourself before you go home. The note should list the top three things that you must do first thing in the morning.
  • Planning

    1. 1. Re 1 Sachet Story <ul><li>1983, a 20-something chemistry student, Rang Nathan set out to sell shampoos with Rs.15000 in his pocket </li></ul><ul><li>A market with 200 brands, lorded over by the big daddy of them all, HLL Ltd., </li></ul><ul><li>Non affordability by middle class- Rs. 60 shampoo, could afford Re 1 </li></ul><ul><li>Visualizing this gap, created ‘CHIK’ sachet </li></ul>
    2. 2. Contd., <ul><li>Brilliant idea- “Return 5 shampoo sachets and get one chik free” </li></ul><ul><li>Idea clicked in rural households of TamilNadu </li></ul><ul><li>Volumes tripled </li></ul><ul><li>Revenues took care of distribution and the brand name stuck </li></ul><ul><li>Advertising first on regional satellite channels and consolidated brands- Chik, Nyle, Fair ever Fairness Cream-Southern Markets </li></ul>
    3. 3. <ul><li>His Company “CAVINKARE”-250 Crore approx </li></ul><ul><li>Products division, Polymers division, Export divisions </li></ul><ul><li>Market dominated by Multinationals- How do you think he would have managed? </li></ul>
    4. 4. Contd., <ul><li>The Answer is </li></ul><ul><li>PROACTIVE THINKING AND CAREFUL PLANNING! </li></ul>
    5. 5. Planning <ul><li>Planning is one of the four functions of management. </li></ul><ul><li>Planning sets objectives and identifies how to achieve them. </li></ul><ul><li>Planning improves focus and action orientation. </li></ul><ul><li>Planning improves coordination and control. </li></ul><ul><li>Planning improves time management. </li></ul>
    6. 6. Planning <ul><li>Planning </li></ul><ul><ul><li>The process of setting objectives and determining how to accomplish them. </li></ul></ul>
    7. 7. Features of Planning <ul><li>Planning is goal-oriented </li></ul><ul><li>Planning is a primary function </li></ul><ul><li>Planning is all-pervasive </li></ul><ul><li>Planning is a mental exercise </li></ul><ul><li>Planning is a continuous process </li></ul><ul><li>Planning involves choice </li></ul><ul><li>Planning is forward looking </li></ul><ul><li>Planning is flexible </li></ul><ul><li>Planning includes efficiency and effectiveness dimensions </li></ul>
    8. 8. Planning <ul><li>Steps in the Planning Process </li></ul><ul><ul><li>Step 1. Define your objectives Know where you want to go; </li></ul></ul><ul><ul><li>Step 2. Determine current status vis-à-vis objectives </li></ul></ul><ul><ul><li>Step 3. Develop premises regarding future conditions and generate alternative scenarios for what may happen; </li></ul></ul>
    9. 9. Contd., <ul><ul><li>Step 4. Make a plan ; describe what must be done to implement this course of action </li></ul></ul><ul><ul><li>Step 5. Formulating derivative plans </li></ul></ul><ul><ul><li>Step 6. Implement the plan and evaluate results. </li></ul></ul>
    10. 10. Approaches to Planning <ul><li>Top-down approach </li></ul><ul><li>Bottom-up approach </li></ul><ul><li>Composite approach </li></ul><ul><li>Team approach </li></ul>
    11. 11. Advantages of Planning <ul><ul><li>Action oriented—keeping a results-driven sense of direction </li></ul></ul><ul><ul><li>Priority oriented—making sure the most important things get first attention </li></ul></ul><ul><ul><li>Advantage oriented—ensuring that all re-sources are used to best advantage </li></ul></ul><ul><ul><li>Change oriented—anticipating problems and opportunities so they can be best dealt with </li></ul></ul>
    12. 12. Limitations of Planning <ul><li>Rigidity </li></ul><ul><li>Costly and time consuming </li></ul><ul><li>Employee resistance </li></ul><ul><li>False sense of security </li></ul><ul><li>Managerial deficiencies </li></ul><ul><li>PEST factors </li></ul>
    13. 13. Effective Planning- Koontz O’Donnell <ul><li>Climate </li></ul><ul><li>Top management support </li></ul><ul><li>Participation </li></ul><ul><li>Communication </li></ul><ul><li>Monitoring </li></ul>
    14. 14. Types of plans <ul><li>Strategic plan </li></ul><ul><li>Tactical plan </li></ul><ul><li>Short-term plan </li></ul><ul><li>Intermediate-term plan </li></ul><ul><li>Long-term plan </li></ul><ul><li>Standing plan </li></ul><ul><li>Single-use plan </li></ul>
    15. 15. Types of plans <ul><li>Formal plan—specific goals are formulated, committed to writing, and made available to organizational members. </li></ul><ul><li>Informal plan—Planned in the head, but not written down. There is little or no sharing of these plans with others. </li></ul>
    16. 16. Types Of Plans <ul><li>Short-range plans </li></ul><ul><ul><li>usually cover a year or less. </li></ul></ul><ul><li>Long-range Plans </li></ul><ul><ul><li>Usually cover three years or more </li></ul></ul>
    17. 17. Types Of Plans <ul><li>Strategic Plan </li></ul><ul><ul><li>identifies long-term directions for the organization. </li></ul></ul><ul><li>Operational Plan </li></ul><ul><ul><li>identifies activities to implement strategic plans. </li></ul></ul><ul><ul><ul><li>Marketing Plans </li></ul></ul></ul><ul><ul><ul><li>Financial Plans </li></ul></ul></ul><ul><ul><ul><li>Production Plans </li></ul></ul></ul>
    18. 18. Types of Plans <ul><li>Proactive planning- Challenge the future, anticipating future contingencies and get ready with alternative routes for unforeseen circumstances </li></ul><ul><li>Reactive planning- The organization merely reacts to events as and when they arise </li></ul>
    19. 19. Standing plans <ul><li>A plan that can be used over and over again by managers faced with recurring activities </li></ul><ul><li>Objectives </li></ul><ul><ul><li>Policies </li></ul></ul><ul><ul><li>Procedures </li></ul></ul><ul><ul><li>Rules </li></ul></ul><ul><ul><li>Methods </li></ul></ul>
    20. 20. Single-use plans <ul><li>Plan designed for a specific activity or time period </li></ul><ul><ul><li>Programs </li></ul></ul><ul><ul><li>Budgets </li></ul></ul><ul><ul><li>Schedules </li></ul></ul><ul><ul><li>Projects </li></ul></ul>
    21. 21. Types Of Plans <ul><li>Policy </li></ul><ul><ul><li>communicates broad guidelines for making decisions </li></ul></ul><ul><ul><li>A policy is a standing plan that communicates broad guidelines for decisions and action. </li></ul></ul><ul><li>Procedure </li></ul><ul><ul><li>defines specific actions to be taken in a chronological sequence in a specific situation </li></ul></ul>
    22. 22. Contd., <ul><li>Methods: Sub-units of procedure. Indicate the simplified and standardized techniques to be employed to carry out a task </li></ul><ul><li>Rules- Describes exactly how specific activities are to be carried out, leaving no scope for individual discretion and judgment. </li></ul>
    23. 23. Single-Use Plans <ul><li>Programs </li></ul><ul><li>Ana aggregate of several related action plans that have been designed to accomplish a mission within a specified time period </li></ul><ul><li>Schedule </li></ul><ul><li>It is a kind of time table of work, specifying the date when a task is to begin and the time need to complete each task </li></ul><ul><li>Project Plans </li></ul><ul><ul><li>specify activities, resources, and timetables for completing projects </li></ul></ul><ul><li>Budget </li></ul><ul><ul><li>plan that commits resources to projects or activities </li></ul></ul><ul><li>Zero-based Budget </li></ul><ul><ul><li>allocates resources as if each budget was brand new </li></ul></ul>
    24. 24. Planning Tools And Techniques <ul><li>Forecasting tries to predict the future. </li></ul><ul><li>Contingency planning creates back-up plans for when things go wrong. </li></ul><ul><li>Benchmarking identifies best practices used by others. </li></ul><ul><li>Staff planners provide special expertise in planning. </li></ul><ul><li>Participatory planning improves implementation capacities. </li></ul>
    25. 25. Planning Tools And Techniques <ul><li>Forecasting </li></ul><ul><ul><li>Attempts to predict the future </li></ul></ul>Twenty Five-Year Forecasts from The Economist Intelligence Unit: • U.S. GDP will grow 2.7% per year; EU15 countries 1.9%; Japan 1%. • Aging populations will be a drag on economies. • Emerging markets will have higher growth; Russia and Brazil 3%, India and China 6%. • In 2030 the United State will be biggest economy in world, China second, Japan third, India fourth.
    26. 26. Planning Tools And Techniques <ul><li>Contingency Planning </li></ul><ul><ul><li>creates back-up plans for when things go wrong </li></ul></ul><ul><li>Benchmarking </li></ul><ul><ul><li>uses external comparisons to gain insights for planning. </li></ul></ul><ul><li>Best Practices </li></ul><ul><ul><li>are methods that lead to superior performance. </li></ul></ul>
    27. 27. Planning Tools And Techniques <ul><li>Participatory Planning </li></ul><ul><ul><li>includes the persons who will be affected by plans and/or who will implement them. </li></ul></ul>
    28. 28. Semantic Confusion! <ul><li>Mission: The organization’s purpose or fundamental reason for existence </li></ul><ul><li>Vision: A widely descriptive image of what a company wants to be or wants to be known for </li></ul><ul><li>Value: The set of cherished notions and beliefs that guides every move that a company makes </li></ul>
    29. 29. Contd., <ul><li>Objective: End point of a a management program </li></ul><ul><li>Goal: A future target or end result that an organization wishes to achieve </li></ul>
    30. 30. What may happen in traditional objective setting.
    31. 31. Establishing Goals and Developing Plans <ul><li>Management By Objectives (MBO) </li></ul><ul><ul><li>Specific performance goals are jointly determined by employees and managers. </li></ul></ul><ul><ul><li>Progress toward accomplishing goals is periodically reviewed. </li></ul></ul><ul><ul><li>Rewards are allocated on the basis of progress towards the goals. </li></ul></ul><ul><ul><li>Key elements of MBO: </li></ul></ul><ul><ul><ul><li>Goal specificity, participative decision making, an explicit performance/evaluation period, feedback </li></ul></ul></ul>
    32. 32. Steps in a Typical MBO Program <ul><li>The organization’s overall objectives and strategies are formulated. </li></ul><ul><li>Major objectives are allocated among divisional and departmental units . </li></ul><ul><li>Unit managers collaboratively set specific objectives for their units with their managers. </li></ul><ul><li>Specific objectives are collaboratively set with all department members . </li></ul><ul><li>Action plans , defining how objectives are to be achieved, are specified and agreed upon by managers and employees. </li></ul><ul><li>The action plans are implemented . </li></ul><ul><li>Progress toward objectives is periodically reviewed , and feedback is provided. </li></ul><ul><li>Successful achievement of objectives is reinforced by performance-based rewards . </li></ul>
    33. 33. Does MBO Work? <ul><li>Reason for MBO Success </li></ul><ul><ul><li>Top management commitment and involvement </li></ul></ul><ul><li>Potential Problems with MBO Programs </li></ul><ul><ul><li>Not as effective in dynamic environment that require constant resetting of goals. </li></ul></ul><ul><ul><li>Overemphasis on individual accomplishment may create problems with teamwork. </li></ul></ul><ul><ul><li>Allowing the MBO program to become an annual paperwork shuffle. </li></ul></ul>
    34. 34. Characteristics of Well-Designed Goals <ul><li>Written in terms of outcomes, not actions </li></ul><ul><ul><li>Focuses on the ends, not the means. </li></ul></ul><ul><li>Measurable and quantifiable </li></ul><ul><ul><li>Specifically defines how the outcome is to be measured and how much is expected. </li></ul></ul><ul><li>Clear as to time frame </li></ul><ul><ul><li>How long before measuring accomplishment. </li></ul></ul><ul><li>Challenging yet attainable </li></ul><ul><ul><li>Low goals do not motivate. </li></ul></ul><ul><ul><li>High goals motivate if they can be achieved. </li></ul></ul><ul><li>Written down </li></ul><ul><ul><li>Focuses, defines, and makes goals visible. </li></ul></ul><ul><li>Communicated to all necessary organizational members </li></ul><ul><ul><li>Puts everybody “on the same page .” </li></ul></ul>
    35. 35. Steps in Goal Setting <ul><li>Review the organization’s mission statement. </li></ul><ul><ul><li>Do goals reflect the mission? </li></ul></ul><ul><li>Evaluate available resources. </li></ul><ul><ul><li>Are resources sufficient to accomplish the mission? </li></ul></ul><ul><li>Determine goals individually or with others. </li></ul><ul><ul><li>Are goals specific, measurable, and timely? </li></ul></ul><ul><li>Write down the goals and communicate them. </li></ul><ul><ul><li>Is everybody on the same page? </li></ul></ul><ul><li>Review results and whether goals are being met. </li></ul><ul><ul><li>What changes are needed in mission, resources, or goals? </li></ul></ul>
    36. 36. Comparison of entrepreneurs and traditional supervisors.
    37. 37. MANAGEMENT TIPS <ul><li>Time management tips </li></ul><ul><ul><li>Do say “No” to requests that divert you from what you really should be doing. </li></ul></ul><ul><ul><li>Don’t get bogged down in details that you can address later or leave for others. </li></ul></ul><ul><ul><li>Do have a system for screening telephone calls, e-mails, and requests for meetings. </li></ul></ul><ul><ul><li>Don’t let drop-in visitors or instant messages use too much of your time. </li></ul></ul><ul><ul><li>Do prioritize what you will work on in terms of importance and urgency. </li></ul></ul><ul><ul><li>Don’t become calendar bound by letting others control your schedule. </li></ul></ul><ul><ul><li>Do follow priorities; work on the most important and urgent tasks first. Continually work to optimize your time.” </li></ul></ul>

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