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its use full to students of management

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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 Presentation Transcript

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