Fundamentals of planning (Principles of Management)
Δ General Characteristics of Planning
a. Defining Planning
b. Purposes of Planning
c. Planning: Advantages and Potential
Δ Steps in the Planning Process
Δ The Planning Subsystem
Δ Planning and the Chief Executive
Δ The Planner
a. Qualifications of Planners
b. Duties of Planners
c. Evaluation of Planners
It is a process of determining how the organization
can get where it wants to go, and what it will do to
accomplish its objectives.
It is a systematic development of action programs aimed
at reaching agreed-upon business objectives by the
process of analyzing, evaluating, and selecting among
the opportunities which are foreseen.
It involves choosing tasks that must be performed to
attain organizational goals, outlining how the task must
be performed, and indicating when they should be
- To minimize risk by reducing the uncertainties
surrounding business conditions and clarifying the
consequence of related management actions.
- To increase the degree of organizational success.
- To establish a coordinated effort within the
- To help its organization reach its objectives.
- To facilitate the accomplishment of enterprise and
It helps manager to be future-oriented.
It enhances decision coordination.
It emphasizes organizational objectives.
It helps managers identify and deal with organizational
problems before they cause havoc in a business.
An overemphasized planning program can take up too
much managerial time.
- A clear statement of organizational objectives is
necessary before planning can begin.
2. List alternative ways of reaching objectives
1. State organizational objectives
- A manager should list as many available alternatives as
possible for reaching those objectives.
3. Develop premises on which to base each alternative
- A manager should list all of the premises for each
- The feasibility of using any one alternative to reach
organizational objectives is determined by the premises,
or assumptions, on which the alternative is based.
4. Choose the best alternative for reaching objectives
- Determine which alternative would best accomplish
- An evaluation of alternatives must include an
evaluation of the premises on which the alternatives are
- DECISION MAKING
5. Develop plans to pursue the chosen alternative
- A manager begins to develop strategic (long-range) and
tactical (short-range) plans.
6. Put the plans into action
- Once plans that furnish the organization have been
developed, they must be implemented.
Put the plans
- It is the key to a successful planning process.
- It is a system created as part of the overall management
- It helps managers organize the overall system and
enhance its success.
- To increase the effectiveness of the overall
management system by helping managers identify,
guide, and direct planning activities within the
INPUT PROCESS OUTPUT
INPUT PROCESS OUTPUT
A portion of
1. State organizational
2. List alternative ways of
3. Develop premises upon
which each alternative is
4. Choose best alternative
for reaching objectives
5. Develop plans to pursue
6. Put the plans into action
Roles of the Chief Executives
As ORGANIZATIONAL FIGUREHEADS, they must
represent their organizations in a variety of social, legal,
and ceremonial situations.
As LEADERS, they must ensure that organization
members are properly guided toward achieving
As LIAISONS, they must establish themselves as links
between their organizations and factors outside their
As MONITORS, they must assess organizational
As DISTURBANCE HANDLERS,they must settle disputes
between organization members.
As RESOURCE ALLOCATORS, they must determine
where resources should be placed to benefit their
1. In what direction should the organization be going?
2. In what direction is the organization going now?
3. Should something be done to change this direction?
4. Is the organization continuing in an appropriate direction?
This individual combines all other inputs and influences
the subsystem process so that its output is effective
He/she is responsible not only for developing plans but
also for advising management on what actions should be
taken to implement those plans.
1. They should have considerable practical experience
within their organization.
- They should have been executives in one or more of the
organization’s major departments.
2. They should be capable of replacing any narrow view
of the organization they may have acquired while
holding other organizational positions with an
understanding of the organization as a whole.
- They must know how all parts of the organization
function and interrelate.
- They must possess an abundance of the conceptual
3. They should have some knowledge of and interest in
the social, political, technical, and economic trends that
could affect the future of the organization.
- They must be skillful in defining those trends and
possess the expertise to determine how the organization
should react to the trends to maximize its success.
4. They be able to work well with others.
- The ability to communicate clearly, both orally and in
1. Perform supervisory responsibilities
2. Formulate goals, policies, programs, procedures, and
3. Assign duties and examines work for exactness, neatness,
and conformance to laws,
policies, and procedures
4. Provide project management, participate in work groups
and attend public meetings
5. Apply principles, practices, laws and regulations
6. Interpret and analyze legal documents and determines
impact of legislation
7. Develop planning concepts and prepare plans, strategies
8. Work and state/local/municipal agencies in planning
issues and projects
9. Conduct surveys and field studies, compile data and
develop reports for comprehensive,
area and project plans
10. Lead development and updates
11. Develop and implement citizen participation groups
12. Provide regional transportation planning coordination
13. Provide employee training and development
14. Address errors and complaints
15. Perform related duties as to specific assignments
16. Provide service to customers by answering questions,
providing information, making
referrals, and assuring appropriate follow-through and/or
17. Communicate with managers, supervisors, co-workers,
citizens, and others
Planners should be evaluated according to the
contribution they make toward helping the organization
achieve its objectives.
The primary considerations in the evaluation are the
quality and appropriateness of the planning system and the
plans that the planner develops for the organization.
1. Organizational plan is in writing.
2. Plan is the result of all elements of the management team
3. Plan defines present and possible future business of the
4. Plan specifically mentions organizational objectives.
5. Plan identifies future opportunities and suggests how to
take advantage of them.
6. Plan emphasizes both internal and external environments.
7. Plan describes the attainment of objectives in operational
terms whenever possible.
8. Plan includes both long- and short-term