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  1. 1. Planning <ul><li>Planning is the process of establishing goals and a suitable course of action to achieve these goals. It requires decision making, that is, choosing future courses of action from alternatives </li></ul>Er.Sartaj Singh Bajwa
  2. 2. Characteristics Of Planning <ul><li>Planning is an intellectual process </li></ul><ul><li>Primacy of planning ( all other functions come later on after planning ) </li></ul><ul><li>Focus on objectives </li></ul><ul><li>Leads to efficiency and economical use </li></ul><ul><li>Flexibility </li></ul><ul><li>Realistic </li></ul><ul><li>Planning is continuous </li></ul>Er.Sartaj Singh Bajwa
  3. 3. Types Of Planning <ul><li>Corporate Planning </li></ul><ul><li>Strategic Planning </li></ul><ul><li>Operational Planning </li></ul>Er.Sartaj Singh Bajwa
  4. 4. Corporate Planning <ul><li>It includes the setting of objectives , organizing the work, people & systems to enable those objectives to be attained , motivating through the planning process , measuring performance and controlling the progress of the plan . And developing people through better decision making , clear objectives & more involvement </li></ul><ul><li>When planning is done for the whole enterprise it is known as corporate planning </li></ul><ul><li>It lays down the basic goals , strategies and policies for the enterprise as a whole </li></ul><ul><li>It is done at the top level management </li></ul><ul><li>Corporate planning is divided in two parts : </li></ul><ul><li>a – Strategic planning or long term planning </li></ul><ul><li>b – Tactical planning or short term planning </li></ul>Er.Sartaj Singh Bajwa
  5. 5. Strategic Planning <ul><li>Strategic planning is the process of planning as to how to achieve organizational objectives with the available resources </li></ul><ul><li>Planning that apply to the entire organization, establishes the organization’s overall objectives and seek to positions an organization in terms of its environment is called strategic planning </li></ul><ul><li>It takes place at the highest level of the organization </li></ul><ul><li>Need for Strategic Planning : </li></ul><ul><li>a – Impact of external factors </li></ul><ul><li>b – Proper use of resources </li></ul><ul><li>c – Ensuring success </li></ul>Er.Sartaj Singh Bajwa
  6. 6. Operational Planning <ul><li>It involves the conversion of strategic plans into detailed and specific action plans </li></ul><ul><li>Operational planning is generally done for one year or so </li></ul><ul><li>It is done at the middle & lower level of management </li></ul><ul><li>It is also known as tactical or shirt term planning </li></ul><ul><li>Eg sudden changes in prices of products due to price changes in raw material or other factors </li></ul>Er.Sartaj Singh Bajwa
  7. 7. Planning-Timeframe <ul><li>Long-Range Planning </li></ul><ul><li>Intermediate Planning </li></ul><ul><li>Short-Range Planning </li></ul>Er.Sartaj Singh Bajwa
  8. 8. Planning Process <ul><li>1 – Recognizing the need for action(knowing about the business opportunity &the need for taking action , knowing about the pros and cons) </li></ul><ul><li>2 – Gathering necessary information </li></ul><ul><li>3 – Laying down objectives </li></ul><ul><li>4 – Determining planning premises </li></ul><ul><li>Forecasts will be made for the following : </li></ul><ul><li>a – Expectation of demand </li></ul><ul><li>b – Likely volume of production </li></ul><ul><li>c – Anticipation of prices </li></ul><ul><li>d – Supply of labour , raw material </li></ul><ul><li>e – Economic policies of the goverment </li></ul>Er.Sartaj Singh Bajwa
  9. 9. CONTD. <ul><li>5 – Examining alternative course of action </li></ul><ul><li>6 – Evaluation of action patterns </li></ul><ul><li>7 – Determining secondary plans ( along with the main plans there must be supportive plans ) </li></ul><ul><li>8 – Implementation of Plans </li></ul>Er.Sartaj Singh Bajwa
  10. 10. Barriers to Planning <ul><li>Inappropriate Goals </li></ul><ul><li>Improper Reward System </li></ul><ul><li>Complex Environment </li></ul><ul><li>Resistance to Change </li></ul><ul><li>Constraints </li></ul><ul><li>Information Deficiency </li></ul>Er.Sartaj Singh Bajwa
  11. 11. Making Planning Effective <ul><li>Factors essential for making planning effective : </li></ul><ul><li>Consciousness for planning(cooperation by all for making the plan effective ) </li></ul><ul><li>Initiative at top level </li></ul><ul><li>Proper communication </li></ul><ul><li>Participation in planning </li></ul><ul><li>Emphasis on long term and short term planning </li></ul>Er.Sartaj Singh Bajwa