definition, the importance of planning, types of planning, strategic planning difference between strategic & operational planning

1. Planning
Asst. Prof. Parasmani Jangid
SDJ International College

2. Meaning
A basic management function involving formulation of one or more
detailed plans to achieve optimum balance of needs or demands
with the available resources. The planning process
1. Identifies the goals or objectives to be achieved.
2. Formulates strategies to achieve them.
3. Arranges or creates the means required.
4. Implements, directs, and monitors all steps in their proper
sequence.

3. Characteristics of Planning
• All Pervasive.-Universal
• Primary Function of Management.-first, have to start with this
• Continuous Process.-not an one time job
• Conscious & intellectual Activity.-have to use your mind/brain
• Flexible.-not rigid, prefer to change
• Forecasting is the Essence.- somewhere planning includes the anticipation of future
• Accuracy is essential.- must be correct
• Intellectual process.-mental process
• Choice of alternative.-making decision, choose the best option in the form of planning
• Concerns future activity.- peeping into the future
• Object oriented activity.-final result will be our goal, everyone wants to achieve
• Decision making is essential.-have to choose the one

4. Types of Planning by Stuart Thomson
• Planning can be classified from different viewpoints.
• Stuart Thomson, the head of the research department of American Management
Association, has classified Planning as follows:
ON THE BASIS OF OBJECTIVES:
• Planning of existing business-day to day planning
• Reform oriented planning-planning to change into improved condition
• Developmental planning-for development of business; sales, production
ON THE BASIS OF TIME:
• Long range planning-5 year or more
• Short range planning-1 year or less

5. ON THE BASIS OF FUNCTIONAL AREA:
• Production planning-where to produce, what is the method, cost, raw material to be
used, etc.
• Product planning-quality, texture, changes you make in product, etc.
• Financial planning-requirement, sources & utilization
• Human resource planning-recruitment, selection, test, interview, training, offer letter,
appointment, promotion, demotion, transfer, retrenchment, etc.
• Profit planning-margin, how to be set as profit part, it is included in all type of planning.
OTHER TYPES OF PLANNING-geographically, culture, routine, etc.

6. Types of Planning according to Stephen P.
Robbins & Mary Coulter
ACCORDING TO BREADTH:
• Strategic Planning-detail plan to achieve overall goal of organization
• Operational Planning-day to day , weekly, monthly plan, just as a part of way to
achieve objectives.
ACCORDING TO TIME:
• Short term-1 year or less
• Long term-5 year or more

7. Types of Planning according to Stephen P.
Robbins & Mary Coulter
ACCORDING TO SPECIFICITY:
• Directional planning- general guidelines, don’t lock the managers into certain
course of action.
• Specific planning- no ambiguity, no misunderstanding
FREQUENCY OF USE:
• Single use planning-cannot be used for purpose other than what it is meant for.
• Standing plan-use repeatedly in similar situation

8. Importance of planning
• All activities become purposeful and orderly
• It helps in economizing by reducing wastage
• Useful in facing future changes and uncertainties
• Focuses attention on objective of the unit
• Planning imparts accuracy
• Planning helps other functions of management
• Planning facilitates control
• Planning helps visualize a clear and complete picture of the business
• Secures cooperation from employees
• Maintains a balance between various activities

9. Criticism of planning
1. Uncertainty the base of planning
2. Long and expensive process
3. Planning makes management rigid
4. Planning is unnecessary
5. Inflexibility of external forces
6. Inaccurate and inadequate data
7. Planning curtails the freedom of employees
8. Use of defective methods

10. Strategic Planning
• Strategy is a planning made by keeping in mind the competitors.
• What is a strategy?
A plan of action designed to achieve a long-term or overall aim
i.e. the mission & vision of the organization.
• Strategic Planning:
It is a process in which long term objectives are determined &
programs are specified to achieve them. It is the function of top level
management.

11. Characteristics of strategic planning
• Long Term Planning
• Deals With Basic Questions
• Function Of Top Level Management
• Base For Detailed Plans
• Focuses On Energies & Resources
• Analysis Of The Environment

12. Operational planning
• An Operational Plan is a highly detailed plan that provides a clear
picture of the actions taken a team, section or department to
contribute to the strategic objectives and plans of top level
management.

13. Diagram showing 3 levels of planning

14. Difference between Strategic Planning &
Operational Planning
Sr. No. Point of difference Strategic Planning Operational Planning
1 Object Long run goal, which is centre of
all activities, vision
detailed plan, short term
2 Duration Long term Short term
3 Planners Top management Middle & lower
4 Degree of risk higher lower
5 Variable/forces unknown Less chances of Unexpected risk
6 Core aspect productivity To run smoothly, whatever is
existing
7 Techniques Latest, expertism available
8 Expensive more Less