Planning function

1. FUNCTIONS OF MANAGEMENT –I
PLANNING:
NATURE, SCOPE, OBJECTIVE AND SIGNIFICANCES OF
PLANNING, KEY FACTORS TO PLANNING, TYPES OF PLANS,
PROCESS OF PLANNING, EFFECTIVE PLANNING-PRINCIPLES,
BARRIERS & HOW TO OVERCOME BARRIERS,
PLANNING PREMISES AND FORECASTING.

2. FUNCTIONS OF
MANAGEMENT
PLANNING
ORGANIZING
STAFFING
DIRECTING
CONTROLLING
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3. PLANNING
• Planning is determining the objectives and
formulating the methods to achieve them.
• It is more simply said than done.
• A job well planned is half done.

4. PLANNING
• It is the basic function of management. It
deals with chalking out a future course of
action & deciding in advance the most
appropriate course of actions for
achievement of pre-determined goals.
• It is an exercise in problem solving &
decision making. Planning is determination
of courses of action to achieve desired
goals.

5. PLANNING
• Deciding in advance :
• What to do
• How to do
• When to do
• Who is going to do it
• Bridges a gap between
where we are today and
where we want to reach.
• Sets the goal of an
organization.

6. PLANNING
• During planning one needs to ask oneself the
following:
 What am I trying to
accomplish i.e. what is my
objective?
 What resources do I have
and do I need to
accomplish the same?
 What are the methods and
means to achieve the
objectives?
 Is this the optimal path?

7. PLANNING
• Planning is a systematic thinking about
ways & means for accomplishment of
pre-determined goals.
• Planning is necessary to ensure proper
utilization of human & non-human
resources.
• It is all pervasive, it is an intellectual
activity and it also helps in avoiding
confusion, uncertainties.
Functions of Management

8. NATURE OF PLANNING
• Planning is goal oriented
• Planning has a reference to future
• Planning is the primary function of management
• Planning involves choice
• Planning is an intellectual exercise
• Planning is all pervasive
• Planning is both – long-range and short-range
• Planning is continuous
• Planning is actionable
• Planning is flexible
• Planning is an integrated system

9. OBJECTIVES OF PLANNING
• To bring certainty in future events
• To provide specific direction
• Forecasting
• To bring economy in managerial operations
• To attain predetermined goals
• To get victory over competitions

10. IMPORTANCE /SIGNIFICANCE OF PLANNING
• Planning provides Direction
• Planning Reduces the risk of uncertainties
• Planning reduces over lapping and wasteful activities
• Planning Promotes innovative ideas
• Planning Facilitates Decision Making
• Planning establishes standard for controlling
• Focuses attention on objectives of the company

11. TYPES OF PLAN
On the basis of Nature
• Operational Plan
• Tactical Plan
(Functional Plan)
• Strategic Plan
On the basis of Managerial Level
• Top level Plans
• Middle level Plans
• Lower level Plans
On the basis of Time
• Long term Plan
• Intermediate Plan
• Short term Plan
On the basis of Use
• Single Plan
• Standing Plan

13. EFFECTIVE PLANNING-PRINCIPLES
1. Contribution to objectives
2. Primacy of Planning
3. Planning Premise
4. Principle of Alternatives
5. Principle of timing
6. Principle of flexibility
7. Principle of comparative strategies
8. Principle of commitment

15. PLANNING PREMISES
• A planning premises is a set of assumptions that are derived from
forecasting the future.
• Planning premises means systemic and logical estimate for the
future factors affecting planning.
• Planning premises provide a background against which the
estimated events takes place.

16. TYPES OF PLANNING PREMISES

17. FORECASTING
• Forecasting is a process of predicting or estimating the future based on
past and present data.
• Forecasting provides information about the potential future events and
their consequences for the organization.
• It may not reduce the complications and uncertainty of the future.
• It increases the confidence of the management to make
important decisions
Forecasting

18. FEATURES OF FORECASTING
• Forecasting is concerned with future events.
• It shows the probability of happening of future events.
• It analysis past and present data.
• It uses statistical tools and techniques.
• It uses personal observations.

19. LIMITATIONS OF FORECASTING
• The collection and analysis of data about the past, present and future involves a lot of time
and money. Therefore, managers have to balance the cost of forecasting with its benefits.
• Forecasting can only estimate the future events. It cannot guarantee that these events will
take place in the future. Long-term forecasts will be less accurate as compared to short-term
forecast.
• Forecasting is based on certain assumptions. If these assumptions are wrong, the forecasting
will be wrong.
• Forecasts may go wrong due to bad judgment and skills on the part of some of the managers.
Therefore, forecasts are subject to human error.

21. THANK YOU!