Planning involves selecting objectives and actions to achieve goals through decision making. It requires determining courses of action based on purpose and knowledge. Planning is the process of making present decisions about future objectives and selecting alternative actions to reach objectives. It specifies activities required and is goal-oriented, focused on the future, and continuous. Planning provides direction, coordination, and standards for control.

1. PLANNING

2. DEFINITION (1)
SELECTING MISSIONS AND OBJECTIVES AS WELL
AS THE ACTIONS TO ACHIEVE THEM, WHICH
REQUIRES DECISION MAKING, THAT IS
CHOOSING A COURSE OF ACTION AMONGST ALL
ALTERNATIVES

3. DEFINITION (2)
DECIDING IN ADVANCE ABOUT THE OBJECTIVES TO
BE PURSUED BY THE ENTERPRISE; THE SELECTION OF
BEST ALTERNATIVE COURSES OF ACTION TO REACH
THOSE OBJECTIVES AND A SPECIFICATION OF
ACTIVITIES – TECHNICAL, FINANCIAL, PERSONNEL
ETC. REQUIRED FOR THE IMPLEMENTATION OF PRE-
SELECTED COURSES OF ACTION

4. “Planning is an intellectually demanding process; it
requires the conscious determination of courses of
action and the basing of decisions on purpose,
knowledge, and considered estimates.”
- Koontz and O’Donnell

5. “Planning is the continuous process of making present
entrepreneurial (risk taking) decisions systematically
and with best possible knowledge of their futurity,
organising systematically the efforts needed to carry
out these decisions and measuring the results of these
decisions against the expectations through organised,
systematic feed-back”
- Peter F. Drucker

6. NATURE OF PLANNING
 Planning is goal-oriented
 Planning has a reference to future
 Primary function of management
 Planning involves choice
 It is an intellectual exercise
 Planning is all-pervasive

7. NATURE OF PLANNING
 Planning is both – long range and short range
 Planning is continuous
 Planning is actionable
 Planning is flexible
 It is an integrated system
 Planning is efficient

8. IMPORTANCE OF PLANNING
 Effective performance – understand - mission & objectives and
the methods of attaining
 Group effort – effective – know what they are to accomplish
 Basic management function
 (read slide 1) – planning requires decision making – provides a
rational approach
 Strongly implies managerial innovation
 Bridges the gap between where we are to where we want to go
 Plans furnish the standards of control

9. Close relationship of Planning and
Controlling
NEW
PLANS
IMPLEMENTATION NO
PLANNING CONTROLLING
OF PLANS UNDESIRA
: COMPARING BLE
PLANS WITH DEVIATION
S FROM
RESULTS PLANS
UNDESIRABLE
DEVIATION
CORRECTIVE
ACTION

10. TYPES OF PLANS
 MISSION OR PURPOSE
 OBJECTIVES OR GOALS
 STRATEGIES
 POLICIES
 PROCEDURE
 RULES
 PROGRAMS
 BUDGETS

11. TYPES OF PLANS
 MISSION OR PURPOSE:
The basic purpose of function or tasks of an
enterprise or agency or any part of it
 OBJECTIVES OR GOALS:
The ends toward which activity is aimed
 STRATEGIES:
The determination of basic long term
objectives of an enterprise and the adoption of courses of action
and allocation of resources necessary to achieve these goals

12. TYPES OF PLANS
 POLICIES:
General statements or understandings that
guide or channelize thinking in decision making
 PROCEDURES:
Plans that establish a required method of
handling future activities
 RULES:
Spell out specific required actions or non
actions, allowing no discretion

13. TYPES OF PLANS
 PROGRAMS:
A complex of goals, policies, procedures, rules,
task, assignments, steps, to be taken, resources to be
employed, and other elements necessary to carry out a
given course of action
 BUDGETS:
A statement of expected results expressed in
numerical terms.

14. STEPS IN PLANNING
 Being aware of opportunities
 Setting objectives or goals
 Considering planning premises
 Identifying alternatives
 Comparing alternatives in light of goals sought
 Choosing an alternative
 Formulating supporting plans
 Quantifying plans by making budgets

15. Be aware of opportunities
 In light of:
 The Market
 Competition
 What customers want
 Our weaknesses

16. Setting objectives or goals
Where we want to be and what we want to accomplish
and when

17. Considering planning premises
In what environment – internal or external – will our
plans operate

18. Identifying alternatives
What are the most promising alternatives in
accomplishing our objectives?

19. Comparing alternatives in light of
goals sought
Which alternative will give us the best chance of
meeting our goals at the lowest cost and highest
profit?

20. Choosing an alternative
Selecting the course of action we will pursue

21. Formulating supporting plans
Such as plans to:
buy equipment
Buy materials
hire and train workers
develop a new product

22. Quantifying plans by making
budgets
Develop such budgets as:
Volume and price of sales
Operating expenses necessary for
plans
Expenditures for capital equipment

23. PROCESS OF PLAN DEVELOPMENT
BUILDING
DEVELOPMENT OF PLANS
SECONDARY
PREMISING FOUNDATION
FORECASTING PRIMARY
FOUNDATION

24. CONCEPT OF PLANNING PREMISES
 Key step in planning
 It refers to anticipated environment in which plans are
expected to operate.
 It includes assumption or forecasts of the future and
known conditions that will affect the operation of
plans

25. CLASSIFICATION OF PLANNING
PREMISES
 INTERNAL AND EXTERNAL PREMISES
 CONTROLLABLE AND UNCONTROLLABLE
PREMISES
 QUANTITATIVE AND QUALITATIVE PREMISES

26. INTERNAL PREMISES
 They are relevant internal conditions of the enterprise
on which plans will be based.
 Examples:
 Management strategies, policies and programmes
 Organisational structural flexibilities
 Manpower potential
 Availability of finances
 Approved sales forecast etc

27. EXTERNAL PREMISES
 Relevant external conditions on which plans will be
based
 Example:
 Political conditions
 Social conditions
 Economic conditions
 Technological conditions
 Factors market conditions

28. CONTROLLABLE PREMISES
 Examples:
 Advertising programmes and policies
 Expansion programmes
 Policy of centralisation/decentralisation

29. UNCONTROLLABLE PREMISES
 Examples:
 Population growth
 Price trends
 Political environment
 Technological environment

30. SEMI-CONTROLLABLE PREMISES
 Examples:
 Labour turnover
 Labour efficiency
 Pricing policy

31. QUANTITATIVE PREMISES
 Expressed numerically; premises are tangible
 Examples:
 Finance availability
 Sales forecasts
 Population trends
 Price trends
 Plant capacity utilisation

32. QUALITATIVE PREMISES
 Cannot be expressed; intangible
 Examples:
 Human relations in the enterprise
 Morale of employees
 Prestige or reputation of the enterprise
 Political stability

33. ADVANTAGES OF PLANNING
1. Helps in achieving objectives
2. Better utilisation of resources
3. Economy in operation
4. Reduces uncertainty and risk
5. Improves competitive strength
6. Effective control
7. Coordination
8. Encourages motivation
9. Guides in decision making
10. Provides decentralization
11. Improves efficiency
12. Anticipation of crisis

34. LIMITATIONS OF PLANNING
1. Lack of accurate information
2. Time and cost
3. Inflexibility
4. Delay during emergency period
5. False sense of security