2. DEFINITION
• The processes of determining in advance
what should be accomplished and how it
should be realized (MONDY)
• A process that begins with objectives,
defined strategies, policies & detailed plan
in order to achieve them
• The process of
setting goals, developing strategies, and
outlining tasks and schedules to accomplish
the goals.
3. OBJECTIVE OF PLANNING
• To provide sense of direction
• To encourage innovation & creativity
• To guide decision making
• To facilitate control
4. THE IMPORTANCE OF PLANNING IN
ORGNIZATION
• Enables us to identify the course of action
by setting objectives
• Through plans, resources are efficiently &
effectively utilized thus resulting in saving
• Planning helps to determine what
opportunities there are to exploit
6. STRATEGIC PLANS
• Strategic plans are long-term planning done
by the top management to determine the
overall organizational purposes &
objectives & how they are to be achieved.
8. STRATEGIC PLANS
LEVEL SPECIFY PARTICIPANTS TIME HORIZON
CORPORATE
STRATEGY
BROAD • BOARD OF
DIRECTORS
•TOP LEVEL
EXECUTIVES
5- 10 YEARS
BUSINESS STRATEGY MORE SPECIFIC
THAN THE
CORPORATE
STRATEGY
• TOP LEVEL
EXECUTIVES
• MANAGERS
WITHIN THE
BUSINESS UNIT
1- 5 YEARS
FUNCTIONAL
STRATEGY
VERY SPECIFIC • MIDDLE LEVEL
MANAGERS
• LOWER LEVEL
MANAGERS
< 1 YEARS
9. OPERATIONAL PLANS
• Done at all levels & involves directing the
organization’s day-to-day operation to
achieve overall strategic objectives
11. BARRIERS TO EFFECTIVE PLANNING
• Lack of commitment to planning
• Lack of meaningful objectives of goals
• Failure to see the scope of plans
• Rely too much on experience
• Lack of top management support
• Lack of clear delegation of authority
12. OVERCOMING BARRIERS
• Planning must not be left to chance
• Planning must be organized
• Planning must be clear & definite
• Managers must participate in planning
