2. Objectives
Planning: Purpose / Significance
Steps in planning
Prerequisites for Effective Planning
Limitations of Planning.
Management 8/e - Chapter 8 2
3. Process of bridging the gap between where
we are and where we want to be in future.
Definition
Futurepresent
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4. Acc. To H. Fayol: ‘Planning refers to a
preview of future activities’
Process of deciding in advance about:
-What to do
-How to do
-When to do it
-Who does what
It involves determining organizational
strategies and objectives
5. 1. Primacy of planning
- First function of management
2. To offset uncertainty and change
- looking ahead for future actions
3. To focus attention on objectives
- Ex. Even obj. is profit earning, planning will
specify how much profit to be earned looking
into all facilitating and constraining factors
Significance of Planning
6. 4. To help in coordination
- All department work with overall plan
5. To help in control
- Measurement of result against plans
6. To increase organizational effectiveness
- Achieving objectives with given
resources
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7. 1.1. Establishing objectivesEstablishing objectives
2.2. Building premisesBuilding premises
3.3. Collection, classification, and analysis of dataCollection, classification, and analysis of data
4.4. Determining alternative coursesDetermining alternative courses
5.5. Evaluating alternativesEvaluating alternatives
6.6. Selection of a course of actionSelection of a course of action
7.7. Preparing derivative plansPreparing derivative plans
8.8. Providing follow-upsProviding follow-ups
Planning Process
9. Short term- long term obj.
It indicates what to accomplish in future
Goals should be SMARTER
Specific-not vague or hard to understand
Measurable-
Acceptable-
Realistic-
Time frame-
Extending- stretching capabilities
Rewarding-
1. Establishing objectives
10. Assumptions about future
About price, wages, taxes, sales
Uncontrollable- population growth
Semi-controllable-efficiency of employee
Controllable- future plan of company for
dev.
2.Bulding the premises
11. Relevant data is needed
Rough data is of no use
Data should be classified and analyzed
3. collecting, classifying and
analyzing the data
13. Each choice must be properly assessed
Statistical methods/operation research and
formulas may be used
Profitability must be considered
5.Evaluating alternatives
14. Carefully selection of the plan/option
Think twice before you select any plan
6.Selection of an action
15. Subsidiary plans for section/depart.
Ex. Starting a college-
other plans are recruiting lecturers,
maintenance of campus, facilities,
administration
HODs are given responsibility for the
various activities
7.Preparing derivative plans
16. Plan can be executed on experimental bases
Chances of success may be checked
Necessary to keep an eye on progress of the
plan
Corrective steps may be taken at regular
interval which is useful in future plan
8.Providing follow-up
17. Linked to long term objective
-ex. Budget is short term linked to long term obj.
Direction for action
Consistent
Feasible
Simplicity
Flexible
- ex. Change of production schedule in case of strike
Prerequisites for effective planning
18. Difficulty of accurate premising
Problems of rapid change
Internal inflexibilities
• Psychological inflexibilities-resistance to change
• Policy and procedural inflexibilities
• Capital investment
External inflexibilities
• Political climate
• Trade unions
• Technological changes
Time and cost factors
Failure of people in planning
Limitations of planning/ barriers
to effective planning