This document discusses different approaches to planning and the purpose of planning. It describes planning as a conscious, systematic process to determine goals and actions for the future. There are four main approaches discussed: top-down, bottom-up, composite, and team. The top-down approach centralizes planning at the top level while the bottom-up approach has lower levels draft plans. The composite approach involves discussion and debate between levels. The team approach assigns a team to develop plans. Finally, the document lists nine purposes of planning, such as facilitating objectives, ensuring economy, and coordinating activities.

1. Different Approaches
to Planning and
Purpose Served by
Planning

2. Planning
Planning is the conscious, systematic
process of making decisions about goals
and activities that an organization will
pursue in the future.
A plan is a pre-determined course of
action. Planning is essentially a process to
determine and implement actions to achieve
organizational objectives.

3. Planning involves the task of deciding in
advance :-
What to do?
How to do?
When to do it?
Who will do it?

4. A manager has to answer four basic questions
while formulating a plan :-
Where are we now realistic assessment of current
situation?
Where do we want to be?
Gap between where we are and where we want to
be?
How do we get there?

5. Different Approaches to Planning
Top down approach
Bottom up approach
Composite approach
Team approach

6. Top down approach
Authority and responsibility is centralized at the top.
The top management defines the mission and lays
down strategies and plan of action required to achieve
stated goals.
The blueprint of the plan is passed on to the people
working at lower levels who do not participate in the
planning process.
The success of this approach depends upon the
qualification, experience and capabilities of top
management

7. Bottom up approach
Lower level managers are responsible for
preparation and implementation of plans
(make functional plans which are approved
by top management)

8. Composite approach
In such a approach the lower and middle
management is responsible of drafting out
plans in accordance with guidelines and
boundaries stated by the top
management. Every plan is up for a
discussion and debate and a middle path is
chosen to facilitate smooth implementation
of plans.

9. Team approach
In such a approach a team of managers
having relevant experience and skills in
various functional areas are assigned the job
of planning. The plans are then approved by
the top management

10. Purpose Served by Planning
1. Facilitates Accomplishment of Objectives
2. Ensures Economy in Operations
3. Precedes Control
4. Provides for Future Contingency
5. Facilitates Optimum Utilization of Resources
6. Pr-requisites for other Managerial Functions
7. All Pervasive Function
8. Coordinates the Activities
9. Provides for the Delegation of Authority