This document discusses planning and management by objectives. It defines planning as selecting objectives and deciding on actions to achieve them. Planning involves establishing objectives in a hierarchy from overall goals to specific departmental and individual objectives. The key steps in planning are establishing objectives, developing premises, determining alternative courses of action, evaluating alternatives, selecting a course, formulating supporting plans, and quantifying plans through budgeting. Management by objectives involves managers and employees agreeing to objectives to improve results-oriented planning, clarification of roles, and encouragement.

1. ESSENETIALS OF PLANNING & MANAGING BY OBJECTIVES

2. MEANING OF PLANNINGPlanning “Involves selecting missions and objectives and deciding on the action to achieve them; it requires decision-making, that is, choosing course of action from among alternatives.”

3. Planning is the most basic of all managerial functions, and it is about deciding in advance ‘what is to be done, by whom, how, when and where’Nature & Characteristics of Planning:Focus on objectives

4. It is an intellectual process

5. Planning is a selective process: Planning involves selection of the best plan after making a careful analysis of various alternative courses of action. It concerned with the decision-making relating to-a) what is to be done? (b) How it is to be done? (c) When it is to be done? & (d) by whom it is to be done?

6. Planning is pervasive

7. Planning is an integrated process

8. Planning is directed towards efficiency

9. Planning is flexible

10. Planning is the most basic of all management functions

11. Planning is a continuous & never-ending process

12. The efficiency of planning is measured by what it contributed to the objectivesEssentials of a good plan:According to I.F. Urwick essentials of a good plan are as follows:It should be based on a clearly defined objective

13. It must be simple

14. It should be comprehensive

15. It should prove for a proper analysis & classification of action

16. It must be flexible

17. It must be balanced

18. It must use all available resources & opportunities utmost before creating new authorities & new resources

19. It should be free from social & psychological bases of the planners as well as the sub-ordinates

20. There should be proper co-ordination among short-term & long-term plansObjectives of planning:Planning helps in effective forecasting

21. Planning provides certainty in the activities

22. Planning gives a specific direction to the organization

23. It establishes co-ordination in the enterprise

24. It is helpful in creating a healthy competition

25. It provides economy in the management

26. It can forecast the risk

27. It provides important information

28. It is helpful in facing competition

29. It is very much helpful in the accomplishment of budgetsIs Planning a necessity in an organization?In organizations, planning is the process of setting goals & choosing the means to achieve those goals. Without plans, managers cannot know how to organize people & resources effectively. Without a plan, managers & their followers have little chance of achieving their goals. Faulty plans affect the future of an entire organization. Hence, planning is crucial.

30. Benefits of Good Planning:Reduces uncertainty