Planning involves deciding future actions, how and when to take them, and who will be involved. It is a goal-oriented, rational process that provides direction and guidelines. Effective planning focuses on objectives, offsets uncertainty, and increases organizational effectiveness through efficiency, coordination, and control. Plans can be strategic, tactical, or operational depending on their level, time frame, and scope. The planning process includes analyzing opportunities, setting objectives, identifying alternatives, evaluating options, selecting plans, implementing, and reviewing. Prerequisites for effective planning are setting the right climate, clear objectives, participation, communication, and integration of long- and short-term plans. Potential limitations include lack of information, resistance to change, and false sense of security

1. Fundamentals of
Effective Planning
Prepared By: Sutanu Maulik
9832281818

2. Definition
In simple words, planning is deciding in advance what
action to take, how and when to take a particular action
and who are the people to be involved in it. It involves
anticipating the feature and consciously choosing the
feature course of action.

3. Nature of Planning
 It is goal oriented.
 Planning is an intellectual or rational process.
 Planning is a primary function.
 Planning is all-pervasive.
 Planning is forward looking.
 It is perpetual process.
 Planning is an integrated process.
 It involves choice.

4. Significance of Planning
 Focuses attention on objectives.
 Offsets uncertainty and risk.
 Provides sense of direction.
 Provides guidelines for decision making.
 Increases organizational effectiveness.
 Provides efficiency on operations.
 Ensures better co-ordination.
 Facilitates control.
 Encourages innovation and creativity.
 Facilitates delegation.

5. Types of Plans
 By Level, Time and Scope.
 Mission statement is a statement of an
organization’s fundamental purpose.
 Strategic Plans (Long term) are goals set by and
for top management of the organization that
address broad, general issues.
 Tactical Plans (Intermediate term) are set by
and for middle managers; their focus is on how to
operationalize actions to strategic goals.
 Operational Plans (Short Term) are set by and
for lower-level managers to address issues
associated with tactical goals.
Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 3–5

6. Types of Plans… … Contd.
 By Frequency of use.
 Single use plans: It is made for
achieving some specific goals and
design to deal with a unique situation
 Standing Plans: It refers to specific
actions which have been developed
for dealing with recurring situations.

7. StepS In the plannIng proceSS
• Analyzing opportunities.
• Establishing objectives.
• Determining planning premises.
• Identifying alternatives.
• Evaluating available alternatives.
• Selecting the most appropriate alternatives.
• Implementing the plan.
• Reviewing the plan.

8. Pre re quis ite s fo r Effe c tive
Plan
 Establishing the right climate for planning.
 Clear and specific objectives.
 Planning premises.
 Initiative at top level.
 Participation in planning process.
 Communication of planning elements.
 Integration of long term and short term plans.
 An open system approach.
 Management of information system.

9. Limitations of Planning
 Lack of accurate information.
 Time consuming process.
 Expensive.
 Inflexibility.
 Resistance to change.
 Environmental constrains.
 Lack of ability and commitment.
 False sense of security.
 Reluctance to establish goals.

10. Thank You