Planning is the process of determining objectives and deciding in advance how to achieve them. The document outlines the planning process, including establishing objectives, determining premises and alternatives, evaluating alternatives, selecting a course of action, formulating supporting plans, and reviewing. It also discusses types of plans like strategic and tactical plans. Effective planning focuses attention on objectives, reduces uncertainty, and provides direction to help organizations achieve their goals.

2. Unit-2: Planning
Nature, importance and purpose of
planning process Objectives, Types of
plans (Meaning only), Decision making,
Importance of planning, steps in
planning, Planning premises, Hierarchy
of plans

3.  Planning is the process
of analyzing the
situation, determining
the objectives that will
be influence in the
future and deciding in
advance, the actions
that will be taken to
achieve.

5. Where we are Where we want to
be
Planning

7. Planning is deciding in advance what to do, how to
do it, when to do it and who to do it.
It involves anticipating the future and consciously
choosing the future course of action.

8.  Planning is most basic function of management.
 Planning referred as “deciding in advance”.
“Planning is the function that determines in
advance what should be done.”

9. • Planning is purposeful : it is objective oriented. It
is directed towards efficiency.
• Planning is a primary function : It is the basic
level of management process.
• Universal process : Many people believe in
planning. It is the job of all the managers in all
types of organizations.

10. • Intellectual process : A process involving imagination,
foresight and knowledge but not guesswork.
• Continuous process : An on-going/dynamic exercise
as old assumptions change, old plans are revised or
new ones are prepared.
• Forward process : No plan can be prepared without
knowledge of future.
• Involves choice : Decision making is core of planning

11.  Focuses attention on objectives and result
 Reduces uncertainty and risk
 Provides sense of direction
 Encourages innovation and creativity
 Guides decision-making
 Provide efficiency in operation
 Provide economy in operation
 Effective Control
 Bridge between present and future

12. Analyzing
opportunities
Reviewing the
plans
Establishing
objectives
Determining
Planning
premises
Identification of
alternatives
Evaluation of
alternatives
Choice of
Alternative plans
Formulating of
Supporting plans

13.  Not a step of Planning, It is pre-step of planning.
 Essential to make a successful plan.
 SWOT analysis

15. 15
Strengths
Weaknesses
Opportunities
Threats
2. SWOT Analysis
SWOT stands for:

16. 16
2. SWOT Analysis
Strengths - the positive internal
attributes of the organisation
Weaknesses - the negative internal
attributes of the organisation

17. 17
2. SWOT Analysis
Opportunities - external factors which
could improve the organisation’s
prospects
Threats - external factors which could
undermine the organisation’s prospects

18. Example: Vehicle Company M
18
Strength Weakness
High oil price
High material price
Foreign exchange
Other competitive companies
Political interference
Huge market in China/India
More global cooperation
Poor reputation among
customers
Slow decision making
Old fashioned style
Weaker brand images
Accumulated high technology
Motivated young staff
Global network to distribute
Cost efficiency manufacture
Opportunity Threat

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20.  Premises are the assumptions about the future in which the
planning is implemented.
 They provide environment and boundaries for the implementation
of plan in practical operation.
There are 3 types of planning premises
 Internal and external premises
 Tangible and intangible
 Controllable and uncontrollable

21.  Internal premises with in the organization ( Policies,
investment, availability of equipments, funds etc)
 External premises means out side the organization
(Govt policies, Economic conditions, population ,
demand)

22.  Tangible premises are the measurable premises like
population, investment, demand etc.
 Intangible premises are those which cannot be
measured like business environment, economic
conditions etc

23.  Controllable premises like technical man power ,
input technology, financial investment etc
 Uncontrollable premises like strikes, change of govt
policies, wars etc.

24.  It is essential to identify all the possible hidden
alternatives.
 There must be search for the best alternative. The
management must develop alternatives through the
support of experienced and intellectual experts in
management sectors.

25.  Evaluate the alternatives from their expected cost and
benefits. This is the logical step to evaluate each
alternative from its plus and minus points.
 Each alternative is studied and evaluated in terms of
some common factors such as risk, responsibility,
planning premises, resources, technology etc.
SSeelleeccttiinngg aa ccoouurrssee ooff aaccttiioonn

26.  It is essential to formulate action of supportive plan for
each step of work and to all departments of the
organization.
 These action plans involve formulation of policies,
rules, schedule and budget to complete defined
objectives. Thus, formulation of supportive plans is an
essential step in planning process.
 It is difficult to implement main plan without
formulation of derivative plan.

27.  Without this step, other this procedure of plan will remain as
paper work.
 This step brings all the procedure of plan into action.
 For implementation plan, management has to take some steps
such as to communicate with subordinates who initiate to
plan into action; provide necessary instruction and guidance;
make arrangement of all resources like materials, machines,
money, equipments etc; make timely supervision and control
over subordinates.
Reviewing tthhee ppllaannnniinngg pprroocceessss

28. Planning Process:
How does a manager Plan?
Establish
objectives Develop Strategies
Determination of
premises
Determination of
alternatives
Evaluation of
alternatives
Selecting a
course of action
Reviewing the
planning
process
Implantation of
plans
Formulation of
derivative plans

29.  Resource: what can be used to meet the scope.
 Time: what tasks are to be undertaken and when.
 Quality: the spread or deviation allowed from a desired standard.
 Risk: defines in advance what may happen to drive the plan off
course, and what will be done to recover the situation.

30. Managers
engage in
planning to:
Set the standards to
facilitate control
Provide
direction
Minimize uncertainty Reduce the impact
of change

31.  Strategic plan
 Tactical plan
 Single use plan
 Standing plan
 Long Range plan
 Short Range plan
 Proactive Plan
 Reactive Plan

32.  It consists of major task and policies of an
organization resources and facilities to
accomplish the objectives
 Used by community groups, government
departments, organizations and businesses to
develop blueprint for action and change

33. Benefits of Strategic Planning
• Defines mission, vision &
values
• Establishes realistic
objectives
• Ensures effective use of
resources
• Provides base to measure
progress
• Develops future direction
• Solves major problems

34. ◦ Mission
 Core purpose of your organization
 Presented in a clear, short statement that focuses on
attention in one clear direction by stating purpose of the
group’s uniqueness.

35.  Vision
◦ What is your organization’s vision of excellence
◦ Has to be realistic and not something impractical

36.  Values
◦ What are the principles, standards, and actions
considered worthwhile in the organization
◦ Includes how people treat each other, how groups
conduct business and what is most important to the
organization

37.  Its a short time planning
 Tactical plan are immediate decisions based on the executive’s
judgment and experience in facing an actual situation
 It consists of use of facilities and resources
 It is day-to-day operation and activities of the organization
 At lower level management

38.  Standing Plans
◦ Developed for activities
that occur regularly over
a period of time
 Ex:
◦ Objectives, Policies,
Procedures, Rules
 Single Use plans
◦ Developed to carry out a
course of action that is
not likely to be repeated
in future
 Ex:
◦ Schedules, Projects,
Budgets

39. Long range plan Point of
distinction
Short range plan
Covers many years & affects
many departments of an
organization
Meaning Covers less than one year and is
more specific & detail
5 yrs or more Time 2 to 5 Years
Organizations linkage with
external factors
Primary focus Linkage with various parts of an
organization
Mission ,long term objectives and
strategies
Deals with Current operations of organization
Top management Prepared by Lower level executives

40. 40
 Proactive Planning:
◦ Managers challenge the future, anticipating future and get
ready with alternative routes for unseen circumstances
 Reactive Planning:
◦ Organizations react to events as and when they arise

41.  Objectives
 Budgets
 Policies
 Rules

42.  End results to be achieved
 They give direction to activities
 Require creative thinking

43.  Used as both- planning and control device
 May be expressed in units of finance etc

44.  It provides the framework with in which decisions
must be made by the management in different
area’s of organization.
 Policy is general guideline for decision making
 Policies are often made with out any study or
analysis.

45.  Rules are related to policies as they guide action.
 Rules are detailed and recorded instruction that a
specific action must or must not be done under the
given instance.
 Rule is different from policy, since it does not give
guide to thinking
 Eg: Procedure for handling mail may require a rule “all
letters received should be replied to on the same day”

46. Access to
network resource
will be granted
through a unique
user ID and
password
Passwords
will be 8
characters
long
Passwords
should include
one numeric
and one special
char

47.  It must contribute to accomplish purpose and
objectives
 It must be considered as parent exercise in all
processes
 It must spread through all management functions
 It must be efficient in such a manner to achieve
the designed objectives at the least cost.

48.  Decision making is the process of choosing
among alternatives
 Decision making is part of all the functions of the
management

50. 1. Individual and collective decision
2. Minor and major decision
3. Strategic and routine decision
4. Simple and complex decision
5. Temporary and permanent decision

51.  If the decisions are taken by a single person they
are called individual decisions.
 If the decisions are taken by a committee or group
of people they are called collective decisions
 Individual decisions are taken where the problem
is of routine nature
 Interdepartmental decisions are generally taken
by a group

52.  Minor decisions are those decisions relate to day
to day and periodical occurrences like purchase
of stationery, permission etc.
 Major decisions are those decisions generally
taken by top management like purchasing of new
machinery, employing new technology, hiring new
people.

53.  Strategic is similar to major decision like price
increase, discounts etc.
 Routine is similar to minor decision like day-to-day
operations of an organization

54.  Simple decision is one that is related to a problem
with few number of variables
 When there are many variables the decision
making will be complex

55.  Temporary decisions are to be taken depending
on situation till the solution is found , generally
taken by shop managers
 Permanent decisions are taken as on permanent
basis

56. Decisions in the Management Functions
56

57. Identifying
the Problem
Following Up Determining Alternative
Selecting
the Best Alternatives
Courses of Action
Analyzing
the Alternatives
Implementing
the Decision

58. The Decision-Making Process
58
Problem
Identification
“My salespeople
need new computers”
Identification of
Decision Criteria
Price
Weight
Warranty
Screen type
Reliability
Screen size
Allocation of
Weights to
Criteria
Reliability 10
Screen size 8
Warranty 5
Weight 5
Price 4
Screen type 3
Development of
Alternatives
Acer
Compaq
Gateway
HP
Micromedia
NEC
Sony
Toshiba
Implementation
of an Alternative
Gateway
Evaluation
of Decision
Effectiveness
Analysis of
Alternatives
R S W W P S
Acer 4 3 4 3 2 6
Compaq 3 4 5 2 6 7
Gateway 9 6 7 7 8 2
HP 3 5 6 7 6 5
Micromedia 2 2 3 4 5 4
NEC 3 4 5 6 7 2
Sony 7 5 6 4 2 8
Toshiba 3 4 5 6 7 3
Selection of an
Alternative
Acer
Compaq
Gateway
HP
Micromedia
NEC
Sony
Toshiba

59. 1. Incomplete information
2. Opposition by subordinates
3. Improper communication
4. Wrong timing
5. Government policies
6. External influence
7. Lack of support

60. Purpose
or Mission
Objectives
Strategies
Policies: Major or Minor
Procedures
Rules
Programs: Major or minor and supporting
Budgets: numberized programs

61. Example
 Planning for ”Going to Goa this Cristmas”
Major Steps :
 Hotel Booking
 Ticket Booking
 Reaching Goa
 Staying and enjoying there
 Coming Back
Minor Steps :
 Take a taxi to reach station / airport
 Have dinner on beach
 Take photos