Planning involves setting goals and determining how to achieve them. It occurs at three levels: strategic, tactical, and operational. The planning process involves analyzing opportunities and threats, determining objectives, evaluating alternatives, selecting a course of action, and reviewing results. Tools used in planning include forecasting, network techniques, flow charts, Gantt charts, break-even analysis, and linear programming. Effective planning requires clear goals, comprehensive information, flexibility to change plans, and ensuring benefits outweigh costs. Decision making is selecting the best alternative from multiple options by identifying problems, finding solutions, evaluating alternatives, choosing an option, implementing it, and reviewing results. Decisions can be programmed or non-programmed, routine or basic, individual

1. PLANNING
Planning is predetermination of objectives
and future course of action to be taken to
achieve define goal effectively and efficiently.
It is the blue print of action and operation.
According to Ricky W. Griffin
“Planning is setting an organization’s goals
and deciding how best to achieve them.”

2. LEVELS OF PLANNING
 Strategic plan/Cooperate plan:-
It is prepared by top level management by
considering long term objective of the firm.
 Tactical plan:-
It is prepared by middle level
management for implementing corporate.
 Operational plan:-
This plan is consistent with tactical
plan and is prepared by first line
management.

3. PROCESS/STEPS OF
PLANNING
1. Analyze the opportunity and threats
While planning, planner should
be aware of strength, weakness,
opportunities threats at
organization.
2. Action TSoe td geotael plan rmine activites in exact to what be
an
performed. organization Person aims responsible at achieving for
or set
performing well defined the objectives activites which
and
methods provides of direction doing the to plan. activites.
Goals
must be realistic, acceptable etc.
Cost, Premises profit are and planning judgment assumption
are
3. important about Develop the premises environment for selecting a where a
plans
course is to be of carried action.
out. Planner should
consider various factor which are
control and non control premises.
Particular objectives can be achieve
through a number of way all the
alternative must be determine. All
the alternative should be studied and
analyzed.
Planning is continuous function and last
till the organization is in existence. It is
necessary to know what either the
planning as been properly functioned
4. Determine and evaluate alternatives
5. Select the course of action
6. Formulate action plane
7. Review

4. TOOLS OF PLANNING
1. Forecasting
It is the process of anticipating the
future event, happening and
probable condition and situation
that may significantly affect the
business activities.
2. Network technique
It focuses on the activities and time
required to compete the plan. It also help
to take timely corrective action for the
planer.
3. Flow chart It provides an ideas to identify the task
It It provide indicate the the mathematical level of activities tool in or which
model
used the total for optimum cost equals combination to the total of revenue
scarce
recourses and activities.
Critical path method (CPM) and
program evaluation review technique
(PERT) network techniques are mostly
used by the planner to plan and control
the time and cost of the project.
component and work simplification
process. It help planner to analyze various
activities and there relevant link in proper
sequence
4. Gantt chart
5. Break even analysis
6. Linear programming

6. Pitfalls of planning
Although, planning is the basic function of management &
facilitates other management function.
It has following pitfalls.
• Inflexibility:
Lack of control:
Based Delay Difficult in on to action:
certain change assumption:
with the changing environment:
Expensive process:
Managers Planning Plans Basically, are is formulated are thinking managers likely to before on maintain may the doing basis have an of
anything.
little
strict
planning is the costly process. It requires
compliance knowledge & with less pre-control determined over external plans. Planning
activities &
restricts plans.
the individuals freedom, initiatives & desire
for External creativity activities as it strictly involves addresses external to environment,
pre-determined
government policies & programs.
policies affect organizational plans . There
is often no way to bring external situations under the
disciple.
Thinking is slow process. So it will likely to delay in
action. Many managers may not have the sufficient time
certain assumption. Forecasting is not an exact
science. When premises do not remain the
same the overall plans of the organization is
affected
extra effort resources to collect information, forecast
etc. manager have to manage extra budgets besides
normal such investment.
exercises.
Planning is tough
job in a rapidly changing environment. Sometimes plan
may be outdated & relevant even before they are
implemented.

7. Improving Planning
• Setting clear goals:
Management Proper Planning Comprehensive:
understanding:
must information start at the system:
top level:
• Developing realistic plans:
 Effective planning requires objectives .
 Objectives should be understandable &
rational.
 The goal should be set out first & then
departmental & unit goals should be
consistent with the overall goals.
Planning All The members facts plan should & must figures concerned be cover set must at each the with be top available
&
plan
level
The to execution the top manager management must before have proper
rigorously
formulating
understanding.
plans
reviews performance.
It A naturally good plan simulates is the one planning
which is well
throughout understood by the those organization.
who are involved in
implementation.
 Plans are formulated at different times
by the management.
 Planning should be consistent for
proper education of planning.
Economical :
 planner must under take cost
benefit every aspect analysis of to business.
ensure that the
benefit of planning is more than the
cost involve in it.
Flexibility :
For achieving effective results , there
should always be some scope to make
necessary additional, deletions or
alternative in the plan, as per
requirement

8. Decision making is the process of selecting a
best course of action out of many available
alternatives .
Decision making is the process of solving
organizational problem by choosing a
specific course of action.

9. According to the writers
Ricky W. Griffin:
“Decision making is the act of
choosing one alternatives from among a set of
alternatives.”
George R Terry:
“Decision making is the
selection based on some criteria for two or
more possible alternatives.”

10. Types Of Decision
Programmed and non programmed decision
Programmed decision are taken for regular and repetitive problems whereas non
programmed decisions are needed for unique or new problems.
Routine and basic decision
Routine decision are related with day to day operations whereas basic decision is for
long run survival and growth of business.
Organizational and personal decision
organizational decisions are formal and official decisions whereas personal decisions
are informal or unofficial decisions.
Individual and group decision
In individual decisions single person is involved in decision making process whereas in
group decisions a group of persons are involved in decisions making process.
Policy and operational decision
policy decision is taken by considering the long form functioning
Whereas operating decision is taken by considering day to day functioning.

11. Process of decision making
5. Implement the selected alternative
2. Identify appropriate alternative course
1. Identification of problem
3. Evaluate each alternative course of
4. Selecting the best alternative course of
6. the result & follow up
The evaluated should be constantly monitored
and evaluated. This result must be compared
with standard performance in order to ascertain
if the new action is achieving the desire result.
Follow up system helps to find any weakness in
the decision and the manager can modify them
and remove the mistake as early as possible.
Mangers must also consider people’s resistance to
change while implementing change the decision
are made effectively through the action of people.
For this
of action
action
The decision maker has to identify all the
probable solution with the help of
available information. It is the vital that the
decision maker be capable of creative an
innovative thinking for identifying
alternatives.
Recognize the problem itself is half of its
solution The best .Manger alternative must is develop that which
a complete
understanding contributes maximum of the problem, to organizational
its causes
and goal. relationship In selecting to the other best factor. alternatives,
Wrong
definition three approaches of problem criteria leads to are the followed:-
wrong
solution
Selection of an alternative best solution for
the problem depends on proper evaluation
of each alternatives and compare with
each other to find out the best under the
prevailing condition
a) Effective communication of decision is
necessary.
b) a) Securing Experience,
employee acceptance is necessary in
b) the Experiment,
execution of the decision.
c) c) Correct timing of decision execution is
necessary Research to minimize and analysis
resistance of change.

12. DECISION MAKING CONDITION
Certainty
certainty is the condition under
which the manager is well
informed about possible
alternatives and their
outcomes.
Risk
In risk , manager have knowledge
about alternatives course of action
but outcomes are associated with
the probability estimates.
Uncertainty
In uncertainty ,
managers do not have full
knowledge of the problem
they face.