Planning involves establishing goals and courses of action to achieve them. It requires decision making by choosing actions from alternatives. There are different types of planning including corporate, strategic, and operational. Corporate planning sets overall goals, strategies, and policies for an enterprise. Strategic planning establishes objectives and positions the organization. Operational planning converts strategic plans into specific action plans. Effective planning requires consciousness, initiative, communication, participation, and emphasis on both long and short term goals.

1. Planning Planning is the process of establishing goals and a suitable course of action to achieve these goals. It requires decision making, that is, choosing future courses of action from alternatives Er.Sartaj Singh Bajwa

2. Characteristics Of Planning Planning is an intellectual process Primacy of planning ( all other functions come later on after planning ) Focus on objectives Leads to efficiency and economical use Flexibility Realistic Planning is continuous Er.Sartaj Singh Bajwa

3. Types Of Planning Corporate Planning Strategic Planning Operational Planning Er.Sartaj Singh Bajwa

4. Corporate Planning It includes the setting of objectives , organizing the work, people & systems to enable those objectives to be attained , motivating through the planning process , measuring performance and controlling the progress of the plan . And developing people through better decision making , clear objectives & more involvement When planning is done for the whole enterprise it is known as corporate planning It lays down the basic goals , strategies and policies for the enterprise as a whole It is done at the top level management Corporate planning is divided in two parts : a – Strategic planning or long term planning b – Tactical planning or short term planning Er.Sartaj Singh Bajwa

5. Strategic Planning Strategic planning is the process of planning as to how to achieve organizational objectives with the available resources Planning that apply to the entire organization, establishes the organization’s overall objectives and seek to positions an organization in terms of its environment is called strategic planning It takes place at the highest level of the organization Need for Strategic Planning : a – Impact of external factors b – Proper use of resources c – Ensuring success Er.Sartaj Singh Bajwa

6. Operational Planning It involves the conversion of strategic plans into detailed and specific action plans Operational planning is generally done for one year or so It is done at the middle & lower level of management It is also known as tactical or shirt term planning Eg sudden changes in prices of products due to price changes in raw material or other factors Er.Sartaj Singh Bajwa

7. Planning-Timeframe Long-Range Planning Intermediate Planning Short-Range Planning Er.Sartaj Singh Bajwa

8. Planning Process 1 – Recognizing the need for action(knowing about the business opportunity &the need for taking action , knowing about the pros and cons) 2 – Gathering necessary information 3 – Laying down objectives 4 – Determining planning premises Forecasts will be made for the following : a – Expectation of demand b – Likely volume of production c – Anticipation of prices d – Supply of labour , raw material e – Economic policies of the goverment Er.Sartaj Singh Bajwa

9. CONTD. 5 – Examining alternative course of action 6 – Evaluation of action patterns 7 – Determining secondary plans ( along with the main plans there must be supportive plans ) 8 – Implementation of Plans Er.Sartaj Singh Bajwa

10. Barriers to Planning Inappropriate Goals Improper Reward System Complex Environment Resistance to Change Constraints Information Deficiency Er.Sartaj Singh Bajwa

11. Making Planning Effective Factors essential for making planning effective : Consciousness for planning(cooperation by all for making the plan effective ) Initiative at top level Proper communication Participation in planning Emphasis on long term and short term planning Er.Sartaj Singh Bajwa