The document outlines the importance, nature, principles, and types of planning in organizational management. It emphasizes that planning is goal-oriented, a continuous process, and essential for achieving objectives efficiently while adapting to changes. The planning process involves identifying situations, setting objectives, evaluating and selecting alternatives, and implementing supporting plans.

1. Unit III – Planning and control
August 20 Anju George , SGCON, Parumala 1
Anju George ,
Associate Professor,
SGCON, Parumala

2. PLANNING

3. Definition
• Planning is a process of determining the objectives
of administrative effort and devising the means
calculated to achieve them.
(Miller)
August 20 Anju George , SGCON, Parumala 3

4. Importance of planning
• It focuses on the objectives or goals of the organization
and their achievement.
• It helps in the selection of the best possible course of
action.
• It helps in controlling the activities by providing
measures against which performance can be evaluated.
• It helps in coordinating the operations of organizations.

5. Nature of planning
1. Planning is goal-oriented.
Planning is made to achieve desired objective of business. The goals
established should be of general acceptance otherwise individual efforts
& energies will go misguided and misdirected.
2. Planning is looking ahead.
Planning is done for future. It requires peeping in future, analyzing it and
predicting it.
3. Planning is an intellectual process.
Planning is a mental exercise involving creative thinking, sound judgment
and imagination.
August 20 Anju George , SGCON, Parumala 5

6. August 20 Anju George , SGCON, Parumala 6
4. Planning involves choice & decision making.
Planning essentially involves choice among various alternatives. If
there is only one possible course of action, there is no need planning
because there is no choice.
5. Planning is the primary function of management.
Planning lays foundation for other functions of management. It serves
as a guide for organizing, staffing, directing and controlling.
6. Planning is a Continuous Process.
Planning is a never ending function due to the dynamic business
environment. Plans are also prepared for specific period of time and at the
end of that period, plans are subjected to revaluation and review in the
light of new requirements and changing conditions.

7. August 20 Anju George , SGCON, Parumala 7
7. Planning is all Pervasive.
It is required at all levels of management and in all departments
8. Planning is designed for efficiency.
Planning leads to accomplishment of objectives at the minimum possible
cost. It avoids wastage of resources and ensures adequate and optimum
utilization of resources.
9. Planning is Flexible
Planning is done for the future. Since future is unpredictable, planning
must provide enough room to cope with the changes in customer's
demand, competition, govt. policies etc.

8. Principles of planning
1. Contribution to objectives
Every major and derivative plan should contribute positively towards the
accomplishment of the enterprise objectives.
2. Efficiency of plans
The efficiency of plans is measured by the amount it contributes to the
desired objectives minus the costs and undesirable consequences involved
in the formulation and operation of plans.
3. Primacy of planning
This principle emphasize that a manager can hardly perform other
managerial functions without a road map of plans to guide him.
August 20 Anju George , SGCON, Parumala 8

9. August 20 Anju George , SGCON, Parumala 9
4. Planning premises
A co-ordinated structure of plans can be developed only when managers
throughout the organization understand and agree to utilize consistent
planning premises.
5. Policy framework
A consistent and effective framework of plans can be developed only if basic
policies that guide decisions are expressed clearly and understood by
manager who prepares them.
6. Timing
When the plans are structured in timeframe to provide an appropriate
supporting programmes, the plans can contribute effectively and efficiently
towards the goal attainment.

10. August 20 Anju George , SGCON, Parumala 10
7. Alternatives
In choosing from alternatives, the planner should focus on those
factors that are critical to the attainment of desired goal. This will help in
selecting the most favorable alternative,
8. Commitment
Logical planning should cover a time period that can ensure that the
commitment involved in a decision can be fulfilled. This is necessary to
make sure that commitments are met.
9. Flexibility
This principle deals with the ability to change what is built into the plans
and reduce the risk of loss due to unexpected events.

11. August 20 Anju George , SGCON, Parumala 11
10. Navigational change
The manager should periodically check events and expectations to redraw
plans to achieve goal.
11. Competitive strategies
Manager must take into account the plans of competitors and what they
would do in a situation.

12. Mission of planning
1. It forces the members of the organization not to get lost in the
maze of routine activities and lose sight in the broad objectives for
which the organization was established.
2. With the help of planning, an organization can predict future
events and make due provision for them.
3. Planning saves an organization from drifting and avoid aimless
activities.
4. Innovation and creativity are pre-requisites to continuous growth
and steady prosperity of the organization.
Contn

13. 5. Sound planning interrelates all the activities and
resources of an organization.
6. Planned target serve as the criteria for the
evaluation of different alternatives so that the best
course of action is chosen.
7. Planning helps in delegation of authority to lower
level of management.

14. Objectives of planning
• Planning leads to success in achieving goals and objectives
• It gives meaning to work
• It helps in effective utilization of resources
• It helps to cope in situational crisis
• It is needed for effective control
• Planning is based on past and future and thus helps in reducing the
element of change and to discover need for change.

15. Planning process
Identification of situation
Formulation/setting of objectives
Developing premises/ conditions
Identification of alternatives
Evaluation of alternatives
Selection of best possible alternative
Formulation of supporting plans
Defining various activities and preparation of action plans
Communication of plans and securing co-operation
Follow up and review
August 20 Anju George , SGCON, Parumala 15

16. August 20 Anju George , SGCON, Parumala 16
• Gathering information relevant and related to the possible opportunities is the
primary step before carrying out the actual planning.
• Based on the availability of opportunities and resources, the objectives are
framed. objectives specify the results expected, indicate the end point of what is
to be done and help the staff to understand what is expected from them.
2. Formulation/setting of objectives
1. Identification of situation

17. 3.Developing premises/ conditions
August 20 Anju George , SGCON, Parumala 17
• These are the external or internal conditions under which planning
activities will be undertaken. The nature of planning premises differs at
different levels of planning. At the top level, it is mostly externally focused,
as one moves down to the organizational hierarchy internal conditions are
more focused.
• One has to perform a preliminary examination to the maximum
alternatives available.
4. Identification of alternatives

18. 5. Evaluation of alternatives
August 20 Anju George , SGCON, Parumala 18
• After seeking out alternative course and examining their strong and weak
points, the next step is evaluating the alternatives by weighing them in the
light of premises and goals.
• This is the point at which the plan is adopted the real point of decision
making. The most appropriate alternative is taken up.
6. Selection of best possible alternative

19. 7. Formulation of supporting plans
August 20 Anju George , SGCON, Parumala 19
• After selecting the best plan , various derivative plans such as policies,
procedures, schedules, methods, budgets etc are put into practice. These
supportive plans are formulated for various units, sections and activities in
the light of the master plan to help the organization to achieve its objectives
in a unified manner.
• Time plans are prepared by using PERT and CPM which are important to
minimize time and cost and to ensure completion of project.
8. Defining various activities and preparation of action plans

20. 9. Communication of plans and securing co-operation
August 20 Anju George , SGCON, Parumala 20
• The supportive plans should be properly communicated to the lower levels
in the organization. Effective participation of all the staff should be ensured.
• After the plan has been put into practice, it is essential to follow it up so as
to remove difficulties in its implementation. If needed the plan has to be
revised .
10. Follow up and review

21. Types of planning
• Long term
• Short term
Time period involved
• Proactive
• Reactive
Approach used
• Formal
• Informal
Degree of formalization
• Strategic
• Operational
Importance of content
matter
• Business
• Functional
Coverage of activities
August 20 Anju George , SGCON, Parumala 21

22. Long term planning
• Involves more than 1 year
period, usually 3-5 years
• The planning of functional areas
is long term
Short term planning
• Also known as tactile planning,
covers 1 year.
• Usually the questions are: ‘why is
the action required’ , ‘what action is
to be taken’ , ‘what will the action
accomplish’ , ‘what objectives and
conditions are met?’
• Questions are answers in this type of
planning.
August 20 Anju George , SGCON, Parumala 22

23. Proactive planning
• Planning in anticipation
• Course of action is designed
considering the changes
expected in the relevant
environment.
Reactive planning
• Planning is done after the
environmental changes
have taken place.
August 20 Anju George , SGCON, Parumala 23

24. Formal planning
• This is based on systematic
evaluation of environmental
variables and is in the form
of well structured and
systematic process.
Informal planning
• This is based on managers’
own experiences and
intuitions.
August 20 Anju George , SGCON, Parumala 24

25. Strategic planning
• Long term planning is of strategic
in nature.
• Usually involves more than a
year period extending to 20
years or so.
• It sets the future direction of the
organization to meet a particular
aim or set of aims, taking into
consideration the external and
internal factors.
Operational planning
• Short term planning
• Usually covers one year or so
• It confines itself to devise actions
to proceed in that direction
August 20 Anju George , SGCON, Parumala 25

26. Business planning
• Denotes planning activities
at the top level.
• Also known as corporate
planning/management
planning.
Functional planning
• It is segmental and is taken
for each major function of
the organization for eg:
personal management,
finance etc.
August 20 Anju George , SGCON, Parumala 26