This document discusses planning concepts, the planning process, and types of plans. It defines planning as an analytical process that involves developing alternative courses of action and selecting the best option. The key steps in planning are recognizing the need for action, establishing objectives, building premises, identifying alternatives, evaluating alternatives, and choosing a course of action. Plans can be short-term, intermediate, or long-term and can include policies, programs, projects, budgets, or schedules. Planning allows for control and optimal resource utilization.
2. Concept
PLAN
1. A framework
2. Pre determined course of action
3. Tend to achieve a specified aim or goal
4. To plan is to chalk out
5. It is a statement of objectives
6. A blueprint for action
7. Structure
8. Guideline
9. Commitment to achieve specific results
3. PLANNING
1. An activity
2. Deciding in advance
3. Determination of future course of
action
4. Analytical process
5. Developing alternative courses of
action
6. Selection of the best course of action
among the alternatives
4. Definition
According to HENRY FAYOL
“THE PLAN OF ACTION IS AT THE SAME
TIME THE RESULTS ENVISAGED,THE TIME
OF ACTION TO BE FOLLOWED, THE
STAGES TO GO THROUGH AND THE
,METHODS TO USE”
6. CHARACTERISTICS OF
PLANNING
1.PRIMACY OF PLANNING
Planning preceeds all other managerial functions.Before
planning there is nothing to organise , direct and control.
PLANS
Objectives &
how to achieve
them
Necessary
for
What kind of
organisation structure
What kind of people are
required
How effectively to lead
people
By furnishing standards
of control
Which helps to know
Which affects the
kind of direction
In order to assure
success of plans
7. 2.CONTINUITY OF PLANNING
Planning is not just a stray function- it is a continuous
and never ending activity. A hierarchy of plans oiperate
in the organisation.
Top Executives
Middle Level Managers
First level/ line Managers
8. 3.FLEXIBILITY OF
PLANNING
Planning chalks out a future specific course of action
with the change in situation the specific course of action
needs to be changed.
PROFIT
PRESENT +5 +10 YEAR +15 +20 PRESENT
+5 +10 +15 +20
YEAR
9. 4. UNITY OF PLANNING
Developmental and sectional plans need to be
integrated .Maintainance of consistency or unity
of planning is an essential feature.
FINANCE
MANAGER
UNITY
IN
PLANNING
PRODUCTION
MANAGER
ACCOUNTANT
FOREMEN
DECIDES ON THE
FINANCIAL REQUIREMENTS
QUOTES THE
FUND REQUIREMENTS
10. 5. PRECISION OF
PLANNING
Planning must be precise in meeting scope and nature.Plan
has to be made with intelligent and meaningful terms.The
plan should pinpopint the explicit results.
INPUTS
MATERIALS
LABOUR
CAPITAL
TECHNOLOGY
INFORMATION
P
L
A
N
N
I
N
G
TRANSFORMATION
• Employees work
Activities
• Management activities
• Technology and operation
methods
R
E
S
U
L
T
S
OUTPUTS
• Products and
services
• Financial results
• Human resource
results
• Information results
SYSTEM
ENVIRONMENT
11. 6.PERVASIVENESS OF
PLANNING
Planning should have a broad coverage.It
should cover the entire enterprise, its segments
every levels of management.
CORPORATE / ORGANISATION LEVEL PLAN
DIVISION PLAN
DEPARTMENTAL PLAN
SECTIONAL PLAN
12. 7.Planning facilitates control
8.Planning attempts optimum utilisation of
physical as well as human resources.
9. Planning ensures cost effectiveness as
making and execution of a plan should be
economical.
10. According to DAVIDERWING- planning is a two
sided affair.Planners may only think of the
formal, economical,technical & physical
resources side when they develop a plan.but if
the human side is not attended properly ,
chances are that the planning will not be
successful.,
13. IMPORTANCE OF
PLANNING
To minimise uncertainity
Planning brings greater economy inm
operations
Planning makes effective control possible
MBO (Managing By Objectives)
15. RECOGNITION OF THE NEED FOR
ACTION
-planning requires realistic diagnosis of
likely opportunities
ESTABLISHING OBJECTIVES
-objectives specify the expected results
BUILDING THE PREMISES FOR
PLANNING
-assumptions about the future on the
basis of which plans will be formulated
IDENTIFYING ALTERNATIVES
COURSES OF ACTION
-mosrt reasonable and rewarding
alternative courses of action
17. PLANNING PREMISES
1. All managerial plans are based on certain
assumptions which may be called
PLANNING PREMISES.
2. Such premises constitute the ground on
which plans will stand
3. Planning premises are of the following
A. NON-CONTROLLABLE PREMISES
B. SEMI CONTROLLABLE PREMISES
C. CONTROLLABLE PREMISES
18. NON- CONTROLLABLE PREMISES
These are assumptions about the economy, the
political situations, the tastes of the people & other
such factors as cannot be influenced and
controlled through management policies and
decisions.
Even though management cannot do anything about
these factors,it must take them into account while
planning for expansion of the existing capacity.
If such a factor is not considered plans will remain mere
wishes.
19. SEMI CONTROLLABLE
PREMISES
These include assumptions of those factors which
are only partially controllable through suitable
management policies and decisions but cannot be
fully controlled by the management.
For e. g.
Industries demand
The firm’s share in the market
Union management relations
20. CONTROLLABLE
PREMISES
In chalking its plans the management has
also to decide what policies, procedures,
rules etc. it will be following over the future
period & how these are likely to affect the
plans of the enterprise.
These factors are called controllable premises
because these are subject to decisions of the
management.
21. TYPES OF PLANS
(ELEMENTS OF PLANNING)
MISSION/PURPOSE
Reasons for existance of
an organisation
OBJECTIVES
Something as an end
towards Which action/ desire
is directed
STRATEGIES
Broad overall plan for
Reaching a goal/a decisive
advantage
STANDING PLANS
(To be used over and over again)
POLICIES
PROCEDURES
METHODS
RULES
SINGLE USE PLANS
PROGRAMMES
PROJECTS
SCHEDULES
BUDGETS AND
STANDARDS
22. PLANNING IS A BROAD CONCEPT.ACKOFF DEFINES
PLANNING AS “ANTICIPATORY DECISION MAKING”
FACTOR TYPES TYPES
1. TIME SHORT RANGE :[1 YEAR
OR LESS]
INTERMEDIATE [1 YEAR OR
LESS]
LONG RANGE
[5-10 YRS OR MORE]
2. USE SINGLE USE PLANS
• PROGRAMMES
• PROJECTS
• SCHEDULES
• BUDGETS AND
STANDARDS
STANDING PLANS
• POLICIES
• PROCEDURES
• METHODS
• RULES
3.BREADTH/SCOPE STRATEGIC OPERATIONAL/TACTICAL
4. SPECIFICITY SPECIFIC DIRECTIONAL
23. 1. TIME FACTOR
Corporate Managers often make use of the following time frames in describing
planning periods:
DIFFERENT PLANNING PERIODS
TIME HORIZON EXAMPLES
SHORT RANGE
PLANNING
(1 YEAR ORLESS)
ANNUAL PLAN
Sales Volume
Production
Materials Requirement
Current Expenses Budget
INTERMEDIATE RANGE PLANNING
(between 1 year to 5 years)
DEVELOPMENT OF NEW PRODUCTS
DEVELOPMENT OF NEW PROCESSES
MODERNISATION OF FACILITIES
LONG RANGE PLANNING
(5 YEARS TO 10 YEARS OR MORE)
CONSTRUCTION OF METRO RAILWAYS
PROJECT
LONG RANGE PRODUCTION
WAREHOUSE FACILITIES