Planning involves determining objectives and strategies to achieve goals. It provides direction, encourages innovation, guides decision making, and facilitates control. Planning is important for organizations as it identifies courses of action, efficiently utilizes resources, and determines opportunities. There are different types of plans including strategic plans and operational plans. Strategic plans are long-term plans made by top management to determine overall objectives and how to achieve them, while operational plans direct day-to-day operations to accomplish strategic objectives. Barriers to effective planning include lack of commitment, unclear objectives, failure to understand scope, and lack of management support. These barriers can be overcome through organized, clear, and participatory planning.

1. TOPIC 2
PLANNING

2. DEFINITION
• The processes of determining in advance
what should be accomplished and how it
should be realized (MONDY)
• A process that begins with objectives,
defined strategies, policies & detailed plan
in order to achieve them
• The process of
setting goals, developing strategies, and
outlining tasks and schedules to accomplish
the goals.

3. OBJECTIVE OF PLANNING
• To provide sense of direction
• To encourage innovation & creativity
• To guide decision making
• To facilitate control

4. THE IMPORTANCE OF PLANNING IN
ORGNIZATION
• Enables us to identify the course of action
by setting objectives
• Through plans, resources are efficiently &
effectively utilized thus resulting in saving
• Planning helps to determine what
opportunities there are to exploit

5. TYPES OF PLANS
GOAL
STRATEGIC
PLANS
OPERATIONAL
PLANS

6. STRATEGIC PLANS
• Strategic plans are long-term planning done
by the top management to determine the
overall organizational purposes &
objectives & how they are to be achieved.

7. STRATEGIC PLANS
STRATEGIC
PLANS
CORPORATE
STRATEGY
BUSINESS
STRATEGY
FUNCTIONAL
STRATEGY

8. STRATEGIC PLANS
LEVEL SPECIFY PARTICIPANTS TIME HORIZON
CORPORATE
STRATEGY
BROAD • BOARD OF
DIRECTORS
•TOP LEVEL
EXECUTIVES
5- 10 YEARS
BUSINESS STRATEGY MORE SPECIFIC
THAN THE
CORPORATE
STRATEGY
• TOP LEVEL
EXECUTIVES
• MANAGERS
WITHIN THE
BUSINESS UNIT
1- 5 YEARS
FUNCTIONAL
STRATEGY
VERY SPECIFIC • MIDDLE LEVEL
MANAGERS
• LOWER LEVEL
MANAGERS
< 1 YEARS

9. OPERATIONAL PLANS
• Done at all levels & involves directing the
organization’s day-to-day operation to
achieve overall strategic objectives

10. OPERATIONAL PLANS
OPERATIONAL
PLANS
SINGLE USE
PLANS
PROGRAMS
PROJECT
BUDGET
STANDING
PLANS
POLICIES
PROCEDURE
RULES

11. BARRIERS TO EFFECTIVE PLANNING
• Lack of commitment to planning
• Lack of meaningful objectives of goals
• Failure to see the scope of plans
• Rely too much on experience
• Lack of top management support
• Lack of clear delegation of authority

12. OVERCOMING BARRIERS
• Planning must not be left to chance
• Planning must be organized
• Planning must be clear & definite
• Managers must participate in planning