CHAPTER 2

Planning
definition of planning
Planning defined
~The process of outlining the activities that are
necessary to achieve the goals of the organization.
A plan
~A blueprint for action that prescribes the activities
necessary for an organization to realize their goals.
Purpose of planning
~The purpose of planning is simple- to ensure that the
organization is both effective and efficient in its
activities.

The Importance of Planning


The purpose of planning is simple to ensure that the
organization is both effective and efficient in its activities.
~Helps to determine what are companys opportunities
~Planning enables company to identify the course of
action
~Without planning much will be left out
~Through plan, resources are efficiently and effectively
utilized, resulting in saving resources.
~When we plan we know what are we really expected and
becoming more meaningful.
~It helps to achieve goals and reduces overlapping activities




~Planning can provide effective utilization of
available facilities.
~Planning helps managers to become confident
and aggressive leader can cope with all the
problems.
~Planning guides management thinking to future
desirable activities and what must be done to
attain goals.


Planning as a Linking Mechanism






Provide a clear, engaging sense of direction
and specify what is to be accomplished

GOALS

Planning as a Linking Mechanism






Provide a clear, Monitor the extent to which
engaging sense of goals have been achieved
direction and specify and ensure the
what is to be organization is moving
accomplished. In the right direction.
GOALS
CONTROL

Planning as a Linking Mechanism








Relationship among goals , plans and controls
PLANS
GOALS CONTROL
Benefits of Planning

Better coordination

Focus on Forward Thinking

Participatory Work Environment

More Effective Control System

Strategy / Strategic Planning

A comprehensive plan for accomplishing an
organization goals and objectives. [strategy]

Strategic planning is the process by which an
organization makes decisions and takes
actions that affect its long-run performance .
Strategy/ Strategic Planning

A strategic plan is the output of the strategic
planning process
Strategic plans define both the markets in
which the firm competes and the ways in
which it competes in those market.
The resulting comprehensive plan that
provides overall direction for the organization

Level of Planning
In general , most organization engage in both :

1. Strategic Planning


2. Operational Planning
Planning in the Hierarchy of
Organizations



Top manager
Middle manager
First line manager


The Purpose of Strategic Planning


To move the organization from
where it is to where it wants to
be.

Levels of Strategic Planning : Planning
Focus
corporate
what business should
we begin?

business
how do we compete in our existing lines
of business?

functional
how do we implement our
corporate and business strategies?


Levels of Strategic Planning :
PARTICIPANTS
corporate
Board of
directors
and top level
executives.

business
Top level
executives
and
managers
within the
business
unit

functional
Middle level
managers
and lower
level/ first
level
managers

Type of Organizational/Operational
Plan

Single-Use plan
1.Program
Single-used plan for large set of activities
2.Project
Single-used plan for less scope and complexity than pro
gram. May be part of broad program OR a self contained single-used
plan.
3.Budget
Statement of financial resources set aside for a specific activities in
a given period of time.
Type of Organizational/Operational
Plan

Standing Plan
It is develop for activities that recur regularly over a period of time. There are 3
types :
1.Policies
2.Standard operating procedure
3.Rules and Regulations
Type of Organizational/Operational
Plan

Standing Plan
1.Policies
Standing plan that specifies the organizations general
response to a designated problem OR situation
2.Standard operating procedure
Standing plan that outlines the steps to be followed in
a particular circumstances
3.Rules and regulations
Standing plan that describe exactly how activities are
to be carried out