Kanika Girdhani

Vivekanand Education Societys

Institute of Management Studies & Research

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Planning Defined
A systematic process of reaching a desired state by
establishing goals and formulating strategies to
achieve them
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Planning
Planning is an exercise that determines in advance:
a) The ends. (What is to be done or achieved?)
b) The means. (How it is to be done?)
c) The timing. (When to do what?)
d) The responsibility and accountability. (Who should do
What?)
e) The reason. (Why it should be done?)
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Characteristics of Planning
Planning is a primary function of management.
Planning is an intellectual process: it involves creative
thinking, imagination, foresight, evaluation, sound
judgment and decision-making about different activities
that are required to be performed to create a desired future
state.
Planning is Goal Oriented.




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Characteristics of Planning
Planning is future oriented and involves forecasting.
Planning needs to be dynamic (flexible) in nature:
planning process should provide the likely action plans for
different scenarios i.e. optimistic, realistic and pessimistic
Planning and control are inseparable.

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Importance of Planning
Direction setting.
A holistic picture of consequences.
No haphazard actions.
Economy in operations.
Minimizing risk and uncertainties.
Estimation of the needed resources.
Better decision-making.
Provision for control.
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Disadvantages of Planning
Lack of accurate information.
Time-consuming process.
Expensive.
Inflexibility.
Environmental Constraints.


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Types of Plans


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Mission or Purpose
Mission or Purpose of an organization is its basic
function.
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Objectives
Objective is the ultimate goal towards which the activities
of the organization are directed at.
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Strategies
Strategy is the determination of the basic long term
objectives of an enterprise and the adoption of courses of
action and allocation of resources necessary to achieve
these goals.
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Policies
Policy is a general statement or understandings that guide
or channel thinking in decision making.
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Procedures
Procedures are plans that establish a required method of
handling future activities.
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Rules
Rules spell out specific required actions or non actions
allowing no discretion
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Programs
A complex of goals, policies, procedures, rules, task ,
assignments, steps to be taken, resources to be employed
and other elements necessary to carry out a given course
of action.
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Budgets
Budget is a statement of expected results expressed in
numerical terms. It is a quantitative expression of a plan.
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Being aware of
opportunities
Setting objectives or
goals
Considering planning
premises
Identifying
alternatives
Comparing
alternatives in light
of goals
Choosing an
alternative
Formulating
supporting plans
Quantifying plans by
making budgets
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Steps in Planning
Organizational Objectives
Serve as a foundation upon which all subsequent planning
efforts are built.

Properly developed organizational objective reflect the
purpose of the organization.

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Working with Organizational Objectives
An organization should set three types of objectives:

1. Short term objectives
2. Intermediate term objectives
3. Long term objectives
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Management by Objectives (MBO)
Management by objectives (MBO) is a systematic and
organized approach that allows management to focus on
achievable goals and to attain the best possible results
from available resources.
It aims to increase organizational performance by aligning
goals and subordinate objectives throughout the
organization.

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Organizational objectives
reviewed
Worker objective set
Progress monitored
Performance
evaluated
Rewards given
MBO for next normal
operating period begins
MBO Process
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MBO Advantages
MBO programs continually emphasize what should be
done in an organization to achieve organizational goals.

MBO process secures employee commitment to attain
organizational goals.

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MBO Disadvantages
The development of objectives can be time consuming,
leaving both managers and employees less time in which
to do their actual work.

The elaborate written goals, careful communication of
goals, and detailed performance evaluation required in an
MBO program increase the volume of paperwork in an
organization.


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Classification of Plan
Types of Plans
Breadth Time Frame Frequency of Use
Strategic
Tactical
Operational
Long- term
Medium - term
Short - term
Single use
Standing
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Plan your Work
Work your Plan!
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