Planning

Planning is deciding in advance

what to do, how to do it, when to
do it and who is to do it
Koontz and ODonnell

3. Gap ?

4.How to bridge the gap?

Current status
1. Where we are now?

Future image
2. Where we want to go?

Features of planning:
Goal

oriented
Primary function
Mental exercise
Continuous process
Involves choice
Forward looking
Flexible
All pervasive
Integrated process
Includes efficiency and effectiveness dimensions

Steps in planning
process
Establishing

objectives
Developing premises
Evaluating alternatives and selection
Formulating derivative plans
Securing co-operation and participation
Providing for follow-up

Limitations

Rigidity
Rigidity
Costly
Costlyand
andtime
timeconsuming
consuming
Employee
Employeeresistance
resistance
False
Falsesense
senseof
ofsecurity
security
Managerial
Managerialdeficiencies
deficiencies
Planning
Planningprevents
preventsinnovation
innovation
External
Externallimitation
limitation

Effective planning
1. Climate
2. Top management support
3. Participation
4. Communication
5. Integration
6. Monitoring

Forms of planning

Short range
Long range
Operational
Strategic
Tactical
Formal
Informal
Functional

Types of plans

Standing plans
Objectives
Policies & strategies
Procedures
Methods
Rules

Single use plans

Programmes
Schedules
Projects
Budgets

Standing plans
Developed
Developed for
for activities
activities that
that recur
recur
regularly
regularly
over
over aa period
period of
of time
time

Single use plans

Developed
Developed to
to carry
carry out
out aa course
course of
of
action
action that
that isis not
not likely
likely to
to be
be
repeated
repeated in
in the
the future
future

Policies

A
Abasic
basic statement
statement that
that guides
guides
decision-making.
decision-making.
It
It provides
provides aa standing
standing answer
answer
to
to recurring
recurring questions.
questions.

Procedures
Describe what action steps
need to be taken in a
chronological sequence,
in a specific situation

Methods

Indicate
Indicate the
the simplified
simplified and
and standardised
standardised
Techniques
Techniques to
to be
be
Organization
employed
(to find out best way of
employed
203 (to find out best way of
doing
doing aa piece
piece of
of work)
work) to
to carry
carry out
out
(one
(one step
step of
of aa procedure)
procedure) aa task
task

Rules

Describes
Describes exactly
exactly how
how specific
specific
activities
activities are
are to
to be
be carried
carried out,
out,
leaving
leaving no
no scope
scope for
for individual
individual
discretion
discretion and
and judgment
judgment..

Programmes
An
An aggregate
aggregate of
of several
several related
related
action
action plans
plans (goals,
(goals, procedures,
procedures,
rules
rules etc.
etc. )) that
that have
have been
been
designed
designed to
to accomplish
accomplish aa mission
mission
within
within aa specified
specified time
time period.
period.

Schedule

It
It isis aa kind
kind of
of time
timetable
tableof
of work,
work,
specifying
specifying the
the date
date
when
when aa task
taskisis to
to begin
begin and
and the
the
time
time needed
needed to
to complete
completeeach
eachtask
task

Projects

It
It is
is aa small
small programme
programme

Budgets

A
Anumerised
numerised programme
programme
designed
designed primarily
primarily to
to allocate
allocate
the
the resources
resources of
of an
an organisation
organisation

Policies, procedures, methods and rules : Distinguished

Point of
distinction

Policies

Definition

Guides to
decision making

Nature

Indicate the
broad area
of action

Relationship Provide standing

With time answer to
recurring
Sequence
questions.
Can be applied
under different
situations.

procedures
Guides to
action
More detailed.
specify a route
through the
broad area of
policy
Time sequence
Is indicated

methods
One best way
of doing things
It is one step
of a procedure.
Limited in scope

rules
Govern
behaviour
Define what
should and
should not be
done

Concerned with
Specify no
a given piece
time sequence
of work to be
finished by an
individual within
a specific time
period

Formulation

Discretion

Example

Generally
formulated
at top

Require
judgment
And
interpretation

We encourage
promotion
from within

Formulated at
relatively low
level of
management.
They are derived
from policies

Methods are
formulated after
careful research,
Experimentation
and analysis

Rules are
formulated by
managers after
finding out
what is good
or what is bad
for an employee/
organisation

Tell the
subordinate exactly
what to do in a
particular situation,
used only when
we do not want
people to use
discretion

Tell the
subordinate
how one step
of a procedure
should be
formulated,used
only when we do
not want people
to use discretion

Require action
or non action in
a rigid or
inflexible manner
There is no room
for discretion
or interpretation

What is the best

way to measure
the employees
skill or
competence

No
discrimination
on the basis
of caste, sex
or religion

Promotion
procedure may
indicate the basis
for promotion in
the form of
qualification,
experience, etc

Strategy vs policy

Deals with strategic decisions that

govern the long term health of an
enterprise. It is a comprehensive
plan of action designed to meet
certain specific goals
It is a means of putting a policy into
effect within certain time limits.
Deals with those decisions which
have not been encountered before
in quite the same form, for which no
predetermined and explicit set or
ordered responses exist in the
organisation and which are
important in terms of the resources
committed or the precedents st.
Deals with crucial decisions whose
implementation requires constant
attention of top management

It offers guidelines for

managers to take appropriate
decisions
It is a general course of action
with no defined time limits

It is a guide to action in areas

of repetitive activity

Once policy decisions are

formulated, these these can be
delegated and implemented
by others independently

Characteristics of an effective planning

Related to objectives
Easy to understand
Precise
Stable as well as flexible
Based on facts
Number
Through knowledge of internal
as well as external factors
Just, fair, and equitable
Reasonable