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MG6851- PRINCIPLES

OF MANAGEMENT
UNIT-2
PLANNING
SYLLABUS
Nature and purpose of planning – planning process – types
of planning – objectives – setting objectives – policies –
Planning premises – Strategic Management – Planning
Tools and Techniques – Decision making steps and
process.

09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, KRCE 2


PLANNING
Planning is a process that involves the setting of the organization’s goals,
establishing strategies for accomplishing those goals and developing plans of
actions that managers intend to use to achieve said organizational goals.

Planning is important because: it provides direction to all of the


organization’s human resource’ managers and employees, reduced
uncertainty and minimizes wastes of time, effort and resources.

LECTURE PPT BY MS.M.A.MADHUMATHI., AP/EEE, KRCE 3 09/12/2020


PLANNING GOALS

Planning goals are the targets that management desires to reach


while PLANS are the means or actions which management intends to
use to achieve the said goals/targets.

LECTURE PPT BY MS.M.A.MADHUMATHI., AP/EEE, KRCE 4 09/12/2020


CLOSE RELATIONSHIP OF PLANNING &
CONTROLLING

New Plans

No undesirable
Controlling:
Controlling: deviations from
Implementation of comparing
comparing with
with
Planning
Planning plans
plans results
results

Corrective
Corrective action
action

LECTURE PPT BY MS.M.A.MADHUMATHI., AP/EEE, KRCE 5 09/12/2020


Why Do Managers Plan?
• Provides direction
• Reduces uncertainty
• Minimizes waste and redundancy
• Sets the standards for controlling

09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, 6


KRCE
Benefits of planning
• Goal Focus
• Minimize Uncertainty
• Improve efficiency
• Facilitates to Control
• Innovation and Creativity
• Better Coordination
• Ensures Commitment
• Aid to Business Success
• Brings Systematization
Lecture ppt by Ms.M.A.Madhumathi.,
09/12/2020 7
AP/EEE, KRCE
NATURE OF PLANNING
• Goal-oriented
• Primacy
• Pervasiveness
• Efficiency, economy and accuracy
• Co-ordination
• Limiting factors
• Flexibility
• Intellectual process
8
09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, KRCE
PURPOSE OF PLANNING
• To manage by objectives
• To offset uncertainty and change
• To secure economy in operation
• To help in co-ordination
• To make control effective
• To increase organizational effectiveness

Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, KRCE 9


09/12/2020
IMPORTANCE OF PLANNING
• Minimizes risk and uncertainty
• Leads to success
• Focuses attention on the organization’s goals
• Facilities control

Lecture ppt by Ms.M.A.Madhumathi.,


09/12/2020 10
AP/EEE, KRCE
1
Being aware of opportunities
2
Setting goals
3
Developing premises
4

5
Determining alternative courses
STEPS IN
6
Comparing alternatives in light of goals
PLANNING
Selecting a course
7
Formulating derivatives
8 Quantifying plans by budgeting
09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, KRCE 11
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Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, KRCE
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Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, KRCE
Types of Plans
• Missions or Purposes
• Objectives or Goals
• Strategies
• Policies
• Procedures
• Rules
• Programs
• Budgets Lecture ppt by Ms.M.A.Madhumathi.,
09/12/2020 14
AP/EEE, KRCE
Types of planning
- Long term
Strategic


- Higher level


- Long term - Specific
Tactical ●


- Intermediate
- Short term
- Directional
- Single use


- Policies - Methods
Standing ●
- Procedures - Rules
09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, 15
KRCE
Limitations of planning
• Expensive and time-consuming process.
• Has Constraints leading to delay in decision-making.
• Scope is limited in the cases of rapidly changing
organizations.
• No flexibility in unforeseen environmental changes.
• Unable to achieve accuracy.
• People’s unwillingness and frustrations.
Lecture ppt by Ms.M.A.Madhumathi.,
09/12/2020 16
AP/EEE, KRCE
Objectives
• Objectives were defined as the important ends toward which
organizational and individual activities are directed.
• End point of planning.
• Benchmark of measuring the efficiency and effectiveness of the
enterprise.

09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, 17


KRCE
Features of objectives
• Provides the clear direction for managerial effort.
• Realistic.
• Measurable.
• Must have social sanction.
• All objectives are interconnected and mutually
supportive.
• Short-range, medium range and long-range.
• Constructed into a hierarchy.
SMART
Lecture ppt by Ms.M.A.Madhumathi.,
09/12/2020 18
AP/EEE, KRCE
Advantages of objectives
• Encourages unified planning.
• Provide motivation to people in the organisation.
• Unproductive tasks can be avoided.
• Provides standards
• Serve to identify organization and other groups for
dependency.
• Developing administrative controls.
• Influence the purpose of organization, policies, personnel,
leadership as well as managerial controls.
09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, 19
KRCE
Should
The
Required
Objectives
performance
in
affects
to
to bbe
past eTo

the suareas
be identified
must
terms be
prosperity reviewed
of the
set
se tbe
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manage men t which directly
invarious
realistic have
rvival and
business
Process of setting objectives
C
o
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si
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nt
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it
h
o
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e
a
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h
Objectives must be set in clear-cut terms
er
There should be effective communication

09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, 20


KRCE
zenith

09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, KRCE 21


Multiplicity of objectives
Example: University’s / college’s objectives
 Attracting students of high quality
 Offering basic training in the liberal arts & science as well as in certain
professional fields
 Granting P.G degree to the qualified candidates
 Attracting highly regarded professors
 Discovering and organising new knowledge thro’ research
 Operating as a private school supported principally thro’ tuition and gifts
of alumni and friends

Lecture ppt by Ms.M.A.Madhumathi.,


09/12/2020 22
AP/EEE, KRCE
Decision Making
• Decision making is the coherent and rational process of
identifying a set of feasible alternatives and choosing a
course of action from them

09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, 23


KRCE
Types

• Programmed Decisions
• Non-programmed Decisions

09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, 24


KRCE
Factors Affecting Decision Making
Decisions are typically made under one of three conditions:
• Certainty
• Risk and
• Uncertainty

09/12/2020 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, 25


KRCE
DECISION MAKING

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Lecture ppt by Ms.M.A.Madhumathi., AP/EEE, KRCE
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KRCE
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KRCE