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Defining Planning
Of the five management functions planning, organizing, staffing, leading and controlling planning is the most fundamental. All other functions stem from planning. However, planning doesn't always get the attention that it deserves; when it does, many managers discover that the planning process isn't as easy as they thought it would be or that even the best-laid plans can go awry.
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Defining Planning
Before a manager can tackle any of the other functions, he or she must first devise a plan. A plan is a blueprint for goal achievement that specifies the necessary resource allocations, schedules, tasks, and other actions. A goal is a desired future state that the organization attempts to realize. Goals are important because an organization exists for a purpose, and goals define and state that purpose. Goals specify future ends; plans specify today's means.
Defining Planning
The word planning incorporates both ideas: It means determining the organization's goals and defining the means for achieving them. Planning allows managers the opportunity to adjust to the environment instead of merely reacting to it. Planning increases the possibility of survival in business by actively anticipating and managing the risks that may occur in the future. In short, planning is preparing for tomorrow, today. It's the activity that allows managers to determine what they want and how they will achieve it.
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Defining Planning
Planning provide direction and a unity of purpose for organizations, it also answers six basic questions in regard to any activity:
What needs to be accomplished? When is the deadline? Where will this be done? Who will be responsible for it? How will it get done? How much time, energy, and resources are required to accomplish this goal?
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Planning in Management
Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation. It involves setting objectives and developing appropriate courses of action to achieve these objectives.
Planning Definition
"Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen"
- Koontz and O'Donnel.
Importance of Planning
Planning provides directions Planning reduces the risks of uncertainty Planning reduces overlapping and wasteful activities Planning promotes innovative ideas Planning facilitates decision making Planning establishes standards for controlling.
Importance of Planning
Features of planning
Planning Planning Planning Planning Planning Planning Planning focuses on achieving objectives is a primary function of management is pervasive (spreading through) is continuous is futuristic involves decision making is a mental exercise
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Planning Process
Setting objectives: Objectives may be set for the entire organisation and each department or unit within the organisation. Developing premises: Planning is concerned with the future which is uncertain and every planner is using conjuncture about what might happen in future.
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Planning Process
Identifying alternative courses of action: Once objectives are set, assumptions are made. Then the next step would be to act upon them. Evaluating alternative courses: The next step is to weigh the pros and cons of each alternative.
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Planning Process
Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented. Implement the plan: This is concerned with putting the plan into action. Follow-up action: Monitoring the plans are equally important to ensure that objectives are achieved.
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Planning Principles
Planning is a dynamic process It is very essential for every organisation to achieve their ultimate goals There are certain principles which are essential to be followed so as to formulate a sound plan. They are only guidelines in the formulation and implementation of plans.
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Planning Principles
Principle of Contribution:
The purpose of planning is to ensure the effective and efficient achievement of corporate objectives The basic criteria for the formulation of plans are to achieve the ultimate Objectives of the company. The accomplishment of the objectives always depends on the soundness of plans and the adequate amount of contribution of company towards the same.
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Planning Principles
Principle of Sound and Consistent Premising:
Premises are the assumptions regarding the environmental forces like economic and market conditions, social, political, legal and cultural aspects, competitors actions, etc. These are prevalent during the period of the implementation of plans. Plans are made on the basis of premises accordingly, and the future of the company depends on the soundness of plans they make so as to face the state of premises.
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Planning Principles
Principle of Limiting factors:
The limiting factors are the lack of motivated employees, shortage of trained personnel, shortage of capital funds, government policy of price regulation, etc. The company requires to monitor all these factors and need to tackle the same in an efficient way so as to make a smooth way for the achievement of its ultimate objectives.
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Planning Principles
Principle of Commitment:
A commitment is required to carry-on the business that is established. The planning shall has to be in such a way that the product diversification should encompass the particular period during which entire investment on that product is recovered.
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Planning Principles
Principle of Coordinated Planning:
Long and short-range plans should be coordinated with one another to form an integrated plan, this is possible only when latter are derived from the former. Implementation of the long-range plan is regarded as contributing to the implementation of the short-range plan. Functional plans of the company too should contribute to all others plans i.e. implementation of one plan should contribute to all the other plans, this is possible only when all plans are consistent with one another and are viewed as parts of an integrated corporate plan.
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Planning Principles
Principle of Timing:
Number of major and minor plans of the organisation should be arranged in a systematic manner. The plans should be arranged in a time hierarchy, initiation and completion of those plans should be clearly determined.
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Planning Principles
Principle of Efficiency:
Cost of planning constitute human, physical and financial resources for their formulation and implementation as well. Minimizing the cost and achieving the efficient utilization of resources shall has to be the aim of the plans. Cost of plan formulation and implementation, in any case, should not exceed the organisations output's monetary value. Employee satisfaction and development, and social standing of the organisation are supposed to be considered while calculating the cost and benefits of plan.
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Planning Principles
Principle of Flexibility:
Plans are supposed to be flexible to favour the organisation to cope-up with the unexpected environments. It is always required to keep in mind that future will be different in actuality. Hence companies, therefore, require to prepare contingency plans which may be put into operation in response to the situations.
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Planning Principles
Principle of Navigational Change:
Since the environment is always not the same as predicted, plans should be reviewed periodically. This may require changes in strategies, objectives, policies and programmes of the organisation. The management should take all the necessary steps while reviewing the plans so that they efficiently achieve the ultimate goals of the organisation.
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Planning Principles
Principle of Acceptance:
Plans should be understood and accepted by the employees, since the successful implementation of plans requires the willingness and cooperative efforts from them. Communication also plays a crucial role in gaining the employee understanding and acceptance of the plans by removing their doubts and misunderstanding about the plans also their apprehensions and anxieties about consequences of plans for achievement of their personal goal.
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Importance of Planning
Planning may be broadly defined as a concept of executive action that embodies the skill of anticipating, influencing, and controlling the nature and direction of change.
- McFarland
Planning throws the searchlight of human wisdom, experience, and ingenuity into the darkness of the future.
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Importance of Planning
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Importance of Planning
Planning increases the organization's ability to
The future is generally uncertain and things are likely to change with the passage of time. The uncertainty is augmented with an increase in the time dimension. With such a rise in uncertainty there is generally a corresponding increase in the alternative courses of action from which a selection must be made. The planning activity provides a systematic approach to the consideration of such future uncertainties and eventualities and the planning of activities in terms of what is likely to happen.
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Importance of Planning
Planning helps crystallize objectives: The first step in planning is to fix objectives which will give direction to the activities to be performed. This step focuses attention on the results desired. A proper definition and integration of overall and departmental objectives would result in more coordinated inter-departmental activities and a greater chance of attaining the overall objectives.
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Importance of Planning
Planning ensures relatedness among decisions: A crystallization of objectives as mentioned above would lead to relatedness among the decisions which would otherwise have been random. Decisions of the managers are related to each other and ultimately towards the goals or objectives of the enterprise. Creativity and innovation of individuals is thus harnessed towards a more effective management of the company.
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Importance of Planning
Planning helps the company to remain more
Planning may suggest the addition of a new line of products, Changes in the methods of operation, A better identification of customer needs and segmentation and timely expansion of plant capacity All of which render the company better fitted to meet the inroads of competition.
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Importance of Planning
Adequate planning reduces unnecessary pressures
of immediacy:
If activities are not properly planned in anticipation of what is likely to happen, pressures will be exerted to achieve certain results immediately or a in a hurry. Thus adequate planning supplies orderliness and avoids unnecessary pressures.
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Importance of Planning
Planning reduces mistakes and oversights: Although mistakes cannot be entirely obviated, they can certainly be reduced through proper planning. Planning ensures a more productive use of the
organization's resources:
By avoiding wasted effort in terms of men, money and machinery, Adequate planning results in greater productivity through a better utilization of the resources available to the organization.
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Importance of Planning
Planning makes control easier: The crystallization of objectives and goals simplify and highlight the controls required. Planning enables the identification of future problems and makes it possible to provide for such contingencies. Planning can help the organization secure a better
position or standing:
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Importance of Planning
Planning enables the organization to progress in
Management, for example, may be interested in stability and moderate profits rather than huge profits and risk of instability. In terms of its objectives, the plan would ensure the actions are taken to achieve such objectives.
manager:
As his goals are made clearer, adequate planning would help the manager in deciding upon the most appropriate act.
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Types of Plans
Objectives:
Objectives are very basic to the organisation and they are defined as ends which the management seeks to achieve by its operations. They serve as a guide for overall business planning.
Strategy:
Strategy is a comprehensive plan for accomplishing an organisation objectives. This comprehensive plan will include three dimensions, a) Determining long term objectives, b) Adopting a particular course of action, and c) Allocating resources necessary to achieve the objective.
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Types of Plans
Policy: Procedure:
They are guides to managerial action and decisions in the implementation of strategy. Procedures are routine steps on how to carry out activities. Procedures are specified steps to be followed in particular circumstances. Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed.
Method:
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Types of Plans
Rule:
Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion. Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action. It is a plan which quantifies future facts and figures. It is a fundamental planning instrument in many organisations.
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Programme:
Budget:
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Coordination of goals
All the different levels of management should have plans that work together to accomplish the organization's purpose. The plans of the top-, middle-, and firstlevel managers of an organization should work together to achieve the main goal. All managers plan basically the same way, but the kinds of plans they develop and the amount of time they spend on planning vary.
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Coordination of goals
Top-level managers are concerned with longer time periods and with plans for larger organizational units. Their planning includes developing the mission for the organizational units, the organizational objective, and major policy areas. These goals are called strategic goals or objectives.
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Coordination of goals
Middle-level managers' planning responsibilities center on translating broad objectives of top-level management into more specific goals for work units. These goals are called tactical goals or objectives. First-level managers are involved in day-to-day plans, such as scheduling work hours, deciding what work will be done and by whom, and developing structures to reach these goals. These goals are called operational goals or objectives. If a first-level manager develops a set of plans that contradicts that of a middle-level manager, conflicts will result. Therefore, all managers must work together when planning their activities and the activities of others.
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Strategic plans
A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. Strategic planning begins with an organization's mission. Strategic plans look ahead over the next two, three, five, or even more years to move the organization from where it currently is to where it wants to be.
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Strategic plans
Requiring multilevel involvement, these plans demand harmony among all levels of management within the organization. Top-level management develops the directional objectives for the entire organization, while lower levels of management develop compatible objectives and plans to achieve them. Top management's strategic plan for the entire organization becomes the framework and sets dimensions for the lower level planning.
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Operational plans
The specific results expected from departments, work groups, and individuals are the operational goals. These goals are precise and measurable. Process 150 sales applications each week or Publish 20 books this quarter are examples of operational goals. An operational plan is one that a manager uses to accomplish his or her job responsibilities. Supervisors, team leaders, and facilitators develop operational plans to support tactical plans. Operational plans can be a single-use plan or an on-going plan.
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Operational plans
Single-use plans Apply to activities that do not recur or repeat. A one-time occurrence, such as a special sales program, is a single-use plan because it deals with the who, what, where, how, and how much of an activity. A budget is also a single-use plan because it predicts sources and amounts of income and how much they are used for a specific project.
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Operational plans
Continuing or on-going plans Are usually made once and retain their value over a period of years while undergoing periodic revisions and updates. The following are examples of on-going plans:
A policy provides a broad guideline for managers to follow when dealing with important areas of decision making. Policies are general statements that explain how a manager should attempt to handle routine management responsibilities. Typical human resources policies, for example, address such matters as employee hiring, terminations, performance appraisals, pay increases, and discipline.
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Operational plans
A procedure is a set of step-by-step directions that explains how activities or tasks are to be carried out. Most organizations have procedures for purchasing supplies and equipment, for example. This procedure usually begins with a supervisor completing a purchasing requisition. The requisition is then sent to the next level of management for approval. The approved requisition is forwarded to the purchasing department. Depending on the amount of the request, the purchasing department may place an order, or they may need to secure quotations and/or bids for several vendors before placing the order. By defining the steps to be taken and the order in which they are to be done, procedures provide a standardized way of responding to a repetitive problem.
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Operational plans
A rule is an explicit statement that tells an employee what he or she can and cannot do. Rules are do and don't statements put into place to promote the safety of employees and the uniform treatment and behaviour of employees. For example, rules about tardiness and absenteeism permit supervisors to make discipline decisions rapidly and with a high degree of fairness.
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Tactical plans
A tactical plan is concerned with what the lower level units within each division must do, how they must do it, and who is in charge at each level. Tactics are the means needed to activate a strategy and make it work. Tactical plans are concerned with shorter time frames and narrower scopes than are strategic plans. These plans usually span one year or less because they are considered short-term goals. Long-term goals, on the other hand, can take several years or more to accomplish. Normally, it is the middle manager's responsibility to take the broad strategic plan and identify specific tactical actions.
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Contingency plans
Intelligent and successful management depends upon a constant pursuit of adaptation, flexibility, and mastery of changing conditions. Strong management requires a keeping all options open approach at all times that's where contingency planning comes in. Contingency planning involves identifying alternative courses of action that can be implemented if and when the original plan proves inadequate because of changing circumstances.
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Contingency plans
Keep in mind that events beyond a manager's control may cause even the most carefully prepared alternative future scenarios to go awry. Unexpected problems and events frequently occur. When they do, managers may need to change their plans. Anticipating change during the planning process is best in case things don't go as expected. Management can then develop alternatives to the existing plan and ready them for use when and if circumstances make these alternatives appropriate.
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The advantages of planning are numerous. Planning fulfils the following objectives: Gives an organization a sense of direction.
Without plans and goals, organizations merely react to daily occurrences without considering what will happen in the long run. For example, the solution that makes sense in the short term doesn't always make sense in the long term. Plans avoid this drift situation and ensure that short-range efforts will support and harmonize with future goals.
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Diverse groups cannot effectively cooperate in joint projects without an integrated plan. Examples are numerous: Plumbers, carpenters, and electricians cannot build a house without blueprints. In addition, military activities require the coordination of Army, Navy, and Air Force units.
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The advantages of planning are numerous. Planning fulfils the following objectives: Helps anticipate problems and cope with change.
When management plans, it can help forecast future problems and make any necessary changes up front to avoid them. Of course, surprises such as the 2011 quadrupling of oil prices can always catch an organization short, but many changes are easier to forecast. Planning for these potential problems helps to minimize mistakes and reduce the surprises that inevitably occur.
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The advantages of planning are numerous. Planning fulfils the following objectives: Provides guidelines for decision making.
Decisions are future-oriented. If management doesn't have any plans for the future, they will have few guidelines for making current decisions. If a company knows that it wants to introduce a new product three years in the future, its management must be mindful of the decisions they make now. Plans help both managers and employees keep their eyes on the big picture.
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The advantages of planning are numerous. Planning fulfils the following objectives: Serves as a prerequisite to employing all other management functions. Planning is primary, because without knowing what an organization wants to accomplish, management can't intelligently undertake any of the other basic managerial activities: organizing, staffing, leading, and/or controlling.
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Thank you
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