PLANNING

AND
DECISION-
MAKING
 Planning in layman’s language is thinking and
looking ahead.

 With good planning mistake, wastes and delays

are eliminated or reduced to their barest
minimum.

 Planning is the first function of management.

Without it the other functions are most likely not
in order
 Planning is a vital in making management
decisions. Wrong planning results in wrong
decision.
Professor James Stoner
 Professor James Stoner defines planning as the
process of establishing objectives and appropriate
courses of action before taking action.

 Planning is the basic process of choosing our

goals and determining the ways of realizing
them, taking into consideration available
resources-including time.

 Preparing now for tomorrow

 Goals are usually short term and long term

 Top level managers perform long term planning.

 Middle-level managers are concerned with the

planning of the more specific objectives.

 First level managers are responsible for the

scheduling of the workers and developing the
procedures for doing the job.
TYPES OF PLANS
1. Strategic plan focused on the entire business
operation. Strategic planning prepares the
business enterprise for its operation in the
future.
2. Tactical plan, a series of it constitute a strategic
plan. Division managers are involved to this
planning.
3. Operating plan provides the specifics as to how
the strategic plan will be attained
MAIN TYPES OF OPERATION PLAN
 Single-use plan is applicable to activities that do
not repeat
 Example
 Program which is a set of activities towards an object
 Budget which provides funds

 Ongoing plan used for continuing situations,

problems and activities.
 Example
 Policy guidelines for making decision
 Procedure step by step instructions
 Rule specific plan for controlling human behaviour
PRINCIPLES OF PLANNING
1. Planning must be realistic. Objectives should be
supported by available resources like man
power, money, material and machines.
2. Planning must be based on felt needs. If it is the
felt of employees, customers, suppliers, or in the
community , then they must be pursued.
3. Planning must be flexible. Must be adjustable
and adaptive to changing condition and
resources.
4. Planning must be democratic. The beneficiaries
of the plan, and all others who are affected by
the plan must be involved in the planning
process
5) Planning must start with simple projects.
Simple projects can be achieved with small
financing, simple technology and simple
management.
6) Planning must include social responsibility. The
greater need for industries to protect the
environment from the ravages of pollution.

 It is our human nature to improve our present

condition
BASIC STEPS IN PLANNING
1. Establish Objectives. These are the targets set
by the organization.
2. Evaluate the environment refers to the existing
conditions within and outside the organization.
3. Determine the best alternative strategy. These
are courses of actions which are used to attain
the objectives of the organization.
4. Implement the action plan. Implementing the
best solution requires an action plan which
involves the use of money, manpower material,
machines and methods. It also requires time
frame.
5) Evaluation of results is the last thing in
planning which extremely important to monitor
the progress of the implementation to prevent
activities that do not conform to the plan.