CENTER

FOR
ESBM

Planning
ANTIMA
MANAGEMENT
Definition
“Management is the art of knowing what you
want to do and then seeing that it is done in the
best and cheapest way”

It is the overall value of goods & services

produced divided by the value of input needed to
generate that output.

“Management is a link between the efficiency &

effectiveness”
 Functions of Management

 Planning.
 Organizing.
 Staffing.
 Leading.
 Controlling.
What Is Planning?
Planning is the process of determining in advance:

 What is to be done?
 Who is to do it?
 How is it to be done?
 When is it to be done?

Example: ARRANGE A BIRTHDAY PARTY

Why Do Managers Plan?
Purposes of Planning
– Provides direction
– Reduces uncertainty
– Minimizes waste and redundancy
– Sets the standards for controlling
Nature of Planning
Desired
Status

s
t Gap
a Planning
t Required
u
s
Current Status
T1 T2
Time
Types of Plans
 Strategic Plans
– Apply to the entire organization.
– Establish the organization’s overall goals.
– Seek to position the organization in terms of
its environment.
– Cover extended periods of time.
 Operational Plans
– Specify the details of how the overall goals
are to be achieved.
– Cover short time period.
Types of Plans (cont’d)
 Long-Term Plans
– Plans with time frames extending beyond
three years
 Short-Term Plans
– Plans with time frames on one year or less
 Specific Plans
– Plans that are clearly defined and leave no
room for interpretation
 Directional Plans
– Flexible plans that set out general guidelines,
provide focus, yet allow discretion in
implementation.
Specific Versus Directional
Plans
Types of Plans (cont’d)
 Single-Use Plan
– A one-time plan specifically designed to meet
the need of a unique situation.
 Standing Plans
– Ongoing plans that provide guidance for
activities performed repeatedly.
 Importance of Planning
 Provides Direction
 Provides opportunity to analyze alternative
courses of action
 Reduces uncertainties
 Minimizes impulsive and arbitrary decisions
 King-pin function
 Resource Allocation
 Planning Process

Perception of Establishing Planning

opportunities objectives premises

Establishing
Identification of
sequence
alternatives
of activities

Formulating of Choice of Evaluation of

Supporting plans Alternative plans alternatives
Planning to Effective Planning
 Difficulty of accurate premising
 Problems of rapid change
 Internal inflexibilities
– Psychological inflexibilities
– Policy and procedural inflexibilities
– Capital investment
 External inflexibilities
– Political climate
– Technological changes
– Trade unions
 Time and cost factors
Making Planning Effective
 Linked to long-term objectives
 Direction for action
 Consistent
 Feasible
 Simplicity
 Flexible