w


c DzPlanning is deciding in advance what should be donedz.

c DzInvolves selecting missions and objectives as well as the
actions to achieve them, which requires decision Ȃ making
that is, choosing a course of action from among
alternativesdz.
c DzPlanning is outlining a future course of action in order to
achieve an objectivedz.
c DzPlanning is looking aheaddz
c DzPlanning is getting ready to do something tomorrowdz.
c DzPlan is a trap laid down to capture the futuredz.
 ‘ 

c DzPlanning is deciding in advance what to do, how to do it,

when to do it and who is to do it. It bridges the gap from
where we are to where we want to godz Ȃ Koontz and
OǯDonnell.
c DzPlanning is a mental predisposition to do things in orderly
way, to think before acting and to act in the light of facts
rather than guessdz Ȃ Urwick.
c DzPlanning is deciding the best alternative among others to
perform different managerial operations in order to achieve
the predetermined goaldz Ȃ Henry Fayol.
c DzPlanning is deciding in advance what is to be done. It
involves the selection of objectives, policies, procedures
and programmes from among alternativesdz Ȃ M.E. Hurley.
 ‘ 

c DzPlanning is a concept of executive action that embodies

the skills of anticipating, influencing and controlling the
nature and direction of changesdz Ȃ Mc Farland.
c DzPlanning is the process of thinking through and making
explicit the strategy, action and relationships necessary to
accomplish an overall objective or purposedz Ȃ Cleland and
King.
c DzPlanning is selecting and relating of facts in the
visualization and formation of proposed activities believed
necessary to achieve desired resultsdz Ȃ George R. Terry.
c DzPlanning is a thinking process, the organized foresight,
the vision based on fact and experience, that is required for
intelligent actiondz Ȃ Alford and Beaty.
 <
 


o achieve objectives rise questions like Ȃ

c 3hy am I making this plan
c 3hat am I trying to accomplish
c 3hat resources do I need to execute the plan

o make the things happen

c o meet the uncertainties
c o plan out to solve the problems
c Foresee the future and predict the consequences of
actions
 <
 


o cope with changes

c warket competitions
c Preserve on the resources increase
c Product life Ȃ cycle are becoming shorter due to rapid
technological changes.
c Built in the plans to meet the unexpected changes
o control the events
c Planning and control
c Planning provides necessary yardsticks to measure the
performance.
 <

 


ffectiveness in planning depends on the understanding of the

following principles Ȃ
ake time to plan
c îasty planning with in correct information.
c Any plan is a decision regarding a future course of action.
Planning can be top down and bottom up
c Over all plan thus formulated by the top mgmt is spilt into
departmental plans.
c Plans for production, marketing, finance, personnel etc. Ȃ top
down approach planning.
c op mgmt needs information from lower level Ȃ that is, about
the realities at the ground level in terms of strengths and
weakness. In this bottom up approach, the initiative for planning
comes from the lower levels in the organization.
 <

 

Involves and communicate with all those concerned
c o improve the quality of the product (quality control plan) may
require the co-operation of the people in the production,
finance, marketing departments.
c It is necessary to involve the concerned people in those
departments
Plans must be flexible and dynamic
c Adequate flexibility has to be built into a plan, in a dynamic
environment, to meet the unexpected changes.
valuate and revise
c valuation of the plan at regular intervals is necessary to make
sure that it is contributing to the objectives.
c From time to time look back to evaluate and revise the plan.
x 
 






ew plans

Planning implementation controlling: no undesirable deviations

of plans comparing plans from plans
with results

undesirable deviation

Corrective action
   
 
Plans can be classified as Ȃ
c wission or purpose
c Objectives or goals
c Strategies
c Polices
c Procedures
c Rules
c Program
c Budgets
   
 
wission or purpose
c Identifies the basic purpose or functions or tracks of an enterprise or
agency or any part of it.
Objectives or goals
c nds towards which activity is aimed.
c hey represent not only the end point of planning but also the end
toward which organizing, staffing, leading and controlled are aimed.
Strategies
c he determination of basic long Ȃ term objectives of an enterprise and
adoption of course of action and allocation of resources necessary to
achieve these goals.
Policies
c General statements or understandings the guide or channel thinking in
decision Ȃ making.
   
 
Procedures
c Plans that establish a required method of handling future
activities.
Rules
c Spell out specific required actions or non-actions, allowing no
discretion.
Programs
c A complex of goals, policies, procedures, rules, task assignments,
steps to be taken, resources to be employed and other elements
necessary to carryout a given course of action.
Budget
c A statement of expected results expressed in numerical terms.
 G  <


c Being aware of opportunity

c Setting objectives or goals
c Considering planning premises
c Identifying alternative
c Comparing alternatives in light of goals
c Choosing an alternative
c Formulating supporting plans
c Quantifying plans by making budgets.
 G  <

Being aware of opportunity
c In light of:
c the market
c competition
c what customers want
c our strengths
c our weakness

Setting objectives or goals (establish goals)

c 3here we want to be and what we want to accomplish and when

Considering planning premises (establish planning premises)

c In what environment Ȃ internal or external
c 3ill our plans operate?
c Internal premises Ȃ include sales forecasts, policies of the organization, skills,
attitudes and beliefs of the people, the resources of the organizations.
 G  <

c xternal premises Ȃ relate to those factors in the environment
outside the organization. hey include technological changes,
general economic conditions, govt. policies and attitude towards
business, demographic trends, socio Ȃ cultural changes in the
society, political stability, production cost and their behavior,
degree of competition in the market, availability of various
resources etc.
c Premises are tangible and intangible Ȃ angible factors
quantitative
c Intangible factors non Ȃ quantitative
Identifying Alternatives
c 3hat are the most promising alternatives to accomplishing our
objectives.
 G  <

Comparing alternatives in light of goals
c 3hich alternatives will give us the best chance of meeting our goals at
the lowest cost and highest profit.

c Choosing an alternative
c Selecting the course of action we will pursue.

Formulating supporting plans

c Such as plans to Ȃ buy equipments, buy materials, hire and train
workers, develop a new product.

Quantifying plans by making budgets.

c Develop such budgets as Ȃ volume and price of sales, operating
expenses necessary for plans, expenditures for capital equipment.
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<


Strategic planning is long Ȃ term / range planning.

c Dzhe process of determining the major objectives of an
organization and the policies and strategies that will
govern the acquisition, use and disposition of
resources to achieve those objectivesdz.
wo function of strategic planning
c Anticipates future opportunities and threats
c Provides clarity of purpose and direction
 J




 







c Planning is the primary function

c Goal Ȃ oriented
c All Ȃ pervasive (done at all levels)
c Intellectual activity
c Future oriented
c Integrated approach (must be a link between the plans
of different depts.)
c Continuous process
 w
 


c Focuses on objectives
c îelps to avoid Dzno work or work pressuredz
c îelps to avoid wastage of resources
c nsures efficiency as well as effectiveness.
c Reduces rise and uncertainty
c Provides for co-ordination
c Facilitates control
c Planning also provide scope for decentralization.
 ‘
 


c ×ncertain nature

c xpensive

c Rigidity

c Loss of initiative

c Ignorance of sub ordinates interest

c Complacent attitude
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 <


c Forecasting

c Premising

c wanagement Information System (wIS)

 




Meaning
c Forecasting is an integral part of the planning process.
Since plans have to operate in future, it becomes imperative
for management to make an accurate forecast of likely
future events and conditions with which enterprise plans
may have confrontation, in future. In fact, the more
accurate the forecasting is, the more sound will be the
planning premises on which the plans will be based.
c Forecasting is the heart of planning process, and the best
laid plans of the enterprise might fail when substantial
inaccuracies are discovered subsequently in the forecasts of
future conditions made by the management.
 
 



Forecasting implies making an estimation of relevant feature conditions and
events.

Some techniques for making a best estimation of relevant future conditions and
events are Ȃ
c Historical analysis of past events Ȃ in some country and other countries, as
to some extent, history is likely to repeat itself.
c Astrological analysis of relevant future conditions Ȃ managements in the
western countries even have been depending on astrological forecasts of likely
business conditions and events.
c Mathematical and statistical techniques Ȃ e.g. index numbers, time Ȃ series
analysis, cor-relation and regression techniques, probability etc.
c Collections of data through surveys Ȃ making forecasts on the basis of
collected data.
c Geeking opinions of experts Ȃ experts from the field of finance, marketing,
technology politics, taxation etc. might management in better appreciating
and judging future business conditions.
 <
 
c Premises is a key step in planning process

c Premising refers to establishment of assumptions by

management about relevant future conditions Ȃ
economic, social, political, technological etc. on which
the plans will be based. Premising is based on
forecasting.
 <
 

<rocess of <lan Development

Development of Plans Building

Premising Secondary Foundation

Forecasting Primary Foundation

J




 


 


c Internal and external premises

c Controllable and controllable premises

c Quantitative and qualitative premises

 ~
  
  

Internal premises : are relevant internal conditions of the enterprise on which plans will be
based.
c wanagement strategies, policies and programmes
c Organizational structure flexibilities
c îuman relations in the enterprise
c wanpower potential
c Availability of finance
c Approved sales forecasts etc.

xternal premises: are relevant external conditions of the enterprise on which plans will be
based.
c Political conditions
c Social conditions
c General economic conditions
c echnological conditions
c Competitive conditions
c Factors market conditions (eg. Labour availability, raw materials availability etc.)
 J
   
  


Controllable premises are those over which management has control, while uncontrollable
premises are those which are beyond the control of management. here may be semi Ȃ
controllable premises also, which are partly within the control of management and partly
beyond the control of management.
Controllable premises Ȃ
c Advertising programmes and policies
c xpansion programmes
c Policy of centralization / decentralization
×ncontrollable premises Ȃ
c Acts of good
c Population growth
c Price trends
c Political environment
c echnological environment
Semi Ȃ controllable premises Ȃ
c Labour turnover
c Labour efficiency
c Pricing policy
 ^ 


  




Quantitative premises are those factors which can be expressed numerically, while
qualitative premises are factors which could not be so expressed. Quantitative
premises are tangible, while qualitative premises are intangible

Quantitative premises
c Finance availability
c Sales forecasts
c Population trends
c Price trends
c Plant capacity utilization

Qualitative premises
c îuman relations in the enterprise
c worale of employees
c Prestige or reputation of the enterprise
c Political stability
w

 

G  
wG
wIS is an assemblage of personnel and facilities organized into an
integrated system by which Ȃ relevant, adequate and timely
information is supplied to executive.
Gteps in MIG
c wIS can be built around electronic computers, in case of a big
organization.
wIS consists of following steps
c Assembly - collection of data
c Processing Ȃ editing of data, their classification and summation
c Storage and retrieval Ȃ indexing, coding, filing of information
and getting back information.
c valuation Ȃ determination of accuracy and relevance of data
c Dissemination Ȃ supplying the relevant information in the
proper form and at the right time.
 G

 
S3O analysis is a key concept in the world of corporate
planning, strategy formulation and other practical spheres
of management.
Concept of G OT
c Strength Ȃ S
c 3eakness Ȃ 3
c Opportunity Ȃ O
c hreats Ȃ 
S Internal environment
3
O xternal environment

w

 

G  
wG
Criteria for evaluating information supplied by MIG
c Quantity of information
c Quality of information
c Relevance of information
c imeliness of information
Advantage of MIG
c Sound Planning and decision Ȃ making
c Prevents unnecessary duplication of efforts
c Facilitates decentralization
 <
 G


c o capitalize on the strengths of the company

c o overcome the weakness of the company

c o exploit fully the opportunities available in the external

environment

c o manage successfully the threats posed by the external

environment