The document discusses planning in management and organizational behavior. It defines planning as determining future courses of action in advance and focusing on the future. Planning involves setting organizational goals, establishing strategies to achieve those goals, and developing plans for work activities. There are different types of plans including strategic plans, operational plans, long-term plans, and short-term plans. The planning process involves setting objectives, developing premises, identifying alternative actions, evaluating alternatives, selecting a course of action, implementing plans, and reviewing the planning process. Management by objectives is also discussed as a strategy where employees set goals and are evaluated based on goal achievement.

1. MANAGEMENT AND
ORGANIZATIONAL BEHAVIOUR
PLANNING
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2. What Is Planning?
Planning is the primary function of management.
It focuses on the future course of action.
A primary managerial activity that specifies the objectives to be
achieved in future and selects the alternative course of action
to reach defined objectives.
Thus, it involves:
 Defining the organization’s goals
 Establishing an overall strategy for achieving those goals
 Developing plans for organizational work activities.

3. What Is Planning?
•“Determination of future course of actions in advance”
•It is the blue print of action and operation.
•Planning is intellectual process which is concerned with
deciding in advance what, when, why, how, and who shall
do the work.

4. Definitions
• “Generally speaking, planning is deciding in advance what is to be
done”
- W H Newman
•“Planning is deciding in advance what to do, how to do, when to do
and who is to do it. Planning bridges a gap between from where we
are to where we want to go”
-Harold, Koontz and O’Donnel
•“Planning is that function of manner in which he decides in advance
what he will do. It is a decision making process of a special kind, its
essence is futurity.”
- Hayness and Massie

5. Planning – Purpose and Benefits
Purposes of Planning
 Provides direction
 Reduces uncertainty
 Minimizes waste and redundancy
 Sets the standards for controlling
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

6. How planning happens?
Elements of Planning
Goals (also Objectives)
 Desired outcomes for individuals, groups, or entire
organizations
 Provide direction and evaluation performance criteria
Plans
 Documents that outline how goals are to be accomplished
 Describe how resources are to be allocated and establish
activity schedules

7. Types of Plans

8. 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.

9. 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

10. Types of Plans (cont’d)
Directional Plans
Flexible plans that set out general guidelines, provide
focus, yet allow discretion in implementation.
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.

11. Establishing Goals and
Developing Plans
Traditional Goal Setting
 Broad goals are set at the top of the organization.
 Goals are then broken into sub-goals for each organizational
level.
 Assumes that top management knows best because they can see
the “big picture.”
 Goals are intended to direct, guide, and constrain from above.
 Goals lose clarity and focus as lower-level managers attempt to
interpret and define the goals for their areas of responsibility.

12. Contemporary Issues in Planning
Criticisms of Planning
Planning may create rigidity.
Plans cannot be developed for dynamic
environments.
Formal plans cannot replace intuition and creativity.
Planning focuses managers’ attention on today’s
competition not tomorrow’s survival.
Formal planning reinforces today’s success, which
may lead to tomorrow’s failure.

13. Establish
objectives Develop Strategies
Determination
of premises
Determination
of alternatives
Evaluation of
alternatives
Selecting a
course of
action
Formulation of
derivative plans
Implantation of
plans
Reviewing the
planning
process
Planning Process

14. 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 conjecture about what might happen in future.
Identifying Alternative Courses of Action
Once objectives are set, assumptions are made. Then the next step
would be to act upon them.

15. Planning Process
Evaluating alternative courses
The next step is to weigh the pros and cons of each alternative.
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.

16. MBO and Strategies
Management By Objectives (MBO)
A process whereby the employees and the superiors come together to identify
common goals, the employees set their goals to be achieved, the standards
to be taken as the criteria for measurement of their performance and
contribution and deciding the course of action to be followed.
MBO Strategy: Three Basic Parts
• All individuals within an organization are assigned a special set of objectives
that they try to reach during a normal operating period. These objectives are
mutually set and agreed upon by individuals and their managers.
• Performance reviews are conducted periodically to determine how close
individuals are to attaining their objectives.
• Rewards are given to individuals on the basis of how close they come to
reaching their goals.

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