Planning is deciding in advance what to do, how to do it, when to do it and who to do it.
Planning bridges gap from where we are to, to where we want to be.
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
This revision presentation provides business students with an overview of the role of planning in business strategy. It highlights the key parts to the strategic planning process and considers the main business benefits of effective planning.
1.1 Meaning of organization ,management, and
managers
1.1.1. Management as science or art
1.1.2. Management as a process with four functions
1.1.3. Importance of managers in organization
1.1.4. Concept of efficiency, effectiveness and
value addition to organization
1.2 Managerial roles
1.2.1 Interpersonal ,Informational and decisional roles
1.3 Managerial skill
1.3.1.Technical, Interpersonal and conceptual
skills
Impact of globalization on organizational behaviourRaj Shravanthi
One of the other major environmental context impacting organizational behavior is globalization.
Today, well-known U.S.-based multinational corporations have more than half their assets overseas.
With trends toward similar clothes, entertainment, material possessions, and recognition that English is the international business language, people around the world still think and behave in different ways.
The starting point of how the globalization environment affects and is affected by organizational behavior is culture.
Internal&external environment of organizationAglaia Connect
Forces or conditions or surroundings within the boundary of the organization are the elements of the internal environment of the organization. The internal environment consists mainly of the organization’s owners, the board of directors, employees and culture.
internal environment of organization
internal environment of an organization
internal and external business environment
organization external environment factors
nike internal and external environment
external environments affecting organizations
external organizational environment
the internal environment
Internal&external environment of organization PPT
Foundations of planning, types of plans, approaches to planning & planning in dynamic environments, Purposes of planning, Planning & performance, Types of planning goals, Contingency factors in planning, Planning in hierarchy organizations
Management and entrepreneurship - introductionRajendra Prasad
The knowledge of management science is very much essential for an engineer
management science helps to brings together the technological problem-solving savvy of engineering
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
This revision presentation provides business students with an overview of the role of planning in business strategy. It highlights the key parts to the strategic planning process and considers the main business benefits of effective planning.
1.1 Meaning of organization ,management, and
managers
1.1.1. Management as science or art
1.1.2. Management as a process with four functions
1.1.3. Importance of managers in organization
1.1.4. Concept of efficiency, effectiveness and
value addition to organization
1.2 Managerial roles
1.2.1 Interpersonal ,Informational and decisional roles
1.3 Managerial skill
1.3.1.Technical, Interpersonal and conceptual
skills
Impact of globalization on organizational behaviourRaj Shravanthi
One of the other major environmental context impacting organizational behavior is globalization.
Today, well-known U.S.-based multinational corporations have more than half their assets overseas.
With trends toward similar clothes, entertainment, material possessions, and recognition that English is the international business language, people around the world still think and behave in different ways.
The starting point of how the globalization environment affects and is affected by organizational behavior is culture.
Internal&external environment of organizationAglaia Connect
Forces or conditions or surroundings within the boundary of the organization are the elements of the internal environment of the organization. The internal environment consists mainly of the organization’s owners, the board of directors, employees and culture.
internal environment of organization
internal environment of an organization
internal and external business environment
organization external environment factors
nike internal and external environment
external environments affecting organizations
external organizational environment
the internal environment
Internal&external environment of organization PPT
Foundations of planning, types of plans, approaches to planning & planning in dynamic environments, Purposes of planning, Planning & performance, Types of planning goals, Contingency factors in planning, Planning in hierarchy organizations
Management and entrepreneurship - introductionRajendra Prasad
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management science helps to brings together the technological problem-solving savvy of engineering
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Introduction
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Key takeaways:
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2. Definition
In simple sense whatever we decide in advance for doing any
future events, is termed as planning.
Planning is deciding in advance what to do, how to do it,
when to do it and who to do it.
Planning bridges gap from where we are to, to where we
want to be.
According To Managerial Language Planning May Be Defined
As- A Forward Looking Process.
Which Is Adopted by an Organization with View To Bring
Certainty in the Present Events or Activities
So That, Organization May Have More Confidence Regarding
The accuracy of future events.
Hence it is clarified that planning is directly concerned with
the forecasting of future events.
3. Features of planning
On the basis of the definition of planning, the features of
planning can be identified as follows
1. Planning is a process rather than behaviour at a given
point of time. This process determines the future course of
action.
2. Planning is future oriented It is primarily concerned with
looking into future. It requires forecasting of future situation in
which the organization has to function. Therefore, correct
forecasting of future situation leads to correct decisions about
future course of actions.
3. Planning involves selection of suitable course of action.
This means that there are several alternatives for achieving a
particular objective or set of objectives. However, all of them
are not equally feasible and suitable for the organization.
4. 4. Planning is undertaken at all levels of the organization because
all levels of management are concerned with the determination of
future course of action. However, its role increases at successively
higher levels of management. Moreover, planning at different levels
may be different in the context that at the top management level,
managers are concerned about the totality of the organization and
tries to relate it with the environment white-managers at lower levels
may be involved in internal planning.
5. Planning is flexible as commitment is based on future conditions,
which are always dynamic. As such, an adjustment is needed
between the various factors and planning.
6. Planning is a pervasive and continuous managerial function
involving complex processes of perception, analysis, conceptual
thought, communication, decision, and action. The very
pervasiveness of these planning elements makes it difficult to
identify and observe them in detail.
5. Features of planning Features of
planning
Goal-Oriented Approach
Forward Looking Process
Choice Making Activity
Primary Function
Planning is a Continuous Process
Pervasive Function
Planning is a Dynamic process
6. Goal-Oriented Approach
The features of planning can put to be a goal oriented
approach because it is directly related with goals of
organization.
In the absence of goals or targets we can not assume
about planning because within the organization all the
various activities are done with a view to attain the
primary goals of organization.
In fact in the lack of goals there is no need to do plan
towards any activity.
On the whole we can say; planning is a goal oriented
approach.
7. Forward Looking Process
It is a salient feature of planning.
Planning is forward looking process because it is
directly concerned with forecasting of future events.
The purpose of every plan is to determine the future
events with a view to bring certainty in the present
activities of the organization.
Thus we can say that planning is forward looking
process.
8. Choice Making Activity
Planning can set to be a choice making activity because
planning provides a large number of alternative courses
to an organization to do a various activities in the most
appropriate manner.
It is matter of fact that an action may be performed by
many ways but there is particular way to perform an
action which is most appropriate to organization.
Planning provides these alternatives to organization to
perform its various actions in the most proper way.
Thus, planning is a choice making activity.
9. Primary Function
The feature of planning refers to primary function
because planning is the first task of business
management.
All other functions of business management such as
organizing, staffing, directing & controlling are done after
completing the planning.
In fact, whenever we are going to do any event or
activity at first we make plan & accordingly we will
perform to attain result oriented work.
Thus we can say to plan as primary function.
10. Planning is a Continuous Process
Planning can put to be a continuous process because it
is not an event which is concerned with the point of time.
It is needed every walk of life of an organization.
In the absence of planning any organization cannot able
to take even one step properly.
Thus, it is clear that planning is a continuous process.
11. Pervasive Function
It is a unique feature of planning.
Planning is a pervasive function because it can
universally applicable at all the levels of management
either it may be like top level of management, middle
level of management or lower level of management.
In fact planning is the function of all managers. So that,
planning is a pervasive function.
12. Planning is a Dynamic process
Planning can be treated as a dynamic process because
it is affected if any changes are made in the internal &
external environment of organization.
Such as if the goals of organization will change then it
also affects the plans of organization.
Similarly in external environment if any changes are
made in the government policy, regarding business then
it also affects the plans of organization.
Therefore, it is clear that planning can put to be as a
dynamic process.
13. Significance of planning
Efficient Use of Resources
Establishing Goals
Managing Risk And Uncertainty
Team Building
Creating Competitive Advantages
14. Efficient Use of Resources
All organizations, large and small, have limited
resources.
The planning process provides the information top
management needs to make effective decisions
about how to allocate the resources in a way that
will enable the organization to reach its objectives.
Productivity is maximized and resources are not
wasted on projects with little chance of success.
15. Establishing Goals
Setting goals that challenge everyone in the organization to strive
for better performance is one of the key aspects of the planning
process.
Goals must be aggressive, but realistic.
Organizations cannot allow themselves to become too satisfied with
how they are currently doing--or they are likely to lose ground to
competitors.
The goal setting process can be a wake-up call for managers that
have become complacent.
The other benefit of goal setting comes when forecast results are
compared to actual results.
Organizations analyze significant variances from forecast and take
action to remedy situations where revenues were lower than plan or
expenses higher.
16. Managing Risk And
Uncertainty
Managing risk is essential to an organization’s success.
Even the largest corporations cannot control the economic
and competitive environment around them.
Unforeseen events occur that must be dealt with quickly,
before negative financial consequences from these events
become severe.
Planning encourages the development of “what-if” scenarios,
where managers attempt to envision possible risk factors and
develop contingency plans to deal with them.
The pace of change in business is rapid, and organizations
must be able to rapidly adjust their strategies to these
changing conditions.
17. Team Building
Planning promotes team building and a spirit of cooperation.
When the plan is completed and communicated to members
of the organization, everyone knows what their
responsibilities are, and how other areas of the organization
need their assistance and expertise in order to complete
assigned tasks.
They see how their work contributes to the success of the
organization as a whole and can take pride in their
contributions.
Potential conflict can be reduced when top management
solicits department or division managers’ input during the
goal setting process.
18. Creating Competitive
Advantages
Planning helps organizations get a realistic view of
their current strengths and weaknesses relative to
major competitors.
The management team sees areas where competitors
may be vulnerable and then crafts marketing
strategies to take advantage of these weaknesses.
Observing competitors’ actions can also help
organizations identify opportunities they may have
overlooked, such as emerging international markets or
opportunities to market products to completely
different customer groups.
19. Types of Management Plans
The prosperity of an organization depends upon
the preparation and execution of the management
plans.
It is a well known fact that it is impossible for an
organization to operate without outlining proper
management plans.
Over the years through extensive study and
management research, many scholars have
divided management plans in two types, namely,
Strategic Management Plans and
Operational Management Plans.
20. Classification of management
plans
Strategic Management Plans
It involves proper planning and far-sightedness for
conceptualizing the strengths and weaknesses of the
organization, pertaining to the environment in which it exists.
Strategic Management Plans deals with the envisioning of at
least three to five years in the future and deciding what are
the pathways that the organization intends to take and create
new opportunities.
It strongly involves the basic elements of market research
and financial projections with detailed study of promotional
planning and taking all the necessary steps to fulfill the
operational requirements.
21. It is the best way to find out the amount of
capital to be raised, expansion target and
optimum use of the available resources.
Strategic managerial plans also deals with
relationship managerial as in today's world,
management and the correct use of contacts is
very important.
22. Operational Management Plans
It is the interim period which deals with Operational
Management Plans.
This is also termed as Tactical Planning and it also deals with
the aspects that involve the concept of an annual budget.
Operational managerial Plans entirely focuses on making
sure that a given task is completed.
It is irrespective of whether it is driven by the entire
organization's budget, any personal budget or any functional
area of responsibility.
23. It can also be said that operational managerial
plans are indirectly derived from strategic
managerial plans.
It is an outflow of a detailed strategic
managerial plan and can be seen as a part of
the initiating and implementation stage of a
more comprehensive long term plan.
24. Standing & Single Use Management Plans
Standing Plans are further of three types,
namely Policies, Procedures and Rules.
While Single Use Plans are further of two
types, namely, Programs and Budgets.
25. Policies - It focuses on accomplishing the
organization's objectives by furnishing the broad
guidelines for the correct course of action.
Procedures -Procedures outline a more specific set of
actions and deals with the implementation of a set of
related actions in order to finish a particular task.
Rules - Rules are a set of guidelines that show the
way and manner in which a task is to be
accomplished. It lays down the do's and don'ts that
are to be strictly followed by the members of the
organization without any deviation.
26. Programs - Programs deal with the guidelines that are
set for accomplishing a special project within the
organization. The project may not be in existence for
the entire tenure of the organization, but if the project
is accomplished, it might result in short-term success
of the organization which might ultimately prove to be
extremely helpful.
Budget - A Budget represents a specific period of time
which indicates it as a single user financial plan. It is a
complete set up indicating the process of procuring
the funds and channelizing the funds. It shows in
details how funds are to be utilized on labour, raw
materials, capital goods, marketing and information
systems.
27. THE PLANNING HIERARCHY
There are many types of planning; in most
organizations
These plans form a hierarchy, with the plans at
the top influencing all the plans that follow.
The hierarchy broadens at lower levels,
representing an increase in the number of
planning components.
29. VISION AND MISSION
STATEMENTS
The purpose or mission statement is a brief
statement identifying the reason that an
organization exists, while its future aim or
function is often written as a vision statement.
The mission statement is of highest priority in
the planning hierarchy because it influences
the development of an organization’s
philosophy, goals, objectives, policies,
procedures, and rules.
30. THE ORGANIZATION’S
PHILOSOPHY STATEMENT
It is the basic foundation that directs all further
planning toward that mission.
A statement of philosophy can usually be
found in policy manuals at the institution or is
available on request.
31. GOALS AND OBJECTIVES
Goals and objectives are the ends toward
which the organization is working.
All philosophies must be translated into
specific goals and objectives if they are to
result in action.
Thus, goals and objectives “operationalize” the
philosophy.
32. POLICIES AND
PROCEDURES
Policies are plans reduced to statements or
instructions that direct organizations in their
decision making.
Procedures are plans that establish customary
and acceptable ways of accomplishing a
specific task and delineate a sequence of
steps of required action.
Procedures may have some variation in the
steps as long as the same outcome is
obtained
33. RULES
Rules and regulations are plans that define
specific action or nonaction.
Generally included as part of policy and procedure
statements
Rules describe situations that allow only one
choice of action.
Because rules are the least flexible type of
planning in the planning hierarchy, there should
be as few rules as possible in the organization.
34. The various stages in the
process of planning
Analyzing Environment
Establishing Objectives Or Goals
Seeking Necessary Information
Premising Or Establishing the Planning Premises
Identifying and Developing Alternative Courses of
Action
Evaluating the Alternatives
Choosing the Most Appropriate Alternative Or
Course of Action
35. Analyzing Environment
At the outset, the internal and external
environment is analyzed in order to identify
company’s strengths and weaknesses (in internal
environment)
opportunities and threats (existing in the external
environment)
This is also known as SWOT (strengths,
weaknesses, opportunities and threats) analysis.
36. Establishing Objectives Or Goals
In the light of the environmental scanning (study),
clear or probable opportunities that can be availed
are identified.
In order to avail them, objectives or goals are
clearly defined in specific term along with priorities
in all the key areas of operations.
Major problems associated with such objectives
are also identified and defined, so that there may
be special emphasis on their planned solutions
37. Seeking Necessary Information
All relevant facts and data are collected from internal and
external sources.
For example, availability of supplies, physical and human
resources of the company, finances at disposal, relevant
government policy, general economic conditions and relevant
specific market situation.
Then such investigated and collected information and factors
are analyzed.
Such information analysis is used in two ways – first, to make
necessary modifications in objectives or goals and secondly
to take help from them in premising (considering)
assumptions.
38. Premising Or Establishing the Planning
Premises In order to develop consistent and coordinated
plans, it is necessary that planning is based upon carefully
considered assumptions and predictions.
Such assumptions and predictions are known as planning
premises.
The assumptions under which plans are supposed to operate
should be clearly brought out.
Such presumptions and forecasts are prepared for various
areas, such as sales, prices, wages, taxes, changes in
fashions and habits, purchasing power, standards of living,
population competitors and so on
39. Identifying and Developing Alternative
Courses of Action After establishing objectives
or goals and taking other related steps,
Feasible alternative programmes or courses of
action are searched out.
Impossible or highly difficult propositions are
left out.
40. Evaluating the Alternatives
Probable consequences of each alternative
course of action in terms of its pros and cons
(e.g. costs, benefits, risks, etc) are assessed
Then relative importance of each of them is
found out by looking at their overall individual
strengths and limitations especially in the light
of the present objectives and the environment
of the company.
41. Choosing the Most Appropriate Alternative Or
Course of Action
After weighing the pros and cons of each of the
alternative courses of action and realizing their
individual relative importance
The most appropriate alternative in the light of the
overall consideration is selected to be followed.
In other words, the alternative which appears to be
most feasible and conducive to the accomplishment of
company’s predetermined objectives, is chosen as a
final plan of action – as strategy.
42. Preparing the Derivative Plans
Derivative plans involve short range, operating plans that are
useful in day-to-day operation and provide a working basis for
such operations.
Such plans are developed in the form of schedules, budgets,
programmes, procedures, methods, rules, policies etc.
The derivative plans are prepared in different departments
and their timing and sequence are also specified.
Such plans are prepared in concrete terms showing specific
results to be attained within specified time limit and by
utilizing the allocated resources.
43. An integrative mechanism has also to be
provided for effecting coordination between
and among different derivative plans being
executed by different departments.
44. DECISION MAKING
A decision is a choice between alternatives and
decision making is the process of choosing one
alternative over the others.
Making good decisions should be a process.
It is a process of identifying problems and resolving
them, or of identifying opportunities and taking
advantage of them.
The process is made up of two components:
Judgment – a process of evaluating alternatives
Choice – a process of selecting a specific alternative
to implement
45. Decision Making Steps
Steps involved in decision making process are:
1. Define the problem,
2. Analysing the problem,
3. Developing alternative solutions,
4. Selecting the best type of alternative,
5. Implementation of the decision,
6. Follow up,
7. Monitoring and feedback!
46. 1. Define the problem:
The first and the foremost step in the decision-
making process are to define the real problem.
A problem can be explained as a question for and
appropriate solution.
The manager should consider critical or strategic
factors in defining the problem.
These factors are, in fact, obstacles in the way of
finding proper solution.
These are also known as limiting factors.
47. For example, if a machine stops working due
to non-availability of screw, screw is the
limiting factor in this case. Similarly fuse is a
limiting or critical factor in house lighting. While
selecting alternative or probable solution to the
problem, the more the decision-making takes
into account those factors that are limiting or
critical to the alternative solutions, the easier it
becomes to take the best decision.
48. 2. Analysing the problem:
After defining the problem, the next important
step is a systematic analysis of the available
data.
Sound decisions are based on proper
collection, classification and analysis of facts
and figures.
49. There are three principles relating to the
analysis
(i) The futurity of the decision. This means to
what length of time, the decision will be
applicable to a course of action.
(ii) The impact of decision on other functions
and areas of the business.
(iii) The qualitative considerations.
50. 3. Developing alternative solutions:
After defining and analysing the problem, the next
step is to develop alternative solutions.
The main aim of developing alternative solutions
is to have the best possible decision out of the
available alternative courses of action.
In developing alternative solutions the manager
comes across creative or original solutions to the
problems.
51. In modern times, the techniques of operations
research and computer applications are
immensely helpful in the development of
alternative courses of action.
52. 4. Selecting the best type of alternative:
(a) Risk element involved in each course of
action against the expected gain.
(b) Economy of effort involved in each
alternative, i.e. securing desired results with
the least efforts.
(c) Proper timing of the decision and action.
53. (d) Final selection of decision is also affected
by the limited resources available at our
disposal. Human resources are always limited.
We must have right type of people to carry out
our decisions. Their calibre , understanding,
intelligence and skill will finally determine what
they can and cannot do.
54. 5. Implementation of the decision:
(a) Proper and effective communication of
decisions to the subordinates. Decisions
should be communicated in clear, concise and
understandable manner.
(b) Acceptance of decision by the subordinates
is important. Group participation and
involvement of the employees will facilitate the
smooth execution of decisions.
55. (c) Correct timing in the execution of decision
minimizes the resistance to change. Almost
every decision introduces a change and
people are hesitant to accept a change.
Implementation of the decision at the proper
time plays an important role in the execution of
the decision.
56. 6. Follow up:
A follow up system ensures the achievement
of the objectives.
It is exercised through control. Simply stated it
is concerned with the process of checking the
proper implementation of decision.
Follow up is indispensable so as to modify
and improve upon the decisions at the earliest
opportunity.
57. 7. Monitoring and feedback:
Feedback provides the means of determining the
effectiveness of the implemented decision. If
possible, a mechanism should be built which
would give periodic reports on the success of the
implementation. In addition, the mechanisms
should also serve as an instrument of “preventive
maintenance”, so that the problems can be
prevented before they occur.