3. Jul 2012
Task Number One Of Management
Determination Of Future Course Of Action
Intellectual Process
Process Of Thinking Before Doing
Decision Making Process
Precedes All Managerial Functions
Refers To Policy Formulation And Establishment
Of Goals
Deciding In Advance What To Do, When And How
To Do It
Foundation Of Management
4. Jul 2012
*DEFINITIONS
“Planning Is Deciding In Advance What Is To Be Done. It
Involves Selection Of Objectives, Policies, Procedures
And Programmes From Among Alternatives.”
“Planning Is An Intellectual Process, The Conscious
Determination Of Future Courses Of Action, The Base Of
Decisions On Purpose, Acts And Considered Estimates”—
Koontz & O’Donnell.
5. Jul 2012
*DEFINITIONS
“Management planning involves the development of
forecasts, objectives, policies, programmes, procedures,
schedules desired results”—Louis A. Allen
“Planning is deciding in the present what to do in future.
It is the process whereby companies reconcile their
resources with their objectives and opportunities”—
Philip Kotler
7. Jul 2012
*SIX P’S OF PLANNING
PURPOSE—Goals should be verifiable so that we
can check it
PHILOSOPHY—ideology
PROMISES—uniting factor
PLANS—manager has to ascertain the goals,
actions to achieve goals, requirement of
resources, sources of resources
POLICY—general guidelines on which
management can take decision
PRIORITY—Needs
8. Jul 2012
*NATURE/CHARACTERISTICS OF
PLANNING
•Planning Is Goal Oriented
•Planning Is An Intellectual Process
•Planning Is All Pervasive
•Precedes All Managerial Functions
•Planning Is A Continuous Process
•It Is Flexible In Nature
•Directed Towards Efficiency
9. Jul 2012
*STEPS IN PLANNING PROCESS
STEP 1 Determination Of Objectives
STEP 2 Establishment Of Planning Premises
STEP 3 Selection of the Best Plan from the
Alternatives Available
STEP 4 Timing and Sequence of Operation
STEP 5 Estimation of Future Events
STEP 6 Follow Up Action
10. Jul 2012
*STEP 1 Determination Of
Objectives
Determination of objectives is the first step in
planning process.
The objectives so determined decide the future
course of action.
11. Jul 2012
*STEP 2 Establishment Of Planning
Premises
Planning premises are the assumptions for future
which provide a framework for the planning
process.
They form the very basis for action.
Business environments are uncertain.
12. Jul 2012
Planning Premises give a prediction about
future uncertainties of business environments.
On the basis of these forecasts are made and
future trends are indicated.
13. Jul 2012
*STEP 3 Selection of the Best Plan from
the Alternatives Available
All alternatives are found out, studied and
evaluated.
After careful consideration of all the points one
alternative is selected and decision is taken
according to the choice made.
14. Jul 2012
*STEP 4 Timing and Sequence of
Operation
Timing is an essential consideration in any
planning.
Sequence of operation is also arranged carefully.
Priorities are fixed.
15. Jul 2012
*STEP 5 Estimation of Future
Events
Some estimation is made for future events.
There are trend studies which indicate possible future
events.
Keeping some provision for margin of error, these
trend studies can be relied upon.
Experience, judgment and discretion also help in
estimating future events.
16. Jul 2012
*STEP 6 Follow Up
Action
The plans so prepared are to be carried out.
Follow up action is also needed for seeing through
the plan during the course of implementation.
A regular follow-up action is both desirable and
needed for effective implementation and
accomplishment of tasks assigned.
18. Jul 2012
STANDING PLANS
*Formulated by
managers at different
levels and are meant
for repeated use as
and when the occasion
demands.
* May be used over a
long period of time.
SINGLE-USE PLANS
*Are used for only
specific periods.
19. Jul 2012
*TYPES OF PLANS
1. FINANCIAL OR NON-FINANCIAL PLANS
Plans that require financial resources are
considered financial plans
Plans relating to physical resources of an
organization are non-financial plans
20. Jul 2012
*2. INFORMAL AND
FORMAL PLANS
Mere thinking by managers or contemplation
refers to informal plans
When informal plans are finalized and
prepared for implementation, it is considered to
be a formal plan
21. Jul 2012
*3. SPECIFIC AND
ROUTINE PLANS
Any plan made with a particular objective is a
specific plan
Day-to-day normal activities require some type of
regular plan known as routine plan
22. Jul 2012
*4 .STRATEGIC AND
FUNCTIONAL PLANS
Strategic planning is overall planning of the
enterprise’s objectives determined by top
management
A plan made in functional area like production,
purchase, marketing is referred to as functional
plan
23. Jul 2012
*5. LONG-RANGE OR
SHORT RANGE PLAN
Short term plans refers to a period covering six to
twelve months
Long range plans usually involve a time interval
of between three and five years
24. Jul 2012
*6. ADMINISTRATIVE
OR OPERATIONAL
PLANS
Administrative plans provide the base for
operative plans.
Administrative planning is done by top and middle
level management and operational planning is
done by lower level management
