Chapter 3
Unit 2
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Planning is deciding in advance what to do,
how to do it, when to do it and who is to do
it.
Planning is the process of establishing goals
and a suitable course of action for achieving
those goals.
It provides the bridge to take us from where
we are to where we want to go.
It is a mental predisposition to do things in
an orderly way, to think before acting and to
act in the light of facts rather than guesses.
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Goal oriented
Future oriented
Continuous
Pervasiveness
Intellectual process
Primacy of Planning
Helps in Co-ordination
Involves decision making
Efficiency, Economy and Accuracy
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Minimizes risks of uncertainty
Facilitates coordination
Facilitates proper direction
Establishes standard for control
Improves efficiency
Encourages innovation
Facilitates decision making
Reduces wastage of resources
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Time consuming
Involves paper work
Expensive
Generates Rigidity
Dangers of over targeting and under
targeting
Danger of Human error
Problems with technical and creative staff
Problems of changing situations
Determine
objectives
Choose best
alternative
Develop
derivative
plans
Collect
information and
forecast
Study
alternative
plans
Communicate and
Implement
Develop
Planning
Premises
List
alternative
ways of
reaching
objectives
Follow
up
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Objectives:
◦ provide purpose of the enterprise
◦ end point of planning
◦ act as guide to overall planning process
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Strategy
◦ Complete plan for accomplishing organizational goals
◦ Framing long term objectives
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Policies
◦ General guide to thinking and action rather than a
specific course of action
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Procedure
◦ Steps to carry out routine activities
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Method
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Rule
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Programme
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Budget
◦ Prescribed manner in which a task is to be performed
◦ Deals with task comprising one step of a procedure
◦ Statements informing what should be done what not under a given
situation
◦ No flexibility or discretion allowed
◦ Concrete scheme of action designed to accomplish given tasks
◦ Includes steps to be taken, resources to be used, time limits for
each step and assignment of tasks
◦ Detailed statements about a project outlining objectives, policies,
procedures, rules, resources required and budget to implement
any course of action
◦ Plan quantifying future facts and figures
◦ Represents the total income and expenses
Long term
planning
On the basis of
Time Period
Medium term
planning
Short term
planning
Types of
Planning
Corporate
planning
On the basis of
scope
Divisional
planning
Departmental or
Unit planning
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By Peter Drucker
Each and every employee of the organization
working whole heartedly towards the
attainment of objectives of the organization
Objectives of the organization must be set by
both management and subordinates jointly
Aims at coordinating individual goals with
organizational roles
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Goal specificity
Participative decision making
Explicit time period
Performance feedback
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Optimum utilization of human resources
Better communication
Fixed responsibility
Increased employee morale and motivation
Career development of the employees
Effective planning and control
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Insufficient support from top management
Insufficient integration with other systems
Improper follow up
Time consuming
Reward punishment approach-stress
Difficult to coordinate management and
employees objectives