 Planning
is an intellectual process, consicous
determination of courses of action, the basing
of decisions on purpose , facts and considered
estimates.
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Essence of planning is looking ahead. It is
always concerned with future.
Involves a predetermined course of action.
This action course is determined after a
careful study of alternative courses.
It is a continuous a integrated process.
It always have a dimension of time.
Its main object is to achieve better results.
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Planning offsets future uncertainty and
change.
Planning helps in management by
objectives.
Helps in coordination.
Economy in operation.
Helps in control.
Helps in executive development.
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Determination of objectives
Establishment of planning premises-forecast of those
business conditions under which a plan is to operate.
Determination of alternative courses
Evaluation of alternatives and selection of courses of
action
Determination of derivative plans- sub plans or
departmental plans
Timing and sequencing of operation
Securing participation of employees
Considering the strategy
Providing a follow up to the proposed course of
action
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Should be based on clearly defined
objectives
It must be simple
Should be rational, appropriate and
comprehensive.
It should provide for a proper analysis
and classification of actions.
Must be flexible
Must be balanced
 Standing
plans
 Single use plans
Methods
Policies
Procedure
Standing Plans
Objectives
Rules
Single use plans
Programmes
Budgets
Products
Strategies
 Standing
Plans
These are permanent plans.
Are used again and again.
Include procedures, methods and rules
etc.
 Provide
the basic foundation upon which
the structure of plans are built.
 To guide and unite the efforts of
employees in a desired direction, the
management must have its objectives.
 The objectives must be defined in clear
terms.
 Objectives must be general, specific,
short term or long term, tangible or
intangible.
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General statements that guide decision
making.
They define the boundaries within
which decisions can be made by the
subordinates.
They direct decisions toward the
accomplishment of objectives.
 They
indicate the specific manner in
which a certain activity is to be
performed.
 Where policies lay down the broad area
of action, the procedures determine the
sequence of definite acts.
 Deal
with the best way in which a
particular task is to be performed.
 Method is more detailed than a
procedure.
 A procedure shows us a series of steps to
be taken , a method is only concerned
with a single operation.
 Rules
are specific statements of what may
or may not be done.
 Rules provide way for informing the
organizational members exactly what the
boundaries of acceptable behavior are.
 Are
designed to accomplish specific
objectives usually within a relatively
short period.
 Budgets
 Programmes
 Projects
 Strategies
 It
is a plan which carves the course for
business activities for a future period to
achieve the prescribed objective and to
provide the desired profits for operation.
 It may be stated in time, materials, money
etc.
 It
is a sequence of activities designed to
implement policies and accomplish
objectives.
 They are developed under the umbrella
of organizational goals.
 May
be a specific programme.
 It
is also a special kind of plan formulated
basically to meet the challenge of special
circumstances.
 Choice of strategy depends on available
resources, urgency of achieving an
objective, external atmosphere etc.
 Objectives
are generally referred to as
purposes, missions, goals and targets.
 The term “objectives” means any
ultimate thing to be achieved as
profitable growth of business enterprise.
 Objectives determine the shape of future
actions and events in the business.
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They bring unity of planning
Objectives are the effective means to
decentralization of authority.
Objectives facilitate the coordination of workers,
efforts and resource of the enterprise.
They motivate the individuals. They specify the
purpose of each job and fit the individual purposes
and goals into the overall company goals.
Objectives provide the basic standards for control by
way of clarifying the expected results.
Classifying Objectives
Reasonability and Consistency
Areas of Objectives
Realistic and Practical
Balancing of Short range and long range objectives
Change of Adjustments
Classifying Objectives
Classifying Objectives into
 Major Goals
 Derivative Goals
 Long Range goals
 Short Range goals
Areas of Objectives
According to Peter Drucker, there are 8 areas in which
objectives have to be set
 Market Standing
 Innovation
 Productivity
 Physical and Financial resources
 Profitability
 Manager Performance and development
 Worker’s Performance and Attitude
 Public Responsibility
 Policies
are specific guidelines and
constraints for managerial thinking on
decision making and action.
 They provide the framework within which
the decision makers are expected to
operate while making organizational
decisions.
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To ensure that there will be no
deviation from planned course of action
To ensure consistency of action
To provide a guide for thinking future
planning
To leave scope for interpretation
On the
basis of
sources
•Originated
Policies
•Appealed
Policies
•External
Policies
On the
basis of
Functions
•Production Policy
•Financial Policy
•Credit Policy
•Marketing Policy
•Personnel Policy
On the
basis of
Level
•Basic Policies
•General policies
•Departmental Policies
Originated policies
 Formulated by Top Managers
 They are basic policies and have the
support of organization authorities and
subordinates can be asked to follow them
strictly .
Appealed Policies
 When a subordinate is doubtful whether
he has sufficient authority to handle a
situation , he may seek the verdict of a
superior.
 Superior’s verdict generates what is
known as appealed policy which
becomes wide to subordinates action in
future.
External Policies
 Such policies which are imposed upon
business by some external agencies like
trade unions, government or industry
associations etc.
Functional Policies
 Refer to the policies which are prepared
for various functional areas of
management. Production policy, product
policy, financial plan, personnel policy,
industrial relations policy for example.
 Policies
according to organizational
levels: divided into three policies
1. Basic policies to be used by the top
managers
2. General policies to be used by the top
managers.
3. Departmental policies to be used by
foremen and group leaders.