Dr.

Seema Khalid
11/18/2023

Principles of
Management
 • Planning is the process of deciding or designing a course of
action of how an organization can be managed in order to
achieve its goals.
• Managers think through their plans, outlining what an
organization must do to be successful.

Defining • Plans can differ in focus but they are all concerned with
achieving organizational performance both in short and
Planning long run.
• Planning involves the commitment of an organization's
resources to a future course of action.
• Planning includes all activities that lead to the definition of
objectives and the determination of appropriate strategies
to achieve these objectives.
Sample Workflow...
• The planning process typically involves the following steps:
• Set goals: What does the organization want to achieve?
• Analyze the environment: What are the opportunities and
threats facing the organization?
• Generate and evaluate alternatives: What are the different
ways to achieve the organization's goals?
• Choose a course of action: Which alternative is the best
one?
• Implement the plan: Put the plan into action.
• Monitor and evaluate the plan: Make sure the plan is
working and make adjustments as needed.
Planning
• A process of accomplishing purposes
• The blue print of business growth and
a road map of development
• Helps deciding objectives both in
quantitative and qualitative terms
• Setting of goals on the basis of
objectives and aligning with resources
required
• Bridges the gap between where we are
and where we want to go
Some Examples
• A company might develop a strategic plan to outline its
long-term goals and how it plans to achieve them.
• A marketing team might develop a marketing plan to
launch a new product.
• A project manager might develop a project plan to
complete a specific task.
• A manager might develop a performance management
plan for an employee.
• Planning can be done at different levels of an
organization, from the top-level executives to the
frontline employees. It is important for all employees to
understand the organization's goals and objectives, and
to play a role in planning how to achieve them.
Expectations of Planning
• A plan should be a realistic view of the
expectations
• Depending upon the activities, a plan can be
long range, intermediate or short range
• Should aim at achieving goals more
economically and accurately
• Key support document when seeking external
support
• Support organization to survive, operate and
grow in the competitive market economies
 Some Ways...

• Realistic expectations: Planning helps organizations to develop realistic

expectations about what can be achieved and what resources will be
needed. This can help to avoid over-committing or under-resourcing
projects and initiatives.
• Efficiency and effectiveness: A well-developed plan can help organizations
to achieve their goals more efficiently and effectively by identifying the
best course of action and allocating resources accordingly. This can lead to
reduced costs, improved quality, and faster time to market.
• External support: A well-developed plan can serve as a key support
document when seeking external support, such as from investors or
lenders. This is because a plan provides a clear roadmap for the
organization and demonstrates that it has thought through all aspects of
the project or initiative.
• Survival, operation, and growth: In competitive market
economies, organizations need to be able to adapt to changing conditions
and seize new opportunities. Planning can help organizations to do this by
providing a framework for making strategic decisions and developing new
products and services.
Purpose of Planning

• Helps management to clarify, focus and

research their business or
projects development and prospects
• Provides a considered and logical
framework within which a business can
develop and pursue business strategies
• Offers a benchmark against which
actual performance can be measured
and reviewed
• Keeps organization in a
changing, market economy and in
situation of uncertainty
Areas of
Planning
Managers plan for various reasons. The
common ones being:
• Human Resources
• Financial Resources
• Technical Resources

Plans are necessary to set

organization's objectives- a best way of
reaching them.
Concepts
Human resources: This includes planning for the
recruitment, selection, training, and development of employees. It also includes
planning for compensation, benefits, and succession.

Financial resources: This includes planning for the organization's revenue and
expenses. It also includes planning for investments, debt, and cash flow.

Technical resources: This includes planning for the organization's technology

infrastructure, equipment, and software. It also includes planning for research
and development.
 Planning leads to controlling

Controlling leads to measuring performance

Linkages Measuring performance leads to comparing performance with

standards

between Comparing performance with standards determines the

Planning and correctness of a planning process

Controlling Determination of what is correct leads to revising of plans

Revising of plans involves the division or departmentalization of

organizations

From divisions or departments a feedback of information

determines the course, direction and purpose of planning
Components of a Plan

• Goal: aim to be accomplished

• Objectives are quantified and time bounded statements
• Strategy: focuses on the way and means to achieve the
established objectives given the resource forecast
• Forecasting: time, effort and resources
• Budget: costs to complete project
• Policy: making sure that action is oriented toward
objective.
 • The ability to choose appropriate means to achieve
an objective
Effective • Setting appropriate goals and reaching them as
specified
Planning • High quality planning
• A clear direction of how to use available resources
to achieve goals
• The ability to determine appropriate objectives by
doing the right thing
• Requires controlling and
• Deserves right implementation and monitoring
 Responsive to the beneficiaries of the planning process

Characteristics Flexible

of Effective Integrated

Planning Free from barriers

 IMPROVED DECISION-MAKING

Benefits of INCREASED EFFICIENCY AND PRODUCTIVITY

Effective REDUCED RISK AND UNCERTAINTY

Planning IMPROVED COMMUNICATION AND COORDINATION

ENHANCED MOTIVATION AND COMMITMENT

GREATER ADAPTABILITY TO CHANGE

Barriers to Effective
Planning

• Planning must be beneficial to those who

will be affected by it.
• Planning must be flexible to be
implemented successfully.
• Plans must involve knowledgeable and
capable persons who will achieve set goals.
• Planning must consider the behaviors and
attitudes of people.
• Planning must be considerate of the
society in which the organization operates.
 • Q1. What is planning?
• Q2. List and explain the basic steps in the planning

Tutorial process
• Q3. Mention reasons why some managers hesitate

Exercise or fail to set goals for their organizations or units

• Q4. Identify some functions that plans can serve
• Q5. List and explain the tools or techniques that
can be used in planning
A-1
• Planning is the process of thinking regarding the activities required to achieve a desired
goal. It involves the use of logic and imagination to visualise not only a desired result, but
the steps necessary to achieve that result.
A-2
• The basic steps in the planning process are:
• Set goals: What do you want to achieve? What are your desired outcomes?
• Analyze the current situation: Where are you now? What are your strengths and
weaknesses? What opportunities and threats exist?
• Develop a plan: Identify the steps and tasks that need to be completed to achieve your
goals.
• Implement the plan: Take action to carry out the plan.
• Monitor and evaluate the plan: Track your progress and make adjustments to the plan as
needed.
A-3
• Some managers hesitate or fail to set goals for their organizations or units for a variety of reasons,
including:
• Uncertainty about the future: It can be difficult to set goals when the future is
uncertain. Managers may be afraid of setting goals that are too ambitious or unrealistic.
• Lack of time: Setting goals can be a time-consuming process. Managers may feel that they don't
have the time to develop and implement a well-thought-out plan.
• Fear of failure: Managers may be afraid of setting goals and then failing to achieve them. This can
be especially true if they are being held accountable for their performance.
• Lack of support from senior management: Managers may be reluctant to set goals if they don't
have the support of senior management. If senior management is not committed to goal
setting, it is unlikely that lower-level managers will be successful in implementing it.
A-4
• Plans can serve a number of functions, including:
• Providing direction: Plans provide a roadmap for achieving goals. They help to ensure
that everyone is working towards the same objectives.
• Coordinating activities: Plans help to coordinate the activities of different departments
and individuals. This can help to avoid duplication of effort and ensure that everyone is
working together effectively.
• Motivating employees: Plans can motivate employees by giving them a clear
understanding of what needs to be done and how their individual contributions will help
to achieve the overall goals.
• Facilitating control: Plans can facilitate control by providing a benchmark against which to
measure progress. This helps managers to identify any problems or deviations from the
plan early on and take corrective action.
A-5
• A variety of tools and techniques can be used in planning, including:
• Goal setting: Goal setting is the process of identifying and defining
specific, measurable, achievable, relevant, and time-bound goals.
• SWOT analysis: SWOT analysis is a technique used to identify an organization's
strengths, weaknesses, opportunities, and threats.
• Forecasting: Forecasting is the process of predicting future events or trends.
• Scenario planning: Scenario planning is a technique used to develop plans for different
possible future scenarios.
• Project management: Project management is the process of
planning, executing, monitoring, and controlling a project.