PLANNING
By
Ajesh Mukundan p
ajeshmp@[Link]
+91 9947426820
NATURE AND PURPOSE OF
PLANNING
DEFINITION OF PLANNING :
Management planning involves the
development of forecast, objectives,
policies, programmes, procedures,
schedules and budgets.
TYPES OF PLANS
Purpose
Objectives
Strategies
Policies: Major
or Minor
Procedures
Rules
Prog rammes: Major
or Minor and
suppo rting
Budgets
Purpose or Missions
Every organization have meaningful purposes or missions.
Purpose or mission are the foundation of an organizations
sucess
Objectives
Organizations are basically goal attainment
instruments. Objectives are the purposes for which the
organization exists.
End towards which every activity is aimed.
It is end point of all other functions of management.
Each department have its own objectives.
Without objectives organizations would be purposeless
and chaotic.
Strategies
1. Derived from military
2. Defined as interpretative planning
3. Competitive implications
4. It reflects broad areas of an
enterprise operation.
5. It includes determination and
evaluation of alternative course of
action
Policies
1. One of the important components of
planning
2. Basically a statement either expressed
or implied.
3. It guides management at all levels in
decision making.
4. Means of encouraging discretion and
initiative, but within limits.
5. It should not be contradictory to any
other policies of the same
organization
Procedures
1. They are chronological sequences of
required actions.
2. It establishes way of performing the
work to be accomplished.
3. They are operational guides to action.
4. They indicate how a policy is to be
implemented and carried out.
Rules
1. They are specific required actions or
non actions, allowing no discretion.
2. It does not lay down any sequence of
action
3. Rules are definite and rigid.
4. The essence of a rule is that it reflects
a managerial decision that a certain
action must or must not be taken .
Programmes
1. A set of clear instructions in a logical
sequence to perform a particular job.
2. They explain how to carry out a given
course of action.
3. It helps in optimum utilization of
resources
4. It should ensure co-ordinated
planning efforts.
Budgets
1. It is a statement of expected results
expressed in numbers for a definite
period of time.
2. A budget usually implements a program
3. They are control devices .
4. It is a fundamental planning instrument in
many companies.
5. It vary considerably in accuracy , detail
and purpose
STEPS IN PLANNING
The management has to undertake the following
steps for effective managerial planning –
1. Being Aware of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative Courses
5. Evaluating Alternative Courses
6. Selecting a Course
7. Formulating Derivative Plans
8. Numberizing Plans by Budgeting
PLANNING PREMISES
Definition:
Planning premises are defined as the
anticipated environment in which plans are
expected to operate.
They include assumption or forecast of the
future and known conditions that will effect
the operation of plans.
PLANNING PROCESS:A Rational Approach
To Goal Achievement
Planning process:
1. Planning is a rational approach to accomplishing objectives.
2. An organization can progress when there is lower cost which
increases the sales by which the organization can earn more
profits.
3. To achieve this an organization has to pass through various critical
premises.
4. To overcome this an organization should make rational decisions.
Contd…..
The Planning Period :
1. Plans are for a short period or long period.
2. Even within the same firm at the same time,
various planning period may exists for various
matter
Commitment principle:
1. It says that plans should cover a period of time
that is long enough to fulfill commitments.
2. Short-range plans must be coordinated with
long-range plans.
