3. Meaning
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▰ Planning is deciding in advance what to do , how to do , when
to do and how to do it
▰ Planning involves anticipating the future and consciously
▰ According to Haimann “ planning is the function that
determine in advance what should be done
4. Definition
▰ an Planning is the process of thinking about the activities
required to achieve a desired goal
▰ Planning is the fundamental management function which
involves deciding beforehand what is to be done
▰ It is intellectual process which lays down organization
objectives and development various course of action it
chalks out exactly how to attain a specific goal.
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5. Nature
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▰ Planning is goal oriented
▰ Planning is primary function
▰ Planning is all-pervasive
▰ Planning is a continuous process
▰ Planning is forward looking
▰ Planning is directed toward efficiency
6. IMPORTANCE
▰ Planning focuses on objectives and results
▰ It reduces uncertainty and risk
▰ Provides sense of direction
▰ Helps in coordination
▰ Guides decision making
▰ Provide efficiency in operation
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8. Operational Planning
▰ Operational planning: are bout how thing happen
▰ This types of planning describe the day to day running of the
company
▰ Operational planning are often describe as single use plan and
ongoing plans
▰ Single use plans are created for activities with a single occurrence
▰ Ongoing plans include policies for approaching problems ,
procedures for step by step process for accomplishing particular
objectives.
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9. Strategic planning
▰ Strategic planning are all about things need to happen
▰ It includes a high level overview of the entire business
▰ It is the foundational basis of organization and dictate long
term decisions
▰ The scope of strategic planning can be anywhere from next
two years to the next ten years
▰ Important components of strategic planning are vision
mission and values
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10. Tactical planning
▰ Tactical plans are about what is going to happen
▰ Tactical planning supports strategic plans it includes tactics
▰ that the organization plans to use to achieve what is out lined in
the strategic plan.
▰ The scope is less than one year and break down the strategic plan
into actionable chunks
▰ Tactical plans ask specific questions about what need to happen
to accomplish a strategic goal.
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11. Contingency planning
▰ Contingency planning are made when something unexpected
happens or when something need to be changed
▰ Contingency planning are helpful in circumstances that call
for a change
▰ Contingency planning is essential in moments when changes
can not be forseen
▰ As the business world becomes more complicated planning
becomes more important to engage in and understand.
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13. Process of Planning
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The main step in planning process are as follow:-
▰ 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
14. 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.
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15. 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.
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16. STEP 3- Selection of the Best Plan from the
Alternatives Available
▰ Planning Premises give a prediction about future
uncertainties of business environments.
▰ On the basis of these forecasts are made and future trends
are indicated.
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17. STEP 4 Timing and Sequence of Operation
▰ All alternatives are found out, studied andevaluated.
▰ After careful consideration of all the points one alternative is
selected and decision is taken according to the choice made.
▰ Timing is an essential consideration in any planning.
▰ Sequence of operation is also arranged carefully.
▰ Priorities are fixed.
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18. STEP 5- Estimation of Future Events
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▰ 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.
19. 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.
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20. WHAT ARE OBJECTIVES ?
▰ Desires: A strong feeling of wanting to have something or wishing
for something to happen
▰ End point: The final stage of a period or process.
▰ Commitment: The state or quality of being dedicated to a cause,
activity.
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21. MANAGEMENT BY OBJECTIVE
▰ Peter Drucker first used the term "management by
objectives" in his 1954 book The Practice of Management
▰ After the term and idea were brought up, Drucker's
student, George Odiorne, continued to develop the idea in his
book Management Decisions by Objectives, published in the
mid-1960s.
▰ MBO was popularized by companies like Hewlett-Packard,
who claimed it led to their success
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22. WHAT IS M.B.O?
▰ Process where the employer and employee work together to
achieve the common goal of an organization
▰ It also involve the of “Subordinate interest to general interest”
▰ Subordinates tend to have a higher commitment to objectives they
set for themselves than those imposed on them by another person.
▰ This principle was given by Henry Fayol.
▰ Common goal for whole organization means it is a unifying, directive
principle of management.
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23. FUNCTION OF M.B.O
▰ Departmental goals: A goal is simply an end result that you want to
achieve. Objectives are concrete steps that you must complete in order to
achieve your goal. One technique for setting goals is developing smart goals,
which are specific, measurable, attainable, relevant and time-bound goals.
▰ Project goals: The project goal refers to achieving a desired outcome at a
specific end date employing a specific amount of resources.
▰ Individual goals: Personal goal setting is goal setting performed
by individuals who want to achieve objectives that will result in the betterment of
themselves or their situation. It is usually done through a systematic process
that involves thought, determination and execution.
▰
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24. BENEFITS OF M.B.O
▰ Better Managing: MBO results in improved and better managing. Better managing
requires setting goals for each and every activity and individual and ensuring that these
are achieved.
▰ Clarifying Organisation: MBO helps in clarifying organisational roles and structures.
Responsibility and authority are assigned as per the requirements of the tasks assigned.
There is no use of fixing objectives without delegating requisite authority.
▰ Encouraging Personal Commitment: The main benefit of MBO is that it encourages
personnel to commit themselves for the achievement of specified objectives.
▰ Developing Controls: MBO mechanism helps in devising effective controls. The need
for setting controls is the setting of standards and then finding out deviations if any.
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25. WEAKNESSES OF M.B.O
▰ Failure to Teach MBO Philosophy: The success of MBO will depend upon its
proper understanding by managers.
▰ Failure to Give Guidelines to Goal setters: If the goal setters are not given
proper guidelines for deciding their objectives then MBO will not be a
success.
▰ Difficulty in Setting Goals: The main emphasis in MBO technique is on set
ting objectives. The setting of objectives is not a simple thing. It requires lot
of information for arriving at the conclusions.
▰ Danger of Inflexibility: There is a tendency to strict to the objectives even if
there is a need for modification. 25
26. STRATEGY
▰ The word ‘Strategy is derived from Greek word’ “Strategos”
meaning General.
▰ Strategy is a unified comprehensive and integrated plan
according to plan relating the strategic advantages of firm to
challenges of environment. It is designed to ensure basic
objectives of the enterprise are achieved.
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27. ELEMENTS
▰ WHAT BUSINESS TO BE IN?
▰ WHAT MARKETS TO SERVE?
▰ WHICH NEEDS TO MEET?
▰ WHAT PRODUCTS TO OFFER?
▰ WHERE TO LOCATE FACILITIES?
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28. NATURE OF STRATEGIC PLANNING
▰ Strategic Planning is defined as dynamic process of formulation ,
implementation , evaluation and control of strategies to realize
the organization’s strategic intent.
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29. PHASE OF STRATEGIC PLANNING
▰ ESTABLISHMENT OF STRATEGIC INTENT
▰ FORMULATION OF STRATEGIES
▰ IMPLEMENTATIONS
▰ STRATEGIC CONTROL EVALUATION
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30. ESTABLISHMENT OF STRATEGIC INTENT
▰ Strategic intent is a compelling statement about where an
organization is going that succinctly conveys a sense of what that
organization wants to achieve in long term.
▰ This implies the purpose , which an organization endeavor of
achieving.
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31. FORMULATION OF STRATEGIES
▰ PERFORMING ENVIRONMENTAL APPRAISAL
▰ DOING ORGANIZATION APPRAISAL
▰ FORMULATING CORPORATE LEVEL STRATEGIES
▰ FORMULATING BUSINESS LEVEL STRATEGIES
▰ PERFORMANCE ANALYSIS
▰ CHOICE OF STRATEGY
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32. IMPLEMENTATION
▰ ACTIVATING STRATEGIES
▰ DESIGNING THE STRUCTURE, SYSTEM AND PROCESS
▰ MANAGERIAL BEHAVIORAL IMPLEMENTATION
▰ MANAGING FUNCTIONAL IMPLEMENTATION
▰ OPERATIONALISING STRATEGIES
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33. PERFORMING STRATEGIC EVALUATION AND
CONTROL
▰ PERFORMING STRATEGIC EVALUATION
▰ EXERCISING STRATEGIC CONTROL
▰ REFORMULATING STRATEGIES
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