Here's 'Planning'- from Foundation Course-Semester 4. Happy Learning!

1. PROF. KARISHMA SHETTY
PLANNING
PROF. KARISHMA SHETTY

2. PROF. KARISHMA SHETTY
DICTIONARY MEANING OF PLANNING
 According to George R. Terry, “Planning is the selecting
and relating of facts and the making and using of
assumptions regarding the future in the visualization and
formulation of purposed activities believed necessary to
achieve desired results”
According to Philip Kotler, “Planning is deciding in the
present what to do in the future. It is the process whereby
companies reconcile their resources with their objectives
and opportunities”

3. PROF. KARISHMA SHETTY
Planning in simple is looking ahead.
It is preparing for the future. It involves outlining a future course of action.
Five year plans are an excellent example of planning.
Predicting the future is essential for planning.
Planning makes the things to happen.
Absence of planning will make things go helter-skelter.
Planning precedes all the other managerial functions.
It involves deciding the objectives and formulating the policies and procedures to achieve them.
Planning is required to answer questions like:
What to do?
How to do?
Who is to do?
When to do?
Managers at all levels perform the planning function.Though every manager plans, the plans developed by
different managers may vary in respect of scope and importance.
For example, plans made by top managers have a wider scope with a focus on the organization as a whole and
normally cover a longer period.These will result in growth.
On the other hand, plans developed by middle and lower level managers relate to the divisions or departments and
usually cover a short period.These will result in making finances available for growth
Systematic planning helps in facing the uncertainties of future with less embarrassment. It helps in
making things happen in the expected way.

4. PROF. KARISHMA SHETTY
 PRIMARY FUNCTION
PERVASIVE FUNCTION
 INTELLECTUALAND REALISTIC PROCESS
OBJECTIVES- ORIENTED
CONTINOUS FUNCTION
FEATURES/CHARACTERISTICS
OF SOUND PLANNING
FLEXIBILITY
RAISES ACCURACY, ECONOMYAND EFFICIENCY
LINK BETWEEN PAST, PRESENT AND FUTURE
BRINGS UNITY OF PURPOSE AND ACTION
FUTURE-ORIENTED
(HOW A PLAN SHOLD BE CARRIED OUT)

5. PROF. KARISHMA SHETTY
CHARCTERISTICS
OF
PLANNING
UNITY
LINK
ACCURACY
FLEXIBLITY
CONTINUOUS
OBJECTIVE
INTELLECTUAL
PERVASIVE
PRIMARY
FUTURE-
ORIENTED

6. PROF. KARISHMA SHETTY
 UNFORM DECISION-MAKING
PERFORMANCE STANDARDS
 HANDLES CHANGE
 SOLUTIONTO PROBLEMS
 ENSURES STABILITY
 REMOVAL OFWASTAGES
 UNITY OF PURPOSE
 SURVIVAL AND PROGRESS
IMPORTANCE OF PLANNING

7. PROF. KARISHMA SHETTY
PROCESS OF PLANNING/
STEPS IN PLANNING

8. PROF. KARISHMA SHETTY
FOLLOW-UP OFTHE PROPOSED PLAN
SECURING PARTICIPATION OF ALL EMPLOYEES
ARRANGINGTIMING AND SEQUENCE OF OPERATIONS
SELECTING OPERATING PLAN AND PREPARING DERIVATE PLANS
DETERMINING ALTERNATIVE PLANS
ESTABLISHING PLANNING ENTERPRISES
ANALYSING AND CLASSYFYING THE INFORMATION
COLLECTING COMPLETE INFORMATION AND DATA
DETERMININGTHE OBJECTIVES
CLASSIFYING THE PROBLEMS

9. PROF. KARISHMA SHETTY
COMPONENTS/ ELEMENTS
OF PLANINNG:

10. PROF. KARISHMA SHETTY
PLANS
STANDING
PLANS
MISSION
OBJECTIVES
POLICIES
PROCEDURES
RULES
STRATEGIES
FORECASTING
SINGLE-USE
PLANS
PROGAMMES
SCHEDULES
PROJECTS
BUDGETS
STANDARDS

11. PROF. KARISHMA SHETTY
ADVANTAGES OF
PLANNING

12. PROF. KARISHMA SHETTY
 QUICK ACHIEVEMENT OF OBJECTIVES
 BRINGS UNITY OF PURPOSE AND DIRECTION
 ENSURES FULL UTILIZATION OF RESOURCES
 AVOIDS INCONSISTENCY IN EFFORTS
 RAISES COMPETITIVENESS
 RAISES MANAGERIAL EFFICIENCY
 AVOIDS HASTY DECISIONS AND ACTIONS
 ENSURES EFFECTIVE CONTROL ONTHE ORGANIZATION
 ACTS AS INSURANCE AGAINST UNCERTAINITIES
 FACILITATES MANAGERIAL FUNCTIONS

13. PROF. KARISHMA SHETTY
LIMITATIONS
OF PLANNING

14. PROF. KARISHMA SHETTY
 TIME-CONSUMING AND COSTLY
 CHANGES INTHE SITUATION MAKE PLANNING INEFFECTIVE
 DIFFICULTY IN SECURING ACCURATE INFORMATION AND
DATA
 ENROACHMENTON INDIVISUAL FREEDOM AND INITIATIVE
 GENREATES FRUSTATION
 LIMITED PRACTICALVALUE
 NO GUARANTEE OF UNEXPECTED RESULTS
 RIGID PHILOSOPHY
 OPPOSITION FROM EMPLOYEES
 HUGE PAPERWORK

15. PROF. KARISHMA SHETTY
(HOW A PLAN SHOULD BE)
FEATURES OF
SOUND
PLANNING

16. PROF. KARISHMA SHETTY
 SIMPLICITY
 CLEAR OBJECTIVES
 SUSTAINABILITY
 FLEXIBILITY
 CONTINUITY
 UNITY OF PURPOSE AND DIRECTION
 COMPREHENSIVE AND COMPLETE
 FULL UTILIZATION OF RESOURCESAND OPPURTUNITITES
 BENEFICIALTO ALL CONCERNED
 REALISTIC AND ACCEPTABLE

17. PROF. KARISHMA SHETTY
DECISION
MAKING

18. PROF. KARISHMA SHETTY
MEANING OF DECISIONS/WHAT IS
DECISION MAKING?
 Decision making is a process of selecting the best among the different
alternatives.
 It is the act of making a choice.
 There are so many alternatives found in the organization and departments.
 Decision making is defined as the selection of choice of one best alternative.
 Before making decisions all alternatives should be evaluated from which
advantages and disadvantages are known. It helps to make the best decisions.
 It is also one of the important functions of management.
 Without other management functions such as planning, Organizing, directing,
controlling, staffing can’t be conducted because in this managerial function
decision is very important.

19. PROF. KARISHMA SHETTY
DEFINITIONS OF DECISION MAKING
 According to Oxford Dictionary, decision making means “the action of carrying out
or carrying into effect”
 According to Haynes and Massie, “A decision is a course of action which is
consciously chosen for achieving a desired result”
 According toTrewatha & Newport, “Decision-making involves the selection of a
course of action from among two or more possible alternatives in order to arrive at a
solution for a given problem”
 According to James Stoner, decision making is “the process of identifying and
selecting a course of action to solve a specific problem”

20. PROF. KARISHMA SHETTY
FEATURES/
CHARACTERISTICS OF
DECISION-MAKING

21. PROF. KARISHMA SHETTY
 IMPLIES CHOICE
 CONTINUOUS ACTIVITY/ PROCESS
 MENTAL/INTELECTUALACTIVITY/ PROCESS
 SYSTEMATIC PROCESS
 BASED ON RELAIBLE INFORMATION/ FEEDBACK
 GOAL ORIENTED PROCESS
 TIME-CONSUMINGACTIVITY
 NEEDS EFFECTIVE COMMUNICATION
 RESPONSIBLE JOB
 SITUATION BASED ACTIVITY

22. PROF. KARISHMA SHETTY
IMPORTANCE AND
ADVANTAGES OF
DECISION MAKING

23. PROF. KARISHMA SHETTY
 ASSESMENT OF MANAGERS
 MEETING CHALLENGES
 MANGERIAL FUNCTION
 BENEFICIALTOTHE ORGANIZATION
 ACHIEVEMENT OF BUSINESSOBEJECTIVES
 RAISES MORALE OF DECISION MAKERS
 ACCEPTABLETO EMPLOYEESAND OTHERS
 FACILITATES BUSINESS EXPANSION AND GROWTH
 FACILITATES OPTIMUM UTILISATION OF RESOURCES
 RAISES EFFIENCY AND EMPLOYEE MOTIVATION

24. PROF. KARISHMA SHETTY
PROCESS OF DECISION MAKING
 IDENTIFYINGTHE PROBLEM
 ANALYSINGTHE PROBLEM
 COLLECTING RELEVANT DATA
 DEVELOPINGALTERNATIVE SOLUTIONS
 SELECTINGTHE BEST SOLUTION
 CONVERTING DECISION INTO ACTION
 ENSURING FEEDBACK

25. PROF. KARISHMA SHETTY
ENSURING FEEDBACK
CONVERTING DECISION INTO ACTION
SELECTINGTHE BEST SOLUTION
DEVELOPING ALTERNATIVE SOLUTIONS
COLLECTING RELEVANT DATA
ANALYSINGTHE PROBLEM
IDENTIFYINGTHE PROBLEM

26. PROF. KARISHMA SHETTY
CASE STUDY - 1
 Rahul, a worker, is given a target of assembling two
computers per day. Due to his habit of doing things
differently, an idea struck him which would not only
reduce the assembling time of computers but would also
reduce the cost of production of the computers. Instead
of appreciating him, Rahul’s supervisor ordered him to
complete the work as per the methods and techniques
decided earlier as nothing could be changed at that
stage.The above paragraph describes one of the
limitations of the planning function of management.
Name and explain that limitation.

27. PROF. KARISHMA SHETTY
CASE STUDY – SOLUTION -1
 The limitation of the planning function of
management described in the above paragraph is
that ‘planning reduces creativity.’The top
management undertakes planning of various
policies and procedures whereas the other members
are expected to merely implement these plans.This
restricts the creativity of the middle level managers
as they are neither allowed to deviate from plans,
nor permitted to act on their own.

28. PROF. KARISHMA SHETTY
CASE STUDY - 2
 Flipkart is an e-commerce company founded in the year 2007 by Sachin Bansal and Binny Bansal.The
company is registered in Singapore, but has its headquarters in Bengaluru, India.The company seeks to
increase traffic (more clicks on their products) and boost sales and revenue through integration of Mobile
Apps, Display, Pay Per Click and Search Engine Optimization. In order to dispel the fear of people related
to shopping online, Flipkart was the first company to implement the popular ‘Cash on Delivery’ facility. All
the products sold by the company under a particular category may have different return/replacement
period. Flipkart allows multiple payment options such as cash on delivery, credit or debit card transactions,
net banking, e-gift voucher and card swipe on delivery.The company operates both ways when an order is
received.The products for which it holds inventory are dispatched by it directly. For the products they do
not store in inventory, they just send the order received by them to the supplier who ships it.The company
plans to spend about ? 75 crores on e-Commerce advertising in the year 2016. Flipkart reserves the right to
terminate your membership and/or refuse to provide you with access to the website if it is brought to
Flipkart’s notice or if it is discovered that you are under the age of 18 years.This is because as per the
Indian Contract Act, 1872, the minors, un-discharged insolvents, etc. are not eligible to use the website.
In context of the above case, identify and explain the different types of plans being used by Flipkart by
quoting lines from the paragraph.

29. PROF. KARISHMA SHETTY
CASE STUDY – SOLUTION 2
 Answer:
The different types of plans being used by Flipkart are listed below:
 Objectives: Objectives are the end results of the activities that an organization seeks to achieve through its existence. All other activities within the organization are directed
towards achieving these objectives.
“The company seeks to increase traffic (more clicks on their products) and boost sales and revenue through integration of Mobile Apps, Display, Pay Per Click and Search
Engine Optimization.”
 Strategy:A strategy is a comprehensive plan for achieving the objectives of the organization. This comprehensive plan involves:
 determining long term objectives
 adopting a particular course of action
 allocating resources necessary to achieve the objective.
“In order to dispel the fear of people related to shopping online, Flipkart was the first company to implement the popular ‘Cash On Delivery’ facility.”
 Policy: A policy is a set of general guidelines that help in managerial decision making and action.
“All the products sold by the company under a particular category may have different return/replacement period.”
 Method:A method refers to the prescribed ways or manner in which a task has to be performed considering the objective.
“Flipkart allows multiple payment options such as cash on delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on delivery.”
 Procedure: A procedure contains a series of specific steps to be performed in a chronological order to carry out the routine activities.
“The company operates both ways when an order is received. The products for which it holds inventory are dispatched by it directly. For the products they do not store in
inventory, they just send the order received by them to the supplier who ships it.”
 Budget: A budget refers to a financial plan that is expressed in -numerical terms.
“The company plans to spend about ? 75 crores on e-commerce advertising in the year 2016.”
 Rule: A rule is a specific statement relating to the general norms in terms of Do’s and Don’ts that guide the behavior of people. It commands strict obedience and a penalty is
likely to be imposed on its violation.
“Flipkart reserves the right to terminate your membership and/or refuse to provide you with access to the Website if it is brought to Flipkart’s notice or if it is discovered that
you are under the age of 18 years.This is because as per the Indian Contract Act, 1872, the minors, un-discharged insolvents etc. are not eligible to use theWebsite.”