Planning - Importance of Planning - Types of Planning

2. 2
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3. 2
• Refers to the process of designing the future course of
action for an organization to achieve specific goals

4. 4
• Goal – oriented
• Intellectual or Rational Process
• All-pervasive
• Forward-Looking
• Integrated Process
• Involves Choice

5. 5
• Focuses attention on Objectives
• Minimizing the Risk
• Provides Sense of Direction
• Provides guidelines for decision-making
• Increases Organizational Effectiveness
• Ensures better Co-ordination
• Facilitates Control
• Encourages Innovation and Creativity

6. 6
Reviewing the plan
Selecting the Most Appropriate Alternative
Determining Planning Premises
Evaluating Available Alternatives
Analyzing Opportunities
Establishing Objectives
Determining Planning Premises
Identifying Alternatives

7. 7
• Based on the Organization level
Organization level
Strategic Plans Tactical plans Operational plans
• Top level Management.
• Long term goals.
• Period of plan time - ≥ 3 yrs.
• Overall objective of the
organization.
• Risk is high
• Middle level Management.
• Short term goals.
• Support the implementation
of strategic plans.
• Lower level Management.
• Day-to-day operational goals.
• Period of plan time - < 1 yrs.
• Support the implementation of
strategic plans.
• Risk is lesser.

8. 8
• Based on Frequency of use
Frequency of use
Single use plans Standing plans
• Achieving a specific goal and is designed
to deal with a unique, non-recurring
situation.
• Goal is achieved, the plan ceases to exit.
• One-time plan.
• Specific actions and recurring situation.
• Response to programmed decisions of managers
(solution to routine problems).

9. 9
• Based on Frequency of use
Single use plans
Programs Budgets Projects
• Large scale single use plan.
• Step to be taken, the
resources to be used, the
time period with in which
the task is to be achieved.
• Guides for day-to-day
operations.
• Budget outlines the
expected results of a given
future period in numerical
terms.
• Financial terms/ terms of
unit of products/ labour
hrs/machine hrs.
• Smaller scale single use plan.
• Precise allocation of duties &
effective control & easy
implication of the plan.

10. 10
• Based on Frequency of use
Standing plans
Polices Procedures Rules
• Organization members are
expected to operate in
pursuit of organizational
goals.
• Provide general boundaries
for action.
• Chronological sequence of
steps to be undertaken to
achieve an objectives.
• Well established and
formally laid down
procedures - Standard
operating procedures
(SOPs).
• A statement that spells out
what should or should not be
done in a particular situation.
• Provide detailed instructions
for day-to-day.
• Rigid and defined plans.

11. 11
• Based on the Time frame
Time frame
Long term plans Intermediate term plans Short term plans
• Strategic plan.
• Period of plan time - ≥ 5 yrs.
• Overall objective of the
organization.
• Top level manager
• Tactical plan.
• Period of plan time – 1 to 5
yrs.
• Middle level manager
• Operational plan.
• Period of plan time – < 1 yrs.
• Lower level manager