Next step in Management Process is planning.

1. MANAGEMENT PROCESS
H Ramasubramanian
Planning

2. Planning
Definition: Types of plans:
2Planning - MANGEMENT PROCESS

3. Planning
.
3Planning - MANGEMENT PROCESS

4. Planning - Definition
Planning (also called forethought) is the process of thinking about and organising the
activities required to achieve a desired goal.
Steps in planning process:
Establish Goals
• The first step of the management planning process is to identify specific company goals.
• This portion of the planning process should include a detailed overview of each goal,
including the reason for its selection and the anticipated outcomes of goal-related
projects.
• Where possible, objectives should be described in quantitative or qualitative terms. An
example of a goal is to raise profits by 25 % over a 12-month period.
Identify Resources
• Each goal should have financial and human resources projections associated with its
completion.
• For example, a management plan may identify how many sales people it will require and
how much it will cost to meet the goal of increasing sales by 25 %.
4Planning - MANGEMENT PROCESS

5. Planning - Definition
Establish Goal-Related Tasks
• Each goal should have tasks or projects associated with its achievement.
• For example, if a goal is to raise profits by 25 %, a manager will need to outline the tasks
required to meet that objective.
• Examples of tasks might include increasing the sales staff or developing advanced sales
training techniques.
Prioritise Goals and Tasks
• Prioritising goals and tasks is about ordering objectives in terms of their importance.
• The tasks deemed most important will theoretically be approached and completed first.
• The prioritising process may also reflect steps necessary in completing a task or
achieving a goal.
• For example, if a goal is to increase sales by 25 % and an associated task is to increase
sales staff, the company will need to complete the steps toward achieving that objective
in chronological order.
Create Assignments and Timelines
• As the company prioritises projects, it must establish timelines for completing associated
tasks and assign individuals to complete them.
• This portion of the management planning process should consider the abilities of staff
members and the time necessary to realistically complete assignments.
5Planning - MANGEMENT PROCESS

6. Planning - Definition
• For example, the sales manager in this scenario may be given monthly earning quotas to
stay on track for the goal of increasing sales by 25 %.
Establish Evaluation Methods
• A management planning process should include a strategy for evaluating the progress
toward goal completion throughout an established time period.
• One way to do this is through requesting a monthly progress report from department
heads.
Identify Alternative Courses of Action
• Even the best-laid plans can sometimes be thrown off track by unanticipated events.
• A management plan should include a contingency plan if certain aspects of the master
plan prove to be unattainable.
• Alternative courses of action can be incorporated into each segment of the planning
process, or for the plan in its entirety.
Intellectual Process:
• Planning is an intellectual process of thinking in advance.
• It is a process of deciding the future on the series of events to follow. Planning is a
process where a number of steps are to be taken to decide the future course of action.
6Planning - MANGEMENT PROCESS

7. Planning - Definition
• Managers or executives have to consider various courses of action, achieve the desired
or set goal.
• Go in details of the pros and cons of every course of action and then finally decide what
courses of action may suit them best.
Primary function:
• Planning precedes other function in the management process.
• Certainly, setting of goals to be achieved and lines of action to be followed precedes the
organisation, direction, supervision and control.
• No doubt, planning precedes other functions of management.
• It is primary requisite before other management functions step in.
• But all functions are inter-connected.
• It is mixed in all managerial functions.
• But there too gets the precedence.
• Planning thus gets primary everywhere.
7Planning - MANGEMENT PROCESS

8. Planning - Definition
All pervasive: (Present throughout)
• Planning pervades management activities.
• From primary of planning follows pervasiveness of planning.
• It is the function of every managerial personnel.
• The character, nature and scope of planning may change fro personnel to personnel.
• But, the planning as an action remains intact.
• Plans cannot make an enterprise successful. Action is required.
• Planning seeks to achieve a consistent, coordinated structure of operations focused on
desired goals / trends.
• Without plans, action must become merely activity producing nothing but chaos.
Perpetual process: (continuous)
• Planning is a continuous process and a never ending activity of a manger.
• It is based upon some assumptions which may or may not come true in the future.
• Managers has to go on modifying, revising and adjusting plans in the light of changing
circumstances.
8Planning - MANGEMENT PROCESS

9. Planning - Definition
Role, Significance, Importance & Advantages:
• Organisation without planning – sailboat without rudder.
• Subject to the winds of organisational change.
• Without planning, business becomes random in nature and decisions become
meaningless and adhoc choices.
• Planning is the foundation of most successful actions of any enterprise.
9Planning - MANGEMENT PROCESS

10. Planning - Definition
10Planning - MANGEMENT PROCESS

11. Planning - Definition
Steps involved in planning:
• The planning process is valid for one organisation and for one plan.
• May not be valid for other organisation or for all types of plans.
• Various factors that go into planning process may differ from organisation to oeganisation
or from plan to plan in the same organisation.
• Major steps involved.
1. Establish objectives:
– Primary step in planning process.
– What is to be done
– When to be done
– How to do
– What is priority activity
– To align with policies, procedures, budget
– Objective must be understandable, rational and doable to make planning effective.
11Planning - MANGEMENT PROCESS

12. Planning - Definition
2. Establishment of planning premises:
– Assumption about the future and expected situation.
– Internal premises are internal variables that affect planning.
• Policies
• Resources
• Budget
• Timing
– External premises are variables outside the organisation
• Political
• Social
• Technological
• Competition
• Government rules / policies
• Market condition.
12Planning - MANGEMENT PROCESS

13. Planning - Definition
3. Determining alternative courses:
– Determine and evaluate alternative actions.
– No occasions without alternatives.
– Worthy and meaningful
– It is imperative that alternative plans must be developed before deciding upon the
exact plan.
4. Evaluation of alternatives:
– Study their strong and weak points
– Give weightage to various factors involved.
• More cash flow
• Least risk
• Long term business
• Competition pressure
– Decision to be taken on an alternate.
5. Selection of course of action:
– It is the point of decision making
– Deciding upon the plan to be adopted to meet objectives.
13Planning - MANGEMENT PROCESS

14. Planning - Definition
6. Formulating derivative plans:
– Gives effect and support basic plan.
– Ex: Run a flight from Chennai – Patna
• Staffing
• Operation
• Fuel
• Maintenance
• Stores purchase
– Each manager and department need to contribute to prepare the master plan on the
basis of derived plans.
7. Establishing sequence of activities:
– After basic and derivative plans are prepared for the activities, timing plan to be
made.
– Timing is essential.
– Gives practical shape and concrete form to the project.
– Starting and finishing time is fixed.
– Bad timing and sequence result in project failure.
– Who will do, what they will do, when they will do.
14Planning - MANGEMENT PROCESS

15. Planning - Definition
8. Feed-back or follow-up actions:
– Planning alone is not sufficient.
– To see whether actions are taken as per plan.
– If not, what is the cause, how to resolve and keep going.
– Whether the plan is working for that project and that situation.
– If conditions have changed, plan becomes outdated and require change.
– Regular follow-up / review required for effective implementation.
• The plan should be communicated to all connected in the project.
• Objective and course of action should be clearly defined.
• No ambiguity.
15Planning - MANGEMENT PROCESS

16. Planning - Definition
Types of planning:
16Planning - MANGEMENT PROCESS

17. Planning - Definition
Types of planning:
17Planning - MANGEMENT PROCESS

18. Planning - Definition
Types of planning:
18Planning - MANGEMENT PROCESS