This presentation is prepared and presented by Mohamed Ibrahim Jaban

2. Group Names:
 Ismail Ahmed Dayib
 Abdirahman Ali Hassan
 Ahmed Shirre Musse
 Mohamed Ibrahim Ismail
 Mohamed Mirre Hussein
 Zakariye Ali Ahmed
 Abdiqadir Said Hirsi

4. Slide Contents:
 Definition of Planning
 Importance Of Planning
 Levels of Planning
 Four major aspects of Planning
 Types of Planning

5. Definition of Planning
 WHAT IS PLANNING?
 Planning is the systematic process of
establishing a need and then working out the
best way to meet the need, within a strategic
framework that enables you to identify
priorities and determines your operational
principles.

6. Continue…
 Planning is the French word “prevoyance” which
means to look a head. According in a Pffifner and
Presthus planning is “a rational process
charactrised of all human behavior”
 According to Dimock “Planning is an organized
attempt to anticipate and to make rational
arrangement for dealing with future problems by
projecting trends.
 Planning is also defined future course of action
the resource have to be managed to achieve
goals which exist in future point in time in all
definition of planning, there is a one common
element i.e. “Future course of action”.

7. Importance of planning
 Planning is the most important activity of the
organization and of managers, because
without planning organization may not be able
to achieve their goals and objectives.

8. What is business/action/operational
planning?
 Once you have a strategic plan, the action
plan answers the following questions:
 What needs to be done?
 How will it be done?
 Who will do it?
 By when must it be done?
 What resources are needed to do it?

9. Levels of planning
 National level is made at a country level
 Provincial level is made at provincial level
 Organizational level is made at organizational
level
 Department is made at department level
 Unit level is made at unit level
 Personal level plan could be professional plan
or private plan

10. Four major aspects of Planning
1. Its contribution to purpose and objectives
2. Its importance in managerial task
3. Its pervasiveness
4. The efficiency vs effectiveness of plan
we will discuss it each one in detail

11. Continue…
1.The contribution plan to purpose and
objective:
Every plan must contribute to the
accomplishment of purpose of the
organization. This concept derives from the
nature of the organized enterprise which exists
for the accomplishment of the group purpose.
2. The importance of planning to the managerial
task:
Planning precedes all other managerial tasks.
(organizing, staffing leading, motivating,
controlling, budgeting and evaluating) its

12. What kind of
organization
structure to have
What kind of
people we need
and when
How most
effectively to lead
By developing
standards of
control
Plans
Objectives and
how to
achieve
them
Which helps
us
to know
Which effective
the kind of
leadership
To ensure
Success of
plan
Plans as Functions of management
Figure 1
Figure 1 shows that plans sets out objectives, and then the kind of
organization structure will be determined that will have achieve
those objectives . Then to achieve the plan objective the manager
should select the right people. After selection of right people this
most be effectively led. Finally the control standard must be
developed to determine if plan has achieved the objectives.

13. Relationship of Planning and Controlling
Figure 2
Planning
Implementati
on
of Plan
Controlling:
Comparing
plans with
result
No
Deviation
Corrective
action
Figure 2 shows the relationship between planning and
controlling. The relationship between planning and
controlling is inextricable, because the two support each
other.

14. Continue…
3. The pervasiveness:
Planning is a function of all managers. If manager
are not allowed to plan to a certain degree then
they may not be able to function as manager. All
managers plan-from chief executive to the first
level supervisor.
4. The efficiency Vs effectiveness of plan:
A plan is said to be efficient if it achieves its
purpose with minimizing cost. It’s the contribution
of the plan to the objectives. E.G. if a cost is
higher than the benefits, the plan is said to be
inefficient. Effectiveness is the achievement of
goals and objectives set out in the plan.

15. Types of Plans
 Plans are future course of action and these are varied
according to the time frame. These are classified as:
1. Purpose or Mission
2. Objectives or Goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programmes
8. Budgets
We will examine each separately

16. 1. Purpose or mission:
The mission or purpose identifies the basic tasks
of the organization. Every Organization should
have purpose or mission.
2. Objectives or goals:
Objectives or goals are end towards which activity
is aimed. These represent not only the end point
of planning but also end towards which
organizing, staffing, leading and controlling are
aimed. While, the objectives are the basic plan of
an organization, its department may have
objectives.

17. 3. Strategies
Strategies mean “grand plan” made in the light of
what an opponent might do or not. Strategy is
defined as determination of long term plan of an
organization and flowing course of action and
allocation of resources necessary to achieve the
goals.
4. Policies
Policies are general statement or understanding
that guide or channel thinking in decision making
not all policies are “statement”, they can be
implied from the actions of managers.

18. 5. Procedures:
Procedures are plans that establish a
required method of handling future activities.
6. Rules:
Rules spell out specific action or non action
allowing no discretion. Rules are unlike
procedures in that they guide action without
specifying time sequence.

19. 7. Programs:
Programs are complex of goal, policies, rules,
tasks procedures, resources to be employed.
Program have time period and this are for
specific purpose.
8. Budgets:
Budget is a statement of expected results in
numerical terms. Its referred to as a “number
zed” plan. For private sector organization
financial operating budget is called a “profit
plan”.

20. Planning Process
1. Recognizing the need for planning
2. Determining the objectives
3. Forecasting the future
4. Determining alternatives
5. Evaluating alternatives
6. Selecting a course of action
7. Implementing the plan
8. Revising the plan

21. 1. Recognizing the need for planning:
This precedes planning and starts with intention of
either solving problem or to attain some objectives.
Organization have need for planning to use scarce
resources efficiently, and make best use of
opportunities and prepare for treats. This is because
plan are considered as future course of action. The
organizations have to look a head to solve their
problems.
2. Determining Objectives:
The second step in the planning process is
establishing objectives for the organization and then
for each subordinate/employee. Objectives specify
expected results and indicate end point of what is to

22. 3. Forecasting the future:
Forecasting is based on certain assumptions
about the future in which the plan is to be carried
out. The basis of forecasting is to understand of
markets, the prices? What services needs to be
provided?, what technological change there will
be? What population changes will there be?
4. Determining alternatives:
This involves examining alternative course of
action. There would hardly be plan for which
alternatives do not exist.

23. 5. Evaluating alternatives:
Each alternative is evaluated or examined in terms of
cost and benefits. One course of action may have
large investment and little benefits in the short run.
Other alternative may be risky and have more
benefits/profits
6. Selecting one alternative:
At this point the decision has to be taken to adopt
and alternative from the various alternatives. The
choice could be one or more than one alternatives,
depending on the emphasis on objectives to be
achieved and the cost. At this stage the plans are
made part of the budget, budgets become means of
tying up the plans.

24. 7. Implementing plan:
Implementation of plan is the most crucial
aspect. The implementation determines
whether the plan was able to achieve the
objectives or not.
Planning as a rational process:
As indicated by the planning process, it’s a
rational approach to accomplish objectives.
This process is illustrated in the following
graph:

25. Assumption
s
Progress
Time
-----
-
------------------
--
---
X
1
Y
The Panning Process
X
In this diagram progress (high profits, more services etc.) are
shown on vertical axis and time on the horizontal axis. X
indicates where we are (to) and Y where want to be at future
time (tn). Often we do not have all the data but we start planning
and we may start our planning at x1. the arrows shown around
the line X and Y are the assumptions that we make ability the
future. When we are plan we are in fact charting an unknown

26. Figure 2
Socio-
economic
purpose
Mission
Overall objectives of
organization
(strategies)
More specific
objectives
Department or branch or unit
objectives
Individual Objectives: 1. Performance, 2. Personal
objectives
Top
Down
Bottom Up
Board of
Directors
Top
management
…………………
…….. Middle
management…………………
Lower level
Management
……….
Hierarchy of
Objectives