Planning - Principles of Management

1. 1
“Successful managers deal with
foreseen problems and unsuccessful
managers struggle with unforeseen
problems”….Terry

2. 4
 Deciding in advance what to do, how to do it ,
when to do it and who has to do it.
 A forecast for accomplishment.
 Predetermined course of action.
 To produce a scheme for future action and to
bring about specified results at a specified cost
in a specified period of time.

3. 5
 Defined in to directions by management thinkers.
 Based on futurity
 As an intellectual function
 Based on futurity:
 “Planning is a trap laid down to capture the future” (Allen)
 “Deciding in advance what is to be done in future” (Koontz)
 “Informed anticipation of future”( Haimann)
 Anticipatory decision making” (R L Ackoff)

4. 6
 As an intelligence function:
 “Planning is a thinking process, an organized
foresight, a vision based on fact and experience that
is required for intelligent action”( Alford & Beatty)
 “Deciding in advance what to do, how to do it, when
to do it and who has to do it” ( Koontz & O’ Donnell)
Planning focuses on future and it involves all the
activities that determine objectives for the future and the
appropriate means for achieving those
objectives. Outcome of planning is a plan, which is a
document that specifies the course of action the
organization will take.

5. 7
 Provides basic foundation from which all future
management functions arise.
 Goal oriented
 All pervasive
 Intellectual exercise
 Continuous process
 Futuristic
 Integrated Process

6. 8
Where we are
Where we want to
be
Planning

7. 9
 Provides direction
 Creates a unifying frame work
 Leads to economical utilization of resources
 Reduces the risks of uncertainty
 Facilitates decision making
 Encourages Innovation & Creativity
 Improves morale
 Facilitates control

8. 10
Planning
Implementation
of Plans
Controlling:
comparing
plans with
results
Corrective
action
No undesirable
deviations from
plans
Undesirable
deviations

9. 11
 Long range Vs Short range
 Strategic Vs Operational
 Corporate Vs Functional
 Proactive Vs Reactive
 Standing Vs Single Use

10. 12
Long range plan Point of
distinction
Short range plan
Covers many years &
affects many departments
of an organization
Meaning Covers less than one year
and is more specific &
detail
5 yrs or more Time Up to one year
Organizations linkage
with external factors
Primary
focus
Linkage with various
parts of an organization
Mission ,long term goals
and strategies
Deals with Current operations of
organization
Top management Prepared
by
Lower level executives

11. 13
Strategic Plan Point of
distinction
Operational Plan
5 years or more Time
horizon
Under one year
Adapt to external
environment based on
internal strengths
Purpose Implement internal goals
Total institutional
performance
Activity
controlled
Internal tasks &
Operations
Top management Level
involved
Middle & lower level
Primarily judgmental Basis for
planning
Exact data & Standards
used

12. 14
 Corporate Plan:
 A comprehensive plan that outlines the broad
objectives of a company as a whole and develops
plans to achieve those objectives
 Holistic and Unified focus
 Focus on organizational performance
 Functional Plan:
 Is unit planning and deals with different
departments in an isolated manner.
 Focus on departmental performance

13. 15
 Proactive Planning:
 Managers challenge the future, anticipating
future contingencies and get ready with
alternative routes for unforeseen
circumstances
 Reactive Planning:
 Organizations react to events as and when
they arise

14. 16
 Standing Plans
 Developed for
activities that
recur regularly
over a period of
time
 Ex:
 Objectives, Policies,
Procedures, Methods,
Rules
 Single Use plans
 Developed to carry
out a course of
action that is not
likely to be
repeated in future
 Ex:
 Programmes,
Schedules, Projects,
Budgets

15. 17
Purpose
or Mission
Procedures
Strategies
Policies: Major or Minor
Rules
Objectives
Programs: Major or minor and supporting
Budgets: numberized programs

16. 18
1. Socio-
economic
purpose
3. Overall objectives of the
organization (long-rage,
strategic)
4. More specific overall objectives
(e.g, in key result areas
5. Division objectives
2. Mission
6. Department and Unit objectives
7. Individual objectives
• Performance
• Personal development objectives
Board of
directors
Top-level
management
Middle – level
managers
Lower-level
managers
(Some)
(Some)
organizational HierarchyHierarchy objectives

17. 19
1. Establishing Verifiable Goals or Set of Goals to
be Achieved
2. Establishing Planning Premises
3. Deciding the Planning Period
4. Finding Alternative Courses of Action
5. Evaluating and Selecting a Course of Action
6. Developing Derivative Plans
7. Establishing and Deploying Action Plans
8. Measuring and Controlling the Progress

18. 20
Being Aware of Opportunity
In light of:
The Market
Competition
What customer want
Our strengths
Our weaknesses
Setting objectives or Goals
Where we want to be and what
we want to accomplish and
when
Considering planning
premises
In what environment – internal
or external – will our plans
operator?
Identifying Alternatives
What are the most promising
alternatives to accomplishing
our objectives?
Comparing alternatives in light of
goals sought
Which alternative will give us the
best chance of meeting our goals at
the lowest cost and highest profit?
Choosing an Alternative
Selecting the course of action we will
pursue
Formulating supporting plans
Such as plan to
Buy equipment
Buy materials
Hire and train workers
Develop a new product
Numerizing plans by Marking
Budgets
Develop such budgets as:
Volume and price of sales
Operating expenses
Necessary for plans
Expenditures for capital
Equipment

19.  Planning premises may be wrong:

Rapidity of change:

Time and cost constraints:

Planning may limit new ideas:.

Capital investment constraint:

Lack of control over external factors:
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20.  Peter Drucker described M B O in 1954 in
his book, “The practice of management”
 The philosophy of management that
emphasises the setting of agreed on
objectives by managers and their
subordinates and the use of these objectives
as the primary basis of motivation,
evaluation and control efforts.

21.  Top management’s support and commitment
 Establishing long range objectives and plans
 Establishing specific shorter term
organizational objectives.
 Establishing individual performance
objectives and standards of performance.
 Appraisal of results (Implementation and
maintaining self control, reviewing progress
periodically, appraising performance)
 Taking corrective actions

22.  Enables managers to think about planning for
results rather than merely planning for work
 Motivates managers to accept goals and
achieve them
 Directs work activity towards organizational
goals/objectives.
 Forces managers to clarify organizational goals
and objectives roles and structures
 Encourages personal commmitment from
employees to achieve their goals/objectives.

23.  Provides clear standards for control
 Reduces role conflict and role ambiguity
 Provides more objective appraisal criteria.
 Identifies problems better by frequent
performance review.
 M B O aids in development of personnel.

24.  Time-consuming
 Enormous paper work and documentation
 Failure to implement MBO
 Contradictory objectives

25. Copyright © 2013 Dorling Kindersley India (Pvt) Ltd
 Management by exception is a management approach where a
manager’s involvement focuses on the weak areas of the
organisational performance.
 It lets the managers concentrate on bigger, important, and serious
matters only.
 It allows managers to make the most efficient use of their time.

26. Copyright © 2013 Dorling Kindersley India (Pvt) Ltd
Levels of Strategy

27.  A decision may be defined as “A Choice made
from available alternatives”
 Decisions are Answers to questions, solutions
to problems and actions for oppurtunities.
 “Decision making is the process of generating
and evauating alternatives and making choices
among them”

28. Identifying the Problem
Deciding priorities among problem
Diagnosing the problem
Analyzing the problem
Developing Alternatives solutions or courses of
action
Selecting the best solution
Converting the decision into effective action
Follow up

29.  Programmed and Non-programmed
 Major and minor
 Individual and group
 Simple and complex
 Strategic, tactical and operational

30.  Routine and Non Routine
 Time available
 Risk
 Written guidelines
 Company attitude
 Information available
 Degree of acceptance and support
 Manager’s personal ability
 Previous commitment
 Lack of creativity

31.  Brain storming
 Delphi technique
 Nominal group technique

32. It involves careful study of past data & present
scenario.
Purpose:
To estimate the occurrence, timing or magnitude of
future events.
Types of forecasting:
1. Long Range Forecasting
2. Medium Range Forecasting
3. Short Range Forecasting
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33. THANK YOU……
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