Fundamentals Of Effective Planning

Fundamentals of
Effective Planning
Prepared By: Sutanu Maulik
9832281818

Definition
In simple words, planning is deciding in advance what
action to take, how and when to take a particular action
and who are the people to be involved in it. It involves
anticipating the feature and consciously choosing the
feature course of action.

Nature of Planning
 It is goal oriented.
 Planning is an intellectual or rational process.
 Planning is a primary function.
 Planning is all-pervasive.
 Planning is forward looking.
 It is perpetual process.
 Planning is an integrated process.
 It involves choice.

Significance of Planning
 Focuses attention on objectives.
 Offsets uncertainty and risk.
 Provides sense of direction.
 Provides guidelines for decision making.
 Increases organizational effectiveness.
 Provides efficiency on operations.
 Ensures better co-ordination.
 Facilitates control.
 Encourages innovation and creativity.
 Facilitates delegation.

Types of Plans

 By Level, Time and Scope.
 Mission statement is a statement of an
organization’s fundamental purpose.

 Strategic Plans (Long term) are goals set by and
for top management of the organization that
address broad, general issues.

 Tactical Plans (Intermediate term) are set by
and for middle managers; their focus is on how to
operationalize actions to strategic goals.

 Operational Plans (Short Term) are set by and
for lower-level managers to address issues
associated with tactical goals.

Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 3–5

Types of Plans… … Contd.

 By Frequency of use.

 Single use plans: It is made for
achieving some specific goals and
design to deal with a unique situation

 Standing Plans: It refers to specific
actions which have been developed
for dealing with recurring situations.

StepS In the plannIng proceSS

• Analyzing opportunities.

• Establishing objectives.

• Determining planning premises.

• Identifying alternatives.

• Evaluating available alternatives.

• Selecting the most appropriate alternatives.

• Implementing the plan.

• Reviewing the plan.

Pre re quis ite s fo r Effe c tive
Plan
 Establishing the right climate for planning.
 Clear and specific objectives.
 Planning premises.
 Initiative at top level.
 Participation in planning process.
 Communication of planning elements.
 Integration of long term and short term plans.
 An open system approach.
 Management of information system.

Limitations of Planning
 Lack of accurate information.
 Time consuming process.
 Expensive.
 Inflexibility.
 Resistance to change.
 Environmental constrains.
 Lack of ability and commitment.
 False sense of security.
 Reluctance to establish goals.

Fundamentals Of Effective Planning

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