Planning summaryy
- 1. PLANNING
- 2. Planning - Meaning Deciding in advance What is to be done How is to be done When is to be done Who is to be done
- 3. PLANNING - DEFINITION “Planning is deciding the best alternative among others to perform different managerial operation in order to achieve the predetermined goal.” - Henry fayol
- 4. FEATURES Goal oriented Primary function of management Pervasive Continues process Futuristic Involves decision making Mental exercise
- 5. GOAL ORIENTED Planning start with setting goal or objectives. The goal may be general purpose goal or special purpose goal.
- 6. PRIMARY FUNCTION OF MANAGEMENT Planning lays down base for other functions of management. Planning referred to as the primary function of management.
- 7. PERVASIVE Planning required at all levels of management as well as in all department of an organisation Scope of planning is differs at different levels among different departments.
- 8. PLANNING IS CONTINUOUS Planning is prepared for a specific period, at the end there is a need for a new plan to be drawn based on requirements. Plan is framed, implemented and is followed by another plan.
- 9. PLANNING IS FUTURISTIC Planning is forward looking. Planning meets future events effectively to the best advantage of an organisation.
- 10. PLANNING INVOLVE DECISION MAKING Planning involves choice from among various alternatives and activities.
- 11. PLANNING IS A MENTAL EXERCISE Planning involves intelligent imagination and sound judgment. It require logical thinking and systematic thinking rather than guess work.
- 12. IMPORTANCE OF PLANNING Planning provides direction. Planning reduce risks of uncertainty. Planning reduces overlapping and wasteful activities. Planning promotes innovative ideas. Planning facilitates decision making. Planning establish standard for controlling.
- 13. PLANNING PROVIDES DIRECTION Planning ensures clarity in objectives or goals. It act as a guide for deciding what action should be taken and in which direction.
- 14. PLANNING REDUCE RISK OF UNCERTAINTY Planning shows way to deal with changes and uncertain events. Changes or events cannot be eliminated but can be anticipate.
- 15. PLANNING REDUCE OVERLAPPING AND WASTEFULACTIVITIES Planning serve as the basis of coordinating the activities and efforts of different department. Useless and redundant activities are minimised or eliminated.
- 16. PLANNING PROMOTES INNOVATIVE IDEAS Planning forces managers to think differently and assume the future conditions. Identify new ideas and Prepare concrete plans based on this ideas.
- 17. PLANNING FACILITATE DECISION MAKING Planning involves setting targets and predicting future conditions thus helps in taking rational decision.
- 18. PLANNING ESTABLISH STANDARD FOR CONTROLLING Planning provides the goals or standard against which actual performance is measured.
- 20. CASE STUDY Anil is a sole proprietor. He invest 5 lakhs to extend his business. Organisation has a plan of increasing profit by 20% with in 5 years. He spend lot of time and money to frame and implement the plan. Due to demonetization, the business is failed to achieve the target with in the period. Identify the reason for failure of the plan?
- 21. LIMITATIONS OF PLANNING…. Planning leads rigidity. Planning may not work in a dynamic environment. Planning reduce creativity. Planning involve huge cost. Planning is a time consuming process. Planning does not guarantee success.
- 22. PLANNING LEADS TO RIGIDITY Planning have limited flexibility. When circumstances have change, manager may not be in a position to change the plan.
- 23. PLANNING MAY NOT WORK IN A DYNAMIC ENVIRONMENT The business environment is dynamic in nature. Plan may not be changed according to such changes.
- 24. PLANNING REDUCE CREATIVITY Planning is done by the top management and rest of the members just implement these plan.
- 25. PLANNING INVOLVES HUGE COSTS When plans are drawn up huge cost is involved in their implementation.
- 26. PLANNING IS A TIME CONSUMING PROCESS Plan to be drawn up take so much of time that there is not much time left for their implementation.
- 27. PLANNING DOES NOT GUARANTEE SUCCESS It is not always true that just because a plan has worked before it will work again.
- 28. STEPS IN PLANNING Setting objectives Developing premises Identifying alternatives Evaluating the alternatives Selecting the alternatives Implementing the plan Follow up
- 29. CASE STUDY Delhi Trip Your batch is decided to go for a tour to Delhi. The responsibility to plan the trip is assigned to commerce teacher. Teacher searched about the weather conditions and scheduled the journey after November. There are different alternative ways to reach Delhi, by train, bus or flight. After analysing the expected cost and time teacher selected train journey. They completed journey within the estimated time and cost. They realised that the reason for the success of the journey is well formulated and executed plan.so the teacher decided to use the same plan for the coming years also.
- 30. SETTING OBJECTIVES The objective must be clear and specific.
- 31. DEVELOPING PREMISES Assumption about future is called premises. Planning is done for future, which is uncertain.
- 32. IDENTIFYING ALTERNATIVES Different ways to achieve an objective is called alternatives.
- 33. EVALUATING THE ALTERNATIVES Positive and negative aspects of each alternatives should be evaluated based on their feasibility and consequence.
- 34. SELECTING THE ALTERNATIVES Most appropriate one is to be selected after evaluating the alternatives.
- 35. IMPLEMENTING THE PLAN Putting plan into action to achieve the objectives.
- 36. FOLLOW UP Plans are to be evaluated regularly to check whether they are proceeding in right way.
- 37. TYPES OF PLAN
- 38. Plans can be classified into two : 2.Single use plan i. Budget ii. Programme 1. Standing plan i. Objective ii. Strategy iii.Policy iv.Rule v. Procedure vi.Method
- 39. Objectives Something that the organisation wish to achieve.
- 40. Strategy The things done by organisation to achieve the objectives.
- 41. Policy Provide guidelines in decision making Eg: recruitment policy, pricing policy
- 42. Procedure Steps undertaken to implement a policy
- 43. Rules Guidelines for conducting an action
- 44. Methods Specific guidance for day to day action
- 45. Programs • Activities for achieving given task. • Detailed statement about a project which outlines the objectives, policies, procedure, rules, task etc..
- 46. Budget States expected results for given period in numerical terms
- 49. Promotion is based on merit only Policy
- 50. Conducting different tests, interviews for selection Procedure
- 51. Employees should report for work daily at 10am Rule
- 52. Increase production of a product by 10% in the year 2019-2020 Objective
- 53. Commerce graduates should be selected to accounts department Policies
- 55. Sales budget may forecast the sales of different products in each area for a particular month Budget
- 56. The company follows time rate system of wage payment Method
- 57. No smoking in the factory Rule
- 58. A company gives free samples for sales promotion Strategy
- 59. Attain Rs. 2000000 in 2019 Objective
- 60. Selling goods only on cash basis Policy
- 61. Offering 20% jobs to women Policy
- 62. All employees should mark their attendance before 9 am Rule
- 63. The company provides training to employees through on the job training methods Method