Semester 1 PRINCIPLES OF MANAGEMENT Chapter 2 PLANNING
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This document discusses planning concepts, the planning process, and types of plans. It defines planning as an analytical process that involves developing alternative courses of action and selecting the best option. The key steps in planning are recognizing the need for action, establishing objectives, building premises, identifying alternatives, evaluating alternatives, and choosing a course of action. Plans can be short-term, intermediate, or long-term and can include policies, programs, projects, budgets, or schedules. Planning allows for control and optimal resource utilization.
![PLANNING IS A BROAD CONCEPT.ACKOFF DEFINES
PLANNING AS “ANTICIPATORY DECISION MAKING”
FACTOR TYPES TYPES
1. TIME SHORT RANGE :[1 YEAR
OR LESS]
INTERMEDIATE [1 YEAR OR
LESS]
LONG RANGE
[5-10 YRS OR MORE]
2. USE SINGLE USE PLANS
• PROGRAMMES
• PROJECTS
• SCHEDULES
• BUDGETS AND
STANDARDS
STANDING PLANS
• POLICIES
• PROCEDURES
• METHODS
• RULES
3.BREADTH/SCOPE STRATEGIC OPERATIONAL/TACTICAL
4. SPECIFICITY SPECIFIC DIRECTIONAL](https://image.slidesharecdn.com/sem1pm-chapter2planning-190721201102/85/Semester-1-PRINCIPLES-OF-MANAGEMENT-Chapter-2-PLANNING-22-320.jpg)
Semester 1 PRINCIPLES OF MANAGEMENT Chapter 2 PLANNING
- 2. Concept PLAN 1. A framework 2. Pre determined course of action 3. Tend to achieve a specified aim or goal 4. To plan is to chalk out 5. It is a statement of objectives 6. A blueprint for action 7. Structure 8. Guideline 9. Commitment to achieve specific results
- 3. PLANNING 1. An activity 2. Deciding in advance 3. Determination of future course of action 4. Analytical process 5. Developing alternative courses of action 6. Selection of the best course of action among the alternatives
- 4. Definition According to HENRY FAYOL “THE PLAN OF ACTION IS AT THE SAME TIME THE RESULTS ENVISAGED,THE TIME OF ACTION TO BE FOLLOWED, THE STAGES TO GO THROUGH AND THE ,METHODS TO USE”
- 5. BUSINESS ENTERPRISE Defining planning objectives PLANNING ORGANISING DIRECTING and so on…… • Determine whether things stand vis a vis objectives • Develop premises regarding future conditions • Identify & choose among alternative ways to accomplish objectives • Implement action plan(s) & evaluate results
- 6. CHARACTERISTICS OF PLANNING 1.PRIMACY OF PLANNING Planning preceeds all other managerial functions.Before planning there is nothing to organise , direct and control. PLANS Objectives & how to achieve them Necessary for What kind of organisation structure What kind of people are required How effectively to lead people By furnishing standards of control Which helps to know Which affects the kind of direction In order to assure success of plans
- 7. 2.CONTINUITY OF PLANNING Planning is not just a stray function- it is a continuous and never ending activity. A hierarchy of plans oiperate in the organisation. Top Executives Middle Level Managers First level/ line Managers
- 8. 3.FLEXIBILITY OF PLANNING Planning chalks out a future specific course of action with the change in situation the specific course of action needs to be changed. PROFIT PRESENT +5 +10 YEAR +15 +20 PRESENT +5 +10 +15 +20 YEAR
- 9. 4. UNITY OF PLANNING Developmental and sectional plans need to be integrated .Maintainance of consistency or unity of planning is an essential feature. FINANCE MANAGER UNITY IN PLANNING PRODUCTION MANAGER ACCOUNTANT FOREMEN DECIDES ON THE FINANCIAL REQUIREMENTS QUOTES THE FUND REQUIREMENTS
- 10. 5. PRECISION OF PLANNING Planning must be precise in meeting scope and nature.Plan has to be made with intelligent and meaningful terms.The plan should pinpopint the explicit results. INPUTS MATERIALS LABOUR CAPITAL TECHNOLOGY INFORMATION P L A N N I N G TRANSFORMATION • Employees work Activities • Management activities • Technology and operation methods R E S U L T S OUTPUTS • Products and services • Financial results • Human resource results • Information results SYSTEM ENVIRONMENT
- 11. 6.PERVASIVENESS OF PLANNING Planning should have a broad coverage.It should cover the entire enterprise, its segments every levels of management. CORPORATE / ORGANISATION LEVEL PLAN DIVISION PLAN DEPARTMENTAL PLAN SECTIONAL PLAN
- 12. 7.Planning facilitates control 8.Planning attempts optimum utilisation of physical as well as human resources. 9. Planning ensures cost effectiveness as making and execution of a plan should be economical. 10. According to DAVIDERWING- planning is a two sided affair.Planners may only think of the formal, economical,technical & physical resources side when they develop a plan.but if the human side is not attended properly , chances are that the planning will not be successful.,
- 13. IMPORTANCE OF PLANNING To minimise uncertainity Planning brings greater economy inm operations Planning makes effective control possible MBO (Managing By Objectives)
- 15. RECOGNITION OF THE NEED FOR ACTION -planning requires realistic diagnosis of likely opportunities ESTABLISHING OBJECTIVES -objectives specify the expected results BUILDING THE PREMISES FOR PLANNING -assumptions about the future on the basis of which plans will be formulated IDENTIFYING ALTERNATIVES COURSES OF ACTION -mosrt reasonable and rewarding alternative courses of action
- 16. EVALUATION OF ALTERNATIVE COURSES -compare the strengths and weaknesses in the light of premises and goals CHOICE OF COURSE OF ACTION -final point of decision making
- 17. PLANNING PREMISES 1. All managerial plans are based on certain assumptions which may be called PLANNING PREMISES. 2. Such premises constitute the ground on which plans will stand 3. Planning premises are of the following A. NON-CONTROLLABLE PREMISES B. SEMI CONTROLLABLE PREMISES C. CONTROLLABLE PREMISES
- 18. NON- CONTROLLABLE PREMISES These are assumptions about the economy, the political situations, the tastes of the people & other such factors as cannot be influenced and controlled through management policies and decisions. Even though management cannot do anything about these factors,it must take them into account while planning for expansion of the existing capacity. If such a factor is not considered plans will remain mere wishes.
- 19. SEMI CONTROLLABLE PREMISES These include assumptions of those factors which are only partially controllable through suitable management policies and decisions but cannot be fully controlled by the management. For e. g. Industries demand The firm’s share in the market Union management relations
- 20. CONTROLLABLE PREMISES In chalking its plans the management has also to decide what policies, procedures, rules etc. it will be following over the future period & how these are likely to affect the plans of the enterprise. These factors are called controllable premises because these are subject to decisions of the management.
- 21. TYPES OF PLANS (ELEMENTS OF PLANNING) MISSION/PURPOSE Reasons for existance of an organisation OBJECTIVES Something as an end towards Which action/ desire is directed STRATEGIES Broad overall plan for Reaching a goal/a decisive advantage STANDING PLANS (To be used over and over again) POLICIES PROCEDURES METHODS RULES SINGLE USE PLANS PROGRAMMES PROJECTS SCHEDULES BUDGETS AND STANDARDS
- 22. PLANNING IS A BROAD CONCEPT.ACKOFF DEFINES PLANNING AS “ANTICIPATORY DECISION MAKING” FACTOR TYPES TYPES 1. TIME SHORT RANGE :[1 YEAR OR LESS] INTERMEDIATE [1 YEAR OR LESS] LONG RANGE [5-10 YRS OR MORE] 2. USE SINGLE USE PLANS • PROGRAMMES • PROJECTS • SCHEDULES • BUDGETS AND STANDARDS STANDING PLANS • POLICIES • PROCEDURES • METHODS • RULES 3.BREADTH/SCOPE STRATEGIC OPERATIONAL/TACTICAL 4. SPECIFICITY SPECIFIC DIRECTIONAL
- 23. 1. TIME FACTOR Corporate Managers often make use of the following time frames in describing planning periods: DIFFERENT PLANNING PERIODS TIME HORIZON EXAMPLES SHORT RANGE PLANNING (1 YEAR ORLESS) ANNUAL PLAN Sales Volume Production Materials Requirement Current Expenses Budget INTERMEDIATE RANGE PLANNING (between 1 year to 5 years) DEVELOPMENT OF NEW PRODUCTS DEVELOPMENT OF NEW PROCESSES MODERNISATION OF FACILITIES LONG RANGE PLANNING (5 YEARS TO 10 YEARS OR MORE) CONSTRUCTION OF METRO RAILWAYS PROJECT LONG RANGE PRODUCTION WAREHOUSE FACILITIES