11583_Chapter -3 Planning

8/4/2019 11583_Chapter -3 Planning

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PLANNING

Chapter -3


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Means making decisions what to do, where to do,who is to do, and how to do.

precedes all managerial functions and is closelyrelated to controlling.

According to Koontz- Palnning involvesselecting missions and objectives and the actionsto achieve them; it requires decision making,i.e.choosing from alternative future course of action.

Plans, thus provide a rational approach toachieve pre-selected objectives.

In other words, its deciding today, what is to bedone tomorrow, for the better future.


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Features of Planning Primary function of Management

Adaptive to enviornemnt

Future Oriented

Goal Oriented Pervasive

Intellectual process

Flexible

Control


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TYPES OF PLANNING Corporate planning- at top level, long term

objectives. Functional planning- segmental, for each

functional areas

Strategic planning- -long term direction

operational planning- short term planning

Long term planning- more than 1 yr to 20 yrs.

Short term planning-

Proactive planning Reactive planning

Formal planning- monitor environmentcontinuously and its impact

Informal planning- based on managers memory,


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Types of plans

1. Standing Plan- used over a period of time-provides guidelines for further action- Examplesobjectives, mission, strategies, policies,procedures and rules.

2. Single use plan- relevant for specific period like

projects, budgets, quotas, targets.

3. Strategic plan-

4. Operational plan-


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PLANNING PROCESS Recognizing need of Action

Gathering necessary information

Laying down objectives.

Determining Planning Premises-internal/external; controllable /non-controllable;tangible/ intangible

Examining Alternative Course of Action

Evaluation of Action Pattern Determining secondary plans

Implementation of Plans


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MANAGEMENT BY OBJECTIVES-Management by Objectives(MBO) was first outlined by Peter Drucker in 1954 in his book'The Practice of Management

By George: The system of MBO can bedescribed as a process whereby the superior andsubordinate managers of an organization jointlyidentify its common goals, define each individual

major areas of responsibility, terms of resultsexpected of him, and use these measures asguide for operating the unit and assessing the

contribution of each of its members.

By Koontz: MBO is comprehensive managerialsystem that integrates many key managerialactivities in a systematic manner and that isconsciously directed towards the effective and

efficient achievement of organisational and


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PROCESS OF MBO

1. Define organizational goals

2. Defining employee objectives

3. Continuous monitoring of performance and

progress4. Performance evaluation/reviews

5. Providing feedback

6. PerformanceAppraisals (Rewards/

punishments)


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Pre-requisites for installing MBO

Programme Defining Purpose

Support from Top Mangement

Training for MBO Programme

Participation Feedback


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DECISION MAKING By MacFarland , A decision is an act of choice

wherein an executive forms a conclusion aboutwhat must be done in a given situation. A decisionrepresents a course of behaviour chosen from a

number of possible alternatives.

By George Terry, DM is the selection based onsome criteria from two or more possible

alternatives.


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PROCESS OF DM Identifying a Problem

Identification of Decision Criteria

Allocation of Weights to criteria

Development of Alternatives Analysis of Alternatives

Selection of an alternative

Implementation of alternative

Evaluation of Decision effectiveness


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Types of decisions Organisational and Personal Decisions

Routine and Strategic Decisions

Programmed and Non- Programmed Decisions

Individual and Group Decisions

11583_Chapter -3 Planning

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