Planning involves selecting missions and objectives and the

actions to achieve them; it requires decision making, that is,

choosing from among alternative future courses of action.

The cognitive process of thinking about what you will do in

the event of something happening

An act of formulating a program for a definite course of

action

Purposes or Missions –

Identifies the basic function or task of an enterprises or

agency or any part of it. The purpose of business generally

is the production and distribution of goods and services

Objectives or goals –

The ends towards which activity is aimed, they are the

results to be achieved. They represent not only the end point

of planning but the end toward which Organizing, staffing,

leading and controlling are aimed

Strategies –

Strategies are grand plan. The most common usage of the

term are –general programs of action and deployment of

resources to attain comprehensive objectives. The

determination of the basic long term objectives of an

enterprises and the adoption of courses of action and

allocation of resources necessary to achieve these goals.

Policies – General statements or undertakings which guide or channel thinking in decision making. Not all policies are “Statements”, they are often merely implied from the actions of managers.

Procedures – Plans that require method of handling future activities. They are guides to action, rather than to thinking, and they detail the exact manner in which certain activities must be accomplished. They are chronological sequences of required actions

Rules – Spell out specific actions or non actions, allowing no discretion

Budgets – A statement of expected results expressed in numerical terms. Referred as “numberized” program. The financial operating budget is often called a “profit plan

Programs – A complex of goals, policies, procedures, rules, tasks assignments, steps to be taken, resources to be employed and other elements necessary to carry out a given course of action; they are ordinarily supported by budgets.

Being aware of opportunities Establishing objectives or goals Developing premises Determining alternative courses Evaluating alternative courses Selecting a course Formulating derivative plans Quantifying plans by budgeting

Objectives are the important ends toward which organizational and individual activities are directed.

“ MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of Organization and individual Objectives.” -Where superiors and subordinates jointly identify the goals of the Organization

Process of MBO 1.Setting preliminary Objectives 2.Clarifying Organizational roles 3.Setting subordinates Objectives 4. Recycling Objective

How to set Objectives 1.Quantitative & Qualitative 2.Setting Objectives in Govt 3.Guidelines for setting Objective

“Planning premises are the anticipated environment in which plans are expected to operate. They include assumptions or forecast of the future and known conditions that will affect the operations of plans.”

-A plan is based on certain assumptions called premises -Assumptions or premises are for a future setting or happenings -Assumptions based upon certain intuition or scientific forecasting -The assumptions about future derived from forecasting and used in Planning are known as planning premise

1.External & Internal External 2. Tangible and Intangible premises 3.Controllable and Uncontrollable Factors

Process of predicting future conditions, that will influence and guide the activities, behavior and performance of the Organization. “ Forecasting is the formal process of predicting future events that will significantly affect the functioning of the enterprises.”

Developing the ground work Estimating the future trends

Comparing actual with estimated results

Refining the forecast

-Qualitative -Quantitative 1.Time series Analysis 2.Historical Analogy 3.Correlation 4.Regression 5.Delphi Technique 6.Input output analysis

BCG Matrix.

TOWS Matrix.

the process of choosing a course of action from available alternatives “ Decision making is a process of selection from a set of alternative courses of action which is thought to fulfills the objective of the decision – problem more satisfactorily than others.”

Types of Managerial Decisions 1.Organizational and Personal Decisions 2.Routine and Strategic Decisions 3.Programmed and Non programmed Decision 4.Policy and Operating Decision 5.Individual and Group decision

Decision making Process 1.Defining the problem 2.Analysing the problem 3.Developing alternative solutions 4.Evaluating the Alternatives 5.Selecting the best alternatives 6.Implementing the decision