Planning Print

7/29/2019 Planning Print

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PLANNING


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What does a manager do?

Plans

Organise

Motivates

Communicates

Directs and co-ordinates Controls


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The Functions of

Management

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Managers

Planning

activities toachieve the

organization's

objectives

Organizing

resources andactivities to

achieve the

organizationsobjectives

Staffing

theorganization

with qualified

people

Directing

employeesactivitiestoward

achievement

of objectives

Controlling

theorganizations

activities

to keep it

on course


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Planning Defined

A systematic process of reaching a desired state

by establishing goals and formulating strategies

to achieve them. Planning involves selecting missions and

objectives and the actions to achieve them.

Planning precedes any other managerial function

Plans need to be made utilizing the least of the

resources.

Planning is required in each and every job


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Planning

Planning involves selecting objectives orgoals and the course of actions to achievethem:

Provides the bridge to take us from where weare to where we want to go;

Is a rational approach to achieving pre-selected objectives - based on innovation,

knowledge and purpose;

Decision making in choosing the best fromalternative courses of action and is integral to

planning;


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Plans as foundation of

Management

Plans

What kind ofresourcesneeded?

What kind of people

& org. structureto have?

How to lead themto reach planned

goals?

How to control incase of deviationfrom plan ?

The primacy of Planning


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Steps in Planning

Being aware ofchallenges

Market, Customers

wants, Competition,Own strengths& weakness

Setting Goals/Objectives

What to accomplish

& when

Planning premises

Internal & externalEnvironment/conditions

Identifyingalternatives

Comparing &choosing analternative

Decision

making

Budgeting(Numberizing Plans)

e.g., Sales budget

Operational Expense budget,Capital expenditure budget

FormulatingSupporting

plans

e.g., plan to buy

Equipment, recruit & trainEmployees, develop product etc


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Determining planning

premises

Establish objectivesDevelop Strategies

Establish policies

Develop program for

accomplishments

Establish schedulesand budgets

Establish proceduresIdentify potential

problems

Develop preventive&/or contingent

action

Coordinate

throughout the

planning

How does a manager Plan?


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Features/Characteristics of Planning:

Planning is goal-oriented. Planning is looking ahead.

Planning is an intellectual process. Planning involves choice & decision making.. Planning is the primary function of management /

Primacy of Planning. Planning is a Continuous Process. Planning is needed by all. Planning is designed for efficiency. Planning is Flexible. Basic to all managerial functions.


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Types of Plan

A plan is a specific action proposed to help the organization achieve itsobjectives.

There are different types of plan. Some of the important types are given anddiscussed below.

Strategic Plans

Strategic plans are detailed action steps mapped out to reach strategicgoals.

Strategic plans address the broad issues such as changing conditions,allocation of resources, international competition, etc.

Generally such goals are developed by top management after consultingboard of director and middle management. The time horizon of strategicgoals exceeds 3 to 5 years.

.


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Tactical Plans These are important to the success of strategic plans and cover

intermediate time horizon usually encompassing 1 to 3 years.

Such plans are developed by middle managers after consultinglower-level managers.

Tactical plans are more specific and concrete than strategic plans.

Operational Plans Such plans clearly specify the things needed to be done in the short

run, in order to achieve the operational goals.

These plans are developed by lower-level managers afterconsulting the middle managers.

The time period of operational plans is less than one year, such as

few months, weeks or even days.

The success of strategic and tactical plans depends upon theachievement of operational goals.


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Types of Plans

7-3 Operational

Plans

Tactical

Plans

Strategic

Plans

Specify actions to

achieve tactical plans

(very short-term)

Designed to implement

strategic objectives

(usually one year or less)

Establish long-range

objectives


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Specific Plans

Specific plans require clarity and a sense of

predictability that often do not exist thereforethey are not preferable.

Directional Plans Directional plans refer to the flexible plans that

set out general guidelines. Such plans are preferable in dynamic

environment where management must beflexible in order to respond to unexpectedchanges. Managers use the directional plans toremain focused and do not lock themselves intospecific goals or course of action.


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Single-use Plan

Single-use plan is one-time plan specifically designed to

achieve particular goal that, once achieved, will mostlikely not recur in the future. Such plan is developed tomeet the needs of a unique situation.

a. Program

A single use plan aimed at carrying out a special projectin an organization that if accomplished will contribute tothe long term success of organization. Programs arecomposed of several different projects and may takemore than 1 year to complete.

b. Project A project is a plan that organizes a set of limited-scope

activities that do not need to be divided into severalmajor parts in order to reach a significant nonrecurringgoal.


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Standing Plans Standing plans are ongoing plans that aimed at providing guidance

for performing recurring activities. There are three important types of

standing plans which are: policies, procedures, and rules. a. Policy Policy is guideline that establishes parameters for making decisions.

It specifies the broad limits with in which organizational membersare expected to operate. So it means that policy does not mentionthe specific action but provides a parameter for action.

b. Procedures Procedure is a series of related actions that must be taken to

accomplish a particular task. Policy does not allow much flexibility ordeviation because they provide detailed step-by-step instructions asto what should be done. In this way procedures outline more specificactions than policies do.

c. Rules An explicit statement that tells managers what they can or cannot

do. Rules do not allow any room for interpretation because it clearlyspecifies the actions needed to be done in a particular situation


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Types of Plans

Mission / PurposeThe basic functionor reason for existence of

an enterprise/ organization

Case in point:Missionof Indira Institute

To train our students to become the best business

minds and entrepreneurs today, who will leadtheir companies successfully into the futuretomorrow , locally, nationally and globally.


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Type of Plans (Contd)

Objectives/ GoalsThe end towards which activity of an

organization is aimed, e.g. For a Business enterprise profit, surplus creation;

For a Management Institute: The number ofemployable/useful trainees;

Strategies Determination of the long term objectives and

adoption of a course of action

Gives a frame work for linked action-plans,communicated systematically to guide thinking andactions.


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Types of Plans (contd)

Policies

Plans that are general directional statements (or

understandings) that guide/help in decision making:

Repeat decisions taken reflexively;

Delegation of tasks without loss of control.

Some discretion is permissible depending on

circumstances thus encouraging initiative within limits

and situational adjustments;

Issues with Policy

Seldom documented in writing

Subject to interpretations


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Procedures

Plans that are chronological sequences ofrequired actions: task-oriented in nature;

Cuts across department boundaries (sub-systems) in an organization: e.g. customer

complaint handling procedure;Procedures and policies are inter related: e.g.

authorization for paid leave Policy governs quota, responsible authority etc.

Procedure governs application, grant and record-keeping.

Rules

Specific actions or non-actions allowing nodiscretion Caution: rules (and procedures too) limit initiative!


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Types of Plans (contd) Programs

Action plans (mainly non-routine or for changedactivities) including, task assignments, steps tobe taken, resources to be deployed etc. toachieve a (new/renewed) goal;

Primary program may require supporting programs,spreading across the enterprise;

Perfect coordination between supporting & primaryprograms essential to avoid delays, unnecessarycosts and expected roll-out.

Programs are a complex of (sub)goals, policies,rules and other elements necessary for thecourse of action e.g. obtaining ISO certification.


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Budgets

A statement of expected results expressed in

Numerical terms e.g. financial operating budget =

profit plan;

Budgets enforce precision in thinking:

Making a budget is planning by itself;

Encourages innovationa different way to work

Budgets serve for Control: Enforces discipline in execution of plans;

Instills cost consciousness;

Makes people (constantly) plan!


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Advantages of Planning

Better coordination

More efficient control of operation

Easier delegation

More economical use

Better decision making


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Barriers in effective Planning1. Difficulty of accurate premising

2. Problem of rapid change3. Internal Inflexibilities

Psychological Inflexibilities

Policy & Procedural InflexibilitiesCapital investment

4.External InflexibilitiesPolitical climate

Trade unionTechnological Change

5. Time & cost Factor

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