PLANNING IN MANAGEMENT

PLANNING IN MANAGEMENT

What?

  - Primary function of management

  - Predetermination of :

  objectives and future course of action to be taken

  to achieve defined goals effectively and efficiently

  - A blue print of action and operation

  - Involves the activities:

  analyzing and deciding about technical, personnel, financial and other elements to implement predetermined course of action

  - An intellectual process concerned with deciding in advance:

   what is to be done, how it is to be done, when and who

     Why?

  - Planning reflects foresight and wisdom

  - Envisioning a pathway from concept to reality

  - Essential to grab opportunities created by changing environment

  - A must to face probable threats, uncertainty reduction

Planning Types:

Corporate Plan:

  - A long term plan

  - Prepared by top level mgt.

  - A reason for existence

  - Defines the objectives and strategies

Tactical Plan:

  - A mid-term plan

  - Prepared by middle level mgt.- deptt. Mgr.

  - A sub division of corporate plan- supportive to corporate plan

  - Focus on: resource allocation for divisional activities as production, finance, marketing, personnel etc.

Operational Plan:

  - Lower level mgt. plan

  - Support tactical and corporate plan

  - specific action plan of each activity of each unit

  - Schedule of day to day work

  - Focus: best use of resourcesSingle Use Plan:

  - For a specific purpose in non-programmed situation

  - For non-repetitive activities

  - Worthless after completion

Standing Use Plan:

  - For repetitive activities

  - For programmed decision making

  - Used for achievement of organizational objectivities at different situations

  - Like rules, policies, strategies etc.

Specific Plan:

  - For a particular deptt. Or unit

  - For departmental activities performance

Flexible Plan:

  - Changeable on time and situation basis

  - A guideline to the members and modification as per their facility and requirement

PLANNING HIERARCHY

Mission:

  * A reason for existence, setting of fundamental unique purpose

  * Clearance about  offer, the product or service

  * Answer about who and what

  * Developed by top level management

Goals:

  * Planned results to be achieved, the destination to be reached

  * What task by whom

  * Consistent with mission

Strategies:

  * A comprehensive master plan to accomplish the goals

  * Determination of long term objective, adoption of course of action, allocation of resources

  * Maximizes competitive advantage

Policies:

  * A comprehensive guideline for decision making

  * Link between strategy formulation and implementation

  * Ensures the decision is consistent with mission, goals, strategies

Procedures:

  * A guideline for particular task performance

  * Indicate how a policy is to be implemented

  * Guides to action and detail the exact manner for certain activity performance

Rules:

  * Detailed guidelines to action

  * Specific and rigid and strictly to be obeyed

  * Violation of rules- disciplinary action

Programs:

  * Statement of activities to accomplish a single use plan

  * A comprehensive plan consisting of a complex set of goals, procedures, rules, resource flow etc.

Budgets:

  * A short term financial plan

  * Designed to allocate the resources

  * A basis of measuring actual performance with standards for finding out deviation

PLANNING PROCESS/STEPS/METHODS

SWOT Analysis:

  * Pre-step of planning

  * Internal environment- strength and weakness

  * External environment- opportunities and threats

  * Consideration while setting goals

Goals Setting:

  * Starting point of planning

  * Specific, clear, practical, time bound

  * No idealistic, over ambitious

  * Determination with considering resources and opportunities

  * Broken down into specific objectives of departments, branches, sections, individuals

Premises Determination:

  * Assumption of future- base of plan

  * Tangible premises- capital investment, production units, sales   units, per unit cost, time etc.

  Intangible premises- employees’ moral, goodwill, motivation,   managerial attitude etc.  Internal premises- money, materials, machines, management

  External premises- competitors’ strategy, government policy,   technological change, socio-cultural beliefs etc.

Alternatives Determination:

  * Various alternative courses of action for goal achievement

  * Source of information

  * Support of experienced and intellectual experts

Alternatives Evaluation:

  * Evaluation from cost and benefit point of view

  * Evaluation factors: risk, responsibility, planning premises, resources, technology etc.

  * A broad based analytical approach

  * Analysis techniques based on: mathematics, sociology, psychology, economics etc.

Best Course of Action:

  * After evaluation- best alternative selection

  * Consideration: past experience, present situation, future contingencies, cost and benefit factors

Derivative Plan:

  * Formulate action plan

  * For each deptt- policies, rules, schedules, budgets

Plan Implementation:

  * The paper plan into action

  * Communicate with subordinates, provide necessary instruction & guidance, resource arrangement, timely supervision and control

Planning Review:

  * Know about actual performance as per planning

  * Corrective action at proper time

  * Adapt with changing environment