Essentials of planning and

Managing by Objectives
• If objectives are the desired ends then
plans are the means to achieve them

• Planning bridges the gap between where

we are to where we want to go
 Session objectives
• To understand the elements of planning
• To understand the nature and purpose of
planning
• To analyze the different approaches to planning
• To study the principles of planning
• To study the various steps involved in planning
process
• To outline the prerequisites of effective planning
• To find out the limitations of planning
 Elements of Planning
• Objectives :are the desired future outcome

• Actions :are the specific preferred means to

achieve the objectives

• Resources :are the constraints on the course of

action

• Implementation: involves the ways and means to

implement the intended actions
Nature of planning
 Purpose of Planning
 Facilitate direction
 Provide unifying framework
 Avoid extra cost
 Reduce the risks of uncertainty
 Enable decision making
 Encourage innovation and creativity’
Provide base to control
 Allocate resources
 Approaches to planning

Top down approach

Bottom up approach
Composite approach
 Team approach
 Principles of Planning
Contribution to objective
Primacy
Pervasiveness
Periodicity
Flexibility
Planning Premises
Limiting factor/ Critical factor
 Steps involved in planning
process
• Analyze opportunities
• Establish objectives
• Develop premises
• Identify alternatives
• Evaluation
• Selection
• Implementation
• Review
 Prerequisites for planning
to be effective
• Right climate:
• Clarity:
• Planning premises:
• Initiation at the top-level:
• Participating in planning process:
• Communication:
• Open system
• Management information system
 Limitations of planning
• Rigidity
• Costly and time consuming
• Employee resistance
• False sense of security
• Managerial deficiencies
• Planning prevents innovations
• External limitations like difficulty to predict the future,
Environmental turbulence, emergency situations,
projected too far into the future.
• Lack of accurate information:.
• Lack of ability and commitment.
 Discussion

“IF YOU FAIL TO PLAN

YOU PLAN TO FAIL”