Managerial Planning:

1. Planning:
“Planning is deciding in advance what is to be done in future plan bridges
gap between where we are and we want to go”
- Harold Koontz and O.Donnel-
“The thinking process, the organized forsight the vision based on the fact
and experience that required for intelligent action”.
- Alfried and Beaths
2. Purpose of managerial planning
a. Improve future performance
b. Minimize risk and uncertainity
c. Coordination
d. Direct for action
e. Uncover future opportunities and threats
f. Set out standards for controlling
3. Types of plan:
a. Strategic plan (long-term plan)
(top level management)
 Designed by keeping entire organization in mind
 Mission statement
It took ahead
Where want to be in future
 Improving productivity
 Achieving growth
 Profitability
 Boosting returns on investments
b. Tactial plans: (means to achieve specific goals)
(middle level management)
 Support strategic plan
 Translating into specific strategy
 New method
 Delivering routs
 New machinery
 Shortest time
c. Operational plans (actions)
(low level management)
  High detailed plans provides clear picture section, department, team,
goal
 Plan covers
What => task completed
Who => responsible
When -> time line
How much => resources
d. Contingency plan (uncertainly)
 Plan
 Plan is alternative
e. Time and horizon
 Long term plans – (strategic plan) 2-20
 Intermediate term plan – (tactical plan) 1-2
 Short term plans – (operational plan) less than 1

4. Hierarchy of plans/ levels

a. Philosophy
Role- existence
b. Purpose
Mission => why and what
c. Objectives
Results/ ultimate ends
Objects:
 Single activity
 Result oriented
 Quantitative
 Unrealistic
d. Strategics:
 Long term objective
 Selecting course of action
 Allocating resources
e. Policies
 Pre determind decisions
 Uncertain conditions
f. Procedures
 Step coise – chronological order – segments
g. Rules:
 Compulsory to be followed
h. Programs
 Indepeth statements (policies, rules, procedures and strategies)
 i. Budgets
 Expected results (numerical)
(cash, capital, expenditure, sales)
5. Planning process
a. Recognizing need for action
(SWOT)- Strength, weakness, opportunity, threat
b. Setting objectives:
 Objectives for whole and individual department => end results => direction and control
c. Developing promises
Those assumptions are made inform of forecasts, existing plans past ? policies premises =>

internal

external

d. Identifying alternations:
e. Examing the alternative (course of action) (pros and cons)
f. Selecting the alternative
(decision making stage)
 Less negative loss cruonces
g. Formulating supporting plans
Main plan =>
(product) =>
h. Implementation of plan
(plan – action)

It is clear that planning selects the best alternative out of the many available.
All these alternatives do not come to the manager on their own, but they have to be
discovered. While making such an effort of discovery, many new ideas emerge and
they are studied intensively in order to determine the best out of them.

For example, a company wants to expand its business. This idea leads to the
beginning of the planning activity in the mind of the manager. He will think like
this:
 Should some other varieties of the existing products be manufactured?
Should retail sales be undertaken along with the wholesales?
Should some branch be opened somewhere else for the existing or old
product?
Should some new product be launched?
In this way, many new ideas will emerge one after the other. By doing so, he
will become habituated to them. He will always be thinking about doing something
new and creative. Thus, it is a happy situation for a company which is born through
the medium of planning.

Philosophy

Purpose

Objectives

Strategics

Policies