PLANNING

AND
DECISION MAKING
CONTENT
◦ Introduction to planning and
decision making
◦ Types of Planning
◦ Different Approaches in
Planning
◦ Importance of Planning

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 INTRODUCTION
PLAN
any diagram or list of
steps with details of
DECISION
timing and resources,
used to achieve can be defined as a
an objective to do course of action
something. purposely chosen from
a set of alternatives to
achieve organizational
or managerial objec
tives or goals.
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Planning and decision-making are the most
important managerial functions. Planning is
thinking of doing. Decision-making is a part
of planning. Planning is the process of
selecting a future course of action and
Decision-making means selecting a course
of action.

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PLANNING
◦ a method for achieving an end (Webster)
◦ Planning determines how an organization can
get to where it wants to go. Planning determines
what an organization will do to accomplish its
objectives. The fundamental purpose of planning
is to achieve your objectives.

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 PLANNING

Why take an action What action

How to take action When to take action

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TYPES OF PLANNING

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TYPES OF PLANNING
1. Strategic
2. Tactical
3. Operational
4. Long term
5. Short term
6. Standing plans
7. Single use
8. Specific
9. Directional 9
TYPES OF PLANNING

1. Strategic
• It focuses on the broad future of the organization. Incorporating both
external information gathered by analyzing the company’s competitive
environment and the firms internal resources, managers determine the
scope of the business to achieve the org long-term objectives

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TYPES OF PLANNING

2. Tactical
translate the strategic plans into specific goals for
specific parts of the organizations.
They are for shorter time frame and usually focused
for 1-2 years

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TYPES OF PLANNING

3. Operational
translate the tactical plans into specific goals and
actions for small units of the organization. They
typically focus on the short term usually 12 months or
less.
These plans are least complex than strategic and tactical
plans, and rarely have a direct effect on other plans
outside of the department or unit for which the plan was
developed.

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TYPES OF PLANNING

4. Long term
is of strategic nature and involves long period say 3-5
yrs. The long term plans usually encompass all the
functional areas of the business and are affected within
the existing and long-term framework of economic, social
and technological factors.

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TYPES OF PLANNING
5. Short term
is usually a plan made for one year. These are
aimed at sustaining organization in its production
and distribution of current products or services to
the existing markets. These plans directly affect
functional groups( production, marketing, finance)

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TYPES OF PLANNING

6. Standing plans
are put to use again and again over a long period of
time. Once established they continue to apply until they
are modified or abandoned. Standing plan help
managers in dealing with routine matters in a pre-
determined and consistent manner.

examples of standing plans are: organizational mission

and long term objectives, strategies, policies, procedures
and rules.

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TYPES OF PLANNING
7. Single use
are relevant for a specified time and after the lapse of
that time, these plans are formulated again for the
next period.

Single use plans are non-recurring in nature and deal

with problems that probably will not be repeated in
the same form in future.

Generally these plans are derived from the standing

plans Examples: projects, budgets, targets.
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TYPES OF PLANNING

8. Specific
Plans that are clearly defined and leave no room
for interpretation.

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TYPES OF PLANNING
9. Directional
Flexible plans that set out general guidelines,
provide focus, yet allow discretion in
implementation.

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DIFFERENT APPROACHES
IN PLANNING

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DIFFERENT APPROACHES
IN PLANNING

• Top-Down Approach
• Bottom-Top Approach
• Composite

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DIFFERENT APPROACHES
IN PLANNING
Top-Down Approach

• The top management assesses the

need, establishes the objective,
formulates the plan and then
communicates the plan down the
hierarchy
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DIFFERENT APPROACHES
IN PLANNING

Bottom-Top Approach

• The planning process is decentralised and

lower level managers formulate the
department or unit level plans which are then
collated by the top management

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DIFFERENT APPROACHES
IN PLANNING
Composite
• A more balanced method ,The top management
defines the objectives and premises and
communicates it down the hierarchy
• The middle and lower level managers then formulate
their plans and communicate them to the top
management
• Such plans once approved (with modifications if
needed) by the top management have been seen to
generate maximum ownership and effort by the lower
level managers and executives.
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?
WHY PLANNING IS
IMPORTANT

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IMPORTANCE
(1) Planning Provides Direction
(2) Planning Reduces Risks of Uncertainty
(3) Planning Reduces Overlapping and Wasteful Activities
(4) Planning Promotes Innovative Ideas
(5) Planning Facilitates Decision Making
(6) Planning Establishes Standards for Controlling

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(1) Planning Provides Direction:
Under the process of planning the objectives of the
organization are defined in simple and clear words. The
obvious outcome of this is that all the employees get a
direction and all their efforts are focused towards a
particular end. In this way, planning has an important role
in the attainment of the objectives of the organization.

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(2) Planning Reduces Risks of Uncertainty:

Planning is always done for future and

future is uncertain. With the help of
planning possible changes in future are
anticipated and various activities are
planned in the best possible way. In this
way, the risk of future uncertainties can be
minimized.

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(3) Planning Reduces Overlapping and
Wasteful Activities:

Under planning, future activities are planned in order

to achieve objectives. Consequently, the problems of
when, where, what and why are almost decided. This
puts an end to disorder and suspicion. In such a
situation coordination is established among different
activities and departments. It puts an end to
overlapping and wasteful activities.

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(4) Planning Promotes Innovative
Ideas:
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.
In this way, planning imparts a real power of thinking in the
managers. It leads to the birth of innovative and creative
ideas.

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(5) Planning Facilitates Decision Making:

Decision making means the process of taking

decisions. Under it, a variety of alternatives are
discovered and the best alternative is chosen. The
planning sets the target for decision making. It also
lays down the criteria for evaluating courses of
action. In this way, planning facilitates decision
making.

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(6) Planning Establishes Standards for
Controlling:
By determining the objectives of the organisation through
planning all the people working in the organisation and all the
departments are informed about ‘when’, ‘what’ and ‘how’ to do
things.
Standards are laid down about their work, time and cost, etc.
Under controlling, at the time of completing the work, the actual
work done is compared with the standard work and deviations are
found out and if the work has not been done as desired the person
concerned are held responsible.

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“ if you fail to plan, You are planning to fail

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THANK YOU!!

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