Unit – 9

Planning
 Planning

Planning is the fundamental management function, which

involves deciding beforehand, what is to be done, when is it to be
done, how it is to be done and who is going to do it. It is
an intellectual process which lays down an organisation’s objectives
and develops various courses of action, by which the organisation
can achieve those objectives. It chalks out exactly, how to attain a
specific goal.

According to Koontz & O’Donell, “Planning is deciding in advance

what to do, how to do and who is to do it. Planning bridges the gap
between where we are to, where we want to go. It makes possible
things to occur which would not otherwise occur”.
 Planning refers to deciding in advance:
a) What to do?
b) How to do?
c) When to do?
d) Who is to do it?
e) What is the cost?
 Features of Planning

• Primary function of management

• Pervades all other managerial activities
• Intellectual and realistic process
• Objectives oriented
• Continuous activity
• Flexibility
• Raises accuracy, economy and operational efficiency
• Link between past, present and future
• Brings unity of purpose and action
• Integrated activity/ process
 Objectives of Planning

• Survival and growth of business

• Facing environmental changes with confidence
• Ensuring efficient management
• Bringing uniformity in decision making
 Process of Planning

1. Classifying the problems

2. Determining the objectives
3. Collecting complete information and data
4. Analysing and classifying the information collected
5. Establishing planning premises
Planning premises can be of three types:
a. Controllable premises
b. Semi controllable premises
c. Uncontrollable premises
6. Determining alternative plans
7. Selecting operating plan and preparing derivative plans
8. Arranging timing and sequence of operations
9. Securing participation of employees
10. Follow-up of the proposed plan
 Types of Plans

1) Standing and Single use plans

2) Strategic and operational plans
3) Short range and long range plans
4) Specific and directional plans
5) Financial and Non financial Plans
 Advantages of Planning

• Quick achievement of objectives

• Brings unity of purpose and direction
• Ensures full utilization of resources
• Avoids inconsistency
• Raises competitive potentialities
• Raises managerial efficiencies
• Avoids hasty decisions
• Ensures effective control
• Insurance against uncertainties
• Facilitates other managerial functions
 Essentials of a good plan

1. Simplicity
2. Clear objectives
3. Suitability
4. Flexibility
5. Continuity
6. Unity of purpose
7. Comprehensive and complete
8. Full utilization of resources
9. Beneficial to all concerned
10. Realistic and acceptable
 Planning Premises

A planning premise is a set of assumptions that are derived from

forecasting the future. It is a logical and systematic estimate of the
future factors that can affect planning. Planning premises provide a
background against which the estimated events take place. These
are the events that affect planning.
 Types of Planning Premises

1. Internal and External Premises

2. Controllable, Semi-controllable and Uncontrollable
3. Tangible and Intangible premises
4. Constant and variable premises
5. Foreseeable and unforeseeable Premises
 Goal
A goal, in business, describes what a company expects
or hopes to accomplish over a specific period. In other
words, where it hopes to be at a future date. People
commonly use the term ‘business goal‘ with the same
meaning. On a personal level, a goal is an idea of a
desirable or future result that people envision, plan, and
commit to achieving. We commonly endeavor to reach
goals over specific periods by setting deadlines.
 Characteristics of Goal

• Accuracy
• Acceptability
• Evaluation
• Constraints
• Result oriented
• Flexibility
• Understandable
• Challenging
• Priority
• Balance
 Importance of Goal setting

• Profit growth
• Competitive advantage
• Improved performance
• Comprehensive assistance
• Right direction
• Management competence
• Essential inputs
Control element
 Steps in Goal setting

• Specific
• Measurable
• Attainable
• Relevant
• Timely
Techniques of Group decision making
1. Brainstorming : Brainstorming is a process for developing
creative solutions to problems. Alex Faickney Osborn, an
advertising manager, popularized the method in 1953 in his book,
Applied Imagination. Ten years later, he proposed that teams could
double their creative output with brainstorming (Osborn,
1963).Brainstorming works by focusing on a problem, and then
deliberately coming up with as many solutions as possible and by
pushing the ideas as far as possible.
There are four basic rules in brainstorming (Osborn, 1963) intended
to reduce social inhibitions among team members, stimulate idea
generation, and increase overall creativity:
1. No criticism: Criticism of ideas is withheld during the
brainstorming session as the purpose is generating varied and
unusual ideas and extending or adding to these ideas. Criticism is
reserved for the evaluation stage of the process. This allows the
members to feel comfortable in generating unusual ideas.
2. Welcome unusual ideas: Unusual ideas are welcomed as it is
normally easier to "tame down" than to "tame up" as new ways of
thinking and looking at the world may provide better solutions.
3. Quantity Wanted: The greater the number of ideas generated the
greater the chance of producing a radical and effective solution.
4. Combine and improve ideas: Not only are a variety of ideas
wanted, but also ways to combine ideas in order to make them
better.
2. Delphi Technique: The Delphi method was originally developed in
the early 1950s at the RAND Corporation by Olaf Helmer and
Norman Dalkey. In Delphi decision groups, a series of questionnaires,
surveys, etc. are sent to selected respondents (the Delphi group)
through a facilitator who oversees responses of their panel of experts.
The group does not meet face-to-face. All communication is normally
in writing (letters or email). Members of the groups are selected
because they are experts or they have relevant information.The
responses are collected and analyzed to determine conflicting
viewpoints on each point. The process continues in order to work
towards synthesis and building consensus/ mutual agreement.
3. Nominal group technique: In a nominal group technique, the team
divides itself into smaller groups and generates ideas. Possible options
are noted down in writing and the team members further discuss these
to narrow down the possible choices they would like to accept. Team
members then discuss and vote on the best possible choice. The
choice that receives the maximum votes is accepted as the group
decision.
The initial stage of the technique gives each individual a chance to
state his opinion on what the solution should be. He's also allowed to
elaborate slightly with a brief accompanying explanation about why he
chose the way he did. Duplicate solutions are then eliminated from the
pool, leaving only original solutions behind. The individuals then rank
the remaining solutions according to numerical preference. All of
these preferences are tallied and considered to render the most
accurate results. While there are other variations on achieving this
result in a nominal group technique, that's how it's traditionally done.
4. Multi-voting: It starts with a round of voting where an individual
casts his vote for the shortlisted options. Each individual can cast one
vote at a time. The options with the maximum number of votes are
carried to the next round. This process is repeated until a clear winning
option is obtained.
For instance, each team would propose their strategy in front of the
other teams. And the other teams would vote for the one they prefer
best. The strategy that receives the maximum number of votes is
considered final.
5. Didactic Interaction: This technique is applicable only in certain
situations. But when such a situation arises, it is an excellent method.
The type of problem in such a situation should be such that it results
in a Yes-No solution. For example, to buy or not to buy, to sell or not
sell, etc. Such a situation requires an extensive and exhaustive
discussion and investigation since a wrong decision can have very
serious repercussions.
6. Consensus mapping: Consensus mapping is yet another technique
of group decision-making. In this technique, an attempt is made to
arrive at a decision by pooling the ideas together generated by several
task sub-groups. It begins with developing ideas. The ideas so
generated by the task sub-groups are developed and narrowed in
smaller number of ideas. Then, all ideas are consolidated into a
representative structure called 'strawman map' for the all ideas
generated by the sub-groups. Strawman map is further narrowed
down to arrive at a mutually acceptable solution.
7. Fish Bowling Technique: All the members are seated in a circle
form. One person sits in the centre chair and gives his suggestion to
the problem. Members can ask questions to that person. No two
members are allowed to talk to each other than with the person seated
in the centre. After all views are expressed, the one with consensus/ a
general agreement is selected.

8. Synectics:
This technique of decision-making was developed by William J.J.
Gordon in 1944. He termed the technique synectics, a Greek
derivation which means fitting together different, distinct, novel and
irrelevant ideas. Its purpose is to increase the creative output of
individuals and groups. The group leader encourages members to
bring out creative solutions after analyzing the problem. This
technique differs from brainstorming in many aspects. It is much more
adaptable to complex decisional problems. It also helps in making
basic or risk-uncertainty decisions that require creative solutions.