Planning

• “Planning is deciding in advance what is to be

done; that is a plan is a projected course of
action.”

• So, planning can be thought of as deciding on

a future course of action. It may also be
treated as a process of thinking before doing.
 Nature of Planning
1. Primacy of planning
2. Rational Approach
3. Open System Approach
4. Focus on Objectives
5. Decision Making
6. Forward Looking
7. Pervasiveness
8. Continuous Process
9. Flexibility
10.Mental Exercise
 Importance of Planning
1. Direction for Action
2. Reducing risk of uncertainty
3. Reducing Overlapping and wasteful Activities
4. Promoting Creativity and Innovation
5. Facilitating Decision Making
6. Help in Coordination
7. Providing Basis for controlling
 Planning Process
• Perception of Opportunities
1. Setting Objectives
2. Establishing Planning Premises
3. Identifying Alternatives
4. Evaluating Alternatives
5. Choosing Alternative
6. Plan Implementation
7. Follow-up Action
 Types of Planning
• Corporate and functional Planning
• Strategic and operational planning
• Long term and short term
 Types Of Planning
• Corporate Planning- Undertaken at the top level, also known
as corporate level and covers entire planning process of
organization. Main focus of this planning is to determine the
long term objectives of organization as a whole and to
generate plans to achieve these objectives bearing in mind
changes in the environment.
• Functional Planning- Segmental in nature and is undertaken
for each function of the organization like Production,
marketing, finance, human resource etc.
 Types of planning
• Strategic Planning- It deals with strategic issues like type of
business to be undertaken, diversification of business into
new lines, type of products to be offered and so on.
• Operational Planning- Also known as tactical planning, is the
process of deciding the most effective use of resources
already allocated through strategic planning and to ensure
effective implementation
 Types of planning
• Long term- It is strategic in nature and involves more then one
year period, Usually 3-5. Emphasis is on long term future
environmental scenario.

• Short term- Usually covers one year. This aims at making

effective use of organizational resources- financial, physical,
and human resources.