Principles of

management
Importance of planning in corporate and government
organizations
 Planning
 Koontz and O’Donnell define “planning is deciding in
advance what to do, how to do it, when to do it, and
who is to do it.”
 James Stoner defines “planning is the process of
establishing goals and a suitable course of action for
achieving those goals.”
 Nature and characteristics
 Planning is goal oriented

 Continuous activity

 Pervasiveness of planning

 Intellectual Process

 Integrated process
 Need and importance
 Minimizes risks

 Facilitates co-ordination

 Facilitates organizing

 Facilitates proper direction

 Facilitates control
 Generates efficiency

 Encourages innovation

 Focus on goals

 Facilitates decision making

 Motivates personnel
 Business planning
“ A business plan is a document that summarizes the
operational and financial objectives of a business
and contains the detailed plans and budgets
showing how the objectives are to be realized.”

Features

A business plan should be SMART

Specific, measurable, Attainable, Realistic and timed

 Essentials of a good plan
 Simplicity

 Flexibility

 Suitability

 Acceptance

 Facilitate organizing
 Provide direction

 Facilitate control

 Generate harmony
 Generate efficiency

 Motivate personnel
 Corporate Planning
According to Steiner, “corporate planning is the
process of determining the major objectives of an
organization and the policies and strategies that will
govern the acquisition, use and disposition of
resources to achieve these objectives”.
 Process of planning at
corporate level
 “If you’re failing to plan, you’re planning to fail”-
Business Consultant Folklore
 To set objectives

 To prepare a schedule
-
 External interfacing

 Internal structuring
 Roles

 Responsibilities

 Risk management

 Implementation

 Resource allocation

 Control systems
 Importance of planning at
corporate level
 Integrated approach

 Managing risk and change

 Better use of resources

 Effective decision-making

 Improved behavioral climate

 Effective control
Lessons Learned from
the Toyota Way
 “4 P” Model of the Toyota Way

Problem  Continual organizational learning through Kaizen

 Go see for yourself to thoroughly understand the situation.
Solving (Genchi Genbutsu)
(Continuous  Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly (Nemawashi)
Improvement and Learning)

 Grow leaders who live the philosophy

People and Partners  Respect, develop and challenge your people
and teams
(Respect, Challenge and Grow Them)  Respect, challenge, and help your suppliers

Adding Value to Customers & 


Create process “flow” to surface problems
Level out the workload (Heijunka)
 Stop when there is a quality problem (Jidoka)
Process Society 

Use pull systems to avoid overproduction
Standardize tasks for continuous
(Eliminate Waste) improvement
 Use visual control so no problems are hidden
 Use only reliable, thoroughly tested
technology

 Base management decisions on

Philosophy a long-term philosophy, even
at the expense of short-term
(Long-term Thinking) financial goals
 Principle One 1

“The most important factors for

success are patience, a focus on
long term rather than short-term
results, reinvestment in people,
product, and plant, and an
unforgiving commitment to
quality.”
-Robert B. McCurry,
former Executive V.P., Toyota Motor Sales
“4 P” Model of the Toyota Way

Problem  Continual organizational learning through Kaizen

 Go see for yourself to thoroughly understand the situation.
Solving (Genchi Genbutsu)
(Continuous  Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly (Nemawashi)
Improvement and Learning)
Eliminate Waste through Flow
 Grow leaders who live the philosophy
People and Partners & Standardization  Respect, develop and challenge your people
and teams
(Respect, Challenge and Grow Them)  Respect, challenge, and help your suppliers

 Create process “flow” to surface problems

 Level out the workload (Heijunka)
 Stop when there is a quality problem (Jidoka)
Process 

Use pull systems to avoid overproduction
Standardize tasks for continuous
(Eliminate Waste) improvement
 Use visual control so no problems are hidden
 Use only reliable, thoroughly tested
technology

 Base management decisions on

Philosophy a long-term philosophy, even
at the expense of short-term
(Long-term Thinking) financial goals
 “4 P” Model of the Toyota Way

Problem The heart & soul of

 Continual organizational learning through Kaizen
 Go see for yourself to thoroughly understand the situation.
Solving
(Continuous 
The Toyota Way
(Genchi Genbutsu)
Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly (Nemawashi)
Improvement and Learning)

 Grow leaders who live the philosophy

People and Partners  Respect, develop and challenge your people
and teams
(Respect, Challenge and Grow Them)  Respect, challenge, and help your suppliers

 Create process “flow” to surface problems

 Level out the workload (Heijunka)
 Stop when there is a quality problem (Jidoka)
Process 

Use pull systems to avoid overproduction
Standardize tasks for continuous
(Eliminate Waste) improvement
 Use visual control so no problems are hidden
 Use only reliable, thoroughly tested
technology

 Base management decisions on

Philosophy a long-term philosophy, even
at the expense of short-term
(Long-term Thinking) financial goals
 Toyota Way Principles in 4P Model

The dynamic of
The Toyota Way
Problem  Continual organizational learning through Kaizen
 Go see for yourself to thoroughly understand the situation.
Solving (Genchi Genbutsu)
(Continuous  Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly (Nemawashi)
Improvement and Learning)

 Grow leaders who live the philosophy

People and Partners  Respect, develop and challenge your people
and teams
(Respect, Challenge and Grow Them)  Respect, challenge, and help your suppliers

 Create process “flow” to surface problems

 Level out the workload (Heijunka)
 Stop when there is a quality problem (Jidoka)
Process 

Use pull systems to avoid overproduction
Standardize tasks for continuous
(Eliminate Waste) improvement
 Use visual control so no problems are hidden
 Use only reliable, thoroughly tested
technology

Philosophy  Base management decisions on

a long-term philosophy, even
(Long-term Thinking) at the expense of short-term
financial goals
 Importance of
planning at
government level
 Welfare of the country

 Budgeting

 Disaster management
 Foreign relations

 Development plans for the

country

 Defence strategy
 Every moment spent planning saves three or four in
execution. —Crawford Greenwalt
 The preparation of an annual plan is in itself the end,
not the resulting bound volume. —Andrew Grove,
founder and long-time CEO of Intel Corporation
 Plans are nothing; planning is everything. —Dwight
D. Eisenhower
 Long-range planning works best in the short term.
—Doug Evelyn
 A good plan today is better than a perfect plan
tomorrow. —George S. Patton
 The best way to prepare for the future is to create it.
—Management guru Peter Drucker
 Planning can be called as the most important
managerial function.
 Any business organization first and foremost plans
and then the other managerial functions follow.
 What makes every organisation different and a few
more successful than the others? It is just the
difference is how they plan.
 So stop sitting idly, and start planning!
 Made by:
 Avani birwatkar

 Shrenik Gada

 Gautam Gala

 Nicola Gala

 Chaitali

 Priyanka Gaikwad
Thank you