The Nature and Purpose of

Planning
(Lecture 03)

Dr. Hassan Muqarab

PhD in Management
 Plans are nothing
planning is every thing
 Planning
Definition:
Planning is the design of a desired future
and of effective ways of bringing it about.

Planning is looking ahead in order to

visualize and decide a future course of action
to allow to achieve a desired goal.
 Purposes of Planning
• In business (and in life ) things are so
complex that without proper planning they
cannot be handled.

• It is a pre- requisite not only to achieve success

but even to survive in a complex and
competitive world.

• It helps in determining opportunities

• It helps in identification of courses of action.
• It helps in proper utilization of
resources effectively.
• It helps in working in an organized
 Nature of Planning

1. Planning is the most important function of

management.

2. Planning has central role in linking all other

managerial functions.

3. Planning is pervasive and oversees all other

managerial functions.
Functions of Managers

•Planning

•Staffing

•Organizing

•Leading

•Controlling
 Benefits of Planning
• Planning leads to success.
• It acts as a bridge between where we
are and where we want to be.
• It helps in saving resources, money and
time.
• Jobs are well coordinated thus duplication
of effort is avoided and skills and
potentials are fully utilized.
 Myths about Planning

• Planning that proves inaccurate is a waste of

management time.

• Planning can eliminate change.

• Planning reduces flexibility.

 Plan
Is a pre-determined course of action.

• It brings orderliness.

• Avoids confusion.

• Gives better use of resources.

• Cuts waste.

Plans are changed or modified but not abandoned.

Effectiveness of plan Effectiveness
pertains to the degree to of Plans
which it achieves its
objectives.
Efficiency of plan
refers to its Efficiency
attainment of
of Plans

objective at a

reasonable cost.
 Types of Plans

• Single use or one time plans

• Short Term Plans
• Standing Plans
• Long Term Plans
• Specific Plans
• Operational Plans
• Subject Plans
• Strategic Plans
• Directional Plans
Single Use or One Time Plan

It is specifically designed to meet

the needs of a uniquesituation and
is created in response tonon-
programmed decisions that
managers make.
 Standing Plans
Ongoing plans that provide guidance for
activities repeatedly performed and are
created in response to programmed decisions
that managers make.
 Non-
Unique decisions that Programmed
require a custom-made
Decision
solution.
A repetitive decision Programmed
that can be handled by
a routine approach.
Decision
 Specific
These plans are clearly Plans
defined and explicit and
leave no room for
interpretation.
 Subject Plans
These plans are limited to one particular
aspect of an organization’s activates. eg.
Marketing
Production
Recruitment
Financial
Manpower etc
These are flexible plans Directional
that set out general Plans
guide lines and permit
considerable discretion to
users.
Plans that are formulated Sh or t - t er m
to cover a period of Plans
less than one year.
Plans that are Long–Term
formulated to extend Plans
upto beyond five years.
Plans that specify
Operational
details on how overall
objectives are to be P l an s
achieved.
These plans are
organization–wide,
establish overall objectives Strategic
and position an plans
organization in term of its
environments.