ASS-2: PLANNING

TOPIC : PLANNING
Contents of
Assignment :
1. Nature of planning
2. Importance of
planning
3. Forms of planning
4. Strategies
5. Steps in planning
6. Limitation of
planning
7. Making planning
effective NAME: TAMBE SANKET
BABASAHEB
YEAR: 4TH B-ARCH ( 8 SEM )
PRN NO:
SUB: 50545720171603210020
PROJECT MANAGEMENT

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 PLANNING :
Planning is the process by which managers establish goals and define the methods by which these goals are to be attained. Planning
involves selecting missions and objectives and the actions to achieve them; it requires decision making, which is choosing from among
alternative future courses of action. Project planning is at the heart of the project life cycle, and tells everyone involved where you’re going
and how you’re going to get there. The planning phase is when the project plans are documented, the project deliverables and requirements
are defined, and the project schedule is created. It involves creating a set of plans to help guide your team through the implementation and
closure phases of the project. The plans created during this phase will help you manage time, cost, quality, changes, risk, and related issues.
They will also help you control staff and external suppliers to ensure that you deliver the project on time, within budget, and within
schedule.
The project planning phase is often the most challenging phase for a project manager, as you need to make an educated guess about the
staff, resources, and equipment needed to complete your project. You may also need to plan your communications and procurement
activities, as well as contract any third-party suppliers.
The basic processes of project planning are:
The purpose of the project planning phase is to:
•Establish business requirements •Scope planning – specifying the in-scope requirements for the project
•Establish cost, schedule, list of deliverables, and delivery dates to facilitate creating the work breakdown structure
•Establish resources plans •Preparation of the work breakdown structure – spelling out the
•Obtain management approval and proceed to the next phase breakdown of the project into tasks and sub-tasks
•Project schedule development – listing the entire schedule of the
activities and detailing their sequence of implementation
•Resource planning – indicating who will do what work, at which time,
and if any special skills are needed to accomplish the project tasks
•Budget planning – specifying the budgeted cost to be incurred at the
completion of the project
•Procurement planning – focusing on vendors outside your company and
subcontracting
•Risk management – planning for possible risks and considering optional
contingency plans and mitigation strategies
•Quality planning – assessing quality criteria to be used for the project
•Communication planning – designing the communication strategy with
all project stakeholders

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NATURE OF PLANNING :
The nature of planning can be understood by
examining its four major aspects. They are;
1.It is a contribution to objectives,
2.It is primacy among the manager’s tasks.
3.It is pervasiveness, and
4.The efficiency of resulting plans.
1.The contribution of Planning to the Attainment of Objectives :
Since plans are made to attain goals or objectives, every plan and all its
support should contribute to the achievement of the organization’s
purpose and objectives.
An organized enterprise exists to accomplish group objectives through
willing and purposeful co-operation.

2.Primacy of Planning :
That planning is the prime managerial function is proved by the fact that
all other functions such as organizing,
staffing, leading and controlling are designed to support the
accomplishment of the enterprise’s objectives.
Planning quite logically, therefore, comes first before executing all 4. The Efficiency of Plans :
other managerial functions as it involves establishing the objectives Plans should not only be effective, but also efficient. The effectiveness
necessary for all group efforts. Also, all the other managerial functions of a plan relates to the extent to which it accomplishes the objectives.
must be planned if they are to be effective. The efficiency of the plan, however, means its contribution to the
Likewise, planning and controlling are inextricably bound up. Control purpose and objectives, offset by the costs and other factors required to
without a plan is meaningless because the plan provides the basis or formulate and operate it.
standard of control. Plans are efficient if they achieve their objective at a reasonable cost
when such a cost is the measure not only in terms of time, money or
3.Pervasiveness of Planning: production but also in terms of satisfaction of the individual or group.
Planning is a unique and universal function of all managers. Both conceptual and practical reasons are put forward in support of
The character and scope of planning may vary with each manager’s planning. Two conceptual reasons supporting systematic planning by
authority and with the nature of the policies and plans outlined by managers are limited resources and an uncertain environment.
superiors, but all managers must have some function of planning.

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IMPORTANCE OF PLANNING :
Planning is the first and most important function of management. It is
needed at every level of management. In the absence of planning all
the business activities of the organization will become meaningless.
The importance of planning has increased all the more in view of the
increasing size of organizations and their complexities.
(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.

(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.

(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.
(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.
(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.
(6) Planning Establishes Standards for Controlling:
By determining the objectives of the organization through planning all the
people working in the organization 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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There are main 4 FORMS of planning;
1.Operational Planning :
“Operational plans are about how things need to happen,” motivational
leadership speaker Mack Story said at LinkedIn. “Guidelines of how to
accomplish the mission are set.”
This type of planning typically describes the day-to-day running of the company.
Operational plans are often described as single use plans or ongoing plans.
Single use plans are created for events and activities with a single occurrence
(such as a single marketing campaign). Ongoing plans include policies for
approaching problems, rules for specific regulations and procedures for a  step-
by-step process for accomplishing particular objectives.
2. Strategic Planning :
“Strategic plans are all about why things need to happen,” Story said. “It’s big
picture, long-term thinking. It starts at the highest level with defining a mission
and casting a vision.” Strategic planning includes a high-level overview of the
entire business. It’s the foundational basis of the organization and will dictate
long-term decisions.
R.P.C.O.A A’NAGAR
FORMS OF PLANNING
The scope of strategic planning can be anywhere from the next
two years to the next 10 years. Important components of a
strategic plan are vision, mission and values.
3.Tactical Planning :
“Tactical plans are about what is going to happen,” Story said.
“Basically at the tactical level, there are many focused, specific,
and short-term plans, where the actual work is being done, that
support the high-level strategic plans.”
Tactical planning supports strategic planning. It includes tactics
that the organization plans to use to achieve what’s outlined in
the strategic plan. Often, the scope is less than one year and
breaks down the strategic plan into actionable chunks. Tactical
planning is different from operational planning in that tactical
plans ask specific questions about what needs to happen to
accomplish a strategic goal; operational plans ask how the
organization will generally do something to accomplish the
company’s mission.
4.Contingency Planning :
Contingency plans are made when something unexpected
happens or when something needs to be changed. Business
experts sometimes refer to these plans as a special type of
planning.
Contingency planning can be helpful in circumstances that call
for a change. Although managers should anticipate changes when
engaged in any of the primary types of planning, contingency
planning is essential in moments when changes can’t be
foreseen. As the business world becomes more complicated,
contingency planning becomes more important to engage in and
understand.
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STRATEGIES :
Though it may seem straightforward, successful project Planning is complex. Project managers bring projects of all sizes to completion, on time and
within budget. There are many reasons a project can detail; however, skilled project managers are able to organize the various elements involved and
keep a project on course from start to finish.
By taking necessary precautions and having a detailed plan in place, project managers can ensure success. The following strategies for successful
project management offer both solutions and best practices.
1.Finalize Project Details
Before you begin a project, make sure that you’ve laid the foundation for success. This means getting buy-in from all stakeholders and understanding
the expectations involved. You should clearly define the scope of the project itself, including the various roles and responsibilities of team members.
Develop a detailed plan and define goals, then create measurable criteria for success. Factor in deliverable dates and create your timeline. Of course,
certain elements will likely change along the way. But if your initial plan has enough detail, your team will be able to adapt.
2.Set Clear Expectations
This makes it easier to create accountability. Once you’ve set expectations, make sure everyone is on the same page and knows when their deliverables
are due and how their work contributes to the project as a whole. While it is important for the internal team to be clear on expectations, don’t forget to
keep stakeholders informed as well.
3.Choose the Right Team and System
When your plan is in place and expectations are clear, you will be able to assign tasks to team members. It is the role of a project manager to put
together a winning combination of skills, talent and personalities that are right for each particular project. Keep in mind that skill sets should align with
specific project requirements.
4.Define Milestones
A good way to get started is by including four main phases: initiation, planning, execution, and closure. Then you can perform an evaluation after each
phase and know how your team is doing by examining deliverables. This process keeps you informed about any problems that arise while ensuring that
each phase of the project is completed successfully.
5.Establish Clear Communication
You’ll need to create a communication plan featuring how often the team will check in with stakeholders, when status meetings will be held, and more.
6.Manage Project Risks
There are always risks involved in projects. When you are aware of them at the start, however, you can manage them and ensure that potential problems
don’t arise. Skilled project managers are able to have contingency plans in place, take preventive action, or even step in with corrective measures.
7.Avoid Scope Creep
One of the most important roles a project manager plays is keeping a project on track. Scope creep generally takes place when there are additions to a
project, which is not revised accordingly.
8.Evaluate the Project After Completion
Each project provides information that you can utilize in the future. This is why reviewing the project as a whole is such a valuable practice.

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STEPS IN PLANNING :
Step # 1. Perception of Opportunities:
Perception of opportunities is not strictly a part of the planning process. But this awareness of opportunities
in the external environment as well as within the organization is the real starting point for planning. It is
important to take a preliminary look at possible future opportunities and see them clearly and completely.
All managers should know where they stand in the light of their strengths and weaknesses, understand the
problems they wish to solve and know what they gain. Setting objectives depends on the awareness.
Planning requires realistic diagnosis of the opportunity situation.

Step # 2. Establishing Objectives:

Objective specify the expected results and indicate the end points of what is to be done, where the primary
emphasis is to be placed and what is to be accomplished by the various types of plans.
Organizational objectives give direction to the major plans, which by reflecting these objectives define the
objective of every major department. Major objectives, in turn, control the objectives of subordinate
departments and so on down the line. In other words, objectives from a hierarchy.
The objectives of lesser departments will be more accurate if subdivision managers understand the overall
enterprise objectives and the derivative goals. Managers should also have the opportunity to contribute their
ideal to setting their own goals and those of the organization.

Step # 3. Planning Premises:

After determination of organizational objectives, the next step is establishing planning premises that is the conditions under which planning
activities will be undertaken. Planning premises are planning assumptions the expected environmental and internal conditions.
The nature of planning premises differs at different levels of planning. At the top level, it is mostly externally focused. As one moves down the
organizational hierarchy the composition of planning premises changes from external to internal. The major plans both old and new will materially
affect the future against which the managers at lower units must plan.

Step # 4. Identification of Alternatives:

The fourth step in planning is to identify the alternatives. Various alternatives can be identified based on the organizational objectives and planning
premises. The concept of various alternatives suggests that a particular objective can be achieved through various actions.
The most common problem is not finding alternatives but reducing the number of alternatives so that the most promising may be analyzed. Even
with mathematical techniques and the computer, there is a limit to the number of alternatives that can be thoroughly examined. The planner must
usually make a preliminary examination to discover the most fruitful possibilities.

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Step # 5. Evaluation of Alternatives:

The various alternative course of action should be analyzed in the light of premises and goals. There are various techniques available to evaluate
alternatives. The evaluation is to be done in the light of various factors. Example, cash inflow and outflow, risks, limited resources, expected pay
back etc., the alternatives should give us the best chance of meeting our goals at the lowest cost and highest profit.
Step # 6. Choice of Alternative Plans:
This is the real point of decision-making. An analysis and evaluation of alternative courses will disclose that two or more .ire advisable and
beneficial. The fit one is selected.
Step # 7. Formulation of Supporting Plan:
After formulating the basic plan, various plan are derived so as to support the main plan. In an organization there can be various derivative plans
like planning for buying equipment, buying raw materials, recruiting and training personal, developing new product etc. These derivative plans are
formulated out of the basic or main plan and almost invariably required to support the basic plan.
Step # 8. Establishing Sequence of Activities:
After formulating basic and derivative plans, the sequence of activities is determined so those plans are put into action. After decisions are made
and plans are set, budgets for various periods and divisions can be prepared to give plans more concrete meaning for implementation.
The overall budgets of an enterprise represent the sum total of income and expenses, with resultant profit or surplus, and budgets of major balance
sheet items such as cash and capital expenditures. Each department or programmed of a business or other enterprise can have its own budgets,
usually of expenses and capital expenditures, which tie into the overall budget.
If done well, budgets become a means of adding together the various plans and also set important standards against which planning progress can
be measured.

LIMITATIONS IN PLANNING :

Internal Limitations :

There are several limitations of planning. Some of them are inherit in the process of planning like rigidity and other arise due to shortcoming of
the techniques of planning and in the planners themselves.
1.Rigidity
1. Planning has tendency to make administration inflexible.
2. Planning implies prior determination of policies, procedures and programmed and a strict adherence to them in all circumstances.
3. There is no scope for individual freedom.
4. The development of employees is highly doubted because of which management might have faced lot of difficulties in future.
5. Planning therefore introduces inelasticity and discourages individual initiative and experimentation.

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2.Misdirected Planning
1. Planning may be used to serve individual interests rather than the interest of the enterprise.
2. Attempts can be made to influence setting of objectives, formulation of plans and programmers to suit ones own requirement rather
than that of whole organization.
3. Machinery of planning can never be freed of bias. Every planner has his own likes, dislikes, preferences, attitudes and interests which
is reflected in planning.
3.Time consuming
4. Planning is a time consuming process because it involves collection of information, it’s analysis and interpretation thereof. This entire
process takes a lot of time specially where there are a number of alternatives available.
5. Therefore planning is not suitable during emergency or crisis when quick decisions are required.
4.Probability in planning
6. Planning is based on forecasts which are mere estimates about future.
7. These estimates may prove to be inexact due to the uncertainty of future.
8. Any change in the anticipated situation may render plans ineffective.
9. Plans do not always reflect real situations in spite of the sophisticated techniques of forecasting because future is unpredictable.
10. Thus, excessive reliance on plans may prove to be fatal.
5.False sense of security
11. Elaborate planning may create a false sense of security to the effect that everything is taken for granted.
12. Managers assume that as long as they work as per plans, it is satisfactory.
13. Therefore they fail to take up timely actions and an opportunity is lost.
14. Employees are more concerned about fulfillment of plan performance rather than any kind of change.
6.Expensive
15. Collection, analysis and evaluation of different information, facts and alternatives involves a lot of expense in terms of time, effort and
money
16. According to Koontz and O'Donnell, ’ Expenses on planning should never exceed the estimated benefits from planning. ’

External Limitations of Planning:

1.Political Climate- Change of government from Congress to some other political party, etc.
2.Labour Union- Strikes, lockouts, agitations.
3.Technological changes- Modern techniques and equipment's, computerization.
4.Policies of competitors- E.g. Policies of Coca Cola and Pepsi.
5.Natural Calamities- Earthquakes and floods.
6.Changes in demand and prices- Change in fashion, change in tastes, change in income level, demand falls, price falls, etc.

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