PLANNING

How To Best Meet Your Mission

We must plan for the future,

because people who stay in the
present will remain in the past.
Abraham Lincoln
 What is Planning?

Planning is a search problem that requires to

find an efficient sequence of actions that
transform a system from a given starting state to
the goal state
Planning is the starting point of the management
process
Predetermines what the business proposes to
accomplish and how it intends realizing its
goals
 Define Planning

Planning is the process of setting a course of

action designed to accomplish given goals in
a predicted environment.
Tansik and Chase.

Planning is an ability to visualize a future

process and its results.
J. P. Barger
 Nature of Planning
Beginning of the process of management.
It is an intellectual process, requires managers to
think.
Planning of What? When? How? & Who is? Involves
Decision –making as integral part of planning.
Planning is a continuous process.
Based on futurity.
It is goal oriented.
It is a primary function.
 Nature of Planning

Planning is all-persuasive.
Planning is mental exercise.
Planning involves choice.
Planning is forward looking.
Planning is flexible.
Planning is an integrated process.
It is the basis of control.
It includes efficiency effectiveness dimensions.
Proper planning accomplishes the following

1. Managing Uncertainty

2. Better Focus

3. Improves Coordination

4. Basis for Control

5. Improves Effectiveness
 Goals and Plans
Goals: specify future ends. Desired
future state.

Plans: specify the means to future ends.

“The blueprint for goal achievement…
specifies the necessary resource
allocations, schedules, tasks…”
 Importance of Planning
Minimizes Risk and uncertainty.
Leads to Success.
Focuses Attention on the Organization's Goals.
Facilitates Control.
Facilitates Decision making.
Provides direction.
Planning is Economical.
Encourage Innovations & Creativity.
Planning improves morale.
 Importance of Planning
Better utilisation of resources.
To gain economy in operation.
Establishes coordinated effort.
Coping with change.
Prevents haphazard action.
Stay on track.
Managing crises.
Providing motivation.
Promotes growth and improvement.
 The Planning Process
Planning may be seen as the identification and
formulation of the objectives of a business (Goal
Setting)
Determining Planning Premises (Formulating
assumptions / Forecasting)
Analyzing the data (Identifying Alternatives)
Evaluation (Comparing the alternatives) & Selection
of the best.
Implementation the plan.
Monitoring, Control & Review
Successful Planning Process
Everyone participates
Board and staff educated about planning
Board and staff explore new ideas
Board takes advantages of opportunities
Necessary resources available
 Types of Plans

Single-use plans are developed to achieve

objectives that are not likely to be repeated in the
future. Single-use plans include programs, budgets
and projects.

Standing plans are used to provide guidance for

tasks performed repeatedly within the organization.
The primary standing plans are organizational
policies, rules, and procedures.
 Principles of Planning

Principle of:
• Contribution to Objectives.
• Efficiency.
• Primacy of Planning.
• Planning premises.
• Timing.
• Commitment.
• Flexibility.
• Competitive Strategies.
 Making Planning Effective
Simple.
Well defined Objectives.
Comprehensive.
Consistency / Stable.
Everyone participates.
Feasible.
Flexible.
Economical.
Top Management Support.
Human Oriented.
Written.
 Limitations
Rigidity (Stifles Initiative).
Tendency towards Inflexibility.
Costly.
Time Consuming.
Unreliable Forecasting.
Employee resistance.
Psychological Barriers.
Managerial Deficiencies.
Excessive Formalities.
Lack of Understanding.
Techniques of Planning (Statistical Tools)

Forecasting.
Budgeting.
Break-Even Analysis / Marginal Analysis.
Linear Programming.
Queuing Theory.
PERT/CPM.
Theory of Probability.