PLANNING

Determination of the future courses of action to achieve the desired results. It bridges the gap from where we are and where we want to go.

TYPES OF PLANS

1. PURPOSES OR PLANS
identifies the basic function or task of an enterprise. it differs from organization to organization.

2. OBJECTIVES/GOALS
Ends towards which the activity is aimed.

3. STRATEGIES
Determination of the basic long- term basic objectives Adoption of courses of action and allocation of resources necessary to achieve them

4. POLICIES

General statements or understandings. Helps in decision making. Helps decide issues before they become Problems

5. PROCEDURES
Establish a required method of handling future activities. Follows a chronological sequence of required action. Action -oriented

6. RULES

Includes the DOS and DONOTS allowing no discretion. Simplest type of plan

7. PROGRAMMES
Complex of goals, policies, procedures, rules ,task assignments etc.

Expected results in numerical terms

A control device although making it is planning

STEPS IN PLANNING
Being aware of opportunities in both external and internal environment and present standing.

Establishing Objectives what the organization wants in long as well as short term. Should be realistic. Developing Premises Assumptions/ Forecasts about the future environment. Understanding of utilising planning premises such as forecast, basic policies, and existing plans.
Determining Alternative courses backup plans if the actual plans are not going as desired. Pros and Cons of all the alternatives.

STEPS (cont.)
Evaluating Alternative Courses in light of premises and goals. Choosing only the most fruitful or desirable alternatives from the generally large number of alternatives. Selecting a Course the real point of decision making where the most desirable plan is chosen. Formulating Derivative Plans Numberizing Plans by Budgeting representing plans through numbers so that they can be measured , compared and corrected.

STEPS IN PLANNING
Being Aware of the opportunities Evaluating Alternatives

Setting up Goals or Objectives

Choosing an Alternative

Developing Planning Premises

Formulating Supportive Plans

Identifying Alternatives

Representing plans through numbers

PLANNING AND CONTROLLING

Both go hand in hand. Plans are meant to be implemented thus it generates the need for control. Control is of no use without plans or standards with which comparison has to be made.

NEW PLANS

Planning

Implementation Of plans

Controlling : Comparing plans With results

No undesirable deviations from plans

Corrective action

OBJECTIVES
Important ends toward which organizational and individual activities are directed.

HIERARCHY OF OBEJECTIVES
1.SOCIO-ECO PURPOSE

2.MISSION

Board of directors Top level managers

3.OVERALL OBJECTIVES

4.SPECIFIC OVERALL OBJECTIVES ( K.R.A s )

5. DIVISION OBJECTIVES

Middle level managers

6. DEPARTMENT and UNIT OBJECTIVES 7, INDIVIDUAL OBJECTIVES Performance Personal development objectives

Lower-Level managers
Organization Hierarchy

Hierarchy of Objectives

KEY RESULT AREAS PETER

DRUCKER
o o o o Market standing Innovation Productivity Physical and financial resources o Profitability o Manager performance o Service Recently added o Quality

MBO Management by objectives