PLANNING

&
DECISION
REQUIRES DECISIONS ON …..
What should be done
How it should be done
Who will be responsible
Where the action is to be taken
Why is it done
When it is to be done

5W1H
 PLANNING: CONCEPT
Planning is the first step of management process concerned
with the establishment of objectives and analysis of
present limitations for attaining such goals
 Setting objectives and determining course of actions for
achieving those objectives.
 Blue print or roadmap of action and operation
 Achieving the predetermined goals
 Importance of Planning
 Integrates Management Functions
 Provides Direction
 Reduces Uncertainty
 Reduces Problems
 Provides opportunity to analyze alternative courses
 Ensure effective for control and change
 Ensure better Coordination of Effort
 Ensure Better Utilization of Resources
 PROCESS OF PLANNING:
 ESTABLISH GOALS
 IDENTIFY PREMISES
 IDENTIFY ALTERNATIVES
 TEST THE PRACTICABILITY OF ALTERNATIVE
 SELECT AND ANNOUNCE THE FINAL PLAN
 TYPES OF PLANNING
A. ON THE BASIS OF LEVEL
1. Strategic plan
2. Tactical plan
3. Operational plan
B. ON THE BASIS OF TIME FRAME
1. Long-range Plans
2. Intermediate Plans
3. Short-range Plans
C. ON THE BASIS OF FREQUENCY:
1. Standing
2. Single-use Plan
 ON THE BASIS OF LEVEL
A. STRATEGIC PLAN:
- Set by Top Management
- Focus on broad and general issues
- Decision of resource allocation, priorities, action steps to achieve strategic goal
- President/CEO

B. TACTICAL PLAN:
- Set by middle managers
- A plan aimed at achieving tactical goals and develop the strategic plan

C. OPERATIONAL PLAN:
- Set by lower level managers
- Short-term issues and solutions
- Carry out tactical plans to achieve operational goals
- Deal with routine tasks
 ON THE BASIS OF TIME
LONG-RANGE PLANS
FRAME
- Plan that covers many years, even decades
- Common long range plans for five years or more

INTERMEDIATE PLANS
- A plan that generally covers from one to five years

SHORT-RANGE PLANS
- Plan covering a span of one year or less
- Kind of operational activities
 ON THE BASIS OF
STANDING
FREQUENCY
- For situation that are likely to recur and become routine
- Remain unchanged for longer period of time
- Guide managers for decision making

SINGLE-USE PLAN
- For unusual situation
- Short-term
- Remain valid until their purpose in accomplished after that
it is either discarded or revised
- Program like seminar, speeches, project, budget
 CORPORATE PLANNING
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
-FORMAL AND SYSTEMATIC PROCESS

-IMAGINATION, FORESIGHT, REFLECTIVE THINKING &

JUDGEMENT
- LONG-TERM PERSPECTIVE

-INTERGRATED FRAMEWORK

-CONCERNED WITH THE FUTURE IMPACT OF PRESENT

DECISIONS