Unit 1

Development Planning: Planning – Concept – models, approaches – types planning process –

need and importance of planning for development. Development – definition – concepts;
indicators – types – models, social development and planning as a major development thrust in
India.

Concept of Planning

Planning is based on the theory of “thinking before acting”. Planning is an integral part of our
life. We make plans in each and every step of life whether it be to go to school or to buy
household goods during shopping. We make plans according to the limitations of our budget and
resources to get maximum satisfaction and to fulfill goals from our activities

Planning is the most basic and primary function of management. It is the pre-decided outline of
the activities to be conducted in the organization. Planning is the process of deciding when, what,
when where and how to do a certain activity before starting to work.

It is an intellectual process which needs a lot of thinking before a formation of plans. Planning is
to set goals and to make certain guidelines achieve the goals. Also, planning means to formulate
policies, segregation of budget, future programs, etc. These are all done to make the activity
successful

All other function of management is useless if there is not a proper planning system in an
organization. So, planning is the basis of all other functions. Thus, planning is the map or a
blueprint for the organization.

According to Theo Haimann, “Planning is deciding in advance, what is to be done. When a

manager plans, he projects a course of action for the future, attempting to achieve a consistent,
coordinated structure of operations aimed at the desired results.”

According to Alford and Beaty, “Planning is the thinking process, the organized foresight, the
vision based on fact and experience that is required for intelligent action.”

According to ME. Hurley, “Planning is deciding in advance what is to be done. It involves the
selection of objectives, policies, procedures, and programs from among alternatives

models,

The traditional model, the managerial model, of community planning is the most common of
the four models and is closely related to those strategic planning models found in the private
sector. They are top down, follow fairly rigidly prescribed steps, are very linear in their
application and provide very little room for meaningful stakeholder participation.
A second model, the legislative model, is the second most widely used model. It is usually
initiated to develop an action agenda to guide and direct the decisions of the organization’s
governing body and administrative team. Usually the organization’s CAO and one or more
members of the governing body initiate the process. In some variations the process is initiated
entirely by members of the community’s governing body. Under these circumstances the
locality’s CAO and administrative staff are likely to become actively involved in promoting the
process. The results and outcomes of the strategic planning process in this situation include: the
development of an agenda; the development of community acceptance, or “buy-in” of that
agenda; and the legitimization of decisions made by the community’s governing body and/or
administrative team.

A third model is the limited community participation model. The unique feature of this model
is that a committee, task force or commission is created and members appointed to develop and
guide the process. The distinguishing feature of this model is the very limited amount of citizen
participation outside membership of the appointed Commission. Often the process is initiated by
the governing body, sometimes with prodding from the CAO. For the most part, the activities
surrounding the planning process continue for ten to eighteen months. After the citizens
committee completes a report and presents it to the governing body, the formal planning
activities begin to diminish and are internalized to the decision-making processes of the
administrative team and / or the governing body.

A fourth model, the community empowerment process model, is built around extensive
community participation and is designed as an empowerment process to develop a community
agenda and engage the residents of the community over a long period of time. Usually the
process is initiated by a proactive governing body. The organization’s administrative team may
be involved, but only at the request of the governing body. In the most successful cases an
institutionalized process to ensure continued participation by residents is established. A review
board or similar institution is created to provide for regular monitoring of the progress toward the
goals that were established during the process.

approaches –

Approaches to Planning

All organizations plan; the only difference is their approach

The four possible approaches to planning are:

1. Reactive - past oriented

Reactive planning is an active attempt to turn back the clock to the past. The past, no
matter how bad, is preferable to the present. And definitely better than the future will be.
The past is romanticized and there is a desire to return to the "good old days." These
 people seek to undo the change that has created the present, and they fear the future,
which they attempt to prevent.
2. Inactive - present oriented
Inactive planning is an attempt to preserve the present, which is preferable to both the
past and the future. While the present may have problems it is better than the past. The
expectation is that things are as good as they are likely to get and the future will only be
worse. Any additional change is likely to be for the worse and should therefore be
avoided.
3. Preactive - predict the future
Preactive planning is an attempt to predict the future and then to plan for that predicted
future. Technological change is seen as the driving force bringing about the future, which
will be better than the present or the past. The planning process will seek to position the
organization to take advantage of the change that is happening around them.
4. Proactive - create the future
Proactive planning involves designing a desired future and then inventing ways to create
that future state. Not only is the future a preferred state, but the organization can actively
control the outcome. Planners actively shape the future, rather than just trying to get
ahead of events outside of their control. The predicted changes of the preactive planner
are seen not as absolute constraints, but as obstacles that can be addressed and overcome.

8.2 Planning approaches

Planning, by definition, is to "devise detailed methods for doing, arranging and making
something". For different things different approaches should be adopted. For instance, planning
an engineering structure such as a bridge is very different from planning a watershed complex.
Some useful approaches employed in watershed planning are explained as follows:

Bottom-up approach

Many watershed projects have failed because farmers and local communities were not involved
in the planning process. Watersheds in developing countries are heavily populated by farmers.
Therefore, any watershed plan will not be successfully carried out without their support or
participation.

Several ways can be employed to involve farmers in the planning process. For instance, existing
farmers' organizations can be included in the survey and planning body. Local watershed
committees can be organized for planning and implementation purposes. Conducting individual
farm planning or group farm planning with the farmers will obtain details on how farmers will
use, develop and protect their farms. Involving villagers and communities for planning
community forests, pasture, roads, and other infrastructural needs are also scopes of the bottom-
up approach. During such planning processes government policy and farmers' needs can be fully
discussed. For watershed plans to be useful and workable, they should be well understood and
accepted at grass-root level.
Iterative approach

Planning is an iterative approach. Before a final plan is prepared, many studies, assessments,
alternative considerations and revisions will have to be made. Generally, a preliminary or interim
report should be made by gathering the results and reports of each team (see examples given in
Fig. 3). After receiving comments from all the related sources, a review and revision period
begins. The process may need to be repeated several times to find the best results.

Flexible approach

A final watershed plan is not like a blueprint of a bridge. A watershed plan should be considered
as a starting point and should be kept under constant monitoring and adjustment. There are many
reasons. First, project life may cover 10 years or so and many unpredictable things, caused by
nature or man made, may happen during the period. New problems need new policies and
techniques to cope with them. Second, watershed management is a complex task dealing with
social, economical, cultural, legal, institutional, and physical problems of a watershed.
Difficulties may arise during implementation and many times the original strategies and goals
need to be revised. Therefore, learning by doing is a very important process hence any such plan
should be kept flexible.

Flexibility means leaving rooms for future adjustment, modification, or revision. Consequently, a
monitoring and evaluation process should be built into the plan for this purpose. This also means
that the planned targets should be progressive, i.e. smaller at the very beginning and gradually
expanding with the added experience.

Types

Types of Planning

Any organization can have different plans. We can classify the types of plans in the following
ways:

On the basis of Nature

1. Operational Plan: Operational plans are the plans which are formulated by the lower level
management for short term period of up to one year. It is concerned with the day to day
operations of the organization. It is detailed and specific. It is usually based on past experiences.
It usually covers functional aspects such as production, finance, human resources, etc.
2. Tactical Plan: The tactical plan is the plan which is concerned with the integration of various
organizational units and ensures implementation of strategic plans on day to day basis. It
involves how the resources of an organization should be used in order to achieve strategic goals.
The tactical plan is also known as coordinative or functional plan.

3. Strategic Plan: A strategic plan is a plan which is formulated by the top level management for
a long period of time of five years or more. They decide the major goals and policies to achieve
their goals. It takes in a note of all the external factors and risks involved and makes a long-term
policy of the organization. It involves the determination of strengths and weaknesses, external
risks, mission, and control system to implement plans

On the basis of the Managerial Level

1. Top level Plans: Plans which are formulated by general managers and directors are called top-
level plans. Under these plans, the objectives, budget, policies, etc. for the whole organization
are laid down. These plans are mostly long term plans.

2. Middle-level Plans: The managerial hierarchy at the middle level includes the departmental
managers. A corporate has many departments like the purchasing department, sales department,
finance department, personnel department, etc. The plans formulated by the departmental
managers are called middle-level plans.

3. Lower level Plans: These plans are prepared by the foreman or the supervisors. They take the
existence of the actual work and the problems connected with it. They are formulated for a short
period of time and called short term plans.

On the basis of Time

1. Long Term Plan: The long-term plan is the long-term process that business owners use to
reach their business mission and vision. It determines the path for business owners to
reach their goals. It also reinforces and makes corrections to the goals as the plan
progresses
2. Intermediate Plan: Intermediate planning covers 6 months to 2 years. It outlines how the
strategic plan will be pursued. In business, intermediate plans are most often used for
campaigns.
3. Short-term Plan: The short-term plan involves pans for a few weeks or at most a year. It
allocates resources for day-to-day business development and management within the
strategic plan. Short-term plans outline objectives necessary to meet intermediate plans
and the strategic planning process.

On the basis of Use

1. Single Plan: These plans are connected with some special problems. These plans end the
moment of the problems to be solved. They are not used, once after their use. They are further
re-created whenever required.

2. Standing Plan: These plans are formulated once and they are repeatedly used. These plans
continuously guide managers. That is why it is said that a standing plan is a standing guide to
solving the problems. These plans include mission, policies, objective, rules, and strategy.

Planning Process

Planning is a complex process which requires a high level of studies and analysis. To create a
plan there must be a determination of objectives and outlining of the course of action to achieve
the goals. There is no set formula for planning. A planning process which is suitable for one kind
of organization may not be suitable for another type of organization. However, we can take the
following steps as the guideline to draw a plan:

1. Analysis of the Environment Planning begins with the awareness of the opportunities in the
external environment and within the organization. For this, SWOT analysis is most suitable.
Strength and weaknesses are the internal factors whereas opportunities and threats are the
environmental factors which are to be analyzed.

2. Setting the Objectives The second step of planning is to set objectives and goals for the
organization as a whole and for each department. Long term, as well as short-term plans, are to
be created. Objectives are specified to each and every manager and department head. Objectives
give direction to the major plans. So managers should have an opportunity to contribute their
ideas for setting their own objectives and of the organization

3. Develop Premises Planning premises are the assumptions about the future on the basis of
which the plans will be ultimately formulated. Planning premises are the key to the success of
planning as they supply pertinent facts and information regarding the future such as general
economic conditions, production cost, and prices, probable competitive behavior, governmental
control, etc. Forecasting is an essential part of the premises

4. Determine and Evaluate Alternatives The fourth step is to search and identify the alternative
course of action. It suggests that a particular objective can be achieved in numerous ways. But
the most relevant alternatives must be listed down so that selection is made easier. Once various
alternatives are identified, they must be well analyzed with their strong and weak points.

5. Selection of Best Alternative This is the point where a certain plan is adopted. When the
alternatives are determined most suitable alternative must be chosen out from the list which can
give maximum output with minimum risk.

6. Formulation of a Derivative Plan Derivative plans are the backing plans which are very
essential. Once the basic plan has been formulated, it must be translated into day to day operation
of the organization. Middle and low-level managers must draw up the appropriate plans,
programs, and budget for their sub-units.

7. Budget Formulation After decisions are made and plans are set the next step is giving them
sufficient funds to carry them out. Optimum budgeting must be done for every course of action.

8. Implementation of a Plan Once the plans are set up, now the plans must be well informed
and shared with the employees and managers expecting full commitment and trust. Finally, the
plans must be carried out.

9. Follow-up Action Obviously once a plan is carried out it generates certain output. The
progress must be well monitored and managers need to check the progress of their plans so they
can take necessary steps to improve the plans if needed

Need and importance of planning for development.

Importance/Significance of Planning:

1. Planning provides Direction:

Planning is concerned with predetermined course of action. It provides the directions to

the efforts of employees. Planning makes clear what employees have to do, how to do,

etc. By stating in advance how work has to be done, planning provides direction for

action. Employees know in advance in which direction they have to work. This leads to

Unity of Direction also. If there were no planning, employees would be working in

different directions and organisation would not be able to achieve its desired goal.

2. Planning Reduces the risk of uncertainties:

Organisations have to face many uncertainties and unexpected situations every day.

Planning helps the manager to face the uncertainty because planners try to foresee the

future by making some assumptions regarding future keeping in mind their past

experiences and scanning of business environments. The plans are made to overcome

such uncertainties. The plans also include unexpected risks such as fire or some other

calamities in the organisation. The resources are kept aside in the plan to meet such
uncertainties.
3. Planning reduces over lapping and wasteful activities:
The organisational plans are made keeping in mind the requirements of all the

departments. The departmental plans are derived from main organisational plan. As a

result there will be co-ordination in different departments. On the other hand, if the

managers, non-managers and all the employees are following course of action according

to plan then there will be integration in the activities. Plans ensure clarity of thoughts and
action and work can be carried out smoothly.

4. Planning Promotes innovative ideas:

Planning requires high thinking and it is an intellectual process. So, there is a great scope

of finding better ideas, better methods and procedures to perform a particular job.

Planning process forces managers to think differently and assume the future conditions.
So, it makes the managers innovative and creative.

5. Planning Facilitates Decision Making:

Planning helps the managers to take various decisions. As in planning goals are set in

advance and predictions are made for future. These predictions and goals help the
manager to take fast decisions.

6. Planning establishes standard for controlling:

Controlling means comparison between planned and actual output and if there is variation

between both then find out the reasons for such deviations and taking measures to match

the actual output with the planned. But in case there is no planned output then controlling
manager will have no base to compare whether the actual output is adequate or not.

For example, if the planned output for a week is 100 units and actual output produced by

employee is 80 units then the controlling manager must take measures to bring the 80

unit production upto 100 units but if the planned output, i.e., 100 units is not given by the
 planners then finding out whether 80 unit production is sufficient or not will be difficult
to know. So, the base for comparison in controlling is given by planning function only.

7. Focuses attention on objectives of the company:

Planning function begins with the setting up of the objectives, policies, procedures,

methods and rules, etc. which are made in planning to achieve these objectives only.

When employees follow the plan they are leading towards the achievement of objectives.

Through planning, efforts of all the employees are directed towards the achievement of
organisational goals and objectives.

Benefits of Strategic Planning

Many positive things can come from the strategic planning process:

1. Provides an outline of steps to follow

2. Promotes efficient use of scarce resources

3. Improves coordination

4. Builds community consensus

5. Increases public awareness

6. Strengthens the community’s competitive position

7. Encourages forward thinking

8. Focuses community efforts on key issues

Development –

definition – the process in which someone or something grows or changes and becomes
more advanced