PLANNING

All the people knowingly and unknowingly make the

planning in their daily life. Planning bridges the gap
between where we are standing today and where we
want to reach. Planning is deciding in advance what to
do, where to do and who is to do it. It is the most basic of
all management functions. All the other management
functions are based on proper planning. Planning done
all levels of management.
 GAP

Where we are Where we want to go

PLANNING
BRIDGES THE
GAP
 Where we are, where want to go – bridging the gap
between these two is planning
- Geogre R Tery
PLANNING-MEANING
Planning is the process of deciding in advance what is
to be done in future. Planning can be defined as
thinking in advance what is to be done, when it is to be
done, how it is to be done and who is to do it.
 What should be
done

Where it should How it should

PLANNING
be done be done

When it should be
done
 Planning is deciding in advance what to do, how to
do and who is to do it.
- Koontz and O’Donnel
NATURE AND CHARACTERISTICS OF
PLANNING
 PLANNING IS GOAL-ORIENTED
 PLANNING IS A MENTAL PROCESS
 PLANNING IS FORWARD LOOKING
 PLANNING IS A PRIMARY FUNCTION OF
MANAGEMENT
 PLANNING IS A PERVASIVE FUNCTION
 PLANNING IS A CONTINOUS PROCESS
IMPORTANCE OF PLANNING
 FOCUSES ON THE OBJECTIVES
Planning process begin with setting up of definite
goals. Plan are guidance to achieve these goals. Planning
creates a sense of direction and makes operation goal
oriented.
 REDUCES UNCERTIANTY
All business concerns operate in an uncertain business
environment. Through planning it becomes possible to
forecast the future events in the business and get
prepared to face the unexpected events.
 ACHIEVES CO-ORDINATION
Co-ordination is essential at all levels to achieve the
goals of the business organisation. As decision are taken
in advance through planning.
 FACILITIES CONTROL
Control of all activities in the organisation becomes
easy through planning. Because planning and
controlling are closely connected. Corrective action is
taken through controlling. Controlling ensures that
everything goes according to the plan.
 INCREASES EFFICENCY
Planning helps in maximum utilisation of available
resources. Planning avoids confusion, clashes and
wastages of resources. It increases the efficiency of the
organisation.
 ENCOURAGES INNOVATION
Planning require high thinking and it is an intellectual
process. Planning process forces managers to think
differently and predict the future conditions. So it
managers innovation and creative.
TYPES OF PLANS
. GOALS
1

Goals are measurable objectives. A goals is the end

towards which an enterprises is aimed at and to achieve the
same by fulfilling various objectives.
2. OBJECTIVES
Achievement of organisational goals
3. POLICIES
Policies provide guidance in decision making. It defines
the area or limits within which decisions can be made.
4. PROCEDURES
The chorological steps that should be taken to
complete an operation systematically are called procedures.
 STRATEGIES
The plan of action used to achieve the goals in the
competitive environment
 METHODS
The way in which an operation is completed are called
methods
 RULES
Rules are instruction that contain the do’s and don’t
for workers.
 PROGRAMMES
All the activities that are carried out to achieve the
specific objectives are called programmes.
 PROJECTS
Project is a scheme for investing the resources in order
to achieve the common objective.
 BUDGETS
Budgets is an instrument in planning and controlling
PLANNING PROCESS
1. ESTABLISHING OBJECTIVES
- plans are prepared to achieve certain
organisational objectives. The objectives should be clear
and specific.
2. PLANNING PREMISES
- managers plan for the future on the basis of certain
assumption. Such assumption are called planning
premises. It can be classified to internal premises and
external premises.
3. IDENTIFYING ALTERNATIVES
- It objectives are set and assumption are made, the
next step is to identify all the possible course of action.
4. EVALUATING ALTERNATIVES
- alternatives are evaluated in the light of their
feasibility.
5. SELECTING THE BEST ALTERNATIVES
- This means choosing the best from the available
alternatives. Selected alternatives should be practical
and flexible.
6. IMPLEMENTATION OF THE PLAN
- Implementation is the stage at which the best
alternative is put into action.
7. FOLLOW UP ACTION
- This follow up action helps to find out the drawback
and make necessary action.
KINDS OF PLAN
 FINANCIAL AND NON FINANCIAL PLANS
 CORPORATE PLANS AND FUNCTIONAL PLANS
 SHORT TERM AND LONG TERM PLANS
 FORMAL AND INFORMAL PLANS
 STANDING AND SINGLE USE PLANS
 ADMINISTRATIVE AND OPERATIONAL PLANS
LIMITATIONS OF PLANNING
 NON AVAILABILITY OF RELIABLE DATA
 TIME CONSUMING
 COSTLY
 FALSE SENSE OF SECURITY
 LACKS OF FLEXIBILITY
 EXTERNAL BARRIERS