1. FAILING TO PLAN IS PLANNING TO FAIL
DEFINITIONS
KOONTZ AND DONNEL” Planning involves selecting enterprise objectives,
departmental goals, and programs, and determining the ways of reaching them,
Planning, thus, provides a rational approach to pre-selected objectives.”
PHILIP KOTLER “ Planning is deciding in the present what to do in the future. It is
the process whereby companies reconcile their resources with their objectives
and opportunities.”
Peter F. Drucker” Planning is the continuous process pf making present
entrepreneurial decisions systematically and with the best possible knowledge of
their futurity, organizing systematically the efforts needed to carry out these
decisions and measuring the results of these decisions against the expectations
through organized, systematic feedback.”
2. IMPORTANCE OF PLANNING
OBJECTIVE ORIENTED
INTELLECTUAL PROCESS
ALL PERVASIVE
CONTINUOUS PROCESS
FLEXIBLE IN NATURE
DIRECTED TOWARDS EFFICIENCY
MASTER COORDINATOR
3. FEATURES OF GOOD PLAN BY
WELL ESTABLISHED OBJECTIVES
URWICK
SIMPLE & UNDERSTANDABLE
FLEXIBLE TO CHANGE ACCORDING TO
CIRCUMSTANCES
BALANCED & EQUAL EMPHASIS ON ALL
SECTORS OF BUSINESS
PROVIDE BETTER ANALYSIS AND
CLASSIFICATION OF ACTIONS
REASONABLE
POSSIBLE TO PERFORM
4. ADVANATAGES OF PLANNING
Acts as a Significant Integrating Force
Helps in process of decision-making
Helps the organisation to implement Future Programs
Keeps the organisation up-to-date and Highly competitive.
Economies of large scale operation
Budgeting and budgeting control
Sense of Involvement & Team Spirit
Performance of all functions-coordinating, controlling etc.
Achieving objectives through proper control
Efficient management and develop individual managers
5. DISADVANTAGES OF PLANNING
1. VERY EXPENSIVE & TIME CONSUMING
2. RIGID ORGANSATIONAL STRUCTURE
3. DELAYS PROCESS OD DECISION-MAKING
4. CANNOT ENSURE CERTAININTY OF FUTURE
PERFORMANCE
5. PRECISION BASED ON ASSUMPTIONS
6. ONLY APPROXIMATE RESULTS
6. PRINCIPLES OF PLANNING
Contribution to objectives
Primacy of planning
Pervasiveness of planning
Flexibility of planning
Periodicity
Planning premises (Assumptions)
Efficiency of Operations
Limiting Factors
Revision
7. Steps in Planning
1. Defining the Problem
2. Establishing objectives
3. Establishing the planning premises
4. Determining Alternative course of action
5. Evaluation of Alternative course of action
6. Selecting the course of action
7. Formulating derivative plans
8. Timing the sequence of operations
9. Participation and Follow-up
8. PLANNING PREMISES
Management has to take policy decisions based on
certain assumptions and about future happenings.
Such assumptions are known as Planning Premises.
TYPES OF PREMISES
5. INTERNAL &EXTERNAL PREMISES
6. TANGIBLE & INTANGIBLE PREMISES
7. CONTROLLABLE, SEMI-CONTROLLABLE &
UNCONTROLLABLE
8. CONSTANT & VARIABLE PREMISES
9. PLANNING PROCESS
1. ANALYSIS OF EXTERNAL ENVIRONMENT
2. ANALYSIS OF INTERNAL ENVIRONMENT
3. DETERMINATION OF MISSION
4. DETERMINATION OF OBJECTIVES
5. FORECASTING
6. DETERMINING ALTERNATIVE COURSE OF ACTION
7. EVALUATING ALTERNATIVE COURSE OF ACTION
8. SELECTING THE BEST
9. ESTABLISHING THE SEQUENCE OF ACTIVITIES
10. FORMULATION OF ACTION PROGRAMMES
11. REVIEWING THE PLANNING PROCESS