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Achieving objectives
Organising
Planning
Controlling
Directing
Staffing
Meaning
Planning:
Planning is an activity. It can be considered as consisting of a process, hence various sub-activities.
Plan:
Plan is commitment to a particular course of action believed necessary to achieve specific results. Eg, Five Year plans: consists of various actions to be taken, results to be achieved, and resources to be used.
The plans are prepared through the planning process which involves taking various activities to arrive at what is to be achieved, how to be achieved, and when to be achieved.
Definition
Peter Drucker: Planning is a continuous process of making present entrepreneurial decisions (risk taking) systematically and with best possible knowledge of their futurity, organising systematically the efforts needed to carry out these decisions and measuring the result of those decisions against the expectations through an organised systematic feedback. George R. Terry: Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualisation and formulation of proposed activities believed necessary to achieve desired results.
McFarland: Planning is a concept of executive function that embodies the skills of anticipating, influencing and controlling the nature and direction of change. Wiehrich and Koontz: Planning involves selecting mission and objectives and the actions to achieve them; it requires decision-making that is, choosing from alternative future courses of action. Haimann: Planning is the function that determines in advance what should be done. It consists of selecting the enterprise objectives, policies, programmes, procedures and other means of achieving these objectives.
Koontz and ODonnell: Planning involves selecting enterprise objectives, departmental goals, and programmes and determining the ways of reaching them. Planning thus provides a rational approach.
Features of planning
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Planning is goal oriented Planning is a primary function Planning is all pervasive Planning is an intellectual process Planning is a continuous process Planning is forward-looking Planning involves choice Planning is an integrated process
Nature of planning
Planning: A rational approach Planning as a rational approach tries to fill the gap between actual status (current performance) and desired status (desired performance) through the appropriate use of resources. Planning: An open systems approach Indicates that the identification of gap between current status and desired status in future and the action required to bridge the gap is influenced by a variety of environmental factors economic, political-legal, technological, socio-cultural, and competitive that are dynamic in nature. Pervasiveness of planning: Corporate plan Divisional plan
Importance of planning
Focuses attention on objectives and results Reduces uncertainty and risk Provides sense of direction Encourages innovation and creativity Helps in coordination Guides decision-making Provides a basis for decentralisation Provides efficiency in operations Facilitates control
Principles of planning
Principle of contribution to objectives Principle of efficiency of plans Principle of primacy of planning Principle of planning premises Principle of policy framework Principle of timing Principle of alternatives Principle of limiting factor Principle of commitment Principle of flexibility Principle of navigational change Principle of competitive strategies
Types of planning
Dimensions Types of planning
Coverage of activities Corporate planning and functional planning Importance of Strategic planning and contents tactical/operational planning Time period involved Long-term planning and short-term planning Approach adopted Proactive planning and reactive plannig Degree of formalisation Formal planning and informal planning
Types of plans
Management levels Top level management Middle level management Lower level management
Time
Scope
Strategic plans
Tactical plans
Operational plans
Types of plans
Plans
Standing plans
Programs
Budget
Projects Methods
Policies
Procedures
Rules
Schedules
Objectives
Strategies
Hierarchy of plans
Mission Objectives Strategies Policies Procedures and Rules Programmes and Projects Budgets Quotas and Targets
Planning process
Establishing objectives Developing premises Evaluating alternatives and selection Formulating derivative plans Securing cooperation and participation Providing for follow-up External & Internal analysis
Perception of opportunities
Establishing objectives
Planning premises
Identification of alternatives
Evaluation of alternatives
Planning premises
Planning premises is the anticipated environment in which the plans are expected to operate. They include assumptions or forecasts of the future and known conditions that will affect the course of plans.
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Types: External and internal premises Tangible and intangible premises Controllable and uncontrollable premises.
6. Flexible