Definition and Nature

of Planning
 PLANNING

 The process of outlining the

activities that are necessary to
achieve the goals of the
organization.
 Concerned with defining goals for a
future direction and determining on
the missions and resources to
achieve those targets.
 PLANNING

 Planning increases efficiency of

an organization.

 It also reduces risks.

 PLANNING
 In a business, planning is the
primary of all managerial as it
involves deciding of future course of
action.

 Process of deciding in advance what

is to be done, where, how and whom
it is to be done.
 Nature of Planning
studying its characteristics,
Planning is:

A mental activity – intellectual exercise

and involves thinking forethought on the
part of the manager

Is goal oriented – goals to be attained in

the future and the steps necessary to
 Nature of Planning

Is forward looking – looking ahead

Pervades all managerial activity –

basic function of managers at all levels
 Nature of Planning

Is the primary function – precedes

the execution of all other managerial
functions

Is based on facts – is a conscious

determination and projection of a
course of action for the future
 Nature of Planning

Is flexible – a dynamic process capable

of adjustments in accordance with the
needs and requirements of the
situations;

Is essentially decision-making -
alternatives and selection of the best.
Types of Plans
 3 major types of
planning

Operational –
frontliners

Tactical – middle
levels

Strategic - toplevels
4th type is contingency planning –
alternative course of action which
can be implemented if, or when an
original plan fails to produce the
anticipated result.
Planning Techniques
and tools
 Planning Techniques and
tools
 Forecasting, is the process of predicting
what will happen in the future.

 Contingency planning, involves

identifying alternative courses of action
that can be implemented, if and when an
original plan proves inadequate because of
changing circumstances.
 Planning Techniques and
tools

 Scenario planning, is a long-term

version of contingency planning that
involves identifying several
alternative future scenarios or states
of affairs that may occur, and then
making plans to deal with each
scenario should it actually occur.
 Planning Techniques and
tools
 Benchmarking is a technique that makes
use of internal and external comparisons to
better evaluate current performance and
identify possible actions to improve the
future.

 Staff planners, are persons who take

responsibility for leading and coordinating
the planning function for the total
Application of
Planning tools and
techniques
Decision- making
 Decision - making
Is an integral part of modern
management. Decisions play important
roles as they determine both
organizational and managerial
activities.

A decision can be defined as a course of

action purposely chosen from a set of
alternatives to achieve organizational or